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Cinema
marketing
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Contents

I 02 I Ed’s note I 23 I Justtouchit interactive retail guide:


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I 04 I Top print performers:
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I 14 I Expert Opinion: Richard Duncan I 27 I Expert opinion: Kennedy Zakeer


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I 28 I Expert opinion: Dr Roberts-Lombard


I 15 I Justtouchit interactive retail guide: ;iDfieXpIfY\ikj$CfdYXi[kXb\jXcffbXkk_\]Xjk]ff[`e[ljkip%
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I 30 I Cinema
I 18 I Justtouchit interactive retail guide: DXib\k`e^D`o\ogcfi\jk_\gfn\if]k_\Y`^jZi\\e%
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I 34 I 7 day [b]itch
I 19 I Justtouchit interactive retail guide: N`cc>i\\e#dXeX^`e^[`i\Zkfi#8gli`dXZD\[`X%
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I 35 I Expert opinion: Nici Stathacopoulos


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I 36 I Interview: Seth Godin
I 21 I Justtouchit interactive retail guide:
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I 22 I Justtouchit interactive retail guide: I 40 I Expert opinion: Aardt Davidtz


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Vol 28 Issue No. 3/4 2010 R25.00 incl. vat

14 20 28 36
Cinema Proprietor and Publisher: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Database:
marketing Road, Rivonia, Johannesburg PUBLISHER AND ADVERTISING MANAGER: Terry Murphy MANAGING EDITOR: Michelle
Sturman michelles@systems.co.za EVENT ENQUIRIES: Noelene van Niekerk noelenen@systems.co.za SUBSCRIPTION
List Perfect

goes 3D ENQUIRIES: Marianne Nzioki mariannen@systems.co.za

www.marketingmix.co.za 3 412
(July-Dec 09)

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


ed’s note

Where is it?

I
t ’s not long to go until the 2010 FIFA World Cup and I’m just not
seeing it – the marketing, the advertising, the branding that is.
Where is it? Maybe I ’m just in the wrong places, but considering
Sandton in Johannesburg is FIFA ’s headquarters and a lot of people
will be staying in and around the city ’s northern suburbs, I ’m just
not seeing football fever.
Granted, the airports are covered with marketing material – but
fans, tourists and locals aren’t staying at the airport for the duration
of tournament. Football fever needs to be gripping South Africans
(we’ll not mention the few hundred thousands tickets that it could
help to sell) and the way to do this is cover the country with
football s‘ tuff ’. And before everyone jumps down my throat about
ambush marketing etc, many local brands have created advertising
that promotes the sport without infringing on the official sponsors’
rights. Which brings me to another matter – where is all the amazing
advertising from the official sponsors? Is South Africa simply not
good enough for them to spend their money on? Whatever the case,
I’m hoping that with such little time left before kick-off, we see some
marketing action off the pitch.
On another note, the recession seems to have benefited a few to
the detriment of many judging from this year ’s top print performers
(page 4). Well done to all those that made it. The economic woes of
the world also boosted cinema attendance over 2009 to the delight of
those involved in the industry, and this year looks set to be a record-
breaker with numerous 3D films and anticipated sequels on the list.
Read more about what’s happening in cinemas on page 30.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers
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vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

Top print performers 2010


I
t turns out that 2009 was even crazier than 2008 as the global downturn
tightened its grip. In fact, Marketing Mix hasn’t seen as many closures and Circulation key
frequency changes in a long time, if ever. All of this makes this year ’s top Red: Subscription and single copy sales
print performers all the more special. It must be mentioned that not every Blue: Total paid
top print performer increased their circulation figures substantially, as in light Green: Total circulation
of what was happening in the industry, recognition is also given to those that Figures in brackets refer to the total circulation for the
managed to keep their figures stable (without resorting to bumping up figures corresponding previous period.
through freebies etc).
Similar to last year ’s results, there are many niche titles, but unlike last
year, there are some major consumer titles that made the grade too. The ABC
Daily newspapers
figures stated throughout the feature refer to the October-December 2009
The daily newspapers category (October-December) decreased total circula-
period for newspapers and consumer magazines (mostly those with 11 or
tion slightly by 12 924 to 1 873 214. There were 15 digital editions, 43 876
more issues per annum, but there are a few alternate monthly). Inclusion for
Print Media in Education (PMIE), 10 807 third-party bulk, 1 474 399 single
top print performers took into account figures over the whole of 2009 from
copy sales and 332 754 subscriptions. All figures include foreign papers.
quarter to quarter as well as a comparison of 2008 figures.
The following print titles were suspended, terminated, resigned, ceased
publication or didn’t submit figures at some point over 2009:
2009 Top print performers
• Evoke Magazine (ceased) Isolezwe 104 320 104 320 104 320 (99 110)
• Health IQ (discontinued) Son (Daily) 113 214 113 214 113 214 (105 419)
• Money Week (resigned) digital only
• WineLands Living (discontinued) The top five daily newspapers (October-December) by
• Teenzone (terminated) subscriptions and copy sales are:
• Barbie (terminated) Daily Sun 492 126 492 126 492 126 (497 376)
• Passi Magazine (resigned) The Star 135 734 135 734 149 765 (156 899)
• Weekender, The (discontinued) Son (daily) 124 572 124 572 124 572 (105 419)
• Autoinsight (terminated in Q2 2009) Sowetan 111 456 111 456 123 099 (130 026)
• OFM Wheels (terminated)
4 • Y Magazine (terminated)
Isolezwe 104 320 104 320 104 320 (99 110)

• Bratz Magazine (discontinued)


• Real Simple (discontinued) The daily newspapers category struggled in 2009, both as a consequence of
• South African Travel Guide (resigned) the recession and a consumer move to reading news stories on the Internet.
• Quads 4 Fun (discontinued) In fact, only two dailies made the top print performers grade: Isolezwe and
• Modified SA (discontinued) Son (daily). Interestingly, they are non-English language papers. Isolezwe came
• Golf Punk SA (discontinued) through 2009 with record circulation figures along with growing ad revenue
• Topbike (discontinued) and market share. Thulani Mbatha, editor of Isolezwe says that it helps that
• Best Life (discontinued) the people working on the title represent the community the newspaper is
• Top Huis (discontinued) writing for. The ability to get close to news sources and gain immediate feed-
• Son Weekly (discontinued) back from the market helps to push Isolezwe’ s marketing initiatives.
• Topbike (ceased) “The Intandokazi Women’ s Club hosts events throughout KZN and tickets
• Digital Life (resigned) are generally sold out within hours. Our first Umlabalaba Competition was
• Mooiloop (ceased) hosted late last year with Castle Milk Stout and took us to the hottest taverns
• SL Student Life (ceased) around KZN. Then we ’ve got the Isicathamiya Festival during which choral
• Mens Health Living (ceased) groups compete from dusk to dawn for the coveted Cothoza neSolezwe award.
• Absolute Magazine (resigned) Our business-oriented forum, hosted with Metropolitan, gives professionals a
• Your Child (ceased) platform to network and hear top-level speakers. In addition to events, a range
• The Voyage of the Planet (discontinued) of promotions and competitions encourages sampling and loyal readership,”
• Threads & Craft (ceased) says Mbatha.
• Blunt (ceased) Mbatha adds that the future is likely to be digital in the medium to long
• South African Golfer’s Yearbook (resigned) terms, but at present the hard-copy market is so buoyant that it’s where
• Wrapped (discontinued) its focus is. The distribution market for Isolezwe has now matured so the
• Classic Car Africa (resigned) newspaper is working at a micro-level to make copies more easily available
• SA Computer Magazine (discontinued) in smaller neighbourhoods and growing settlements. Isolezwe reaches one in
three of KZN ’s LSM 5+ Zulu adults and the important ‘Zulu Spend’ in SA,
Frequency change and specifically KZN, has reached critical mass. “However, there’ s still growth
Mining Review Africa changed from alternate monthly to monthly potential in the market. We believe we’ re well-positioned to take advantage of
Disney and Me changed from monthly to alternate monthly that through ongoing development and innovation as well as brand extensions,”
Disney Prinses changes from monthly to alternate monthly says Mbatha.
Playhouse Disney changed from monthly to alternate monthly Afrikaans daily, Son, invested time and effort in research and listening to its
Sutra Magazine changed from quarterly to alternate monthly readers in 2009 and this is ref lected in its positive growth throughout the year.
Psychologies changed from quarterly to alternate monthly According to Mark Herman, general manager for Son, the footprint of the
Southern African Tourism Update changed from monthly to alternate paper was looked at in terms of finding maximum penetration and also look-
monthly. ing for areas for expansion. Son did exceptionally well last year, appreciably
Automotive Business Review changed from alternate monthly to monthly enhancing its circulation figures over the previous year. The daily has also
Wegsleep changed from alternate monthly to monthly. grown over the year with April-June figures at over 120 000 single copy sales.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

Reading our tabloids is a lot of fun. But in the Cape. So much so, that Son has become the
that doesn’t mean you shouldn’t take our newspaper with the most readers in this market. And
market serious! the fact that 56% of the population in the Western
Cape is Coloured makes our newspapers a gateway
Sondag Son was recently awarded the Marketing to a market you should seriously consider!
Mix Top Print Performer for 2009, far outperforming
other, more... serious, titles. So although our content So, if you are serious about business in the Western
can at times be somewhat light-hearted, our market and Eastern Cape, speak to the people who know the
offering isn’t. market.

The Son publications (Son and Sondag Son) have


captured the minds and hearts of the Coloured market

JHB: +27(11) 259 1700, Cape Town: +27(21) 406 2449, Durban: +27(31) 533 7600, www.ads24.co.za

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

“Son has the highest single copy sales in the Cape and also when looking of top print performers, from an Afrikaans newcomer, to a tabloid aimed at
at the Cape, the coloured market comprises 56 per cent of the population, the black market, to a Catholic paper as well as regional newspapers.
these statistics indicate that the coloured population is the market, so if Isolezwe ngeSonto, like its big brother Isolezwe, also features in the top
marketers want to communicate with the market, then who better to use than print performers. Although its figures declined over the first three periods
Son whose readership is 86 per cent coloured. Son readers also have buying of the year, the last quarter showed a noteworthy leap to almost 60 000, and
power of R47 billion,” says Herman. figures for 2009 compared to 2008 were up considerably. Editor, Thulani
Mbatha, says that while the Sunday title is growing nicely, the matric results
edition sold 200 052 copies, and the paper has seen record daily spikes of just
Weekly newspapers under 130 000 since the beginning of 2010. He acknowledges that newspapers
The weekly newspapers category (October-December) has decreased by 71 are getting hit by competitors from all sides and it’s been a tough year, but
250 to 612 668 (including foreign newspapers). There were four third- the Isolezwe brand has built up a strong level of trust with readers. “With
party bulk sales, 576 232 single copy sales with 36 432 subscriptions. our promotions, cultural and business events, readers are kept in-touch with Isolezwe,
as well as what it means to be Zulu in the twenty-first century,” he says.
Andrew Trench, editor: Daily Dispatch, Saturday Dispatch and Dispatch
2009 Top print performers Online, agrees that 2009 was a tough year, in fact, he characterises last year as
Soccer Week 11 260 11 260 11 260 (new member) the toughest he’ s experienced in his career in newspapers: squeezed on advertising
and circulation fronts and at the same time having to produce newspapers
The top five daily newspapers (October-December) by that had to be more engaging than ever while cutting every possible cost.
subscriptions and copy sales are: Still, the Saturday Dispatch managed to hold its own over the year and
Soccer Laduma 270 634 270 634 270 634 (312 659) hang onto its circulation compared to 2008. Trench admits that since the
Ilanga 100 034 100 034 100 034 (103 379) relaunch of the Saturday Dispatch in tabloid format in 2005, it has struggled, but
Mail & Guardian 46 932 46 932 46 932 (58 258) now believes its ‘ voice ’ has been found after comprehensive market research
The Post 44 307 44 307 44 307 (44 307) helped to guide editorial. “We realised that the assumption that weekend
UmAfrika 23 193 23 193 23 193 (31 239) readers want a ‘lifestyle’ product was wrong and that what our Saturday readers
want is what we offer them on a daily basis through the Daily Dispatch
All of the weekly newspapers struggled throughout 2009, although it is – good, solid, relevant news about the Eastern Cape and that is what we
focused on delivering,” he says.
6 encouraging to see that not one paper resorted to inf lating figures through
third-party bulk sales or PMIE. Soccer Week is the only top print performer A strong marketing promotions campaign also helped, with promotion
for 2009 and became a member of the Audit Bureau of Circulations during of Saturday content in the daily, especially on a Friday, as well street-pole
April-June 2009 with a starting total circulation of 8 248 and ending the year posters, radio ads and point-of-sale marketing proving effective. The Dispatch
on 11 260, a steady increase throughout the rest of the year. Some might team also looked closely at where the weekend paper was circulating and
question the sanity of launching a newspaper at the height of a recession, identified areas of opportunity. “We intend growing the Saturday Dispatch
particularly as Soccer Laduma, another weekly football newspaper, is the in the Eastern Cape and to introduce it to new readers. We still see enormous
leading weekly in the country. opportunity for it. We will be investing further in the content offering and
James Cohen, editor-in-chief, Soccer Week, says that although Soccer Laduma opening up more news and sports space as well as adding more innovative
is huge, established and has economies of scale on its side and is impos- editorial features. We will be investing in marketing it and amplifying the
sible to compete with, he sees Soccer Week as offering something completely Saturday Dispatch brand,” says Trench.
different, bridging the gap between the local and international game. Cohen’ Sondag Son is a newcomer to the weekend market posting its first ABC
s focus is on clear editorial vision, design excellence, quality printing, efficient figures for the July -September period with a highly respectable 55 126, which
distribution and value for advertisers. There will almost certainly be a jump increased in the last period of the year. This is surely a paper to keep an eye
in circulation figures during the 2010 FIFA World Cup, but Cohen states that on and certainly justifies the launch during economic climate of last year.
Soccer Week caters to a market that extends beyond 2010 and the World Cup. Mark Herman, general manager of Sondag Son explains that there was no
Distribution of the newspaper started in Gauteng and surrounds and then regional Sunday publication catering for the LSM 4 -7 (working class) market.
moved into KZN with the Western Cape at the end of 2009. Cohen also Herman says that the growth of just over 2 500 from Q3 to Q4 was in line
makes sure that no copies of the newspaper are wasted. “We make our unsold with expectations. “It is a new publication currently nine months young.
copies work for us, distributing them free at football matches and send out a We will see readers testing the product and seeing if it meets or fulfils their
regular batch of voucher copies,” he says. needs.
Soccer Week has embraced the digital realm, but has opted for a mobisite
and Facebook page to drive interest. The mobisite offers daily news updates 2009 Top print performers
and live scores, and the number of unique users has grown to over 41 000 Isolezwe ngeSonto 59 818 59 818 59 818 (48 034)
a month and is still growing. As for the future, Soccer Week will offer more Saturday Dispatch 24 192 24 939 24 939 (23 996)
Sondag Son 57 816 57 816 57 816 (new member)
features and pages.
Sunday Sun 217 059 217 059 217 059 (213 627)
The Southern Cross 11 309 11 309 11 309 (11 435)
Weekend newspapers Volksblad Saturday 22 708 22 716 22 716 (23 424)
The weekend newspapers category (October-December) decreased by 88 Weekend Post 24 706 24 706 24 706 (25 616)
204 to a total of 2 493 060 (including foreign newspapers). There were 13
digital editions, 33 949 third-party bulk sales, 90 540 PMIE, 1 922 659
single copy sales with 445 899 subscriptions. The top five daily newspapers (October-December) by
subscriptions and copy sales are:
Considering the state of the newspaper industry during 2009, it’s great to see Sunday Times 395 560 464 393 464 393 (505 374)
that a number of weekend papers managed to increase circulation figures and Rapport 267 280 284 361 284 361 (281 026)
many managed to stabilise their figures – no mean feat. It’s also interesting to Sunday Sun 217 059 217 059 217 059 (213 627)
see that out of the entire top print performers only one (Sunday Sun) is in the Sunday World 160 041 160 041 160 041 (181 243)
top five biggest selling papers in the category. It’s great to see the diverse mix City Press 159 081 168 029 168 029 (187 347)

