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Back to values

For businesses to survive economic drought and 2009 hangovers requires that brands return to ‘old-fashioned values'; consumers are now drawn to more authentic brands and business practices. This is according to the Now Report study, conducted by local market research company, the Consumer Insight Agency (c.i.a), every two years.
Back to values

Wendy Cochrane, a director of the c.i.a, said the study offers something unique - a new way of staying plugged into South Africa's diverse consumers. “This qualitative study essentially brings marketers closer to consumers in a real and authentic way, helping them to make sense of our chaotic and diverse social landscape and to spot strategic opportunities ahead of their competition,” said Cochrane.

Growing cynicism

What is immediately clear from the latest report, which features video footage of interviews with ordinary South Africans, is that the country is experiencing a financial, emotional and spiritual drought, as people across the classes describe the pressures of living in what is widely perceived to be an “eroding society”. Crime, unemployment, inflation and simmering xenophobic tension is top of mind for all, but the poor are definitely feeling it hardest.

“One of the biggest changes we noticed since doing the first studies and one which marketers should take notice of - is that the there is a growing cynicism towards excessive displays of wealth and ‘fat cat politicians' with expensive cars,” said Cochrane. “Unethical corporates also get a bashing from ‘gatvol' consumers. Flaunting wealth and flashy status in advertising campaigns is therefore increasingly risky.”

Focus on green, values

Other findings that marketers should be aware of include a growing focus on genuine quality and value for money as well as social and green concerns. “People across the landscape are looking for authentic solutions to everyday needs and desires, which calls for a return to good old-fashioned formulas and values in business,” adds Cochrane.

Because of consumers thinking more critically, businesses need to be developing a better value proposition for consumers and aligning themselves with the changing behaviour of their customers. Companies in the know - including several of South Africa's blue chip brands such as Coca-Cola, Brandhouse, Pep and Unilever - are paying close attention to the findings.

Walking the talk

Sam Strover, consumer and shopper strategy manager at Brandhouse, which owns Johnnie Walker in SA, said the latest research insights encouraged them to take an about-turn with their marketing strategy in 2009.

“Its conversations with the market revealed that the Johnnie Walker brand was in danger of losing touch with the market by focusing too much on status and bling appeal. We did not have the right message for the moment and the real brand essence was getting lost,” said Strover.

The recently launched “Celebrating Strides” campaign tackles these perceptions by taking the brand back to basics through honouring people who have gone further and who embody the spirit of progress that is the real essence of Johnnie Walker.

Brandhouse has been working with the c.i.a since its inception 12 years ago and Strover said this is because the agency offers a unique glimpse into consumers' hearts and minds - the place where brands ultimately want to be.

The Johnnie Walker case study is showcased in the Now Report alongside other inspiring brands that light the torch for new ways of branding.

Tomorrow's opportunities - it's time to ‘get real'

Cochrane maintained that despite South African consumers' challenges, they have not lost hope that things will improve. “Tomorrow's opportunities lie in the silver lining: despite the recession, the South African middle class is growing and becoming more robust. At the top end, the race divide is blurring and across the country a budding entrepreneurial spirit and sense of optimism is swelling around Zuma's charisma and the materialising World Cup infrastructure.”

Brands essentially need to get real, and tap into these pockets of hope to become enduring icons with South African consumers, she concluded.

Format

The Now package (2009-2010) offers marketers an audio-visual PowerPoint report on DVD packaged in a summary booklet. It is rich with insight and footage of diverse South African consumers, strategic guidance on key trends for the year ahead and guiding principles for healthy brand strategies within the current climate. Visit the following link to get a taste of what the NOW Report has to offer: www.nowproject.co.za/nowreport/video.html.

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