INTRODUCING ROOTS 2019 - Spark Media

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INTRODUCING ROOTS 2019 - Spark Media
INTRODUCING
 ROOTS 2019

              1
INTRODUCING ROOTS 2019 - Spark Media
WHY ARE WE HERE

          You can’t build a beautiful model without a
                plan / manual (architecture)

            Good news: our profession now has the
            architecture (framework) to guide all our
                        marketing efforts

                                                        2
INTRODUCING ROOTS 2019 - Spark Media
WHY ARE WE HERE
                                           01
WHAT WE KNOW FOR SURE

       • Whilst buyer behaviour might
         adapt to changing market
         realities…

       • …our brains don’t
       • Well they do change but they
         will not change in our lifetime
       • We are wired to respond in
         certain ways

                                                3
INTRODUCING ROOTS 2019 - Spark Media
WHY ARE WE HERE
                                                    01
GOOD NEWS - UNPACKED
ROOTS forms the SA framework of this architecture

                                                         4
INTRODUCING ROOTS 2019 - Spark Media
WHY ARE WE HERE

MORE GOOD NEWS
       • The more we learn about the evolution in marketing
         thinking, the more we see the value and relevance of
         ROOTS data.

                               Source:

                                              (After all, the Ehrenberg-Bass Institute has)

                                                                                              5
INTRODUCING ROOTS 2019 - Spark Media
1.   Credentials and Methodology

2.   Highlights of the many categories

                                                         01
3.   Buyer Behaviour DISCOVERIES

4.   Media

5.   Conclusion

                                         CREDENTIALS &
                                         METHODOLOGY

                                                              66
INTRODUCING ROOTS 2019 - Spark Media
HISTORY & CREDENTIALS
                                                                     02
HOW IS ROOTS CONDUCTED?

         • Multistage clustered random probability sampling
         • Research Universe - decision makers (shoppers) aged 18 plus, living in formal
           households within selected local newspaper footprints across South Africa.
         • Decision makers are questioned in their home by a trained interviewer using a
           tablet to capture the answers.
         • This is known as a CAPI interview (Computer Assisted Personal Interview).
         • The interview lasts for 50 minutes.
         • Sample sizes vary from 150 to 300 interviews per area depending on it’s size and
           diversity.
         • This ensures a safe margin of error (95% confidence level).

                                                                                              7
INTRODUCING ROOTS 2019 - Spark Media
HISTORY & CREDENTIALS
                                                                                                             02
ROOTS FOOTPRINT                                                                 LIMPOPO - 1

= more than 100                                                                                                   MPUMALANGA - 7

individual footprints                                                NORTH WEST - 1
                                                                                                                         TSHWANE (PRETORIA) - 7
                                                    FREE STATE - 4
                                                                                                                         EAST RAND - 9

                                                                                                                         JHB NORTH - 8

                                                                                                                         WEST RAND - 4
                              NORTHERN CAPE - 1
                                                                                                                         JHB SOUTH - 5

                                                                                                                         EMFULENI (VAAL) - 5

                                                                                                                          SOWETO - 10

                                                                                                                  ETHEKWINI (DURBAN) - 9
                  OTHER WESTERN CAPE - 3
                                                                                                                  ZULULAND - 1

                                                                                                                  NORTH COAST - 2
                                                                                          EASTERN CAPE - 4
                                                                                                                  MID SOUTH COAST - 3
                                                                               GARDEN ROUTE - 3
                                                                                                                  LOWER SOUTH COAST - 3
                                                  CAPE TOWN - 13
                                                                                                                  REST OF KZN - 4

                                                                                                                                                  8
INTRODUCING ROOTS 2019 - Spark Media
HISTORY & CREDENTIALS
                                                                                                            02
RESPONDENT BASE - SPREAD OF SEM
                                      ROOTS 2019                Establishment Survey

           4 500
           4 000
           3 500
           3 000                                                                                             *
           2 500
           2 000
           1 500
           1 000                                                                                                 *
             500
               0

         * This graph reads: ROOTS 2019 has a respondent base of 3,032 respondents in SEM 10 (High) where
         as the Establishment Survey has a respondent base of 776 respondents in SEM 10 (High)

                                                                                                                     9
INTRODUCING ROOTS 2019 - Spark Media
1.   Credentials and Methodology

2.   Highlights of the many categories

                                                  01
3.   Buyer Behaviour DISCOVERIES

4.   Media

5.   Conclusion

                               ROOTS HIGHLIGHTS

                                                       10
SOME HIGHLIGHTS
                                                                                                                          03
#1 USE THE INTERNET DAILY                                                                                                        Total trendable sample
Growth of internet use over 7 years – 3 ROOTS surveys                                                                                                       71
88 areas that can be trended                                                                                                                        52
Each marker / dot = approximately 300 interviews                                                                                            28