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

We are working on getting as close as possible to our daily footprint and The Southern Cross managed to keep circulation stable and on par with
reach.” 2008 and, according to Moerdyk, was helped by simply intensifying contact
As for the future, digital options are currently being explored and there will with people at the coal-face selling the newspaper at parishes and ensuring
be a price increase for the paper. it was delivered on time. Moerdyk believes that marketers should be very
The Sunday Sun continues to keep its third place ranking in the weekend interested in all religious media as they offer access to a single faith-based
newspaper category and not only kept itself on an upward trajectory over the community, which from a marketing point of view, makes them very similar
year, but posted sizeable increases over its 2008 figures. indeed in terms of their aspirations and desires.
An interesting and welcome addition to the top print performers in the As for the future of the Southern Cross, according to Moerdyk, it will be
weekend newspapers category is the Southern Cross – a newspaper for Catholics. the year that digital seeds are sown. ” It will be a tough year, of that there is
The newspaper realised that distribution and printing costs were rising fast no doubt. But we are confident that we will start to reap the rewards of our
and it was clear that in order to survive, the cover price and ad rates would digital investment in 2011. This will be made easier by virtue of our size.
have to rise to levels where there would be no sales and few advertisers. There It will only take a single figure percentage of our potential ad revenue and
was also the additional challenge of reaching far more than the 40 000 that sponsorship target market to put us in the pound seats.”
read the Southern Cross every week. Rising to the challenge, the newspaper Like the Southern Cross, Volksblad Saturday did a fine job of keeping its
improved the search engine optimisation of its website and created a free circulation steady over the course of 2009 and stablising it against 2008 figures.
weekly e-mail newsletter, which is building subscribers. A digital version According to Ainsley Moos, editor of Volksblad Saturday, no special plans
of the newspaper has been made available on subscription and is aimed at were put in place to ensure the continued success of the newspaper. Instead, he
overseas readers. In terms of marketing, advertising and sponsorship packag- puts it down to revisiting the quality of the newspaper from an editorial
ing involving all three products offering advertisers more options and added perspective to increase value for readers. “This is an ongoing exercise. In
value. addition, we also had a number of special projects that secured some income,
“We reviewed our advertising rate policy which tended to give far too and we made sure that our distribution channels were in place. “We have also
many ‘ charity discounts ’ to organisations that were not even vaguely charities. looked at geographical areas that could provide us with circulation growth.
We also kept a very close eye on costs and were very successful with one of We are confident that with reliable distribution we will do better than last
our special direct marketing campaigns which generated a surprising amount year.”
of additional revenue. Something that I believe contributed enormously to the He also says that recent research shows that among all Afrikaans newspapers
success of the newspaper was editorial integrity,” says Chris Moerdyk, chairman, in the country, its readers are by far the most loyal. “This is also why our
The Catholic Newspaper Publishing Company. circulation has remained relatively stable,” says Moos.
7

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

On top of this, Volksblad.com continues to grow. According to Moos, on One of the reasons for its huge jump in circulation figures in 2009 was the
an annualised basis, page impressions have increased by 46 per cent, unique conclusion of a large subscription deal with one of SA ’s leading corporates
browsers by 26 per cent and user sessions by 34 per cent. to a number of its top SME customers. “Our circulation forecast for 2010
The Weekend Post also stayed consistent over 2009 and maintained pace remains in the 20 000 - 25 000 range,” says Honey.
with 2008 figures. A number of initiatives were put in place over the year noseweek managed to keep its circulation on a slight upward trend over the
to maintain stability. Editorially, the style of the newspaper was fine-tuned, course of 2009 while increasing from its 2008 figures. Interestingly, its paid for digital
adding more sport, travel and lifestyle elements. The newspaper also began editions increased every quarter during the year. According to the noseweek team,
promoting itself in previously underdeveloped markets and offered a host of the secret of the magazine’s success was to streamline distribution, trim outlets
that weren’ t performing and expand on those that were. Woolworths was added
subscription packages combining various Avusa Media titles. On top of this,
as outlets for distribution as noseweek’s reader profile closely matches Woolworths’
a brand campaign was launched mid-2009, which according to the Weekend
consumer profile. Sensitive to reader sentiment during recessionary times, noseweek
Post team, was a great success. The aim was to ensure constant awareness of
also held cover price and advertising rates over from the previous year.
the brand and product from potential reader’ s point of departure right up to
Bona relies on the fact that content is king – giving readers what they want, as
the point of purchase. The use of outdoor and in-store advertising assisted in
opposed to what the Bona team thinks they want. Sbu Mpungose, editor of Bona,
achieving these objectives. On the subject of digital media, the Weekend Post
says that Bona has been modernised and brought the glamour back, and readers
team revamped its website to ensure news stories are enhanced by various have responded to this, in particular bringing in a younger audience with a disposable
multimedia elements, and instead of seeing it as a threat, have embraced the income. This is certainly reflected in Bona ’s circulation figures, which
opportunity. although they showed a decline in single copy sales over the year due to the
recession (which hit the LSM 4-6 group hard), showed a general increase over 2008
Consumer magazines (except for the July - September period). Still, the magazine has increased pagination
The consumer magazine category (October-December ABC 2009) increased and print run, and remains an aspirational brand for its audience.
by 89 628 to 6 525 014. There were 1 217 paid digital editions, 67 593 As Mpungose says, lower LSMs interact more with ads than other LSM groupings,
paid third-party bulk sales, 4 677 153 single copy sales, 772 877 subscriptions, plus brands need to influence readers before they spend money; after all, Bona
3 000 paid-back issues. On the free side, there were 770 771 controlled is selling aspiration. The magazine is also the only one on sale that offers four
languages, and offers a free translation service for advertisers. “Advertorials in the
free distribution, 16 605 bulk free, 501 digital editions, 185 447 back
four languages work really well for our readers and it’s also very important to them.
issues. This gives a grand total of almost one million free copies.
However, most advertisers don’t take up this offer, and it would be great to see this
happen,” she says. Bona is also working on its website, which according to Mpungose,
8 Total circulation figures were boosted in 2009 for the entire consumer
magazine category due to the amount of new members entering for the first
is still in its formative stages, but acknowledges that it’s important to develop this
side of the business.
time, which counterbalanced the number of magazines that closed or were Drum managed impressive results for 2009, particularly in the last quarter
suspended. Marketers must take notice of the number of free copies in any where single copy sales shot up dramatically. Overall, its figures trumped 2008 and
magazine’ s circulation, particularly third-party bulk distribution, bulk distribution, Willem Breytenbach, publisher of Drum puts this down to giving readers relevant
individually non-requested and back issues. content and value for money. He also says that in order to ensure the success
In 2009, Entrepreneur magazine leveraged off various brand extensions, of the magazine, there are three focus areas: creating brilliant editorial content,
such as its website and e-newsletters, along with its radio show on Kaya FM, developing its footprint based on research and analysis, and having a strong and
while keeping to editorial relevance and added value at point -of sale. This compelling value proposition for its readers.
adds value to advertisers, according to publisher, Andrew Honey. “On the
advertising side we now offer marketers a true 360-degree offering with print, On top of this, Drum employed a range of marketing activities. “The strategy
digital, 1-2-1 event training and radio through the weekly radio show on behind our marketing campaigns was to make readers aware of the great value in
Kaya FM.” the content in the magazine and this was achieved through in-store promotions, TV
and radio,” says Marcel Welman, associate publisher.
According to Elmari Rautenbach, deputy editor of Drum, for the past six
2009 Top print performers months, the magazine has increasingly focused on burning issues – often traditional
Entrepreneur mag 21 931 23 181 30 245 (16 111) – relevant to its market. “We ’ ve adopted a more hard-hitting approach when it
Noseweek* 21 410 21 410 21 910 (21 916) comes to celeb coverage, with controversial topics often tackled head-on. Our covers
Bona 78 317 78 317 82 710 (73 043) now reflect this newsier approach. This, I believe, led to Drum’ s recent growth
Drum 118 564 118 636 118 636 (110 463) spurt.” LIG, an Afrikaans Christian magazine has continued to go from strength to
LIG 38 386 38 386 40 137 (34 452) strength over the year, ending on a high with both subscriptions and single copy
Farming SA 8 301 8 775 11 055 (9 986) sales going up.
Shape 43 778 44 277 44 277 (41 511) For a relatively new magazine, Farming SA proved its worth over 2009 although
Home Handyman 14 300 14 469 14 469 (14 351)
the last quarter showed a dip in subscriptions and single copy sales. Jacques
Die Tuinier 17 670 18 892 20 215 (19 902)
Claassen, managing editor of Farming SA, says that starting out small but with a
Men’s Health 71 020 71 020 71 020 (69 718)
definite vision to ensure substantial growth in southern Africa may have made dealing
Stuff 14 831 15 163 15 670 (12 587)
with the recession a little easier. But the team has been busy over the past year,
NAG 20 510 20 510 20 762 (20 802)
launching a website to serve as a marketing tool at this stage and entering the
African Pilot 4 829 5 179 6 782 (6 960)
Bicycling 17 001 17 001 17 001 (17 258) Botswana market in April 2009. “From the feedback from readers we were assured
Game & Hunt/Wild & Jag 9 559 9 559 9 865 (9 948) that Farming SA established itself as a highly relevant magazine for farmers in not
HQ 9 780 9 792 10 637 (11 248) only in South Africa, but also in Botswana, Namibia and Zambia,” says Claassen.
Runner’s World 18 370 18 754 18 754 (16 575) He adds that Farming SA is constantly working on extending its footprint not
SA Hunter/Jagter 30 869 30 869 30 869 (27 312) only in South Africa, but also in neighbouring countries and using major
Caravan and Outdoor Life 22 530 22 803 22 803 (22 825) agricultural events to do promotions and interact with readers.
SA4x4 19 873 19 873 19 873 (17 178) Shape editor, Toni Younghusband, says that magazines that have an intimate
Fairlady 72 656 72 855 75 322 (72 357) relationship with their readers have shown growth over the past year, including
Sarie 118 072 118 339 122 105 (115 794) Shape. “Forget the shiny cover mounts and the flashy shoots; what Shape readers
Soul 49 786 53 836 54 061 52 882) respond to is a personal connection with the brand and everyone on the magazine
Nat Geo kids 37 155 40 295 40 893 (43 226) works hard to foster that connection. And we’re also constantly refreshing and
*(including digital editions) revitalising the brand’s design,” she says.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Top print performers

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vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Top print performers

