1 Jun 2009

 

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Targeting with a green streak?

It seems like only yesterday that store-specific ads targeting customers within a 10km radius of the actual outlet were the things of marketing managers' wildest dreams. Not any more. SA's biggest cellular service provider has made this a reality with its new location-based advertising, currently in trial phase with brands such as Nando's and Sportscene. Promising to reach nearby consumers with notice of your particular store's specials, this new mobile platform should help cut down on the wastage of costly print ads that are dropped en masse, where the returns on these high volumes of hit-and-miss advertising are fractional... That is if marketers know what's good for them as the economic landscape drops into a valley where the buzz of 'green sustainability' is the pollen of today. However, as one who particularly loathes excess (and often unsolicited) mobile advertising, I'd be interested to see how other consumers will take to the new service that could reach them anytime, anywhere.


Shan Radcliffe, Retail editor
retailnews@bizcommunity.com
Responses to this column welcomed in our new online editor's column archive.
Image courtesy of FreeDigitalPhotos.net.

Top stories



Editorial news

Retail


Petrol to increase by 17 cents per litre
The price of all grades of petrol will increase by 17 cents per litre at midnight on Wednesday, 3 June 2009, the Department of Minerals and Energy has announced. Read more >>

Can't sweep back creative tide
[Jacquie Myburgh] Like many in the fashion pack, I was disappointed at the news that Durban Fashion Week had been postponed until further notice. Read more >>

Time to take stock
[Rob Rose] After an 18-month trial of nasty discoveries, it's no wonder Leon Kirkinis, CEO of African Bank Investments (Abil), pauses when asked if given the chance again, he'd still buy Ellerines. Read more >>

Super Group in talks to dispose retail division
Super Group, the supply chain and fleet management group, on Thursday advised shareholders that it is in discussions with interested parties relating to the potential disposal of its retail division, specifically the AutoZone and Mica businesses. Read more >>

CPI falls to 8.4%
[Neo Semono] The Consumer Price Index used to measure inflation, dropped to 8.4% in April, reported Statistics South Africa (Stats SA). Read more >>

Huge expansion, refurbishment at Sandton City
Sandton City Shopping Centre is undergoing a major refurbishment and expansion, with funding of R1,77bn approved for the first phase. Read more >>

Confeds Cup tickets selling well
[Ndaba Dlamini] Ticket sales for the 2009 FIFA Confederations Cup are fast approaching the 400,000 mark, with just three weeks before kickoff. Read more >>

SA's GDP drops by 6.4% in first quarter
[Neo Semono] South Africa's Gross Domestic Product in the first quarter of 2009 contracted by an annualised 6.4%, Statistics South Africa announced on Tuesday. Read more >>

Beware when buying insurance at point of sale
The Ombudsman for Short-Term Insurance cautions consumers not to be pressurised into purchasing an insurance product at point of sale, as often these products do not meet consumers needs and are sometimes more costly than anticipated. Read more >>

Associations


SA president to host World Economic Forum on Africa 2009
CAPE TOWN: Jacob Zuma, the newly elected president of South Africa, will host the 19th World Economic Forum on Africa, to be held in Cape Town from 10 - 12 June 2009. Over 700 leaders from Africa and other parts of the world will gather to deliberate under the theme, "Implications of the Global Economic Crisis for Africa". Read more >>

Banking & Finance


Repo rate slashed by 100 basis points
Cash strapped consumers have been given another reprieve - the Reserve Bank's Monetary Policy Committee (MPC) has reduced the repo rate by a further 100 basis points. Read more >>

Banks obstructing debt review process
South Africa's major banks are deliberately obstructing the debt review process, the National Credit Regulator (NCR) said on Wednesday, 27 May 2009. Read more >>

Economy expected to improve in second half
[Neo Semono] South Africans can take comfort in the fact that despite the current recession, the economy is forecast to improve in the second half of the year. Read more >>

Micro-financers record huge growth despite economic downswing
The implementation of the National Credit Act (NCA) two years ago and the current economic downturn have together resulted in a lack of liquidity in the financial markets, with most banks limiting revolving credit, overdrafts and access bonds. Under these constraints, many former bank clients have turned to micro-lenders for their various financial needs, the most common one being emergency expenses. Read more >>

