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

22 January 2021

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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

22 January 2021

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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

22 January 2021

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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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Battlefield insurance: Marketing through the pandemic

22 January 2021

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

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

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

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

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

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

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

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

Insurers continued marketing in 2020

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

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

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

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

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

More than marketing

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

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

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

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

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

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

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

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

A general lack of knowledge

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

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

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Don’t let a poor economy stop you from starting a business

22 January 2021

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Categories: General, Marketing

DILLON LOUW, Digital Content Creator at Digital Content Lab reviews what Netflix, Microsoft and Disney have in common and if its advisable to start a business in a recession.

Netflix, Microsoft and Disney and other highly successful brands were all founded in poor economic times. This goes to show that even though we find ourselves in a shrinking economy, there are feasible business opportunities for savvy entrepreneurs.

Need more evidence? The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. More than 50% of all companies on the Fortune 500 list right now were founded during a recession, or under poor economic conditions.

A closer look at great businesses born during recessions
Uber

Garrett Camp and Travis Kalanick originally founded the ride-hailing company as Ubercab in March 2009. The idea itself came after they could not find a taxi ride one night in Paris.
Fast forward a few years and in December 2015, Uber had reached its 1 billionth trip and by June 2018 its 10 billionth trip.
Аѕ of Јаnuаrу 2021, the аррrохіmаtе еѕtіmаtіоn of Ubеr’ѕ net worth іѕ $100 bіllіоn. Furthermore, one of Ubеr’ѕ іnvеѕtоrѕ, Веnсhmаrk, ѕауѕ thе firm іѕ соnfіdеnt аbоut Ubеr’ѕ орtіmіѕtіс future.

Airbnb

Airbnb is a community that was born in 2008 when two hosts welcomed three guests to their San Francisco home. The idea was initially conceptualised during the Industrial Design Conference, where the founders initially focused on providing short-term living quarters, breakfast, and business networking opportunities to persons who were unable to find a hotel during the conference.

Airbnb has since grown to 4 million hosts who have welcomed over 800 million guest arrivals to about 100,000 cities in almost every country and region across the globe.

WhatsApp

Former Yahoo! employees Jan Koum and Brian Acton created the encrypted messaging platform WhatsApp in 2009 as a means for people around the world to message each other quickly. The platform rapidly gained traction in regions that do not have access to the same network capabilities as the U.S.A. because of its ability to operate via Wi-Fi.

In 2014 Facebook purchased the app, which now has more than 2 billion users globally, for a staggering $19 billion.

Netflix

Legend has it that Netflix founder Reed Hastings was motivated to start an online DVD rental by mail service after incurring a $40 fine from Blockbuster for a DVD that was returned late. Ironically, the new-born company nearly crumbled when Blockbuster made the fatal mistake of refusing to buy it out during the dot-com bubble burst of the early 2000s.

Netflix weathered the storm caused by the dot-com bubble by means of its incredible innovative spirit to spearhead the streaming on-demand video service we know today, leaving Blockbuster permanently in the dust. Today, Netflix is worth nearly $34 billion and growing, thanks to the current demand for home-based entertainment.

Three recession-proof sectors
There are three business sectors that appear to be ‘recession-proof’. While the first may seem a little morbid, especially given current times, they all make sense and are worth noting. A start-up supplying innovative solutions to these types of businesses in a recession are likely to succeed as they will benefit from derived demand in these industries. These include:

Death-care services

Businesses offering services related to death, including funerals, cremation, burial, and memorials, tend to be some of the most recession-proof operations. The reason for this is that death-care services will always have a steady stream of business regardless of economic conditions. According to Business Insider, South Africa’s funeral industry is estimated to be valued between R7.5 billion and R10 billion.

Education

South Africa’s education system is under massive pressure to upskill individuals and get them ready for the job market. South Africa is experiencing a skills shortage in several of its business sectors which emphasises the need for service providers that offer efficient, affordable and accessible adult education. The education industry has faced massive challenges as a result of COVID-19 lockdown and has had to adapt processes in order to survive. Industry Leaders like the IMM Graduate School where students have experienced no disruption to their academic year and have seen increasing interest in South Africa and the rest of the African continent for their online distance learning education offering.