                                                                 2013         2016         2019
                                                                                                                                             2103   2016   2019
100

90

80

70

60

50

40

30
                                                                                                                                    Implications:
20

10                                                                                                                         Questionnaire changes
 0                                                                                                                      inclusion of online behaviour
           * This graph reads: in 2013, 28% of decision makers use of the internet daily, this has increased to 52% and 71% in ROOTS 2016
           and ROOTS 2019 respectively. The graph indicates all 88 areas and the increase in each area’s daily use of the internet.
SOME HIGHLIGHTS
                                                                                                                     03
#2 TRENDED REACH OVER TIME
The stability of local community papers – 3 ROOTS surveys
88 areas that can be trended                                                                                                    Health check
                                                    2013               2016               2019

                 67% 65% 66%

                                             35%
                                                                          29%
                                                   25%
                                                                                22%
                                                          18%                         17%             19%
                                                                                                            15%
                                                                                                                  12%

                   Local Papers                Daily Papers             Weekly / Weekend             Weekly Magazine
                                                                             Papers

       * This graph reads: In ROOTS 2013, 67% of decision makers read their local paper, in 2016 this figure was 65% and in 2019, 66% read
       their local paper.

                                                                                                                                               12
SOME HIGHLIGHTS
                                                                                                                    03
TRENDED REACH OVER TIME: JABAVU
The stability of local community papers – 2 ROOTS surveys

                                                             2016                       2019
                            83%

                    67%

                                                  22%
                                                          17%

                                                                                 5%                            4%      3%
                                                                                         2%

                Jabavu Urban News                   Daily Sun                 Soccer Laduma                       Drum

       * This graph reads: In ROOTS 2016, 67% of decision makers in Jabavu read their local paper – The Jabavu Urban News, in 2019 this
       figure has increased to 83% of decision makers in Jabavu read their local paper – The Jabavu Urban News.

                                                                                                                                          13
SOME HIGHLIGHTS
                                                                                                                       03
TRENDED REACH OVER TIME: BOKSBURG
The stability of local community papers – 2 ROOTS surveys

                                                           2016                     2019

                           87%

                   61%

                                                 9%                                                      11%
                                                         5%                  7%      6%                           4%

               Boksburg Advertiser                Daily Sun                 Sunday Times                 Huisgenoot

       * This graph reads: In ROOTS 2016, 61% of decision makers in Boksburg read their local paper – the Boksburg Advertiser, in 2019 this
       figure has increased to 87% of decision makers in Boksburg read their local paper – the Boksburg Advertiser.

                                                                                                                                              14
SOME HIGHLIGHTS
                                                                                                                     03
   #3 PEOPLE SHOP AT DIFFERENT TIMES OF THE MONTH

                                                 2013            2019

                                                                                                    Implication:
                               56%                                                              Changes in behaviour
                                       53%
                                                                                                 Convenience is key

                                                                   33%                        • Increase in no. of stores
                                                           30%
                                                                                                 • Needs changing

                                                                                      12% opportunity
                                                                                     More 12%         to get into people's
                                                                                              shopping 2%
                                                                                                        baskets
                                                                                                              2%

                           One bulk shop a month    Twice a month/every two Weekly or almost weekly          Twice a week or more
                             and some top-ups                weeks

                This graph reads: In ROOTS 2013, 56% of shoppers did one bulk shop a month & some top-ups and 30% did twice a month/ every two weeks.
                In ROOTS 2019 these figures have changed to 53% of shoppers did one bulk shop a month & some top-ups and 33% did twice a month/ every
                two weeks

Roots Spark Release 2019
SOME HIGHLIGHTS
                                                                                                           03
#4 ONLINE SHOPPING IS STILL IN ITS INFANCY

                            Airline tickets                                                               11%

          Holiday / accomodation                                                                     9%

                        Movie / theatre                                                              9%

                                    Clothes                                                     8%

                     Food & Groceries                                                6%

                                  Vitamins                                     5%

                                   Toiletries                            4%

        This graph reads: In ROOTS 2019, 11% of decision makers bought airline tickets online

                                                                                                                16
SOME HIGHLIGHTS
                                                                                                03
 #5 INTERESTING TOPLINE INFO

        Banking:                                                              Cell phones:

                                                                                         VODA
        ABSA            FNB              STD            CAPI
                                                                                                         MTN
                                                                    NED                  COM                            CELL
         20                             BANK            TEC         BANK
                         17                                                               40              38             C
2016                                      16             15          13    2016                                          15

                                                                                         VODA
        ABSA           CAPITEC                         NED-
                         21              FNB                         STD                 COM              MTN           CELL
         21                                            BANK         BANK                  38               35            C     Telkom
                                          18
2019                                                                       2019
                                                                                                                                 5
                                                        15            12                                                 17

        In ROOTS 2016, ABSA had a 20% share of people with a bank           In ROOTS 2016, Vodacom had a 40% share of people
        account. In ROOTS 2019, this has increased to 21%.                  with cell phone. In ROOTS 2019, it is 38%.