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Please note that the top-selling mags are based on subscriptions OM_Q 5 NQXUQbQ UZ MXX YMSMfUZQ_ U_ PaQ `[ `TQ ]aMXU`e [R `TQ QPU`[^UMX \^[PaO`¼
and single copy sales, (plus paid for digital editions where relevant) @TQ ^QOQ__U[Z O[aXP OQ^`MUZXe TMbQ TQX\QP =dbZ=VcYnbVc ¾ h _aOOQ__ UZ %
and only for magazines with 11 issues or more per annum or weekly. M_ Y[^Q \Q[\XQ `a^ZQP `[ 05E M_ M O[_`_MbUZS YQOTMZU_Y @TQ YMSMfUZQ MX_[
M``QZPQP bM^U[a_ _T[c_ _aOT M_ `TQ 4[YQYMWQ^_ Qd\[ 4[NNe D 3M^PQZQd Q`O `[
Arts, Culture and Heritage SQ` U`_ ZMYQ [a` `TQ^Q -OO[^PUZS `[ 6[TMZZ ?`MPXQ^ QPU`[^ [R =dbZ=VcYnbVc Z[
Live Out Loud 6 338 7 367 7 844 (5 643) OTMZSQ_ cQ^Q YMPQ `[ `TQ \^UZ` ^aZ XM_` eQM^ UZ_`QMP PU_`^UNa`U[Z cM_ ^QX[[WQP M`
Business and News MZP M RQc MX`Q^M`U[Z_ `[ bM^U[a_ _T[\_ _QQYQP `[ TMbQ \aXXQP [RR NQ``Q^ ^QMPQ^_TU\ »CQ
BusinessInAfrica 26 403 33 776 37 776 (new member) M^Q PQRUZU`QXe \XMZZUZS `[ PU_`^UNa`Q `TQ YMSMfUZQ `[ QbQZ Y[^Q _`[^Q_ UZ Ra`a^Q `[
Finweek 25 336 28 531 29 451 (30 802) YMWQ MOOQ__UNUXU`e QM_UQ^¼ _Me_ ?`MPXQ^ 5` MX_[ TQX\_ `TM` =dbZ=VcYnbVc YMSMfUZQ
Celebrity U_ ZM`U[ZMX MZP `TQ [ZXe PQPUOM`QP Y[Z`TXe 9>N YMSMfUZQ UZ ?-
People 78 569 82 423 85 450 (94 924)
9^ZIj^c^Zg WQ\` U`_QXR [Z MZ QbQZ WQQX [bQ^ % MZP [bQ^ U`_ $ -./ ^Q_aX`_
Conservation & wildlife
cU`T QPU`[^ @MZeM BU__Q^ MOWZ[cXQPSUZS `TM` `TQ [\Q^M`UZS _e_`QY_ [R `TQ YMSMfUZQ
TMP `[ NQ R[Oa_QP [Z `[ UY\^[bQ [bQ^TQMP O[_`_ Pa^UZS `TQ eQM^ ;`TQ^ `TMZ `TM`
Africa Geographic 19 517 19 517 21 506 (27 486)
9^ZIj^c^Zg MX_[ YMPQ M\\QM^MZOQ_ MX[ZS_UPQ U`_ _U_`Q^ \aNXUOM`U[Z I]Z<VgYZcZg
Entertainment
M` SM^PQZUZS _T[c_ MZP SM^PQZUZS^QXM`QP QbQZ`_ »@TQ \Q[\XQ NQTUZP `TQ YMSMfUZQ
tvplus 117 402 117 502 117 502 (143 892)
M^Q O^U`UOMX& -ZZM /QXXUQ^_ cQXXWZ[cZ SM^PQZQ^ MZP c^U`Q^ WQQ\_ a_ MXX [Z [a^ `[Q_
Family Interest
Huisgenoot 318 014 320 862 320 862 (326 229)
QZ_a^UZS `TM` 9^ZIj^c^Zg ¾ h O[Z`QZ` U_ Oa^^QZ` MZP ^QXQbMZ` X[OMXXe MZP `TQ -R^UWMMZ_
cQ a_Q U_ Y[PQ^Z' cQ MX_[ TMbQ S^QM` \T[`[S^M\TQ^_ MZP O[\e QPU`[^_ -XX [R `TU_
You 190 290 190 859 190 859 (194 372)
QZ_a^Q_ `TM` [a^ QPU`[^UMX QZO[a^MSQ_ [a^ ^QMPQ^_ `[ SM^PQZ Y[^Q MZP QZV[e U` UY
Drum 118 564 118 636 118 636 (110 463)
YQZ_QXe¼ MPP_ BU__Q^
Farming
@TQ [ZS[UZS NM``XQ R[^ P[YUZM`U[Z UZ `TQ YMXQ OM`QS[^e TM_ MXcMe_ NQQZ R[aST`
Landbouweekblad 41 593 41 593 41 593 (42 048)
Health
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cTUXQ U` _`M^`QP `TQ eQM^ cU`T X[cQ^ RUSa^Q_ `TMZ $ `TQ _QO[ZP TMXR [R `TQ eQM^
Shape 43 778 44 277 44 277 (41 511)
Home _Mc U` [bQ^`MWQ `TQY MZP Ne -\^UX U` TMP NQO[YQ `TQ ZaYNQ^ [ZQ YQZ ¾ _ YMS
Tuis Home 68 051 68 181 68 181 (71 879) »5Z `TQ \M_` eQM^ ?[a`T -R^UOM ¾ _ BZc ¾ h=ZVai] Qb[Xa`U[Z TM_ _QQZ O[X[a^ O[bQ^_
10 SA Garden & Home
SA Garden/Tuin Paleis
49 636
44 956
50 803
46 928
54 587
47 969
(64 234)
(50 890)
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Male UZOXaPUZS `TQ NQ_` [R `TM` [a^ UZ`Q^ZM`U[ZMX \M^`ZQ^_ TMbQ `[ [RRQ^ CQ [RRQ^ M `^aQ
Men’s Health 71 020 71 020 71 020 (69 718) "PQS^QQ N^MZP cU`T MPbQ^`U_UZS _[Xa`U[Z_ MO^[__ M ^MZSQ [R \XM`R[^Y_ `TM` UZOXaPQ
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Car 74 357 76 592 82 297 (89 693) QPU`[^ BZc ¾ h=ZVai]
Speed and Sound 43 622 43 842 44 228 (46 636) Hij[[ YMSMfUZQ U_ MZ MX`Q^ZM`Q Y[Z`TXe MZP U_ YMWUZS U`_ YM^W UZ `TQ YQZ¾ _
Parenting OM`QS[^e cU`T UZO^QM_UZS OU^OaXM`U[Z RUSa^Q_ \[_`QP UZ QbQ^e \Q^U[P UZ % MZP
Living and Loving 31 502 32 240 36 070 (31 668) _aN_`MZ`UMX UZO^QM_Q_ [bQ^ U`_ $ RUSa^Q_ @[Ne ?TM\_TMW QPU`[^ [R Hij[R YMSMfUZQ _Me_
Pets `TM` cTUXQ U`¾_ NQQZ `[aST R[^ `TQ YMSMfUZQ UZPa_`^e S[[P c^U`UZS MXcMe_ `^UaY\T_
Animaltalk 12 518 12 531 14 513 (15 078) »8UWQ QbQ^e[ZQ QX_Q cQ `^UYYQP [a^ NaPSQ`_ Na` WQ\` `TQ O[^Q [R cTM` cQ PUP
SciTech QRRUOUQZ` MZP ZQbQ^ O[Y\^[YU_QP [Z `TQ ]aMXU`e [R [a^ V[a^ZMXU_Y¼ TQ _Me_ ;R
NAG 20 510 20 510 20 762 (20 802) O[a^_Q NQUZS [cZQP Ne -ba_M 9QPUM YM^WQ`UZS [R `TQ YMSMfUZQ TM_ NQQZ TQX\RaX
Sport and Hobby UZ P^McUZS M``QZ`U[Z `[ `TQ ^QXM`UbQ ZQcO[YQ^ M_ U` cM_ \^[Y[`QP `T^[aST `TQ YMZe
Kick Off 46 931 46 931 46 931 (54 160) ZQc_\M\Q^_ UZ `TQ _`MNXQ »?aN_O^U\`U[Z P^UbQ_ cU`T `TQ HjcYVnI^bZhUZ 0QOQYNQ^
SA Hunter/Jagter 30 869 30 869 30 869 (27 312)
Z[` eQ` ^QRXQO`QP UZ [a^ ZaYNQ^_ M_ cQXX M_ \^[Y[`U[Z_ cU`T _U_`Q^ `U`XQ_ cU`TUZ `TQ
Tight Lines 29 809 29 809 20 809 (32 130)
S^[a\ TMbQ c[^WQP cQXX¼ MPP_ ?TM\_TMW
Hij[[ YMSMfUZQ U_ MZ UZ`Q^ZM`U[ZMX N^MZP MZP ?TM\_TMW _Me_ `TM` U` TM_ M``MUZQP
Travel
`TQ _MYQ `^a_`c[^`TUZQ__ X[OMXXe M_ U` QZV[e_ MN^[MP 4Q MX_[ MPP_ `TM` `TQ Hij[[
Weg/Go 88 584 88 673 88 673 (85 505)
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Getaway 43 542 46 919 51 969 (61 885)
MP[\`Q^_ `^QZP_Q``Q^_ [Z `TQ MO]aU_U`U[Z `^MUX ¹ MZP _\QZPUZS
Women
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Sarie 118 072 118 339 122 105 (115 794)
\M^` OMZ NQ M``^UNa`QP `[ `TQ RMO` U` [\Q^M`Q_ UZ M PQPUOM`QP YM^WQ` NMZP cTQ^Q U` U_
Rooi Rose 95 247 97 914 105 298 (109 483)
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Cosmopolitan 92 924 93 801 97 892 (106 315)
6MYQ_ QPU`[^ C6< 9MSMfUZQ _Me_ `TM` `TQ^Q cQ^Q M RQc `UST` Y[Z`T_ P^UbQZ Ne M
Women and Home 89 705 92 560 97 524 (95 673)
_XUST` PQOXUZQ UZ [bQ^_QM_ MPbQ^`U_UZS ;Z `TQ \Xa_ _UPQ 6MYQ_ _Me_ `TM` M RQc XQ__[Z_
Finesse 88 971 92 904 92 999 (93 171) cQ^Q XQM^Z` [Z T[c `[ ^aZ `TQ O[Y\MZe »XQMZQ^ MZP YQMZQ^¼
Youth
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Nat Geo Kids 37 155 40 295 40 893 (43 226)
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Seventeen 33 368 33 368 33 965 (40 088)
MZP UZO^QM_Q ^QMPQ^_TU\ `TQ YMSMfUZQ ^aZ_ `TQ ^MSQ Qd\[ QbQ^e eQM^ cTUOT M``^MO`_
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vol 28 / issue 3/4 / 2010 • marketingmix.co.za


MER 
  
 
  

FOR Retail marketing guide


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HOT STUFF
!!" MARCH-APRIL 2010

Featuring the latest


gadgets and product
  
news. Stuff is the
  iPhone of gadget
magazines:
beautifully designed.
Simple to use, uniquely
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topic of conversation.

  

 
EXCLUSIVE
    
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FEATURES
The 10 tech AND TESTS
stories you Expert reviews of all kinds

need to know
of products. It’s about the

BIG IN
excitement of shopping,
the joy of finding the best

2010
deal and the thrill of
opening the box.

  



440*.3)"38(-+53
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BUY STUFF SAYS (((((
One of the sharpest
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INSTANT EXPERT


  


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WHAT TO LOOK FOR

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BUYER’S GUIDE
An authoritive listing
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www.stuff.co.za

# 
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Kirsten Laurings,


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'%#("'%& kirstenl@avusa.co.za
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Stuff – highly commended in the 2009 Pica Awards – not only owns the technology niche, but now Stuff is lipstick and shoes
leads the general-interest male magazine market as the fastest-growing title, posting its 7.5%
circulation growth in a period when its competitors – technology titles and general interest men’s titles
for men. It’s everything you
– reported decreases.Under the editorship of Toby Shapshak Stuff South Africa has kept to its winning want to know...about
formula of authoritative content presented in an accessible format. everything you want.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Top print performers