Security

Despite poor economic conditions, the private security sector has also been booming of late. Private security is an estimated R45 billion industry showing a growth rate of 15% per year. There has been an alarming increase in the crime rate over the years and private security firms are taking advantage of this to expand their operations.

Services industry in the spotlight
What appears to be clear from the above examples of recession proof businesses is that each of these fulfil a basic need; the need to bury our dead, the need for education to increase our earning potential and the need to keep ourselves safe. All of these as well as the many businesses that were founded in a recession appear to have one other thing in common – they are all services businesses. And furthermore, those least impacted by COVID-19 are delivering an online service; Netflix offering low-cost entertainment from the safety of your home and WhatsApp offering low-cost communication via their platform no matter where you are.

It could therefore be concluded that businesses that start up in this current economic climate must consider offering a low cost, online service that is easy and safe to access while fulfilling one or more basic needs. If you can figure that out, perhaps you will be the next big brand that started up in the 2021 recession.

In the meantime, prepare yourself and sign up for one of IMM’s programmes in Marketing, Business or Supply Chain. Start topping up on your knowledge and skills so that when that big idea comes along, you are ready to act.

If you would like more information on what the IMM Graduate School has to offer you, follow the link to our website https://imm.ac.za/.

IMM Graduate School Year-end Function – December 2020

13 January 2021

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IMM Year End Function 2020 Chrissie Lars

IMM Year End Function 2020 Irene Angela Lars

Top 7 marketing trends in 2021

6 January 2021

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Categories: General, Marketing

Today’s marketing world travels at breakneck speed, and in order to succeed in this industry, you have to stay ahead of the game. Throughout 2020, and the COVID-19 pandemic, we saw consumers shift their shopping habits from in-person to online. This shift in consumer behaviour has led to a substantial change in the way marketers reach consumers.

The pandemic has significantly impacted the way consumers search for, access, and utilise goods and services. It is important that marketers stay with the times. In this blog we review and discuss the top trends in marketing for 2021.

1. Inclusive marketing

Inclusivity has never been as significant as it is today. HubSpot (2021) defines Inclusive marketing as “campaigns that embrace diversity by including people from different backgrounds or stories that unique audiences can relate to”.

While some inclusive campaigns try to break stereotypes, others simply aim to reflect or embrace people in the real world.

In 2021, we will see more marketing campaigns that include media and subject matters that cover a variety of cultural backgrounds, religions, race, etc., as well as representation for people with physical and learning disabilities.

2. Increase in brand-to-brand collaborations

Other successes like McDonalds’ collaboration with Travis Scott have encouraged some deep-pocketed organisations to have their marketing departments put a renewed focus on brand collaborations with celebrities in 2021.

Collaborations like this between corporate brands have proven to be largely beneficial to both parties, as these types of unexpected partnerships create a social buzz and allow for cross marketing by both brands to their customer bases which is a big advantage in today’s world where customer attention is more difficult to grab than ever.

These types of celebrity and brand collaborations often do not require celebrity endorsement fees, which is an additional advantage in an era of tightened marketing budgets.

3. Content is still king

Content marketing has become the marketer’s main tool for attracting customers and boosting sales. The marketing landscape is likely to remain this way for years to come.

Today, most businesses pay for content-related ads and invest to generate unique content or publish blogs. According to the Content Marketing Institute (2021), content marketing has helped 96% of top brands in building trust and credibility with their audience.

In the current marketing sphere, content should form the core of your marketing strategy. With a vast amount of information freely available everywhere, and to everyone, most businesses already know how to attract their customers. However, what is crucial is the actions they take. The main goal should not be to just provide people with content and hope for a positive reaction. Instead, it should aim to encourage prospects to share and engage with your content.

The content you generate unlocks the key that connects your brand to your audience. This connection is important to generate trust which will lead to loyalty.

4. Video advertising

n 2020 we saw an overnight obsession with TikTok amongst Millennial and Generaton Z users, video has truly taken marketing by storm. According to a study by Microsoft (2020), the average human being has an attention span of eight seconds. This makes it extremely difficult for marketers to capture the attention of their audiences.

Various other Social Media platforms also allow you to create short videos, for example, Facebook and Instagram. These videos can be anything from 10-seconds to three minutes, providing you with a sufficient amount of time to respond to questions, demo a product and more. Not only are videos informative and engaging, but they can also provide large chunks of information in a short time. Therefore, video advertising helps in demonstrating your offering in a better way than other ad formats, in turn leading to a higher conversion rate.