                                                                                                                                        17
SOME HIGHLIGHTS
                                                                                                          03
 #5 INTERESTING TOPLINE INFO

         Clothes Shopping:                                                             Loyalty Cards:

                            Mr                                                            PnP             Clicks
         Edgars                                                                           Smart
                           Price             WW               JET                                         Club              Edgars
                                                                                                                                            WW
           40                                                                            Shopper                           Thank U
                            40               32               23                                          Card                              16
2016                                                                          2016         37                                 17
                                                                                                           26

                                                                                         PnP             Clicks
                            Mr                                                           Smart           Club
         Edgars                                              Acker                                                         Edgars
                           Price             WW
                                                             mans
                                                                                        Shopper
                                                                                                         Card              Thank
                                                                                                                                           Disco
           33                                                                             43                                               very
                            33               28                                                           35                 U
2019                                                          20              2019                                           15             15

        In ROOTS 2016, Edgars had a 40% share of people who shopped for              In ROOTS 2016, PnP Smart Shopper had a 37% share of
        clothes in the past 6 months. In ROOTS 2019, this decreased to 33%.          people with loyalty card. In ROOTS 2019, it is 43%.

                                                                                                                                                   18
1.   Credentials and Methodology

2.   Highlights of the many categories

                                                                                   03
3.   Buyer Behaviour DISCOVERIES

4.   Media

5.   Conclusion

                     BUYER BEHAVIOUR
                   & WHAT ROOTS REVEALS
                                   SOME MAJOR DISCOVERIES FROM THIS ARCHITECTURE

                                                                                    19
BUYER BEHAVIOUR
                                                               04
UNDERSTANDING BUYER BEHAVIOUR MATTERS BECAUSE

         •   We are all in the business of building   brands

         •   We   talk to potential buyers or users

         •   This works best when we   understand what makes them tick

         •   And we can talk meaningfully

         •   And actually   influence what they do

                                                                         20
BUYER BEHAVIOUR
                                                    04
BUYER BEHAVIOUR & WHAT ROOTS REVEALS

                   TODAY, in the interest of time
                  and relevance – we will examine
                           4 DISCOVERIES

                       • What ROOTS Reveals
                      • Anchored in Principles

                                                         21
BUYER BEHAVIOUR
                                            04
DISCOVERY #1

        • LOYALTY – (probably the most important discovery)
        • Humans are naturally curious & like choice.

                                                              22
BUYER BEHAVIOUR
                                                                04

             ROOTS REVEALS
                                         PRINCIPLE
              The detail per local
               geographic areas
                  of who your
                                     “Your consumers are
                                      just somebody else’s
              shoppers / users are       consumers who
                                     occasionally buy from
                & who you share               you”
                your shoppers /
                   users with.          Prof Andrew Ehrenberg

                                                                     23
BUYER BEHAVIOUR
                                                              04
A loyalty card program doesn’t make you ‘sharing immune’

            Spar                          WW                  SANDTON
            18%                           40%                 Top F&G retailers:
                                                              1. PnP           76%
                                                              2. Checkers      40%
                                                              3. Woolworths 40%
                    PDM’S in Sandton who have                 4. Spar          18%
                       a PnP loyalty card and                 (Base: F&G past month)
                      shopped for F&G at PnP
                     (67,000) in the past month,
           Clicks         also shopped at:
            13%                                    Checkers
                                 F&V                58%
                               City/FLM
                                10%

                                                                                       24
BUYER BEHAVIOUR
                                        04
DISCOVERY #2

        • Randomness – people behave randomly

                                                25
BUYER BEHAVIOUR
                                                                        04

          ROOTS REVEALS
            We know there are people in

           the market every week. But we         PRINCIPLE
             don’t know who they are or            “Consumer
                                               behaviour is random
           how to reach them individually.
                                               and unpredictable –
           Markets are thin so look for high     adjusted for our
                                               mood or need at a
              aggregate propensities /          particular point in
                                                      time.”
            clusters or catchment areas.
                                                Prof Andrew Ehrenberg

                                                                             26
BUYER BEHAVIOUR
                                                                                                                  04
RANDOMNESS – PEOPLE SHOP FOR CLOTHES AT
DIFFERENT TIMES OF THE YEAR