since most aviation events take place over weekends and I attended more than 30 its Test House concept as well as consolidating its Afro Optimist position. “You
aviation events through the year to provide first-hand reports as well as photography would be amazed by how many people contact Fairlady’ s Test House before they
of excellence,” says Athol Franz, editor, African Pilot. decide which dishwasher/fridge/toaster or coffee machine to buy, and I think this
Over and above editorial quality, African Pilot worked closely with its well-established relationship with our readers served us well during 2009’
distributors to maintain its circulation in pilot shops at major airports as well Digital is firmly on the cards for the magazine and Brokensha says that the
as its subscribers. Franz says that being present at major aviation events helped magazine has been able to roll-out successful extensions across different platforms
enormously as well. From April this year, African Pilot has also hyperlinked and will continue to do so throughout 2010. Fairlady has already moved onto
every advertiser’s e-mail and website address in its full online publication at no mobile and earlier this year, its website was redesigned and relaunched. “We are
extra cost. “Although the complete magazine has been on the website for the past also launching a new biannual freestanding Fairlady Mindbenders Puzzle book
two years, the links were not present and advertisers did not receive any direct as well as four new freestanding food magazines within this fiscal year (the first
benefit. However, this has all changed with the introduction of the new setup,” will be on sale on 2 June). In addition to this, Fairlady Style Intern is currently
says Franz. being aired every Friday night on the M-Net Series Channel, so we’re expanding
Bicycling magazine, an alternate monthly, improved its circulation over 2008 into TV too.”
(except for the last quarter of 2009) with both subscriptions and single copy sales Sarie retains its title of queen of the women’ s category and it started the year
rising. The dip in the last quarter should not be of concern considering the time on an extremely strong footing. Circulation figures dropped as the year wore on,
of year and it will be interesting to see what happens this year with the magazine. but figures were still up significantly over 2008. Michélle van Breda, editor of Sarie
Game & Hunt/Wild & Jag trended upwards until a slight dip at the end of 2009, says that although 2009 was challenging, it encouraged many innovative ideas
beating its 2008 figures. Jan van der Walt, managing editor, Game & Hunt/Wild and synergies that will stand magazines in good stead for the future. She says it
& Jag says that throughout 2009, focus was placed on better quality and a wider also gave magazines the opportunity to strengthen their brands across different
variety of articles, offering more than just a conventional hunting magazine. media platforms and explore new markets. To this end, Sarie capitalised on the
Articles included game production, outdoor activities and conservation issues. synergy between the magazine and the website (as well as social networking sites)
Game & Hunt also asked distributors to review the distribution projects, which to strengthen the reader’s/user’s sense of community.
obviously worked as single copy sales went up and there was more liaising with Sarie also launched new brand extensions, including Sarie Woon (decor/ideas
representative organisations. magazine) and Sarie Gesond (health magazine) was launched in February this
HQ is an alternate monthly equestrian magazine, and considering the economic year. The magazine also celebrated its 60th birthday and marketing initia-
climate did well to hold its own throughout the year (horses are an expensive tives around this saw two issues turned into birthday issues. “The celebrations
pastime). This could be the reason for subscription figure dropping slightly at the included a calendar in each issue in January, a birthday gift for readers in August
end of the year, while its single copy sales went up. and three special books. Several live radio and TV interviews, as well as a strong
Runner’ s World made great progress over 2009 except for a slight dip in figures presence at three big festivals and several reader days countrywide gave the team
12 during July - September and ended the year on a high with around 2 000 copies
more than its 2008 figures.
the added opportunity to talk about Sarie and connect, once again, with readers
and loyal subscribers,” says Van Breda.
SA Hunter/Jagter editor Andre van Dyk, says that no special plans were put Van Breda says that Sarie won’t be resting on its laurels this year and brand
in place to cope with the turmoil in the magazine industry. Instead, the print extensions launched last year will be strengthened considerably and changes are
order was monitored closely to ensure it didn’t get out of hand, especially as planned for the magazine. “New synergies with the web, and also mobile, will be
individual subscriptions leapt from April onwards from 14 00 to 22 500 and copy explored to broaden the Sarie experience,” adds Van Breda.
sales also increased. This means that the magazine finished with around 3 000 In 2009 Soul Magazine saw great gains over its 2008 figures even with a blip
more for total circulation over each of its 2008 periods. As no marketing plans in the 09 July - September figures (against the other 2009 quarters). Josephine
were put in place, this rise could be attributed to the magazine being present at Kanengoni, brand manager, Soul Magazine says that prior to 2009, research was
both the Aim and Nampo shows. conducted to discover exactly what the black woman of South Africa wants and
Caravan and Outdoor Life achieved relative stability over 2009 against a expects from a top-notch magazine. The magazine underwent major changes
backdrop of magazines dropping circulation, losing revenue and retrenching in editorial and design in October 08 and again in August 09 with tweaks in-
staff. The Caravan and Outdoor Life team say that a very loyal readership helps between. This was done in order to achieve a strategic shift from the 25-plus core
a great deal, and lots of reader interaction, which keeps them close to their needs. target market to the 20-plus young black woman. “We also worked on creating
The magazine was promoted at outdoor exhibitions and industry-specific events other channels of communication with our market outside of the magazine; from
and this platform was used to meet with both readers and advertisers. The team e-mails to SMS, reader surveys and a stronger Internet presence,” says Kanengoni.
also believes that the strength of Caravan and Outdoor Life is securely anchored A number of other initiatives designed to interact with its readers were
in its longevity. This year saw the 50th year of publication, which places it in a launched, including the Soul Sista Club and Soul Woman of the Year compe-
select club of magazines in SA. tition. “Wherever possible, we used other media platforms (radio, Internet,
What is encouraging for advertisers is that a recent reader survey asked readers newspapers) to speak to our market (both existing and potential) on the various
questions specific to advertising – 79 per cent said that they would be initiatives. This definitely helped with our visibility and opened us up to readers
inclined to trust advertisers more if they saw them in this magazine while 74 per who had not been fully aware of our brand,” says Kanengoni.
cent said that they purchased a product or service because they saw it advertised On top of all this, Soul’s print run was increased from 45 000 to 70 000 copies
in this magazine. as of October 2008, and the number of distribution outlets countrywide was also
SA4x4 magazine managed growth of 14 per cent in 2009 and in the last increased. As for the future, Kanengoni says that ongoing research and interaction
quarter upped it circulation by over 2 500 copies over the same period for 2008. with readers is of the utmost importance, as well looking at new platforms to
The magazine has recently been launched in digital format on www.mymag. open up channels of communication.
co.za as a result of requests from its readers. SA4x4 is considered by its readers to National Geographic Kid’s increase of R2 on the cover price didn’t deter readers
be a credible source of information about all things relating to off-road travel. In during 2009 and its circulation over the course of the year remained fairly stable,
its reader survey 60 per cent of readers said that adverts were of interest to them except for a dip in the last quarter. Fiona Thomson, editor, National Geographic
while 72 per cent said that they would be inclined to trust advertisers more if Kid’s, puts the drop down to exam time at the end of the year or the run up to
they saw them in this magazine. SA4x4 was also present at the major industry- Christmas.
specific events throughout the year. As a niche title, its marketing strategy is planned very carefully and has con-
Fairlady has had its ups and downs over recent years, but 2009 saw it hold centrated on a series of sponsored skills-based competitions, which this year was
steady at a time when many in the women’s category fell from grace. In terms expanded to include Young Conservationists, Artists and Chefs. One battle this
of circulation and distribution, its footprint was tightened to minimise wastage magazine faces is self-limiting readership. As Thomson points out, readers who
and various marketing plans were put in place to keep the brand top of mind. were six when the magazine launched are now 12 years old and moving on to
Marketing initiatives included a huge competition in June, October saw the other products. To this end, one initiative was a partnership with Real magazine
launch of the Fairlady online walking club, a cover-mounted diary in November to publish a special NG Kids section. Looking ahead, Thomson also says that
and in December the Style Intern campaign was launched. more competitors in the market mean fighting for attention on the newsstand.
Suzy Brokensha, editor of Fairlady says it was decided to maximise Fairlady’s To combat there are plans for stunning covers along with special issues and
position as the consumer champion of contemporary SA women by expanding exciting marketing campaigns.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Retail marketing guide

13

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Expert opinion

Clicks and kisses

I
n boardrooms today, business executives no 30 per cent per annum. The site also boasts a success
longer question the power of the Internet, but rate of over 1 000 weddings and hundreds of babies
do they really understand its true potential, I (though not all planned!). This phenomenon is
wonder? not unique to Australia as there is a collection of
This phenomenal communication and commercial respected newspaper brands worldwide that have
medium is no longer an after thought for marketers been successfully operating online dating businesses,
and their media agencies that have scrambled to including The Guardian and the Daily Telegraph in
tap into this rich income stream. In the past few the UK and the New York Times in the US.
years, we have seen the emergence of a plethora Thus, while the numbers down under are indeed
of digital, search and Web optimisation start-ups. impressive and represent a sizeable percentage (12
This is indeed encouraging progress from the per cent) of the total Australian adult working
days when online for advertising agencies meant population and an even greater percentage of
begrudgingly including their client ’s Web address the singles market, it is still a fraction of the size
14 of the US online dating market. With literally
hundreds of dating websites to choose from and
membership bases in the tens of millions generating
revenue well in excess of US$500 million per
annum, the business of match making Stateside is
in huge demand.
This would go a long way to explaining why
Fairfax, like its closest competitor News Limited,
has been actively looking for several years to find
ways to capitalise on the business potential of
online and hedge its other media assets. Recruitment,
classified advertising, auctions and more recently
dating have been gobbled up by these media
in the ads, in six-point. Nevertheless, the chal- juggernauts.
lenge of how to integrate their services with the These online businesses are much more than
other marketing and media disciplines remains as communication and sales tools though and this is
prevalent as the wider integration challenge faced something that many business executives perhaps
in the advertising industry. don ’t fully appreciate. Besides expanding into the
Despite the now warm welcome that the online lucrative event business and organised holidays
space receives from its peers in the communica- and tours, these businesses are shaping the social
tions industry, I still question just how widely norms and behaviour of the future. They have
accepted and understood the Internet really is brought death to the proverbial blind date. Now
within senior management. For most, I suspect when you meet up with a match you already
their appreciation of what the online world can do know their favourite desserts, music, hobbies and
for their business still only scratches the proverbial interests as well as their outlook on life, all before
surface. Together! you have even met them, let alone ordered the
One company that has recognised the first drink.
immediate value and long-term potential that the In a society that demands instant results, the Internet
online space offers is Australian local media group continues to offer us new ways of living our lives.
Fairfax. In July 2005, it spent an unprecedented Old habits and ways of working and living are
AUS$38.92 million (R263 million) purchasing a constantly being challenged and replaced. Online
nine-year-old online business from the original dating, which was once considered a form of failure
Richard Duncan founders. That business was ‘RSVP’, Australia ’s in love, is now considered the smart choice for
The Partnership, Sydney, Australia leading online singles site, which at the time of
the time poor. Where will it lead to in the future?
+61-411-549-791 purchase had 600 000 members.
richardd@thepartnership.com.au
That is harder to predict as I suspect that we will
This dating site, which was founded on Valen-
tine ’s Day in 1997, now has 1 670 000 members a have many more uses for it in the future to meet
decade later and has consistently been growing at needs that we can’t even conceive today.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


South Africa’s only Specialist Self-service and Digital Media e-publication Vol 1. No 1

Inside

JusTTouchIT
2010 - A Preview

Yeahpoint
Scoops POPAI
Awards

Kiosk
Rental Service
Launched

Self-Service
Health Care - The 15
Next Major Frontier

Kiosk? It’s a No-


Brainer!

NCR Sees Blurring


of the Lines
Between Digital
Signage & Kiosks

Frank-Ly Speaking
Kiosks on the
march in SA

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Get in Touch

16

We’re About People. Totally.


Too often self service systems leave customers Let us help you unlock the power of your
feeling confused or alienated. business with Interactive Solutions created
using our tried and tested User Interface
This can significantly add to your costs or, Design processes, and allow your customers to
worse, lose you those customers altogether. really Get in Touch.

At iOmedia we specialise in People, not just IT. Make it Easy. Make it Smart. Make it Work.

info@iomedia.co.za • 011 875 2058 • www.iomedia.co.za


vol 28 / issue 3/4 / 2010 • marketingmix.co.za
1
Expert
Learn about the kiosk value
proposition – join us at
Contents
I 02 I Preview Of JusTTouchIT 2010
You could WIN one of three conference tickets
I 03 I Where’s the b*****y wine?
or an IBM AnyPlace Kiosk plus stand
I 04 I International award winning concepts

I 05 I Justtouchit launches Rental Division


Include your e-mail address in the SMS to
I 06 I Self-service health care qualify for the Draw
By Norma Woolcott, IBM

I 07 I ‘Kiosks? It’s a no brainer!’


By Rhys Hughes, The Pro Shop

I 08 I NCR sees a blurring of the lines:


Interview with Dusty Lutz of NCR Netkey plus PDT nominated for
Top 10

Ts & Cs apply - see www.34007.co.za/touchit


17

Frank-Ly Speaking April 2010 - Volume 1 No 1


JusTTouchIT The magazine is published by
Kiosks on the march
Kiosks are popping up all bought some airtime.
over in South Africa! Later that same afternoon,
Some weeks ago, I spent the I attended the launch of
afternoon walking around the new Express Check-in/
Rosebank Mall, and in Check-out kiosks at the 78 Allan Road, Glen Austin, Midrand.
about 100m, I found three! Garden Court Hotel in P O Box 1111, Halfway House, 1685
Sandton. Four completely
There was one in different interactive touch
Cel: 082-698-0204
Incredible Connection, screen kiosks, each doing Editor/publisher: Frank Nunan
assisting customers to locate an excellent job, in its frank@justtouchit.co.za
the correct cartridge for their own way, in one afternoon!
printers, one just outside in – Frank Nunan
the passage - a Wayfinder
for the centre, and just a few Cover picture shows Lucas
metres away, there was a Tap Radebe and Southern Sun’s
transactional kiosk where I Sandi Macfie at the launch.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


2 opinion

The best service is


self-service!

By Frank Nunan

A
s I was preparing to write this preview Customer Experience ” “Customer Touchpoint”, the conference – but the point of this discussion
of the Justtouchit 2010 Interactive “e - Spaza ” and other sexy buzzwords to make is that once you understand what the technology
Digital Media and Self-Service Kiosk people want to hear more about it. can do, there are very few limits to what it can do
Conference, I kept trying to think of ways to FOR YOU.
convince people representing a wide variety of The problem with our technology is that it
marketing, business and service disciplines to can be, and is, ALL and EACH of the above, and
To my mind, the point of the
conference is four-fold:
attend what at first glance appears to be just more! Then it struck me – THAT is the sexiest
• To acquaint you with the latest developments
another technology conference. thing about Kiosks! THEY ARE ALL AND
in the technology and astound you with the
EACH OF THE ABOVE!
latest applications and deployments, and
After all, just about everyone has come across
also to show you how it fits in to your overall
self-service technology, and we know what it can We know the technology works, (although there customer-facing strategies.
do – we ’ve seen it at the airport, we ’ve seen it in ARE some exciting new developments in the tech- • To answer some questions – the most perti
any number of shopping malls, we can now see nology – such as the incorporation of biometrics, nent of which is WHY SELF - SERVICE? In
it at a certain hotel chain, with its Express Self and phenomenal USB 3.0 download speeds) – but other words: WHAT’S IN IT FOR ME?
- Service Check-In/Check-Out. We ’ve seen it for in the end, the technology is merely a means to an • To stimulate your imagination and thought
years in banks and next to ATM’s - so what else is end, a delivery mechanism for content, but unlike processes on how to harness this great technology
new? other media, it is a unique TWO-WAY communi- for your own purposes.
I could tell you all about our great speakers- cations medium, it is INTERACTIVE and it is • To show you just how you cannot afford
NOT to be considering a deployment.
and we really have the best in the business – but situated right at that critical, but often ephemeral
you can read all about them on our website. I place, the Point of Presence or Point of Decision!
As a recent slogan by the US Self - Service and
could showcase some of the applications and When you keep that in the forefront of your
Kiosk Association (SSKA) stated:
solutions – and I have done elsewhere in this mind when looking at this medium, the possibilities
“The best service is Self - Service”!
publication – but this really is a TOUCHY/FEELY are as wide as your imagination!
Go to www.justtouchit.co.za to register for:
industry. It is better to experience and feel for
yourself! Yes, there are many tried and tested applica-
I played with terms like: “Experiential Mar- tions, and there are some spectacular new ones
keting ” “Engage-ment Marketing ,” “Enhanced – you will hear about and see many of these at

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Expert 3

Where’s the b****y wine!