Furthermore, app developers have been updating their features and are focused on driving and creating customer loyalty by reducing the number of times consumers switch between various applications, especially where video is concerned. A great examples of this is Instagram’s new ‘reels’ feature. As these companies begin to promote these features, users get hooked on them, which makes it a great option for marketers to showcase their offering.

5. eCommerce will continue to boom

Due to the COVID-19 pandemic, many retailers and brands have transitioned to a permanent online operation. According to Forbes.com (2020), online spending in 2020 was up 77%. Another example of this is international ecommerce giant, Amazon, who according to businessinsider.com (2020) have recorded their highest eCommerce growth in more than 3 years.

There have always been several benefits to shopping online, with the convenience of it being the biggest drawcard for consumers. In 2020, though with the COVID-19 pandemic, shopping online is not only convenient but also the safest way to do your shopping. Consumers today have become very used to this way of life, and many of them only now realise the benefits to online shopping including the excellent customer experience. This only means one thing for 2021, eCommerce will continue to boom.

6. Social commerce

Similar to the popular omnichannel approach, social media marketing now offers users the opportunity to shop ‘in-app’. This in-app shopping has turned into a major trend among millennials mainly due to the convenience of it. Consumers today are becoming opposed to continue their search or purchase products when they have to switch between applications to make their payment. This is because users do not want to be disrupted, they want to engage with a brand and shop online all in one place.

It is a well-known fact that social media today is the largest and most beneficial platform for marketing online. Now, with the launch of Facebook Shops, Instagram Shopping and Pinterest Shopping Ads and Catalogues, social commerce will become one of the most influential marketing and commerce trends of 2021.

According to Smart Insights (2020), 55% of online shoppers now make their purchases via social media platforms like Facebook, Instagram and Pinterest, and 71% of users turn to their social media for inspiration for shopping. Therefore, it is now of essence to offer your products and services and make them ‘shoppable’ on social media. As we see more organisations make the switch to digital to adjust to the COVID-19 pandemic, this will be an essential tactic if you wish to remain competitive.

7. Voice search

The CEO of Google, Sundar Pichai, revealed that out of the five searches conducted on an Android app, one is always a voice search.

Voice search is becoming so popular because it provides consumers with information at any given moment: while traveling and they do not have much free time, or when they can’t type, or even when they’re just too lazy to type. For consumers today, it is all about convenience.

Therefore, marketers need to start optimising their content for voice search. The best way to optimise content for voice search is to firstly, focus on phrases and longtail keywords. This makes sense since voice searches make use of a more natural language. The way we talk is completely different to the way we type.

Secondly it is to anticipate specific questions that are asked in a conversational tone, as people are inclined to ask their devices questions. A great example of optimising your content for voice is to start some of your paragraphs by asking questions such as why, what, where, and when.

While none of these trends are completely new to digital marketers, they are all gaining momentum and as the marketing world continues to transform in 2021, these trends will become critical to organisations that wish to remain competitive in their respective industries.

As the world continues to experience the lasting repercussions of the COVID-19 pandemic, the business world will continue to transform digitally. It is now more crucial than ever to keep your marketing strategies current and focused on the changing behaviour of your target audience.

IMM Launches Brand New Supply Chain Management Qualifications

19 December 2020

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Categories: General, Supply Chain

Never before has the active integration and coordination of superior supply chain activities, that provide the best value for customers, been as important as it is right now. As an unprecedented 2020 draws to a close, with an uncertain future for businesses across the globe, it has become abundantly clear that competent and proficient Supply Chain Management (SCM) is a major catalyst when it comes to sustainable economic growth.

With this in mind, the IMM Graduate School has added two brand new, cutting-edge SCM qualifications to their offering. What makes these new programmes significant is that they are accredited by the internationally recognised Chartered Institute of Logistics and Transport (CILT); a first for any SCM qualification in South Africa. This offers valuable professional recognition worldwide.

The Higher Certificate in Supply Chain Management is an introductory course (NQF 5) which provides students with a holistic understanding of both supply chain and business management. Along with the CILT accreditation, the Higher Certificate is also accredited and registered with the DHET/CHE/SAQA.