                                        2013                     2016                        2019

                                                                31 30                   32                          Implications:
                                                                                   30
                                                                                                                     Seasonality
                                                                              26
                                        25                 25                                            Needs of shoes & clothing shoppers
                                             22 22                                                       Important to connect with shoppers
                                                                                                               on a continuous basis

                                                                                                     9
                     7                                                                                   7   7       7
                         4                                                                                               5    4
                             3

                 Once a month or Every 2 - 3 months Every 4 - 5 months Every 6 - 12 months          Once a year   Less than once a
                      more                                                                                               year

       This graph reads: In ROOTS 2013, 7% of shoppers shopped for clothes once a month or more often. In 2016, this dropped to 4%
       and in 2019, it is 3%.
BUYER BEHAVIOUR
                                                                                                                               04
RANDOMNESS – HIGH PROPENSITIES
Looking at high indices

Interested in Food / Cooking / Baking:                                                                                              Interested in Home & Décor
      • JHB North East                                                                                                                    • Rosebank
      • Kimberley                                                                                                                         • Nelspruit
      • Uitenhage                                                                                                                         • JHB North East

                                                                                                                    Buy wine (once a week or more often)
                                                                                                                         • Constantia / Plumstead / Hout Bay
                                                                                                                         • Plett / Knysna / Sedgefield
                                                                                                                         • Milnerton

          Areas with a high propensity for an interest in Food / Cooking / Baking are JHB North East, Kimberley & Uitenhage
          Areas with a high propensity for an interest in Home & Décor are Rosebank, Nelspruit & JHB North East
          Areas with a high propensity for buying wine (once a week or more often) are Constantia / Plumstead / Hout Bay & Plett / Knysna / Sedgefield & Milnerton
BUYER BEHAVIOUR
                                                                                                04
Soft Furnishings or Home accessories
(across all ROOTS Footprints)                                                    29%

                                                                                18%

                                                                                13%
                               So much choice?

                          24,354 have bought soft furnishings or                 11%
                           home accessories in the past week

                    97,417 have bought soft furnishings or home
                           accessories in the past month
                                                                                10%
                                                                              Now Edgars Home

              1,169,000 (16%) shoppers have bought soft furnishings or home
                            accessories in the past 12 months

                  Of the 7,295,000 shoppers in the ROOTS survey

                                                                                                     29
BUYER BEHAVIOUR
                                                                        04
Small electrical appliances in Midrand
                                                                 35%

                                                                  16%

                                                                 14%
                          So much choice?

                       813 have bought small electrical          14%
                         appliances in the past week

              3, 250 have bought small electrical appliances     14%
                            in the past month

            39,000 (77%) shoppers have bought small electrical
                     appliances in the past 12 months

                  Of the 51,000 shoppers in Midrand

                                                                             30
BUYER BEHAVIOUR
                                         04
DISCOVERY #3

        • DECISION MAKING – People largely make
          decisions intuitively.

                                                  31
BUYER BEHAVIOUR
                                    04
DISCOVERY #3

              SYSTEM 1                    SYSTEM 2
                95%                          5%

        Fast / Impulsive            Slow / Thoughtful

        Unconscious / Instinctive   Conscious / Deliberate

        Automatic                   Effortful

        Everyday decisions          Complex decisions

        Error prone                 Reliable

                                                             32
BUYER BEHAVIOUR
                                                                    04

            ROOTS REVEALS
           Measures mindshare or          PRINCIPLE
            mental availability.
               Shows just how
            competitive markets
                                      “   We think much less than

            are across categories                          ”
                                          we think we think.
               at a local level.            Daniel Kahneman

              And shows how           Make it easy to buy &
           customers are spoilt for    easy to be thought
                 choice.                       of.

                                                                         33
BUYER BEHAVIOUR
                                                                                                       04
COMPETITIVE MARKETS
     Area by area your brands compete

                                                                  For example: Medical Aids
                                                                          Sandton

       This graph reads: In ROOTS 2016, 27% of Sandton decision makers have a Discovery Medical Aid,
       and in ROOTS 2019, 36% of Sandton decision makers have a Discovery Medical Aid.

                                                                                                            34
BUYER BEHAVIOUR
                                                                                                               04
COMPETITIVE MARKETS
     Area by area your brands compete

                                                                        For example:
                                                                      Takeaways (P4W)
                                                                       Protea - Soweto

       This graph reads: In ROOTS 2016, 73% of Protea, Soweto decision makers have bought takeaways from KFC in the past 4 weeks
       and in ROOTS 2019, 72% of Protea, Sowet decision makers have bought takeaways from KFC in the past 4 weeks.

