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1 DON T INGNORE CONSUMER Click to edit Master title style
2 The company we keep We have a reputable track record in which we have provided assistance for some established multi-nationals, as well as local institutions in the market. Foshizi has established a niche in the market as being amongst the few consumer insight companies in the forefront. Our clients delight in doing business with Foshizi because we offer them originality, innovation and first-hand view in present time of consumer research into previously uncharted territories and that can be summarised by the following client base that Foshizi has provided research services for:
3 The more things change - They stay the same. Brand nicknames & second usage First impression brands Kasi hampers 3 Seasons & The Black Calendar Electric blanket Weekend brands Colour blocking 3
4
5 Desktop research: Stokvels Stokvel Profile 23.4% of South Africa s adult population belong to a Stokvel, equating to over 8.5 million members. Stokvel savings are estimated at R25 billion. Stokvel saving offers discipline unlike saving money in a savings account. Gauteng, North West, KZN and Limpopo make up 70% of Stokvel market. 57% of members are women, and 43% are men. 66% of stokvels have bank accounts. They have strict constitution. Defaulters are penalised as per the constitution or even expelled. Saving amounts to 43% of the total market. Stokvels are a way to learn about jointly investing money to create wealth and security for members. There is still resistance by stokvels to trust banks with their money. Types of Stokvel Groceries Funerals Savings Loans/Investment Money go round New breeds Back to School Travel Airtime Lobola Other Socials 5
6 Their lifecycle has been disrupted Generation X Silent Generation Uptight. Boring. Babyboomers Generation X Afraid of risks. Bad dress sense. High on cooking and DIY. Had less career choices. Ruled by technology. Generation Y (Millennial) Adaptable. Adventurous. Go getters. Trendy and chic styles. Cook or buy food. More career options. Hip-hop, tribal & house music. Rule technology. 6
7 Grey money = unbanked money Informal employment : Secondary income: Reasons for applying for a loan Salon DStv Installers Day-care Taxi Industry Moving vans and Children s Transport Waiters and waitresses Residential Plumbers and Construction Sangoma/traditional healers Domestic workers & gardeners Shebeen Spaza Shops Direct Marketing Township fast food Ausi Stokvels Tips for waiters and waitresses Car wash Recyclers Cell-phone Informal Traders Tenants Money from relatives and migrant workers Part-time car mechanics Paying off a debt Funeral School fees in January Wedding Buying cars Festive Alcohol Not properly budgeted for the month Emergency Children school trip Shopping for clothes 7
8 1) What have they cut down on? 2) Employers are cutting down on: Entertainment Bonuses Alcohol Office Matreial Groceries Office Groceries Hair and nails (DIY - would rather do these at home themselves) Staff Drinks Clothes other companies are retrenching. Treats for children Convenient products like already chopped vegetables Relationship (men) DStv Transportation would rather walk long distance or take train. 8
9 What are they buying? Buying grocery in bulk. Buying refill products. Less meat and more tin stuff 9
10 Furniture Shopping pattern LSM 4-6 Copy Cats LSM 7-8 Trendsetters LSM 9-10 Exclusive Fair Price Mr Price Home Designer furniture shops Price n Pride Geen & Richards UFO Russells Furniture City Bradlows Coricraft House and Home Akhona furnitures Furn City Coricraft Wetherlys Red Apple Sevens Morkels Furn City Geen & Richards Mr Price Home House and Home Bakos Brothers Electric Express Furniture City Ellerines Electric Express Bradlows Lifestyle Living 10
11 Aspiration Brands LSM 7-10 CARS APPLIANCES CLOTHING CELLPHONE AREA Some respondents have these brand. 11
12 Back to basics Then Consumer Products Brand 10 key repetitious findings: 1. Show that your brand cares or vaya 2. Don t laugh at me, laugh with me 3. English is not everything 4. Product offering first, brand after Now Brand Communication Consumers 5. Be the Godfather I did not bring 6. Top pocket vs. Bottom pocket 7. One size fits all does not work 8. Recognize the informal economy 9. South Africa is not Joburg 10. Research your communication
13 Rendered Services Segmentation Research Product Research Pricing Research Promotion Research Brand Research Social Research Advertising Research Customer Surveys Employee Surveys Feasibility Studies Customer Service Evaluation Operations Evaluations Telephone Evaluations Competitor Checks Price Checks Television Audience Measurement Radio Audience Measurement Print Readership Corporate Strategy Marketing Strategy
14 Tel: Web: foshizi.co.za
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