The BCom Honours in Supply Chain Management is the most up-to-date SCM qualification in the world, with modules that cover many never before inclusions, namely;

A brand new, uniquely tailored SCM Management Synchronisation and Orchestration model.
Additional SLC’s in terms of SCM services not found in traditional textbooks.
An entire chapter devoted to Supply Chain Analytics, including all the formulae pertaining thereto.
A customer-centric downstream approach, as opposed to upstream supply partners.
Artificial intelligence, digitalisation and blockchain technology which is collectively covered for the first time in any SCM qualification.

The BCom Honours also includes the design of brand new responsive organisational structures hinging on the fact that so many companies are now working remotely due to Covid-19, an integral part of a future-focused approach to SCM, that is really only coming to light as businesses start to react to new ways of managing their structures. Also new to this particular qualification is an entire Ethics and Risk Management module, again stemming from a new approach to Covid-19 business practices, that no textbook in the world has yet included.

Registration for both programmes is now open, so for more information or to register please visit imm.ac.za.

SSC eTutorials

18 December 2020

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Categories: General, Marketing

The IMM Graduate School is at the forefront of online education development and in a position to digitally support students through their academic journey. The risk of feeling isolated (which is often experienced in distance learning) is significantly reduced when you become a part of a student community.

No matter where in the world you are, our SSC eTutorials provide you with 12 weeks of live online classes in each semester, with great tutors. These tutorials are offered in the evenings and Saturday mornings, to enhance your distance learning experience. They will help you keep pace with the learning content – which can often be a problem when you are taking the journey on your own while facing work, home, and study responsibilities.

SSC eTutorials will offer you:

Small online groups for personal, individual attention, where your tutors know you by name;
Breakaway rooms online to collaborate with other students, where you can bounce your understanding of concepts off each other, see varied perspectives on the module content, and learn from each other;
Immediate feedback from tutors who are experts in their field, and who have a wealth of industry experience to share with you;
Access to recordings of SSC eTutorials and tutor presentations, so you will not miss a class and will be able to use these tools to recap before assessments.

Join our eCommunity – a place where others will motivate you, as you motivate them.

Authentic Assessment in the Digital Learning Environment

17 December 2020

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Categories: General, Marketing

Meaningful evaluation of student competence in online learning.

Introduction

During 2020, focus has shifted to learning and teaching in the digital environment, which up until a few months ago, was regarded as inferior education. Then necessity became the mother of invention as those who had clung to the familiar contact modes of delivery, were forced into the online environment. Academics were forced to apply newly acquired didactic skills to accommodate learning and teaching in the digital space.

Inevitably, with online education, came the need for online assessment. Institutions of higher learning, took traditional summative assessments online with little consideration of the suitability thereof. Taking traditional summative assessments online brought with it quite a number of challenges.

Cheating raised its ugly head and collusion among students has become rife (Ahmadi H., 2020, Larkin, C., & Mintu-Wimsatt, A. 2015, & Šprajc et.al. 2017 ). The travesty is that cheating students become ineffective graduates with questions about ethics among future business leaders being raised (Chandler et.al 2017). For the sake of academic integrity and ensuring that assessments truly reflect how well students have mastered outcomes, the nature of assessing student competence as we have known it, needs to be reconsidered in the digital environment.

The purpose of the discussion below is to prompt thought around the relevance of current assessment practices in the online assessment environment, bearing in mind the challenges which online assessment and traditional assessment bring with it.

Traditional Summative Assessment

While the focus over the last while has been on keeping learning and teaching going during the lockdowns imposed by governments, appropriate ways of assessing student competence in the digital space, remained a lesser priority with most still focused on traditional summative assessment methods.

So, the question is whether 3-hour summative assessments are the only relevant methods in the digital environment and in the 21^st century and whether they are the only way to measure competence? Are we testing critical and creative thinking and problem solving or just making sure that students can apply theory to practical situations, which are often not real or authentic?

Authentic Assessment

How could we be assessing student competence as an alternative to traditional examinations especially in the digital learning environment and for the 21^st century?

The notion of authentic assessment, which has been around for some time, as an alternative, may assist in reducing the incidences of cheating among students, encourage critical and creative thinking and problem solving and keep academic integrity as intact as possible.