                                                                                                                                   35
BUYER BEHAVIOUR
                                                 04
DISCOVERY #4

        • THE LOCAL IMPERATIVE –
        • People choose to live (& shop) locally.
        • In geographic areas that suit them & are
          convenient to their life stages & lifestyles.

                                                          36
BUYER BEHAVIOUR
                                                             04

          ROOTS REVEALS
                                         PRINCIPLE
           Identify high incidence
             areas for your users &     Understand your
           stores based on people     shoppers/ users at a
           with a likelihood to buy       local level.
                your category.        Geo-segmentation is
                                          your priority
                                       segmentation tool.

                                                                  37
BUYER BEHAVIOUR
                                                                                                              04
AVERAGE TIME PREPARED TO TRAVEL FOR…
Differs by category & by area

                         13 MINS                                             15 MINS                                              21 MINS

          FOOD & GROCERIES                               A GOOD RESTAURANT                                    BUYING A NEW CAR

              20 MIN - DOBSONVILLE                                20 MIN - GERMISTON                                  35 MIN – DIEPKLOOF

                                                                             9 MIN – FAERIE                                         11 MIN
                           7 MIN -
                                                                                  GLEN                                            UMHLANGA
                         AMANZIMTOTI
                                                                               (TSHWANE)

                  In ROOTS 2019, the average time prepared to travel is 13 minutes to buy Food & Groceries, in Dobsonville shoppers are
                  prepared to travel 20 minutes to buy Food & Groceries. In Amanzimtoti shoppers are only prepared to travel 7 minutes to
                  buy Food & Groceries.

                                                                                                                                             38
BUYER BEHAVIOUR
                                                                                                                    04
CATCHMENT AREAS: MALL OF AFRICA

           Midrand                                                                                                       26%
           Sandton                                                11%
         Randburg                              6%
          Fourways                             6%
          Centurion                    4%
         Glenvista /
         Mondeor                       4%
        Roodepoort                     4%
          Kempton                  3%
            Ruimsig                3%
        Southdale/
        Turffontein                3%

       This graph reads: Of the people who have shopped at Mall of Africa, in the past 3 months, 26% live in Midrand.

                                                                                                                               39
BUYER BEHAVIOUR
                                                                       04
CATCHMENT AREAS ARE LOCAL
       EG: MIDRAND
       Shopping centres visited before opening of MALL OF AFRICA (2016) and after (2019)

        2016                                                   2019

                         47%
                                                               75%

               MIDRAND
                         41%                                   41%
               CBD

                                                                               Noordwyk
                         35%                                   35%             Shopping Centre
BUYER BEHAVIOUR
                                                                                                04
AREA PROFILES DIFFER

                                                                                                 Age:16-34

                                                                                                 Age:35-49
                            58%                              48%                          92%
                                                                                                 Age: 50+

                         34                                47                            40      Indian
                         %                                 %                             %
                                                                                                 Coloured
                        76%                               53%                           50%
                                                                                                 Black

                                                                                                 SEM 8 -10

       58% of Chatsworth are in SEM 8-10, 34% are 16-34 years old and 76% are Indian.
BUYER BEHAVIOUR
                                                                                                                  04
COMPETING STORE PROFILES DON’T CHANGE SIGNIFICANTLY PER AREA
In Randburg, PNP shoppers look like Checkers, Spar & online shoppers

       This graph reads: Of the shoppers in Randburg, 92% are in SEM 8-10, and 93% of the PnP shoppers in Randburg are in SEM 8-10
       and 93% of the Checkers shoppers in Randburg are in SEM 8-10 and 91% of the Spar shoppers in Randburg are in SEM 8-10.
       And 95% of the Online Grocery Shoppers in Randburg are in SEM 8-10.

                                                                                                                                     42
BUYER BEHAVIOUR
                                                                     04
ROOTS OFFERS LOCAL FLAVOUR – WITH BREADTH
AND DEPTH                                                                   Fourways

                        43%      VS. 48%    54% VS. 15%       10% VS. 6%
                        Had a beauty        Music concert     Have a home
                        treatment           or live event     loan

                        39% VS. 26%        44% VS. 34%        3%   VS. 1%

                        Been to gym        Had a headache     Got married

                        59%      VS. 82%   62% VS. 25%        2%   VS. 2%
                        Had hair done      Flown - anywhere   Had a baby

* VS Average for Large Metro's
BUYER BEHAVIOUR
BUYER BEHAVIOUR
                                                                              04

  #4 DISCOVERIES – A QUICK RECAP:

        DISCOVERIES                 ROOTS REVEALS                          ROOTS REVEALS
                              1.   Per local geographic areas, who   3.   Measures mindshare or
    1. LOYALTY                     your shoppers / users are & who        mental availability.
                                   you share your shoppers / users
                                   with.                             4.   Identify high incidence areas
    2. RANDOMNESS                                                         of people with a likelihood to
                              2.   There are people in the market         buy your category.
                                   continuously. High aggregate
    3. DECISION MAKING             propensities / clusters or
                                   catchment areas.
    4. THE LOCAL IMPERATIVE

                                                                                                           44
1.   Credentials and Methodology

2.   Highlights of the many categories

                                                 04
3.   Buyer Behaviour DISCOVERIES

4.   Media

5.   Conclusion

                                         MEDIA

                                                  45
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

MARKETING’S GOAL – INFLUENCING BUYER BEHAVIOUR

                Mental
               availability
              Making it easy to be
              thought of, by as many
                                            +    Physical
                                                availability
                                                •   Distribution
                                                •   Store location
              people in as many buying
                                                •   Access
              situations – as possible
                                                •   Easy to buy

                                                                     46
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

           Most of us here are focussed on media/channel selection,
        Responsible for the creation / development of effective media
                                             strategies

                                       WARNING:                 USUALLY THE
                                       MOST EXPENSIVE PART OF MARKETING & BRAND
                                       BUILDING and THE   MOST CRITICAL

                                                                                  47
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

Re-cap!

NO LOYALTY

                                     To grow your brand :

                                   Attract light + Non-users

          They can be hard (and expensive) to reach and it’s even harder to get their
                attention (as opposed to regular users/shoppers who notice you more easily)

                                                                                              48
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

Re-cap!

RANDOMNESS

           AND…

          We cannot predict who, when, or which of your products they will need
          (at an individual level)

           But the good news is that all these consumer insights have also given us a
               better manual/framework to help make smarter media decisions

                                                                                        49
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

OVERALL GOAL:

                MASS EFFECTIVE REACH
                       NOT Frequency, or tight targeting, or only
                 personalisation campaigns as we have been told
                    (this is based on “loyalty” and dare we say, not a very good
                                  understanding of Buyer Behaviour)

                                                                                   50
05
MEDIA
MARKETING COMMUNICATION (vs our architecture)

       MAXIMISING QUALITY REACH IS THE NO. 1 PRIORITY
       (not frequency)

           “Not talking to enough potential buyers
          is like building a cathedral in the desert”
                               – Hamish Priest

               Evaluate against Effectiveness first (value) &
                        Efficiency second (price)

                                                                     51
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

MASS EFFECTIVE (Quality) REACH

                Mental
               availability
                    1.   Who
                                            +    Physical
                                                availability
                                                  5. Where
                    2.   Why
                    3.   How
                    4.   When

                                                                  52
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

MASS EFFECTIVE REACH
Large Relevant Audiences

        1. WHO?

        All category users/buyers/shoppers

        Target the purchase NOT the person/profile

          Brand segmentation is a marketing myth

                                                           53
05
    MEDIA
    MARKETING COMMUNICATION (vs architecture)

   ROOTS REVEALS: LARGE RELEVANT AUDIENCES.
   Food & groceries in Randburg
                       Local papers are read by                5 x more food & grocery shoppers* than any other
                       print medium.

                                    75%
                                                                       5X                                 14%                        6%     8%

                           Randburg Sun                                                          Sunday Times                    The Star   Move

                This reads:
                75% of PDMs in Randburg who are wholly or partly responsible for food and grocery shopping read their local paper.
                The best read weekly paper is the Sunday Times with 14%.
                The best read Daily Paper is the The Star with 6%.
                 And the best read weekly magazines is Move with 8%.

* Wholly or partly responsible for food and grocery shopping                                                                                       54
MEDIA
    MARKETING COMMUNICATION (vs architecture)
                                                                                                                         05
   ROOTS REVEALS: LARGE RELEVANT AUDIENCES.
   Shoes & clothing Eldorado Park
                       Local papers are read by            10 x more shoes & clothing shoppers* than any
                       other print medium.

                                                                     10X
                                    77%                                                                 8%                          9%     1%

                            Eldorado Park                                                       Sunday Times                   Daily Sun   Drum
                             Urban News
                This reads:
                77% of PDMs in Eldorado Park who bought shoes or clothing in the past 6 months read the Eldorado Park Urban News.
                The best read weekly paper is the Sunday Times with 8%.
                The best read Daily Paper is the Daily Sun with 9%.
                 And the best read weekly magazines is Drum with 1%.

* Bought shoes or clothing in the past 6 months                                                                                                   55
05
    MEDIA
    MARKETING COMMUNICATION (vs architecture)

   ROOTS REVEALS: LARGE RELEVANT AUDIENCES.
   Motor vehicles in Pretoria East
                       Local papers are read by             5 x more car shoppers than any other print medium.