I
’m normally in a huge rush when I run into In light of this experience, my ears pricked up As for the owner, The Wine Advisor is a unique
the bottle store. Luckily, my local stocks my when I heard about The Wine Advisor at Liberty way of building customer relations and increasing
favourite red and its normally a matter of Liquors in KwaZulu-Natal. sales. It’s a useful value-added service for customers
marching up aisle two, reaching up to the shelf and a means of providing them with 24/7 expert
and plucking it from it ’s usual hiding place. The Wine Advisor is a wine information kiosk assistance without hiring more staff. The owner
Imagine my shock and horror last week, when, with a difference, as this in-store wine expert is controls what products get front exposure on the
already half an hour late for a dinner party, I kiosk, which means they can use this facility to
designed to encourage customers to buy particular
reached up only to find an empty space. sell slow-moving products, or sell space to suppli-
products, i.e. the one ’s you want to move, via
ers and advertisers.
‘suggestive selling ’. The system, therefore, offers
Now, I’ll confess that I ’m a creature of habit,
multiple advantages not only to the customer, but
and this totally threw me. What to do? I ’m late, Liquor suppliers can benefit from ‘bragging ’
to the liquor business ’ owner and suppliers.
stressed and worst of all, faced with an intimidating front exposure on the kiosk. With the laws affecting
wall of unfamiliar wine. I ’m not daring enough to liquor advertising looking like they’re about to go
For the customer, this new technology allows
grab something I haven ’t tried and tested. Okay, the way of the tobacco industry, the kiosk is an ef-
so why not go for something else I like… well, I them to scan a product for the price. They are fective means of promoting products and creating
would if I knew where the hell to find it. When also able to search for wine by type, by price; by brand awareness.
you scan row after row of labels, it’s amazing how varietal; by label and alphabetically. Each product
they all begin to look the same. Of course, I could is then displayed with its picture and all the For more information on this:
ask the person on duty… except he ’s behind the relevant information. They can even ask The Wine
till serving a long queue of customers. Anyway, Advisor to match wine with food. It also offers
the last time I asked him to recommend a good free membership to the Wine Club where they
Shiraz; it was quickly apparent that that he was of can get discounted prices and news of specials and
the ‘brandy and coke ’ school! promotions. 19

Want the power to transform


the customer experience at the point of decision?
The NCR SelfServ™ 60 self-service kiosk enables you to impact
the customer experience by making it fast and convenient
to shop.

You can improve your customer service while driving revenue


and reducing costs.

NCR can keep you at the forefront of today’s dynamic retail


environment. We are leading the way in the new world of
retail interactions. Helping companies interact, transact and
connect with their customers in revolutionary new ways.

Learn more at www.ncr.com/retail.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


4 opinion

International award-winning
kiosk concepts

J
usttoucht 2010 Gold Sponsor, Yeahpoint, they want instantly in a cafe-style environment. ROI Calculator
brings a fine pedigree to this year’s conference Yeahpoint provided all the digital screen tech- Yeahpoint will be conducting an ROI workshop
- recently nominated as the IBM nology for the store. Yeahpoint is a global specialist
at the upcoming JustTouchIt conference and will
Business Partner of the year, the company company that works exclusively in the area of
launch their Self Service ROI calculator at the
also won four awards at last year ’s Australasian interactive self service solutions. Its award winning
20 POPAI awards.
software platform supports many live solutions
same time. Yeahpoint has successfully deployed
Interactive Self Service solutions in numerous
across a host of verticals - information, calculators,
environments across five continents. With the
government, telco, grocery, pet, hardware, cosmet-
These awards follow on the company ’s success experience gained, Yeahpoint believes it can make
ics, DVD/CD, Automotive audio, automotive car
at the Singapore Retail Awards where they won networks function smoothly and highly effectively.
care, financial services, fresh food, liquor, etc.
the Best Retail Concept of the Year category late Past experience in meeting deadlines demonstrates
Since inception over six years ago, the company
last year for their new SingTel shop designs. that Yeahpoint understands complex requirements
has become recognised as leaders and innovators
and can deliver innovative solutions that work.
in this complex space. While ambiance, look
and feel, technology and serviceability are all Yeahpoint will be announcing at least one of its
important they are all irrelevant unless the total latest global networks at the JustTouchIt
solution meets the ultimate business goals of their conference in May.
customers.

The unique yeahWARE™ platform allows Yeah-


point to rapidly deliver self service solution, on
almost any technology, at realistic costs.

This is a proven intelligent media platform


running networks for clients such as SingTel, Qld
Health, Cold Storage, Mars Group, L’Oreal and
Orica to name a few. This platform allows the
Yeahpoint ’s South African born chief executive rapid delivery of consistent applications across
John Anderson knew he was producing something diverse technology platforms. It also allows for the
ongoing evolution of these application to protect
totally revolutionary - in fact, a world first but
customer investments, remain one step ahead of
it took an ambitious forward-thinking client to
competitors and to evolve as content and content
recognise the possibilities of something so new.
requirements change Yeahpoint ’s concept of multi
The winning SingTel Shop store design features applications on a single “kiosk ”, regardless of the
a unique interactive digital media shopping expe- technology platform, have allowed customers
rience, turning the sales focus from hardware to around the world to start realising real benefits in
content and allowing customers to download what this evolving space.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
5

Justtouchit launches Kiosk


Rental Division
J
usttouchit, which runs South Africa ’s only in- Justtouchit ’s Frank Nunan says the aim of the “We have been renting kiosks out and creating
teractive kiosk and digital media conference kiosk conference was to create an understanding of these applications sporadically over the years, but
and expo, Justtouchit 2010, has launched a what interactive kiosks are, what they can do for we have now decided to formalise the service, ” says
kiosk rental division to make interactive businesses and institutions, and how to go about Nunan.
touch screen kiosks available to companies wanting implementing successful kiosk and self-service
to try out the technology or use it for conferences, projects. JusTTouchIT - Rentals is part of the Kiosks are available for short term periods -for
exhibtions or product launches. same communications strategy - the more people launches, exhibitions, conferences and product
who can try out the technology at a reasonable launches, or medium term -two to four weeks, for
price, the greater the likelihood of them consider- longer in-store promotions. The service is backed up
ing implementing interactive self-service projects, by full technical support including on-site techni-
and that is what Justtouchit is all about. cians as required or remote monitoring for longer
rental periods.
“Kiosks available for rent range from simple See www.justtouchit.info for more information.
desktop of wall-mounted units, to sophisticated
double screen , highly brandable units. In addition
to this hardware, Justtouchit can also offer the
development of specialised applications -including
surveys, quizzes, interactive product catalogues,
product demos etc -at highly affordable rates.

21

  






vol 28 / issue 3/4 / 2010 • marketingmix.co.za


6

Self-service healthcare – the


next major frontier
By Norma Wolcott, Business Line Executive, IBM Self-Service Products

S
elf-service healthcare is not an oxymoron. cost of capital, a clear return on investment and More is at stake if something goes wrong. The
In fact, it just might be an opportunity overall user acceptance. However, we believe the platform capabilities and other critical require-
whose time has come! focus on healthcare reform and cost reduction ments must be in place to ensure the solution is
on a broader scale will trickle down and begin to deployed successfully – scalability, performance,
Driven by significant advances in Internet, mobile, manifest itself in leveraging self-service solutions open standards, security, integration with other
and kiosk technologies, and the rise of the “Infor- to improve both cost and efficiency. In addition, health information systems, and systems manage-
mation Omnivore ” – a well-informed, empowered growing consumer dissatisfaction with such things ment to name a few. Consumers will not accept
consumer – the time seems ripe for the emergence as the inconvenient process of waiting rooms, self-service options that are not reliable, secure or
of personalised self-service healthcare, where con- paperwork, calls to insurance companies and pre-
have slow performance.
sumers play a more active role in
Challenges notwithstanding, I am believe the
evaluating and managing their medical well-being.
opportunities are endless. Consumers are projected
to spend over $1 Trillion through self-service
As smart technology, infused with intelligence,
22 continues to make pertinent information more
kiosks by 2011, according to IHL Research, which
affirms a September 2007 IBM study that showed
accessible, healthcare experts believe such progress
could ultimately lead to increased compliance to consumers becoming more and more comfortable
treatment regimes, a healthier population, and with self-service as a way to access additional
potentially lower healthcare costs. resources when it is convenient for them.
As is the case with a number of today ’s service
In some quarters, it is already happening. Self- establish-ments, there might not always be a person
Service technology is currently available to help waiting to answer your questions, or the line
healthcare patients register for services, retrieve might be too long, causing you to leave. Studies
information, navigate their way through a facility, have shown that consumers will wait a maximum
and settle accounts. of 3 - 4 minutes before they get frustrated and
potentially leave.
This consumerisation of healthcare could mean it authorisations, could help accelerate the deploy-
won ’t be long before patients expect the same level ment of self-service solutions. What if you ’re at a chemist and the line is several
of self-service convenience in healthcare that they people deep? All you want to know is whether to
can now get in an airport or a traditional retail As self-service spreads rapidly across multiple take certain non-prescription medication with your
store, and a number of other industries. industries, healthcare truly represents the next prescription medicine. A kiosk could get your
major frontier. Consumers are getting more and question answered almost instantly.
Technology providers who aggressively pursue more comfortable with self-service technology.
solutions that meet these emerging expectations
They enjoy the option of s‘ erving themselves ’ for Even more, self-service kiosks are more private.
could help clients reduce their costs and improve
many common tasks. Self-service is now viewed by There are medical questions and issues you just
overall staff productivity. Such health manage-
many consumers as a critical element of outstanding don’t want to talk about to a live person, but you
ment tools could help clinicians and patients alike
consumer service. The most familiar examples may need the information.
benefit from the availability of patient informa-
include ATMs, check-in at airports and self-check-
tion. Technology could be the catalyst needed to
move information from the doctor’s file folder to out systems in retail stores. The proliferation of Self-service could be just what the doctor ordered
an easily access-ible self-service kiosk, or on-line self-service technology in the healthcare industry – a fast and convenient option for consumers, and
Web browser. presents both a challenge and opportunity. A key a boon for innovative, consumer-driven IT vendors
challenge is growing user confidence and accept- ready and willing to pursue an opportunity that
In spite of its promise, self-service healthcare has ance – a much higher threshold to overcome than I believe is the next great frontier for a growing
several inhibitors, including privacy regulations, solutions for a grocery store or apparel retailer. self-service economy.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
7

Kiosks? It’s a
no-brainer!
By Rhys Hughes, MD of The Pro Shop

T
he Pro Shop has recently launched the Even though we only use low handicap golfers of accuracy and technical competency, using touch
most exciting innovation in golf equipment as team members, it can take up to nine months screen kiosks is a no brainer!
selection in South Africa – the X Act Fit before they are really proficient. There is also the
interactive kiosk solution! problem of communications skills – these differ X Act Fit was developed in house by The Pro
from person to person, and it is not always Shop, and the kiosks were supplied by iKioski of
X Act Fit is an interactive software solution that possible to get a good needs analysis. Johannesburg.
was created to give consumers the right equipment
information to suit their golfing profiles at the X Act Fit started out as a series of leaf lets, but
Point of Purchase. It brings together leading golf they were out of date before they came off the
experts -usually PGA professionals – to suggest the presses. The Pro Shop then started looking for an
perfect equipment for a particular customer, with alternative method. Research brought the company
a choice of models and price ranges. to interactive touch screen kiosks, and XAct Fit
Interactive was born.
The golf equipment industry has changed
radically over the past number of years. Where Team members report that response from
equipment brands were bringing out two new customers has been extremely positive. The beauty
models every two years, they now bring out up of the system is that we have kept it simple and
to six models every year. This makes it just about interesting, and the customer gets a result very
impossible for our sales people to remember all the quickly. When you look at the cost of producing
technical innovations. trained and effective staff able to deliver that level 23

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


8

NCR sees a blurring of the


lines between digital
signage and kiosks
Dusty Lutz, general manager of NCR Netkey, recently spoke to
Kioskmarketplace.com about the company’s future in the wake
of NCR Corp’s acquisition of Netkey