Authentic assessment is not only focused on knowledge and application of theories and principles, but assesses the so-called hidden curriculum which encourages acceptable norms and values, respect for the opinions of others as well as interaction with and tolerance of all. The following quote from Koh, Tan & Ng (2012) “In contrast to conventional paper-and-pencil tests that focus on knowledge reproduction and low-level cognitive processing skills in artificial and contrived contexts, authentic assessment tasks emphasize knowledge construction, complex thinking, elaborated communication, collaboration and problem solving in authentic contexts.”, encapsulates the focus of authentic assessment, well. Authentic assessment addresses not only the cognitive aspects of learning but provides for a holistic assessment of student competence.

While traditional assessments assume that students have been exposed to knowledge to be tested, student-centered, authentic assessments on the other hand drive and determine the learning content.

The benefits of authentic assessments are that it allows for students to construct knowledge and creates opportunities for learning in a real world relevant context. The key to successful authentic assessments is clearly defined outcomes and rubrics as “powerful support tool to make judgments about students’ learning in several disciplines” (Gallardo (2020).

So, what could an authentic assessment look like? Instead of a structured 3 hour paper, students could be required to complete tasks over a period of time, constructing and applying knowledge as they progress through the tasks, which may be in a real world or simulated context. Virtual reality scenarios provide simulations of real world contexts for students to apply their learning to. Another variation is that students may be required to solve a real world problem, drawing on knowledge of several related subjects, for example, drawing on the theories of marketing and business thus integrating their knowledge of several subjects into one project. Students may also be required to work on a common problem in groups across a digital platform, managing the roles and responsibilities within the group. The variations in authentic assessments are endless.

The Pros and Cons of Authentic Assessment

The toss-up between the grading of authentic assessments and traditional assessments is that authentic assessments, while they encourage critical thinking, problem solving and learning about team dynamics, values and norms, are more open to subjective evaluation and more time consuming to grade because of the need to provide detailed feedback. On the other hand, the trade-off with traditional assessments is that the latter is faster to mark, but often neglects the all important more complex higher order thinking required of graduates.

Higher education institutions have a responsibility to industry and society, to produce competent graduates with sound higher order thinking. Are our assessment methods achieving their objectives?

Reference List

Ahmadi H., (2020). “Cheating in Education: A Focus on Plagiarism.” Turkey and Afghanistan: Eskisehir Technical University and Kabul Polytechnic University (not peer reviewed)

Alsubaie, M. A., (2015). “Hidden Curriculum as One of Current Issue of Curriculum”. Journal of Education and Practice, Vol.6, No.33, pp 125 – 128

Chandler, N., Miskolczi, P., Kiraly, G., Scuka, B., and Gering, Z., (2017) “The ethics of our future business leaders: an analysis of the perceptions of cheating in higher education,” Hungary: Babeş-Bolyai University: Hungarian Economists’ Society from Romania and Department of Economics and business Adinisyration in Hungarian Language, vol. 20, no. 131, pp 3-27

Gallardo, K., (2020) “Competency-Based Assessment And The Use Of Performance-Based Evaluation Rubrics In Higher Education: Challenges Towards The Next Decade”, Šiauliai: .Problems of Education in the 21st Century; Vol. 78, Iss. 1, (2020): 61-79.

Koh, K.H., Tan, C., & Ng, P.T., (2012). “Creating thinking schools through authentic assessment: the case in Singapore”, Educational Assessment, Evaluation and Accountability; Dordrecht Vol. 24, Iss. 2, (May 2012)

Larkin, C., and Mintu-Wimsatt, A., (2015). “Cheating Among Undergraduate Business Students: Say it Ain’t So”. Las Vegas: ASBBS Annual Conference vol 22, no. 1. Pp 269 – 277

Mueller, J., (2005). “The Authentic Assessment Toolbox: Enhancing Student Learning through Online Faculty Development”. Naperville, IL, Journal of Online Learning and Teaching. Vol 1, no. 1

Šprajc, P., Urh, M., Jerebic, J., Trivan, D., Jereb, E., (2017), “Reasons for Plagiarism in Higher Education”, Slovenia : Organizacija, vol. 50, no. 1, pp 33 – 45

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