Brand news


SABMiller applies for ordinary shares
The world's second-largest brewer, SABMiller, said on Thursday, 28 May 2009, that application had been made to the UK Listing Authority and to the London Stock Exchange for 60 million ordinary shares of US$0.10 each to be admitted to the Official List and to trade on the LSE's main market for listed securities. Read more >>

Christian Lacroix declares insolvency
PARIS: France's US-owned couture house Christian Lacroix SNC has declared insolvency after falling foul of the global crisis, the company said on Thursday, 28 May 2009. Read more >>

New Malbec receives international nod
Doolhof Wine Estate in Wellington, Western Cape, was awarded a gold medal for its 2007 Signatures of Doolhof Malbec at the Decanter World Wine Awards in London recently; while the 2007 Signatures of Doolhof Pinotage brought home a silver medal. This is a particularly powerful accolade for the 2007 Malbec, which was launched in early May 2009 in Cape Town. Dennis Kerrison of the estate is especially pleased that two of the Signatures' range received such acknowledgement: “On Doolhof we strive for excellence, from our viticultural practices to the bottled end product. The fact that the recently released Malbec should have won gold at this leading competition, is testimony to the fulfillment of that vision.”

PEP launches own starter pack
As one of the biggest retailers of pre-paid cellular products in South Africa, PEP is launching its own first PEPcell Starter Pack, powered by MTN. Read more >>

Tiger Brands buys Crosse & Blackwell from Nestlé
[Nicola Mawson] Fast moving consumer goods company Tiger Brands, which last week said it would continue to be on the lookout for possible acquisitions, said on Friday, 22 May 2009, that it had bought Crosse & Blackwell from Nestlé for an undisclosed amount. Read more >>

Corporate Social Investment


Learners score chance to be Confeds Cup flagbearers
Sony Ericsson's Flagbearer initiative kicked off last week at Skeen Primary School in Alexandria, Johannesburg. Skeen Primary School is the first of many schools to benefit from this initiative, which gives SA's football-crazy youth the opportunity of a lifetime to be able to walk on to the same pitch with their idols as Official Flagbearers at the FIFA Confederations Cup 2009 games. Read more >>

Distribution


Cape Coral heads for Harrods
[ActivRetail] A surge of international interest in Waterkloof's European-style wines is bringing rich rewards including acceptance into London's high society with the estate's dry Circumstance Cape Coral Mourvèdre now listed in Harrods. Read more >>

e-Commerce


A clarion call for expanding e-commerce
[Sonia Arrison] E-commerce may account for just a tiny percentage of all retail sales, but it has tremendous momentum behind it. Overall, retail sales have shrunk due to the recession, but e-commerce sales keep growing. It's critical that governments at every level recognise the potential for e-commerce to swell the workforce and boost the economy - as long as its progress is not impeded. Read more >>

Exhibitions


Annual Pest Biz Convention moves to the Cape
The 8th annual Pest Biz Convention is set to take place for the first time ever in the Western Cape at the Lord Charles Hotel in Somerset West from 13 - 14 August 2009. This year's Pest Biz Convention is built on the formula of previous years' events and will aim to equip the pest control industry with up to date information, global trends and cutting edge technology for the 21st Century. Read more >>

Logistics


Inventory management on a shoestring
[Erika Morphy] Inventory management is not just for enterprises anymore. With the advent of e-commerce and globalisation, small companies are engaging in many of the same business processes as large firms and even competing on the same turf at times. To do their jobs right, they need some of the same capabilities as their larger cousins - but they need them for a small-biz price. Read more >>

Durban terminal gets R1,4bn makeover
[Margie Inggs] A new R70m rail terminal at the Durban Container Terminal will be commissioned at the end of next month as Transnet Port Terminals continues with capital investments despite the economic downturn. Read more >>

Manufacturing


Lesson for SA textiles sector in the fate of an American icon
[Tony Leon] Two features of power and affluence stand out from my Durban boyhood. The one was textile mogul Philip Frame, and the other was the swanky American car, the Pontiac. Read more >>

PPI slows to 2.9%
The Producer Price Index (PPI) for April slowed to 2.9%, from 5.3% in March, Statistics South Africa reported on Thursday, 28 May 2009. Read more >>