C
ompany officials have already talked “This acquisition is a plus for the customers of both customer ’s exact need. We demonstrated this
about how NCR sees a “blurring of the NCR and Netkey. Businesses that trust NCR for commitment in NCR’s booth at the National
lines” between digital signage and kiosk point of sale, ATM, self-check-in and other self-serv- Retail Federation Expo in January, where we had
applications. How does the addition of Netkey ice solutions now have access to Netkey ’s self-service Netkey software running not only on NCR hardware
bolster that continuing convergence? and digital signage applications and management but also on kiosks from IBM and Olea, and digital
“There is increasing interest in enabling interactiv- software platform. For Netkey ’s customers, they signage displays from Samsung. Netkey has a long
ity with large format screens, in essence combining have the confidence of knowing that their Netkey history of delivering successful projects working
the best of digital signage with self-service kiosks
solution is now backed by a Fortune 500 technol- in partnership with providers such as IBM and
to create a more immersive and engaging consum-
24 er experience. The digital signage helps drive the
ogy leader that is committing the resources to
enhance and expand the Netkey product suite and
others, and we will continue to do so when that is
in the best interest of the customer.”
visual merchandising marketing messages while
the customer support infrastructure.”
the kiosk provides the ability for the consumer
And finally, how can the two companie ’s
to view product and services information and, if
NCR provides total solutions - both hardware strengths complement each other to lead to product
necessary, order and purchase from the device.
and software. Netkey was strictly software and innovations?
“Using software that is optimised to support the
workf lows around both signage content delivery therefore “hardware agnostic ”. Will Netkey “We are barely four months along with the
and touch screen enablement is the key to success- software continue to be available for hardware combined company and we have already made
ful interactive digital media deployments.” other than NCR ’s? great progress toward not only identifying but
developing new, highly innovative products and
With Netkey, how is NCR better positioned to “Absolutely! We are committed to offering Netkey services that leverage the best aspects of what
move forward with digital signage and kiosk as a best-in-class software solution able to be NCR and Netkey have to offer.”
applications, and possibly pure digital signage deployed on the kiosk and digital signage
apps?
“With the acquisition of Netkey, NCR has
expanded its portfolio of self-service and kiosk PDT nominated for TECHNOLOGY
applications. In parallel, having the Netkey TOP 100 AWARD
software allows NCR to move aggressively into Public Display Technologies, one of South Africa’s leading digital
media companies, has been nominated for the 2009 Technology
the marketplace for digital signage-only solutions.
Top 100 Awards, for its work on the Township TV Project.
Netkey has a modern, robust software product “The Technology Top 100 Awards are recognised as
and one of the largest installed bases of screens in the premier business and technology excellence
North America. There is a tremendous demand awards in South Africa,” says Mosibudi Mangena,
for a feature-rich, market-proven digital signage Minister of Science and Technology.
Technology Top 100 is a national programme sponsored by the Department of Science
software product that is sold and supported on a
and Technology that acknowledges the success that today’s organisations enjoy
global basis by a company with the experience, through their development and use of technology. More importantly, it encourages,
reputation and depth of resources that NCR measures and honours these organisations for the value their use of technology
brings to the table.” brings to the South African economy.
The Township TV project is designed to provide the townships of South Africa with
a unique form of entertainment in a safe and secure environment by installing big
How will this most directly affect the deployers
screen TVs in strategic locations in the communities.
of NCR or NCR Netkey solutions? hardware that is most applicable to meeting the

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


25

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Expert opinion

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vol 28 / issue 3/4 / 2010 • marketingmix.co.za www.yeahpoint.com


Expert opinion

Forget the hard sell, let’s


talk about ‘trust’

W
hen pinpointing characteristics right, and yet they recognise that it does play a
that shape an explanation of significant role in their decision.
‘trust’ it ’s natural to reference the As consumers think more about what they buy,
dynamics that make relationships with family, they are not just c‘ onsumers’ anymore – they are
friends and co-workers successful. In doing so, ‘ evaluators ’ of products and retailers before
general descriptions rise to the surface like: loyal, forking over the hard-earned bucks that they once
consistent, always there, just what I need, I can again appreciate the value of.
depend on them. My leap then is pretty obvious Let’s admit it; we used to be pretty easy. If we
– do we trust brands, like we trust people? Do we laughed (or cried) at an advert that triggered our
have the same expectations of both? Forget just emotions – even if we saw it 4.7 times – and if
we were then in the shopping aisle and something
said ‘I ’m new ’, then chances were we ’d give it a try.
27
We still do. Sometimes. But, generally consumers
are beginning to look beyond this to find the
relevance that associates their values with what
goes in their cart.
Shoppers are finally giving the nod for everyone to
relax, take a deep breath and calm down.
They’re saying ‘tell me something I care about’ (or
I’ll read online reviews and find out on my own).
A growing shopper base wants to know they can
liking a store – what makes you trust one grocery trust you – because they care what they buy. What
store over the other, or one brand of diapers more are the ingredients in the product, why does it
than the next? As with the people we trust – it cost so much, does the packaging appear wasteful,
boils down to placing value on their good qualities and what production method was used to get this
and sharing positive experiences together. product on this shelf ?
Have you ever walked into a store to find Trust trumps the hard sell. And integrity trumps
cluttered, dusty merchandise or maybe a dirty emotional f luff.
f loor with recent spillages still very much in So, sure we want our teeth whiter and our clothes
evidence? There ’s an instant disconnect and the brighter. But not at the expense of animal testing,
immediate likelihood that you ’re not going to be bulky packaging, or chemicals that are horrible
enamoured with anything the store has on offer. to wash down the drain. Shoppers are starting
Whatever purchases you were there to make, the to expect their brands and retailers to know that
experience has not delivered and you now don ’t about them. They want to trust that the products
trust the products, no matter the brand. Compare on offer are there for the right reasons, and that
it to walking into a dentist ’s office to face coffee- they will fit into their purchase decision value set.
stained magazines, mi-matched old chairs and bad The information shoppers respond to is changing.
music – faith in the dentist is now in question. ‘The reason why ’ is becoming based on more
And that matters. A lot. meaningful things. If the experience and messages Kennedy Zakeer
A recent research article (shoppercentric.com put forward in-store deliver on this then earning Barrows shopper marketing team &
TradeEYE reporter
Windows white paper report) calls out the fact trust and building lasting relationships will kennedy.zakeer@barrowsonline.com
that shoppers today don ’t spontaneously talk become easier. The hard sell – she’s going out of
about trust as a purchase decision in its own style.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Expert opinion

The marketing of fast food


is evolving – adapt or die

T
he fast-food industry in SA is experiencing to purchase from fast-food outlets when discounts
numerous market-related changes, rang- are offered (for example, price promotions) or
ing from intense globalisation forces to when prices charged are perceived as affordable
heightening competition. As a result of these To stimulate growth in this market segment, the
forces, fast-food outlets in SA are intensifying their management of fast -food outlets needs to consider
production and mostly their marketing strate- revising the prices of their products since they are
gies as a defensive way to counter the impact of considered expensive by these consumer groups.
these environmental changes. This entails almost • To enhance brand awareness among customers,
every fast-food outlet being capable of offering the management of fast-food brands need to
high-quality products that satisfy the needs of cus- strengthen the visibility of their outlets. This is
tomers in a similar way, and with the availability especially relevant in areas such as Soweto where
of modern information technology they can reach the purchasing power of consumers has increased
their customers efficiently. over the past decade. Furthermore, there also need
It therefore becomes imperative for fast-food to be more pertinent attempts to access student
retailers to understand the importance of product, centres at university campuses. This will enhance
price, place, promotion, people, physical evidence brand awareness among Generation Y consumers.
and processes as elements of the extended market- Currently, this consumer group is a growing market
ing mix in creating and maintaining a competi- segment of the fast-food industry in and needs to
tive advantage. The development of an effective be stimulated by providing convenient access.
marketing strategy involves the consideration of • The introduction of mobile fast-food outlets for
28 an extended marketing mix. The elements of the hospitals, prisons and office blocks can also be
extended marketing mix listed above are taken considered by the management of fast-food brands
into account during the consumer ’s decision-making to strengthen their competitive position, visibility
process. A combination of these elements is re- and accessibility. The approach of fast-food brands
quired to meet customer needs and provide value. should be on taking their outlets to the consumer,
rather than bringing the consumer to the outlets.
Marketing tips to secure the • Provide continuous training on aspects such as
interest of consumers: product knowledge (including the ingredients used
in the preparation of a specific product – specifi-
• Experiment with ingredients to create new tastes. cally if requested by a health-conscious consumer),
Such experimentation must be done in conjunction and interpersonal and communication skills. This
with consumer research to ensure that consumer is especially relevant when considering that black
needs are satisfied over the long term. female consumers and customers who are in the
• Black, female consumers between the ages of age group 20 -35 indicated that service delivery has
20 and 35 indicated a strong focus on healthy a direct inf luence on their decision to purchase
food products when deciding to purchase from a from a fast-food outlet.
fast-food outlet. A greater awareness of the health • To enhance the customer experience inside an
preferences of this consumer group when marketing outlet, the use of audio-visual aids on the menu
fast-food products could enhance the level of board in all outlets should be enhanced. This
customer satisfaction and retention. would allow the fast-food retail group to provide
• South Africans have become increasingly health more information on the menu and to inform
conscious over the past decade, and the adaptation customers about special offeris, as well as new
of the fast food-menu to ref lect a wider variety of products.
products with a health focus (for example, a larger • Ensure that fast-food outlets are more spacious to al-
variety of salads, ice creams with a lower sugar low for easier movement of people inside the outlet, and
content and steamed chicken rather than fried) introduce large tables and comfortable chairs for more
could enhance support among health-conscious convenient dining. In addition, an increased number
Dr. Mornay Roberts-Lombard
senior lecturer, dept of Marketing Man- consumers. of play rooms for children need to be introduced to
agement, University of Johannesburg • Develop packages that maintain the freshness of eliminate congestion. A video screen with sound options
(011) 559 3031 food products for longer. could also be attached to the dining-room tables inside
mornayrl@uj.ac.za
• Consumers between the ages of 20 and 35 the outlet to enable parents to monitor their children in
(black and female) indicated a strong willingness the play room while enjoying their food.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Expert opinion

29

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Cinema marketing

Cinema in 3D
T
he price wars and closure of cinemas countrywide is now a distant
memory with recent blockbuster releases and the advent of digital
and 3D cinema creating much excitement among moviegoers. In fact,
one of the most talked about points among consumers is whether a film was 2009 annual cinema attendance
watched in 3D – increased pricing certainly isn’t deterring attendance. 3D
(12 month average)
film Avatar, released late last year, is credited with kick-starting the 3D film
bonanza, and is now the biggest grossing film of all time in SA.
The impact of the economy (cinema is considered to offer the best rand Top 5 – all screens
value for entertainment) plus huge blockbusters during the year mean that 1. Gateway Cineplex 18
cinema attendance for 2009 was up by over 320 000 to 25.9 million. So far 2. Gateway Cineplex 1
3. Monte Casino 11
this year, attendances bode well for the rest of the year. Even more good
4. Cavendish Cineplex 3
news is that while the World Cup means traditionally lower attendance at
5. Cape Gate 2
the cinema, the extended school holidays during the event, courtesy of the
South African government, should counterbalance this, particularly as a
Top 5 – 35mm Nouveau screens
whole slew of kids’ films will be released during that time. There are also
1. Brooklyn Nouveau 1
some major blockbusters, which means tourists, who are already in a relaxed 2. Cavendish 8
30 frame of mind (depending on how their team is doing, of course) could 3. Rosebank 1
well be stepping into the cinema complexes to catch a film or two between 4. V&A 4
matches (see Cinema blockbusters guide for details). 5. Gateway 2

The bottom line is that attendance is up and this makes cinema advertis- Top 5 – 35mm commercial screens
ing (including during the World Cup) a very attractive proposition. However, 1. Gateway Cineplex 1
Jenni Critchfield, executive: head of Sales, CineMARK warns that there 2. Menlyn Park Nu Metro 10
willHowever, Jenni Critchfield, executive: head of Sales, CineMARK warns 3. V&A 10
that there will likely be a shift in the time customers go to the cinema to accommodate 4. Pavilion 11
5. Canal Walk 11
match times, therefore promotions etc will have to well thought out in
advance.
Top 5 – Digital Screens
1. Gateway Cineplex 18
2. Monte Casino 11
3. Cavendish Cineplex 3
4. Cape Gate 2
5. Musgrave 7

Advertising
Cinema advertising was down slightly for 2009 (although solutions such as
the Mini Golden Reel were put in place by CineMARK to address this issue),
but the cinema advertising groups are looking forward to a bumper 2010.
Karen Bailey, general manager of Popcorn says, “Overall, cinema ad spend
is largely dependent on the time of year as well as what content is being
released when. With the introduction of 3D there is renewed excitement in
cinema.”
3D and digital advertising is leading the way in cinema advertising; in
fact Nu Metro’s Emperors Palace is the first 2K digital multiplex venue in
Africa. Ster-Kinekor has 13 3D screens and 93 digital screens (a further 22 are
expected by the end of May) across the country with Nu Metro on 14 3D
screens and 84 digital screens, with more 3D screens scheduled to be rolled
out soon. “We have introduced large-scale digital roll-outs and a big focus on

