media update’s David Jenkin was in attendance.

A sophisticated economy with specific needs

KasiNomics was the title of the presentation given by GG Alcock, managing director of Minanawe Marketing. He got to grips with the informal market and the so-called ‘hidden economy’ with revelations about its size and sophistication. He used the example of the dagga trade to illustrate how logistic challenges are met in order to keep the supply chain flowing while remaining affordable, and how, even in this sector, branding is fundamental.

Alcock also highlighted the problem of transport costs, in general, for lower LSM shoppers and asked marketers to consider what they could do to address that. Portability of packaging, in addition, needs to be considered as heavy bags must often be carried over large distances. Glass, despite its advantages, can easily break and that can mean an irrecoverable loss for the consumer. In that vein, he challenged attendees to consider how they can adapt to unique shopper needs within townships.

Stokvels looking to grow

Lindy Mataboge, programme manager at Wits Business School, Centre for Entrepreneurship, gave a presentation on the stokvel landscape in South Africa and explained how hungry many of them are to grow. She explained that stokvel members don’t necessarily have poor financial literacy, they simply need guidance to nurture their ideas into conceptualised businesses, and that can be achieved with the support of brands. She pointed out the opportunities that exist for brands to move into this space full of brand advocates who can provide key insights into consumer needs and preferences and facilitate promotional opportunities at a grass-roots level.

Occasion opportunities

Mpume Shange, managing director of Expressive Through the Line, spoke about cultural celebrations such as Umabo and uMbondo and other special occasions where branding opportunities potentially lie. Strategic brand marketing opportunities are virtually unlimited, she said. In terms of social outreach programmes, she suggested that brands or corporates can use existing church buildings, traditionally the heart of a township community, for skills development initiatives – teaching the poor to fish rather than feeding them for a day.

Ways of coping

Lebo Motshegoa, CEO of Foshizi, spoke about their recently published research report on the mass market. He unpacked trends around spending patterns and listed ways in which people are finding solutions to financial pressure, such as buying cheaper food, imitation goods and cutting back on non-essentials, such as entertainment. He mentioned a decline in brand loyalty as a consequence as consumers seek out cheaper alternatives.

Doing good is good business

Candice Goodman, managing director of Mobitainment, addressed a recurring theme in the conference, about how making a meaningful impact on communities makes business sense. She focused on mobile campaigns and began with advice on best practice in this sphere. It’s important to avoid wasting people’s time, she said, and consumers are best engaged in their own language. Consumers’ rights must be respected and, whenever possible, they should be rewarded. As an example, she cited a campaign in which consumers were able to make a free three-minute call in exchange for listening to an ad.

Most campaign briefs are about pushing sales, she said, but a change of mindset is needed to shift focus towards touching hearts which ultimately increases brand loyalty and enhances sales.

Aligning brands with consumers’ context

Cas Dreijer, managing partner of Be Salt, delved into the topic of campaigns that not only speak to the brand, but also to the broader socio-economic context of the consumer. He used a campaign for Grandpa as an example of the kind of thinking that is required.

As Grandpa is in the business of curing headaches, the campaign sought to alleviate a township community’s headaches. The problems of litter and unemployment were identified, and so the campaign created a recycling project that cleaned up the community and put food on tables. The project was self-sustaining and lived on beyond the brand’s involvement.

Grandpa pushed in towards the pain, said Dreijer, and the execution made sense in terms of the brand and wasn’t simply about giving away free stuff.

For more information, visit www.marketingmixconferences.co.za. Alternatively, connect with them on Twitter using the #MMX hashtag.

Read more about what happened on the first day of the 2017 Township Shopper Conference in our article, Township Shopper Marketing 2017 Conference spotlights SA township consumers.