                                                                         5X
                                   74%                                                                    14%                        10%    12%

                      Pretoria Record East                                                       Sunday World                    Pta News   Move

                This reads:
                74% of PDMs in Pretoria East who bought a new or second hand car in eth past 12 months read their Pretoria Record East.
                The best read weekly paper is the Sunday World with 14%.
                The best read Daily Paper is the Pretoria News with 10%.
                 And the best read weekly magazine is Move with 12%.

* Bought a new or second hand car in the past 12 months.                                                                                           56
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

MASS     EFFECTIVE REACH
More likely to pay attention

2. WHY?

      The reason for consuming the media type

      Media environment must match the task orientation

                                                               57
MEDIA vs ( our
                                                                             05
 MARKETING      architecture) (vs our architecture)
             COMMUNICATION

2. WHY?
         • Readers use their local papers for planning their shopping.
         • They prefer their inserts to be delivered in their local paper

                                             Behaviour created over time!!
WHERE

                  & the consistent exposure does a really good job of branding as well.

                                                           .
                                                                                          58
WHY
 MARKETING COMMUNICATION (vs architecture)
                                                                                    05
  PLANNING SHOPPING

88% 79% 62%
Of CT North prefer their inserts
delivered in their local paper
                                        Of CT Southern Suburbs read the inserts
                                        delivered in their local paper
                                                                                  Of Soweto use their local paper to
                                                                                  make F & G shopping decisions
MEDIA vs ( our
                                                                    05
MARKETING      architecture) (vs architecture)
           COMMUNICATION

3. WHEN?

              a) Continuity
                               Aim for weekly exposure

                                                         (NOT frequency!)

                                                                            60
MEDIA vs (our
                                                                                                05
MARKETING     architecture)
           COMMUNICATION    (vs our architecture)

CONTINUITY                                              In every 1 of the 52 weeks in a year,
                                                            people are in your category

          “Catch them when they fall” – (trigger a response when they have a need)

                                           ?
                                                                            Plan for weekly
                                                                              exposure to
                                                                           remind the ever-
                                   ?                ?                      changing pool of
                                                                            consumers who
                                                                           are ready to buy

                            ?                             ?

                         More likely to notice when “In Market”

                                                                                                     61
WHEN
MEDIA vs (our
                                                   05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

3. WHEN?

                           +/-6.4 million
                           Local papers in the
                         market every week in SA

                                                           62
MEDIA vs (our
                                                        05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

3. WHEN?         Cont.

         b) Recency
         exposure as close to the purchase occasion as possible

                                                                  63
MEDIA vs (our
                                                         05
MARKETING     architecture)
           COMMUNICATION    (vs our architecture)

RECENCY

               NEED                                 PURCHASE OCCASION

                                               AD

                        ?

                                                                        64
WHEN
MARKETING COMMUNICATION (vs architecture)
                                            05

Local papers mostly
distributed from
Wednesday - Friday

                                                    65
05
MEDIA
MARKETING COMMUNICATION (vs architecture)

4. HOW?

     Media that delivers large audiences first
          (and quickly) = the foundation
             Add niche/smaller options later if budget allows, but aim
                 for adding Reach not Frequency (duplication)

                                                                         66
MEDIA vs (our
                                                                                                                05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

HIGH REACH & LOW DUPLICATION
(Total 2019 sample)
4. HOW?
                                                          70%                                                       69%
                  65%

                                      18%                                                        17%

                                                                              5%                                                   4%

                  Local            All Dalies      Combined Daily         Daily adds         All Weekly      Combined Weekly   Weekly adds
                                                     and Local                                                  and Local

         This graph reads: Of all ROOTS respondents 65% read their local paper vs. 18% of all daily papers.
         70% of decision makers read both a daily & a local paper. Only 5% read any daily newspaper and NOT a local paper.
MEDIA vs (our
                                                                                                                   05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

HIGH REACH & LOW DUPLICATION
                                                                                                                          ROODEPOORT
EG: Roodepoort
4. HOW?
                       83%                                   84%                                                       84%

                                           4%                                                       5%
                                                                                 1%                                                      1%

                  Roodepoort            The Star        Roodepoort         The Star Adds       Sunday Times        Roodepoort        Sunday Times
                    Record                            Record & The Star                                         Record & Sunday         Adds
                                                         combined                                               Times combined

         This graph reads: Of all Roodepoort decision makers, 83% read their local paper – Roodepoort Record vs. 1% who read The Star.
         84% of decision makers read both The Star & the Roodepoort Record. Only 1% read The Star and NOT the Roodepoort Record.
MEDIA vs (our
                                                                                                                   05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