Seardel team may split group to save ket assets
[Mathabo le Roux] The team tasked with coming up with a rescue plan to save the Frame Vertical Pipeline, the textile manufacturing arm of the Seardel group, may consider splitting the group to keep certain key assets in operation. Read more >>

Regulatory


'Misconduct' deepens port boss suspension
[Lee-Anne Butler] Mystery surrounds the suspension of Port Elizabeth harbour manager Ester Goosen, with parent company Transnet now saying it is probing “allegations of misconduct”. Read more >>

Appeal Court sets aside Tribunal decision
The Competition Appeal Court has set aside the Competition Tribunal decision that Mittal Steel SA (ArcelorMittal South Africa) had contravened the Competition Act by charging an excessive price for its flat steel products to the detriment of consumers. Read more >>

Control of milk stock investigated
[Nkosana Lekotjolo] An investigation by The Times that bust a Soweto clinic worker for allegedly selling government-issued baby formula has sparked an inquiry into control of stock at state clinics. Read more >>

Probe on collusion welcome
[Sure Kamhunga] SA's two largest retailers have said they had nothing to hide about their relationships with suppliers and would welcome an investigation by the Competition Commission, as suggested this week by the National Agriculture Marketing Council (NAMC). Read more >>

Cape illegal tavern to close down
It took Cape Town city authorities and the police two and a half years to shut down an illegal tavern on the Cape Flats following complaints from irate neighbours. Read more >>

Fake goods not eBay's problem, London court rules
A British court has ruled that Internet marketplace eBay is not liable for bogus beauty products sold on its Web site, dealing a blow to cosmetics company L'Oreal's campaign against the online auction giant. Read more >>

Research


Save by shopping online
[Zweli Mokgata] Consumers are turning to the Internet to cut shopping costs. This is according to a study by the consumer division of Neotel, the second national fixed-line telecoms network operator. Read more >>

SA gets more competitive
The latest IMD World Competitiveness Yearbook rankings have placed South Africa's overall competitiveness from a ranking of 53 in 2008 to a marked rise in position to 48 in 2009. The global competitiveness survey released by Productivity SA ranks 57 countries in various areas of competitiveness. Read more >>

Toyota scores in customer survey
Toyota SA fared exceptionally well in the 2009 Synovate Quality Awards for Sales and Service Satisfaction in the automotive industry, scooping a gold award in all four categories - one of only three manufacturers to achieve this feat. Read more >>

Retail marketing


Glomail loses ad appeal
Marketing company Glomail has lost an appeal against an order to have all its adverts pre-screened after it repeatedly flouted the advertising code of conduct. Read more >>

Mobile location-based advertising in trial mode
Vodacom recently launched its new location-based advertising offering that is currently being trialled on the service provider's mobile social network, The Grid, with partners Nando's, Sportscene, Jay Jays and Cape Town-based pharmacy group Synergy. Read more >>

More dryness and a year's supply of nappies
Huggies Dry Comfort, winner of the 2009 Product of the Year award, has added a new leak guard waistband to ensure that the nappies continue to deliver on its promise of uncompromising dryness. The brand will also be running a national consumer promotion during July and August, with the chance to win a year's supply of nappies. Read more >>

Retail services


To 'free' or not to 'free': what's cheap vs. what works
[Alex Jefferies] The proliferation of customer relationship solutions presents an interesting challenge for small-business owners. How does a small organisation looking to control spending decide between common productivity tools, such as Microsoft Outlook or Excel, or a more robust solution? This decision is made more difficult by the emergence of free customer relationship management (CRM) and contact management (CM) solutions. Read more >>

Retailers


Mr Price's CEO unveils his secret weapon
At the heart of Mr Price's success is a group of 30 20-something whizz kids who trawl the Internet and travel the world. “I call them my kids,” says chief executive Alastair McArthur of the forecasting unit that ensures the group gets the design of clothing and homeware in line with overseas trends, at the right time. Read more >>

Coricraft expanding as demand rises
[Nicola Mawson] Furniture retailer Coricraft is moving into an expansion phase, and plans to open six stores this year and another three in the first quarter of next year. Read more >>