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Expert Cinema

31

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Cinema marketing

3D with 3D sponsorship packages,” says Critchfield. CineMARK’s sponsorship


packages include full naming rights, 3D advert on-screen advertising, foyer
and theatre branding as well as many Web and viral platforms.
There are many benefits to digital advertising in cinemas, not least of
which are reduced distribution costs as duplicates are no longer required
for prints and reels no longer have to be shipped, stored or returned. The
ads themselves are enhanced with better picture and sound quality with the
added advantage of a longer lifespan.
CineMARK has a 3D showreel to educate and inform the industry regard-
ing this new and innovative medium and has a number of 3D ads ready to
be rolled out. “Many international creative directors view 3D advertising as
the ‘Rolls Royce ’ of audio-visual advertising and interest in this is extremely
high locally, ” says Critchfield. This means that innovation in advertising just
hit the jackpot.
“Digital cinema offers a host of advantages, including constant and consist-
ent commercial quality, shorter lead times, reduction in production costs,
greater creative f lexibility, retail point of purchase opportunities, local and
regional advertising as well as alternative content screening and a strategic
link from on-screen to foyer,” adds Critchfield.
“I don ’t believe there is a best way to advertise in cinema, the beauty of the
medium is that it is not a one-size-fits-all buy,” says Bailey. “For onscreen adver-
tising alone we offer four distinct rate variables, depending on whether ads are
in 35mm or digital formats for 2D films, and then there are two rates for 3D
films depending on whether the ad format is 2D or 3D.”
The medium lends itself to a multitude of media opportunities such as
32 sponsored premieres, joint film promotions for theatrical and DVD releases,
branding in foyers, as well as interactive advertising in theatre, product
demonstrations, experiential advertising, multi-sensory promotions and so
much more. She also adds that 67 per cent of the audience is able to recall ads shown
“The focus is on 3D now, as well as media innovations like live streaming six weeks after the viewing and 93 per cent can recall ads immediately after
of content into cinemas,” says Bailey. “Following the award winning documen- the screening. It will be interesting to see the recall results for 3D ads from
tary, The Cove, Popcorn just completed a unique campaign utilising satellite this year.
technology. We broadcast live game drives promoting wildearth.tv into cinemas
as a pre show, creating commercial breaks within the game drive for the other Who’s watching?
ads – a world first!” Regardless of the new technology that is aimed at boosting advertising
quality, the cinema-going audience itself is a major attraction. According to
Impact AMPS 2008/2009, out of the 2009 total attendances, 69 per cent were in the
Research shows that cinema can be more efficient than TV in terms of high- income bracket (LSM 7-10) and go to the cinema once a month. The av-
impact, reach and cost in certain markets. “Using TV and cinema together, as erage ages were 16-24 and 24 -35. “Cinema marketing is particularly lucrative,
especially when talking to the aff luent and young. It’s larger than life, highly
opposed to TV only, makes for a 70 per cent higher recall rate. Case studies
impactful and gives you access to an audience who are happy to be there,
show that using both media together delivers a far more efficient schedule
ready to be entertained and primed for your message,” says Critchfield.
with a longer period on air without compromising reach at a significant sav-
The cinema environment offers a relaxed audience that is generally open to
ing,” says Critchfield.
engagement and interaction opportunities. “Cinema offers impact, a captive
audience, surround sound, opportunities to engage and interact with a target
market, along with prospects to create multiple touchpoints within a relaxed
environment. A client could place a demo gaming console in the foyer for
example, with full branding and an opportunity to experience the game and
then reinforce the message on the big screen and vice versa,” says Bailey.
It can no longer be handing out a couple of f lyers before a blockbuster
movie. There has to be creative and innovative thinking employed to take
full advantage of the entire cinema environment. There are key elements to
integrating cinema into a full 360-degree experience. According to Critchfield,
this includes foyer branding, popcorn box advertising, sampling, product
displays, database collection, and competition and retail coupon drives.
Taking heed of this, both advertising groups offer packages that align with
the top releases. Says Critchfield, “The Follow the Movie packages combine
a number of elements and as the name suggests, are geared at following or
aligning to the hottest predicted hits of the year.”. Packages have already been

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Cinema marketing
Cinema blockbusters 2010
Prince of Persia: The Sands of Time May 2010
Starring: Jake Gyllenhaal, Ben Kinglsey
Sex and the City 2 May 2010
Starring: Sarah Jessica Parker, Kim Cattrall, Penelope Cruz, Miley
Cryus, Kristen Davis, Cynthia Nixon
created for Toy Story 3, Shrek 4 and Schuk ’s
Toy Story 3 June 2010
Tshabalala ’s Survival Guide to 2010. The package
Starring: Tom Hanks, Tim Allen
offers on-screen ads, roll-up banners in the foyer,
plasma screens, movie tickets and best on-reel posi- The Twilight Saga: Eclipse June 2010
tions. Starring: Robert Pattinson, Kristen Stewart, Taylor Lautner
The Karate Kid June 2010
The future Starring: Jaden Smith, Jackie Chan, Taraji P. Henson, Tess Liu
Cinema is certainly shining bright once again, with a Inception July 2010
host of new concepts and alternative viewing options Starring: Leonardo Dicaprio, Ellen Page, Marion Cotillard,
such as live screenings of high-brow opera, theatre Joseph Gordon-Levitt, Ken Watanabe
and ballet performances and plenty of niche film Shrek Forever After July 2010
festivals that offer the opportunity to get close to a Starring: Mike Myers, Cameron Diaz, Eddie Murphy, Antonio Banderas
particular target market. “Niche film festivals draw a
The Sorcerer’s Apprentice July 2010
different crowd and open up the cinemas to a differ-
Starring: Jay Baruchel, Nicolas Cage, Monica Bellucci,
ent type of audience, and there may be a few more
added to the schedule this year,” says Critchfield.
Predators July 2010
Ster-Kinekor recently took the plunge with its Car- Starring: Topher Grace, Adrien Brody, Laurence Fishburne,
nival City cineplex by converting six of the cinemas The A-Team August 2010
to 24-hour viewing, along with special m ‘ idnight Starring: Liam Neeson, Bradley Cooper
delight’ catering. Special previews and screenings are The Expendables August 2010
also becoming more common. A recent example is Starring: Sylvester Stallone, Jet Li, Jason Statham, Dolph Lundgren,
the 2am showing of Michael Jackson ’s This Is It. ‘Stone Cold’ Steve Austin, Mickey Rourke, Arnold Schwarzenegger
There are also plans afoot to improve the viewing
environment, with Nu Metro ’s cinemas at Emperor ’s
Salt September 2010 33
Starring: Angelina Jolie, Live Schreiber
Palace leading the way. “The new Emperor ’s cinemas
Jonah Hex September 2010
provide colourful seating and innovative beanbags,
Starring: Josh Brolin, Megan Fox, John Malkovich
and we’re seeing a move towards providing a more
interesting and stimulating viewing environment,” Resident Evil: Afterlife September 2010
says Bailey. But, as she points out, it is impossible to Starring: Milla Jovovich, Wentworth Miller
overhaul all the existing cinemas at once. The Last Airbender September 2010
Critchfield is keeping mum on what ’s happening Starring: Noah Ringer, Dev Patel, Jackson Rathbone, Nicola Peltz
with Ster - Kinekor with regards to upgrading the The Social Network October 2010
Starring: Jesse Eisenberg, Rashida Jones, Joseph Mazzello, Justin
cinema environment, but says happenings are on
Timberlake
the cards. She also says that new locations, including
townships, are part of Ster-Kinekor ’s strategy, but
Harry Potter and the Deathly Hallows Pt. 1 No-
details for now, are confidential.
vember 2010
Starring: Daniel Radcliffe, Rupert Grint, Ralph Fiennes, Helena
Bonham Carter, Alan Rickman, Maggie Smith, Emma Watson
Piranha 3D November 2010
Starring: Elisabeth Shue, Jerry O’Connell, Richard Dreyfuss, Ving
Rhames
Red Dawn November 2010
Starring: Chris Hemsworth, Jeffrey Dean Morgan, Adrianne Palicki
The Green Hornet December 2010
Starring: Seth Rogen, Cameron Diaz, Christoph Waltz, Edward
Furlong
Tron Legacy December 2010
Starring: Garrett Hedlund, Jeff Bridges, Olivia Wilde
The Chronicles of Narnia: The Voyage of the
Dawn Treader December 2010
Starring: Ben Barnes, Bill Nighy, Skandar Keynes, Georgie Henley
Gulliver’s Travels December 2010
Starring: Emily Blunt, Jason Segal, Amanda Peet, Billy Connolly

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


7 day [b]itch

Will Green
managing director, Apurimac Media
22/03/2010 very impressed with their approach to the digital
Woke up in Rooi Els at 5am (staying at a friend’s channel, but as always frustrated by the way it is
holiday home) and went for an early morning treated within the mix from a budget perspective.
walk among the fynbos, baboons and rocky Teleconference call with Yahoo head office in
coastline with my daughter. She is an early riser California and regional office in Dubai for an
like her dad! update on activities and numbers.
Had breakfast and checked emails on the Dinner and drinks at Grand Beach, the new
Blackberry – as expected all is running smoothly. restaurant at a man-made beach at the Waterfront.
Normally, on a weekend, I have my data switched Good food, friends and what a location.               
off, but on public holidays it is switched on for
the overseas offices – in case of emergencies. 25/03/2010
Meeting with Foschini Group. This week is truly
23/03/2010 ‘Retail Week ’ with the direct client meetings.
‘Read, reply, forward and delete’ my mails this Receive an invite to attend the Yahoo! CEO
morning. A morning ritual as I work at home Dinner in Paris early next month. As much as I
while missing the rush-hour traffic into Cape would love to attend, it is a hard one to justify
Town. It also allows me to spend quality time internally (to myself). Will follow Carol ’s Twitter
with my wife and almost two-year-old daughter feeds before and after the event. Teleconference
34 while I make breakfast for them. with Mihai in Romania, Yahoo ’s partner there.
Another ‘benefit’ of working in the online indus- It is developing a new Yahoo advertising site and
try is the job can be done anywhere. (Mental note, sharing it with us. I met with him at the Yahoo!
next diary I should be more exotic in my Emerging Markets conference we hosted in Cape
‘ working ’ destinations. Like... ‘This morning I Town in February.
went for a ‘board meeting’ aka surf. Spend the
day online at the ‘ office ’ on deck chair under an 26/03/2010
umbrella.’ The day started very well with a staff game drive
Meeting with Professional Provident Society to in Durbanville. All staff boarded an army truck
discuss its products and my needs. Finance meeting converted to a game-viewing vehicle. This was
with FD to review preliminary March numbers part of our birthday celebrations and introducing
– as usual, numbers are looking up year on year staff to Apurimac Media ’s Passion Standards,
and month on month. I have a look at the latest which define the business ethos. It is good to
AMPS data and, interestingly, the Internet has spend some time out of the office with staff. 
overtaken M-Net as the most relevant channel for On returning to the office, I completed a pitch for
overseas travellers. Home time means bath time! ABSA Insurance, complete with reports, justifications
A clean daughter equals a happy mother and and recommendations.
father. The afternoon was completed by attending the
Digital Edge Live event at the BMW Pavilion. My
24/03/2010 big take out from the conference was to continue
to innovate and ‘it is not about the work, as is the host ’s grass looked.
Manage a quick session at gym. Catch up on
case with non-digital advertising. It’s about the Have my best mate from the UK staying with us
global news on Sky News and Sports while on the
results’. and we connected with another friend of ours over
bikes. Love the format and brands, if only local
a virtual Skype beer.
news was as good!
Notice how many people are using the Internet 27/03/2010 I flew a kite with my daughter. With Cape Town ’s
Had an early morning walk to the park with my notorious winds, I wonder why more people don ’t
and what sites when I leave the gym. I managed
daughter, I have definitely set her expectations f ly kites more often.
to catch a glimpse of the new MTN campaign very high as the first thing she says when she  
running on Yahoo.com. I make another mental wakes up is ‘Daddy. Park. Swing ’.
note to get our campaign management team to
28/03/2010
Had a stereotypical South African afternoon
Had a lovely early morning breakfast with my
check the performance of the campaign. Collect planned watching the rugby and a braai in Wyn-
berg with friends. All the guys drank a beer parents and daughter, while her mother had a
our regional sales executive and drive to Clicks
around the fire and spoke about how good the much-deserved lie in!
head office for a first meeting with them. I am
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Expert opinion

Is there marketing
left in CRM?
I
love the brand-new world we live in. When to concentrate its limited resources on the greatest
Aldous Huxley wrote Brave New World in opportunities to increase sales and achieve a
1931, he had no idea what would really hap- sustainable competitive advantage. It must combine
pen in the world of consumerism although he product development, promotion, distribution,
certainly had a real vision of what may come, and pricing, relationship management and other elements.
has indeed come to pass. Marketing strategy determines the choice of target
In the new age of advertising, we put the cus- market segments, positioning, and allocation of
tomer first; we engage in endless dialogues about resources. It is most effective when it is an integral
how she dictates her needs and how we should all component of overall business strategy, defining
follow; we read books on building relationships how the organisation will successfully engage customers,
and we even try to go as far as embracing psycho- prospects and competitors in the market arena.
logical therapies, such as Imago, when we talk to I love Facebook. I am a fan of 44 different
our customers. But, I have to sit back and ask… pages, of which 19 are brands I love. Of these 19, I
where has the marketing gone in all of this? truly believe only two actually use the site for its
real worth: to engage me the customer and to learn
something about my needs. If I look carefully at
35
their overall communication plans, I can see the
marketing strategy behind the promotional strategy.
I know they embrace the right media mix, the
right 1 - 2 - 1one - to - one? dialogue channels and their
social media efforts are engaging and interesting.
The fan pages I am most disappointed in are
the ones that have so-called loyalty points
programmes, and don’t use the site effectively
at all. In fact, since one such brand downgraded
from silver to blue (no not an airline), I have not
Have we forgotten how to be true to brand es- received a single piece of communication. They
sence and brand values? need to go back and dust off their marketing
The more agency directors (both creatives and strategy, see why they are losing my custom, and
suits) I talk to, the more I hear the eternal lament: how, as marketers, they can engage with me again.
‘Clients don ’t write strategies any more; they don’t There is place for social media, but before you can
give us their marketing plans and they simply decide on a channel mix, you have to decide on a
stare blankly at us when we ask them to share marketing strategy.
their business ideals and knowledge with us; they I believe the other reason marketers have forgotten
want a quick solution to everything and suddenly about their plans, many of which were pretty robust
if you are not playing in the social media space, and real when written, is because they pander to
then your brand has no equity. Surely, marketers the competition. If their competitor sneezes they
can ’t be negating the value of a marketing plan? run off in a direction contrary to the one they
You know. The plan that embraces product have chosen and change their communication
(that ’s pretty important), price (nothing is free), plans, their agencies and their processes. Then
placement and, of course, promotion (Facebook, they wonder why they are not increasing sales and Nici Stathacopoulos is the owner of
Twitter here we come), but does social media truly building a sustainable brand. Staying true to your a consultancy, the Tipping Point, and
offer the right channels? I hope not at the cost of brand (I am not suggesting you shouldn’t try new is currently under contract to Wool-
worths, heading up the integration
the rest of your communication strategy. ideas) values and plans allows you the opportunity
between their Retail and Financial
Marketing strategy as defined by most text to build a brand that will stand the test of time Services Companies
books is a process that can allow an organisation and build a following of loyal valuable customers. nicistathacopoulos@woolworths.co.za

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Interview: Seth Godin

Are you a linchpin?