HIGH REACH & LOW DUPLICATION
(Total 2019 – internet)
4. HOW?                                                                                         72%
                         65%

                                                            25%

                                                                                                                                    7%

                     Local paper                   Any news site online           Combined Local Paper & Any              News site online adds
                                                                                       News Site Online

         This graph reads: Of all ROOTS respondents 65% read their local paper vs. 25% who read news site online.
         72% of decision makers read both their local paper and read news site online. Only 7% read news sites online and NOT a local paper.
MEDIA
                                                                                                                 05
MEDIA
MARKETING COMMUNICATION (vs architecture)

HIGH REACH & LOW DUPLICATION
                                                                                                                          FOURWAYS
(vs internet) in FOURWAYS
4. HOW?                                                                                    84%

                        70%

                                                          58%

                                                                                                                             14%

                    Local paper                    Any news online            Combined Local Paper & Any                Online adds
                                                                                    News Online

        This graph reads: Of all ROOTS respondents 70% read their local paper vs. 58% who read any news site online.
        84% of decision makers read both their local paper and read any news site online. Only 14% read any news sites online and NOT a local paper.
MEDIA vs (our
                                                                         05
MARKETING     architecture)
           COMMUNICATION    (vs our architecture)

4. HOW?

                    Local newspapers reach such large             relevant
                              audiences with a frequency of 1,
                  that it is inefficient or not necessary to add another
                                 media type (with the same messaging).

                                                                              71
MARKETING
MEDIA     COMMUNICATION (vs architecture)
                                                             05
MASS EFFECTIVE (Quality) REACH

                Mental
               availability
                    1.   Who
                                            +    Physical
                                                availability
                                                  5. Where
                    2.   Why
                    3.   How
                    4.   When

                                                                  72
MEDIA vs (our
                                                        05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

5. WHERE?
         Physical availability

   a) High propensities
                              Fish where the fish are

                                                             73
MARKETING COMMUNICATION (vs architecture)
                                                                                                   05
5. WHERE?
        a) High propensities

                  60%                      72%                  68%                 72%                      69%

                                                                                                            Of people
              Of monthly shoes                                                   Of people with
                                       Of people who do     Of people earning                           interested in food,
                 & clothing                                                       WIFI / ADSL @
                                        gardening read       R51,000+ PI read                           cooking or baking
               shoppers read                                                     home read their
                                        their local paper    their local paper                            read their local
              their local paper                                                    local paper
                                                                                                              paper

                                  Local papers = highest media reach per category
                                                                                                                              74
MEDIA vs (our
                                                               05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

5. WHERE?
         Physical availability

  b) Catchment areas
                              Location of stores or branches

                                                                    75
MEDIA
MARKETING COMMUNICATION (vs our architecture)
                                                   05
5. WHERE?

             The real power of local / geography = relevance

                ACCESSIBILITY

                           +
                   AVAILABILITY

                                                               76
MARKETING
MEDIA     COMMUNICATION (vs architecture)
                                                                  05
5. WHERE?

           People shop and live locally

              EG: MIDRAND
              2019

              75%

                                            73%   Midrand Reporter Readership
MEDIA vs (our
                                                                05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

5. WHERE?

            People shop and live locally

               EG: ALBERTON CITY
               2019

               66%

                                                76% Alberton Record Readership
MEDIA vs (our
                                                                  05
MARKETING     architecture)
           COMMUNICATION    (vs architecture)

                              So it’s no surprise:
                       Local papers continue to thrive!

              1. WHO?             2. WHY?       3. HOW?   4. WHEN?      5. WHERE?

               Reaching large relevant audiences in an environment where people are
                     primed to pay attention to shopping / services advertising

                                                                                      79
CONCLUSION
                                                                        06
BUILDING FOR GROWTH

     • We are very proud of our strong & profitable newspaper brands.

         Our success is based on your support
         We know that’s not because you ‘love us’ so much or want a relationship with us, but
         because…
         They consistently deliver your messages to the hard to find large relevant
         audiences

                                    …for the past 40 years

                                                                                                80
CONCLUSION
                                                                        06
OUR MEDIA BRANDS
                              We aim to follow the sage advice
                                   and keep our brands

             MENTALLY AVAILABLE               &         PHYSICALLY AVAILABLE

      (known by almost all local residents)         (distributed to the home – easily accessible)

                  We would love to keep partnering with you to do the same

                                                                                                    81
CONCLUSION
                                                                06

                We are excited about the future of the local
                         paper media category!

                          So keep creating brands that stand out
                    Provide appropriate messaging to influence buyers

             We are confident that we will continue to reach “the few” who do
                         care & are interested – at the right time
             in as many weeks as possible, in the most effective & efficient way.

                                                                                    82
THANK YOU

            83
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