Foschini improves margins
[Nicola Mawson] Fashion retailer Foschini has not escaped the economic turmoil, but managed to improve operating margins as a result of improved second-half trading. Read more >>

Edcon spending pays off as sales increase
[Nicola Mawson] SA's largest clothing retailer Edcon, delisted since April 2007, said yesterday, 27 May 2009, it spent R571m in the year to March 2009, mostly on new stores, refurbishments and a new point-of-sale system. Read more >>

Massmart's bid for Finro hits snag
[Nicola Mawson] Mass retailer Massmart may be blocked in its bid to buy Finro Cash & Carry to grow subsidiary Masscash as the deal would limit competition in the food sector in Port Elizabeth, especially affecting low-income earners. Read more >>

Mr Price final dividend 92.8c
Retail group Mr Price on Wednesday, 27 May 2009, reported diluted headline earnings per share of 244.6 cents for the year ended March 2009 from 210.8 cents a year ago - a rise of 16%. Read more >>

‘Tale of two stories' for Abil and Ellerines
African Bank Investments (Abil), a provider of unsecured loans and the owner of furniture retailer Ellerines, continues to report double-digit earnings growth amid a financial storm that has seen bigger banks report earnings declines. Read more >>

Security


RFID: A revolution in a holding pattern
[Denise J. Deveau] Whether one feared or welcomed RFID, it seemed just a few years ago that it was inevitable. There would be RFID tags on every type of merchandise one could imagine, broadcasting its whereabouts from its point of origin all the way to your bathroom cabinet. Wal-Mart wanted it, the DoD wanted it, and that seemed enough to seal the deal. Where is RFID now? Read more >>

Supply chain


Buildworks earnings decline
Heavy building materials supplier Buildworks on Wednesday, 27 May 2009, has reported that headline earnings per share for the six months ended February had declined from 5.65 cents to 3.47 cents. Read more >>

Technology


Two new e-readers on the block: one cheaper, one touchier
[Richard Adhikari] Amazon's Kindle e-readers will have some additional competition to deal with soon. Two new devices were demoed at the D: All Things Digital conference. The Interead Cool-er flaunts a low price, and the Plastic Logic reader offers a big screen and low weight. Read more >>

Microsoft launching Zune HD
WASHINGTON: Microsoft plans to release a new version of its portable Zune music player later this year featuring a touch screen, Web browser, Wi-Fi connectivity and high-definition radio receiver. Read more >>

'Sims 3' characters get personality plus
[Derrik J. Lang] EA is prepping to release the third installment of 'The Sims', a series of games in which the all-seeing player controls the lives and interactions of virtual people. 'The Sims 3' will give players more control over things like characters' personality traits, EA says. Perhaps taking a cue from the backlash over the tight digital rights restrictions contained in 'Spore', The Sims 3 will have no DRM. Read more >>

Palm Pre shortage: supply chain slip-up or retail fairy tale?
[Renay San Miguel] Depending on which technology blog you read, Sprint CEO Dan Hesse is either engaging in pre-Palm Pre marketing hype or covering up some major smartphone production problems. Read more >>


Company news

Brand news


Are you really getting quality from your "premium" brand of pet food? - Vondis Holistic Pet Nutrition
If you have a medium-size dog, such as a Labrador, Collie or Staffie, it will cost you about R13 per day on a "premium" brand, but are you getting R13 worth of food? Read more >>


People on the move
  • Werner Snoek appointed Head Chef at Saxon - more info

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    Events to diarise
  • Markex and World of Events 2009 Specialised Exhibitions - Johannesburg, 9 June
  • The Blackhole of Recession Syncom Business Intelligence - Johannesburg, 10 June
  • Destination Branding for 2010 BrandOvation - Johannesburg, 12 June

  • Quotes
    "Quality is the result of a carefully constructed cultural environment. It has to be the fabric of the organisation, not part of the fabric." - Phil Crosby"Most people think “selling” is the same as “talking”. But the most effective salespeople know that listening is the most important part of their job." - Roy Bartell"What you say in advertising is more important than how you say it." - David Ogilvy"It used to be that people needed products to survive. Now products need people to survive." - Nicholas Johnson"As a general rule, the most successful man in life is the man who has the best information." - Benjamin Disraeli

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