Marketing Mix interviews renowned author and marketing
genius, Seth Godin, about his latest book, Linchpin.
Seth Godin writes the most popular
marketing blog in the world http://seth-
godin.typepad.com. He is the author
of the best-selling marketing books of
the past decade (Purple Cow, Meatball
Sundae and Permission Marketing,
among others) and is the founder of
Squidoo.com, a fast-growing
recommendation website.
Visit www.sethgodin.com.

difference, being insightful and bringing emotional


labour to the workplace. In fact, most bosses want
this, it ’s the brainwashed employees that fear
it. The feedback I’ve received from the business
community has been positive. Many businesses are
buying hundreds of copies at a time and saying
to their employees, “here, we ’re serious, do this. It
36 might seem hard, but it ’s not fatal ”.

MMX: You refer to becoming indispensable


- what does this mean to you? How indispensable
are you?
SG: No one is truly indispensable. My argument
is that the focus needs to be on doing work that
matters. If you didn ’t show up, would you be
missed? For how long? How much humanity do
you bring to work vs. being focused on following
the manual and being invisible. If you ’ve ever said,
“it ’s just my job and this is the policy ” then you ’
ve handed over responsibility to the system, and
sold yourself short.

MMX: How did you first come to notice the


topsy-turvy rules of working society and develop
this theory?
SG: I started my first business before I was 16. I
struggled with the resume/placement office/human
resources department world my entire career. Over
the past few years I ’ve seen that the pendulum has
swung, and individuals that can truly contribute,
that have talent, that push to make a difference
have far more inf luence and freedom than ever
before... no matter where they live.

Marketing Mix: Is the book your attempt to MMX: Are you a linchpin? If so, did you evolve
continue to fit in? If I can help you to make that
break bad habits from the past, or simply to or have you always been an artist?
choice, and do it with intent, then I’ve succeeded.
create awareness? SG: Well, if you want me to give a speech, and
Seth Godin: The book demands a choice. Once I can ’t travel that far, I’m guessing that you can’t
MMX: Did you receive any confrontation from
you understand the way we got here and the find someone else just like me. If you want to
the business world for drawing attention to such
demands of our new economy, what will read my book and the bookstore is sold out, I’m
a taboo topic?
you choose to do? Will you choose to stand SG: I ’m not sure the word is ‘taboo’ but I’ll agree guessing that you can ’t find a book just like mine.
out and do work that matters or will you that there ’s a lot of fear associated with making a But more important, I ’m hoping that if I ’m lucky

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Interview: Seth Godin

37

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Interview: Seth Godin nion

Seth Godin’s latest book, Linchpin, takes a divergent path from his usual mar-
keting-heavy pearls of wisdom to talk about linchpins, lizard brains, labour-
ers and lethargy. The basic premise of Godin’s new book, is that in today’s
working environment, the way to get ahead is to become an artist and make
a difference in your work – in essence, to become a linchpin, which Godin
defines as ‘an individual who can walk into chaos and create order, someone
who can invent, connect, create and make things happen’. This works both
for employer and employee; employee to become a linchpin and employer
to hire linchpins. ‘The linchpin is the essential element, the person who
holds part of the organisation together… Is there anyone who is absolutely
irreplaceable? Probably not. But the most essential people are so difficult to
replace, so risky to lose, and so valuable that they might as well be irreplace-
able’, writes Godin. Godin argues that being a linchpin does not require you to
be a genius, but to be indispensable. It’s an indispensable book if you want to
be indispensable and also highly recommended for brands looking to find that
extra edge over their competitors.

enough one day to work with you or talk with fake it and if so, how can you spot a faker?
you, our interaction will be between human beings, SG: Ah, the lizard brain again. No, you shouldn ’t
not according to some company ’s formula. put on a show, be obnoxious, embarrass the boss
or demand attention. My point is that the little
MMX: You say that you couldn ’t have written things, the ability to see the world as it is and
this book 10 years ago - what’s changed so to create work that matters is welcome by most
much in the past decade? enlightened organisations, and if you earn the
SG: The biggest shift is the platform of the platform, you’ll get it.
Internet. Regardless of where you are, you can
sell to the world. Regardless of your station in MMX: Can the ‘ old’ way of working in the
life, you can broadcast and publish and work office/factory work in harmony with what you
wherever the market will have you. This is a propose?
huge economic force, one that frees artists to do SG: Certainly, we still need people to wash bottles,
their best work. shovel dung and file papers. It just doesn ’t have
to be you, does it?
MMX: Linchpin refers to the US - how ap-

38 plicable is it to countries with a very different


culture, South Africa, for example?
MMX: Linchpin is different to your other
books in that it is all about ‘you’ - what caused
SG: I’m afraid that the lizard brain excuse of this shift?
“I live in the wrong country ” doesn ’t f ly any SG: Well, it ’s not about me, of course, it’s about
more because we all live in the same Internet
the reader. I wrote a book about you because all
world. I agree that your local insurance agency
the strategy in the world doesn’t work if people
or bank might not be the same as mine, but I
won’t stand up and make it real. And now, right
don ’t think that you can let your local culture
now, they can.
tell you that you don ’t deserve to have a voice
and that you ’re not able to do great work. I see
this in every country where my readers live. MMX: What is the lizard brain - in layman’ s
This works. terms?
SG: It’s the pre-historic part of your brain, near
MMX: You refer to ‘ you ’ becoming an ‘ artist’ the brain stem, the part that worries about
leading to becoming a linchpin – surely this revenge and anger and fear and lust. It ’s the
is easier for those who have to already think part that freaks out when there ’s turbulence
I wrote a book creatively for a living as opposed to the factory on the plane or you need to do a PowerPoint
presentation to the boss. And when the lizard is
about you because worker?
SG: So change. activated, it works to shut down all the better
all the strategy in MMX: What inherent traits would make
parts of our nature. We need to be alert to it.

the world doesn’t it easier for someone to become a linchpin?


Surely not everyone can be a linchpin?
MMX: Where do you get your inspiration
from?
work if people SG: Why not? How dare anyone say that SG: Bad ideas. I have more bad ideas than most
some people aren ’t somehow qualified to bring people. If you have a lot of bad ideas, good ones
won’t stand up emotional labour to their work and somehow are easy to find.

and make it real. aren ’t genetically or culturally endowed with the


seeds to connect with other human beings. Bob MMX: You talk about resistance in the book
Marley grew up in one of the poorest villages – how do you overcome resistance?
in the world. Sir Richard Branson has dyslexia SG: The resistance is Steve Pressfield ’s take on
that makes it difficult for him to read. Hugh the Lizard Brain. It ’s that voice telling you to
Masekela grew up in Witbank, a coal mining ignore me, to fit in, to be realistic, pass the beer
town. It ’s not just musicians and entrepreneurs, over here please. For me, overcoming the resistance
of course. The Internet makes it possible for is my life ’s work. It should be yours.
a programmer in Russia or a commentator in
South Africa to have an impact on a large group MMX: What’s the one thing you want readers
of people. to take away from the book?
SG: Make the choice. Frankly, I don ’t care
MMX: How far should you go to demonstrate you whether you choose to stand out or fit in, but
are a linchpin (without landing in trouble)? Can you please choose.
vol 28 / issue 3/4 / 2010 • marketingmix.co.za
Expert Advertorial

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vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Expert opinion

Segmentation
and hierarchy
S
egmentation and hierarchy sound like they mentation structure where every range gets treated
belong in a war journal, not a marketing individually. A more interesting approach would
document. In an army sense segmentation be to see what common intrinsics these products
might mean splitting up your armed forces, hav- share and how we can group them together. For
ing a clear troop, panzer, horse and air division instance, the fact that the kid ’s juice is also made
and hierarchy may take on the meaning of ranking up of 100 per cent juice means it can be grouped
officers or even divisions. with the 100 per cent range, and the fact that
Going to war is a grim prospect, but going to organic juice is also a 100 per cent juice means the
market can be even worse if you don ’t have these same, but the tiering will have to be different.
basic strategies in place initially. You will literally The advantage of a segmented chart is that in-
get blown off the shelf without the chance of send- stead of having seven different range designs, you
40 ing in your panzer division. now only have three, namely fruit juice, speciality
Segmentation is commonly used in the marketing and sparkling. The rest of the ranges like organic,
world, usually with reference to a target audience. functional and nectars get tiered up or down
I would like to focus on product segmentation and respectively, being differentiated by extraordinary
its importance to your packaging strategy. Brand design.
architecture, brand extension and product segmentation Starting your design like this, means that you
can easily be thrown into the same pot, but as we can easily see how your products relate to each
well know, that only ends up producing a witch ’s other, what design elements will be needed to
broth not worthy of tasting. clearly differentiate between the ranges and what
Brand architecture refers to sub-brands, endorser is required to hold the range together.
brands, house of brands and a branded house. The next step is hierarchy or pack architecture.
Brand extension focuses on, for instance, how far Consumers get used to absorbing information in a
you can stretch your brand across categories. specific way. It helps them to distinguish quickly
Segmentation encompasses how easily a consum- between the different ranges when browsing a
er can navigate a product range and how quickly category.
they can see the difference between a low-fat straw- Keeping your hierarchy consistent is vital in or-
berry or full-cream cranberry version. Have you der to assist consumers with this process and make
ever been in the situation where you have bought a their buying decisions easier and more accurate. It
smooth strawberry yoghurt only to realise at home is key to test your hierarchy across all your ranges
it’s a fruited strawberry yoghurt, or you purchased and variants to ensure you can apply the same
a 100 per cent orange juice only to notice it’s actu- system throughout.
ally 40 per cent fruit juice? Frustrating, right? If we look at The Body Shop as a prime exam-
Accurate segmentation can easily avoid these ple of multiple ranges spanning across thousands
disappointing, sometimes frustrating moments and of products, we see that it uses the same system
also free your toll-free helpline. It should be ap- throughout its entire product offering. The logo
proached in both a vertical and horizontal format, is always in the same position followed by the
allowing you to group products with the same descriptor and sub-descriptor, then the volume.
characteristics, focus on a definite tiering system, This format has been consistent for years, making
manage your golden thread and make it easy for it very easy for consumers to browse through the
future extensions. thousands of products.
Aardt Davidtz For example, a Fruit Juice Company (FJC) What Body Shop does to differentiate between
managing director, Liquidlab where typical products would include 100 per its ranges and variants is use colour, packaging
(021) 448 4636
cent juice, nectar juice, organic juice, kid ’s juice, formats and occasionally even photography to pull
aardt@liquidlab.co.za
functional juice, sparkling juice and energy drinks. ranges together, but there is always a clear golden
A typical approach would be to have a f lat seg- thread that runs through the entire range.

vol 28 / issue 3/4 / 2010 • marketingmix.co.za


Cape Town offers hidden
potential for corporate clientele
W
hen Hewlett Packard developed the HP Print station concept, From strength to strength
they had one objective in mind: to serve an industry which Another store which is inspiring a market shift is Colourworks Cape Town,
had been neglected and forgotten. The small SME could never based at the Foundry Cape Town. Lesley Waterkeyn, owner of the Colour-
compete with the giant corporate who could afford high volume, profes- works Cape Town store explains that the store-in-store Print station allowed
sional quality prints. HP wanted to change this, and so the HP Print station
was born.
HP created store-in-store concepts and standalone service offerings which
would cater for the market. These HP co-branded stores operated by HP
partners, offer high quality digital printing services primarily to business
customers in the small business and small office segments.

The surprise
HP standalone stores offered a new kind of service to the market, a market
which has grown from SME to corporate clientele within months. The first
successful example of this market penetration is RFM Design and Print, a
Cape Town based store which operates within a retail space in the Parow
Centre, Parow. Owners Rowan and Ferial Michaels were the first partners
which were approached by Advanced Channel Technologies and HP for the
deployment of the HP Print station concept. Using the widest range of HP
technology, RFM Design and Print fills a unique position as the f lagship
her to further craft her business model around the creation and opportunities
store. They offer a complete range of branding solutions for all clientele,
which have been presented through the HP Print station. Colourworks offers
no matter the size. What makes this so unique is the clientele which has
clientele services ranging from marketing and events, design and printing.
opted for the full use of their services. RFM Design and Print is a preferred They too have had many successes since their HP Print station inception in
supplier of Old Mutual- servicing their marketing, branding and printing in May. Clients which were part of their business before the Print station creation
selected regions. The service offerings range from business cards, wallpaper have stuck with them and have found added value in the use of the HP Print
printing, calendars, diaries, posters, light boxes, point of purchase material station. Corporate clients like KPMG,
and event the specialised corporate gifting Saeco and Coffitaly find that by using
and vehicle branding. the design and printing services quan-
tity versus quality is not undermined.

Never forgetting the little guy HP


Print stations around the country
still strive to service the SME market
who need smaller and more defined
print runs, the business traveller who
can’t load twenty documents on a
plane when travelling far distances,
the entrepreneur wanting to hand in
one tender document and now even
the corporate enterprise looking for
defined and concise delivery and
professionalism.

For more information on


the HP Print Station
programme contact
HP’s partner ACT on
(+27) 11 695 1600 or
HPPrintStation@ACT3.co.za.
Visit www.hpprintstation.com to
find out about your nearest HP PSP store.

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