Understand township consumers and what they value well enough to really add value to their lives through marketing efforts

Transcription

1 Understand township consumers and what they value well enough to really add value to their lives through marketing efforts Data source: GFK Consumer Life

2 Consumer Life is a large worldwide longitudinal survey GfK conducts across 25 markets annually. The purpose of this study is to track the changing values, lifestyles and behaviours of consumers. We go beyond the what to the why, the why now and the what next. In South Africa we interviewed 1000 urban and peri-urban respondents, these report findings are representative of LSM 5-7 township respondents based on 2015 and 2016 waves.

3 BENEFITS SOUGHT Value exchange BENEFITS DELIVERED 3

4 Township consumer's top personal value is duty. This is higher than the rest of South Africa and very much higher to global norms. Although consumers seek Individuality, this privilege has to be earned or acquired through heritage. High importance of Social Responsibility Dual Upliftment Example of this in Personal care category : Looking good is not only about personal vanity, its more about duty or social responsibility. Because I want to be admired and respected by others and to set a good example to the children. In the townships everybody is aiming for advancement People help others in a way that will help themselves at the same time its about advancing yourself and being mindful of how you can help others whilst achieving this goal. Opportunity for peer marketing incentives?

5 Cultural Purity and Respecting their roots are valued very highly by the South African consumer but more intensely in the townships and especially by older township consumers. Implication for marketers Brands should show consumers that they understand and respect their roots and culture and adhere to this code of ethics. In order to respect somebody s roots and culture, you need to unpack the layers that surround these social norms and values

6 44% giving of South African consumers agree that experiences like holidays and travel are more important than possessions (top2 box out of 7). Breaking through the mundane and this consumer a real relevant experience will make your brand their best friend. Experiences that township folk participate in Attend Church Listen to Radio Watch TV This somewhat mundane list of activities presents the opportunity for brands to impact peoples lives by offering relevant yet exciting experience benefits. Positive experiences are emotionally charging, hereby strengthening the consumers relationship with the brand and generating loyalty.

7 Authenticity is the highest growing value in SA (especially among Millennials) Activations need to be authentic Do it with them, in their community, create a buzz and support this through local radio. They love to tell their neighbours about their experiences give them a trustworthy emotional experience to talk about.

8 59% of Township consumers consider TV advertising as most trustworthy source of information on products and services (vs 55% Total SA) However content within programmes are very important. Opportunity for more editorial content on radio and TV 49% 34% Consider TV programmes as a trustworthy source. (40% Total SA) Consider Radio Programmes to be a trusted source (27% Total SA). Township consumers are more likely to talk about product experiences with their friends, however this is considered less trustworthy. There is a great opportunity to support your in-person activations through editorial content on radio and TV

9 Information overload Consumers usually stick to brands they know as there is a lot of clutter How can you make the purchase decision simpler? How can you clearly communicate the product benefits on-shelf?

10 Total Township consumer Own a phone (not smart) 50% Own a smartphone 53% 60% total SA 56% Black SA Accessed the internet in L30D 51% Average airtime spend at L&T is R420 per person, per month 3 rd largest category purchased at L&Ts* year old township Own a smartphone 73% 74% Total SA Visit an online network/community from their phones 51% 35% Total Township 53% Total SA Listen to music from their phones 73% 61 % Total Township 73% Total SA * Source: GfK Consumer Panel

11 Although penetration is lower than the rest of SA, Township consumers who do access the internet, spend longer online and do not feel that this is a waste of time or that people share too much private info online. (55% vs 62% total SA). Have you moved online with them?

12 If you want us to be interested in you, your brand, your product/service, you must be interested in us, in our do's and don t s, our cultures and most importantly our sensitivities Muzi Kuzwayo