Preparation is key to Performance.

 

1990 will be a year remembered for many things but notably the release of Madiba after 27 years in prison would be the highlight. Some other activities:

Adobe Photoshop made its first appearance

The World Wide Web software is first tested by Tim Berners-Lee at CERN.

Home Alone, Pretty Woman and Ghost were released

Liverpool wins the league. Their last until 2020

Oh yes Colin learned an important lesson.

In 1990 LSM’s were released for the first time. It was groundbreaking at the time designed to do away with the race demographic. People were categorized by their living standards based on 14 variables. The subject of this article is not LSM’s but how LSM’s made me realize the importance of preparation and performance.

I was tasked by my media director to present the concept of LSM and the findings to our major FMCG client. It was new we were not familiar with it and neither were clients. I presented it to the client and it was a disaster of note. To the point that I thought I was going to be fired. I screwed up royally. No half measures here. I left the office and sat in a coffee shop to ponder on what’s next. What to do? I went back to the office and offered my resignation to my media director. To which she responded (harshly by the way) who do you think is going to fix your mess when you gone, certainly not me she said. This was followed by more words in Afrikaans which I certainly cannot repeat here. I fixed my presentation and re-presented it to the client and thankfully it all went well.

So what was the lesson? What went wrong?

To be honest I was arrogant I thought I knew it all. I did not consult with others. I did not know my subject matter. I was not prepared and as such, I did not perform. I embarrassed myself, my media director and my company. A lesson I never forgot. Plan, Prepare Perform

As the carpenter says, measure twice and cut once. The level of preparation will determine the level of performance. – Unknown

This is a real story. No names were changed to protect the guilty.

A Colossal Disaster

Racism has existed throughout human history. “It may be defined as the hatred of one person by another — or the belief that another person is less than human — because of skin colour, language, customs, place of birth or any factor that supposedly reveals the basic nature of that person”. 

That’s the official definition but racism is not about White vs Black or Black vs White it’s about everybody vs racists.

I start by quoting Martin Luther King Jr. “We may have come on different ships, but we’re in the same boat now”. I grew up with that thinking and formulated that we all fighting the same cause from the same boat. But nothing could be further from the truth. My colleague and friend summed it about when she said we in the same storm but different boats which made me realize that as a society how unequal we have become. The brutal death of George Floyd in the USA and Collins Khoza in South Africa by law enforcement officials are again proof of this. People with authority bringing down their might on helpless people. This should never happen. As a society, we simply post messages of disgust on social media and move on.

Our society is unequal and the attempt to rectify it has failed. But even within this unequal society and our own democratic institution, one thing that continues to eat in is racism. To the point, that educated Black individuals say “Life was better under Apartheid”. This is a knee jerk reaction to current events, but let me be clear anyone that makes this statement has never lived through the atrocities of this heinous crime. It was a National Horror that no human being should have and should endure. The question is how do we all maneuver this storm and get in the same boat. This will never happen until there is a real mindset shift in the country. Also when the needs of society are put before those of politicians. It is in the interest of politicians to ensure that a portion of the masses remains within this unequal society to enhance their own ambitions.

Constitutions around the world declare racism as an act against humanity yet it is still practiced and that too with little or no consequence.

Not enough is being done to perpetrators of these heinous acts and that is why they continue. A person gets effectively murdered on camera and the first reaction is to fire them instead of locking them up. Then we are told about having to conduct investigations to find out what happened. It is simply not good enough!

Our leadership in South Africa have been found sorely wanting in dealing with this, hence we still experience it in this day and age. It is on us now to stand up. Our collective voices need to reach out to the leadership of this country. And sometimes it’s not about changing the mindset of a million people but just one. And allow that one to change another and so the ripple effect will begin.  We cannot leave our destiny in the hands of politicians. 

We are in different boats trailing the mother ship to steer us through the storm but the issue is the captain of this ship lacks the decisiveness to make the hard decision and relies on collective leadership. Collective Leadership brings diversity in thought but when there are too many voices speaking without thinking and acting for their benefit you end up in a crisis and chaos. And In a crisis, you need a leader who can go against the grain and make a decision no matter how unpopular. In 1940 Winston Churchill’s war cabinet urged him to go into peace talks with the Germans or risk invasion. They threatened to resign if he didn’t but he stood up and did what was impossible and won the fight. And he did this by simply taking the people into his confidence and made a decision. On that day the will of the people won. In the same vain the President needs to act like a leader. He certainly has the characteristics and ability. 

It was Madiba that eloquently said in his inauguration speech in May 1994. “The sun shall never set on so glorious a human achievement! Let Freedom reign". But this freedom has long been under threat. We can never truly be free as long as racism exists.

Let us be reminded that the murder of George Floyd and Collins Khoza and many like them have taken us back in time. When compassion and human decency did not exist. When we had no rights and were simply slaves to our masters. Are we surrendering to this present and leaving this future for the next generation? Not me.

Racism is a colossal human disaster. In fact a genocide. Not in my name. Or should I say #NotInMyTime. #BlackLivesMatter. #NoToRacism

A luta continua! (The struggle continues)

Enkosi

The Carrot, The Egg and The Coffee Bean

In Life we are often faced with challenges and opportunities that paths our destiny. It takes the toughest of us and softens us up or it takes the softness in us and toughens us up. But there is also the third option where we constantly change the game and path our own destiny. It is not always easy as we face many a challenge. 

Let’s look at some of them.

1.     There was once a Carrot who was as tough as they come but the Carrot was placed in a bowl of boiling water, what happened to the Carrot. It soften up.

2.     An Egg which is silky smooth on the inside was placed in boiling water, what happened to it. It hardened up

3.     And there was the Coffee Bean. What happens to the coffee bean when placed in boiling water, it changes the colour of the water.

The situation which both the carrot and egg found themselves forced them to reacted differently to the boiling water, one had to soften and give in to the situation and the other had to harden up to ensure survival.

 In life we often face these situations and have to react differently. We can’t always be tough and we can’t always be soft. But if we carefully look at the situation and turn the challenge into an opportunity then that is your coffee bean moment.

The Moral of the story be a Coffee Bean find the Opportunity

Consumer Value – Reality of Myth?

Consumer Value – Reality of Myth?
Kevin Roberts once said "Consumers don't stop buying when economies go through down cycles. They look harder for value”. In the current economic climate this still apply. We are in a stage where Value is the order of the day in an economic downturn or not. Consumers are constantly evaluating their shopping habits. The major retailers and banks need to respond to this ever changing consumer.

Who is adding value?

On the banking front FNB does it very well. Their E-Bucks programme has been a constant hit with consumers. The bank simply rewards consumers with E-Bucks for just using their card to pay for goods and services. There is no additional charge or change in habit required. Consumers simply go about their business normally. Being and FNB client for the past 3 years I have acquired a certain amount of E-Bucks. Recently we needed some small electronic items for the house so we went over to Makro and spent R900. We paid the entire amount with the E-Bucks card from the points accumulated from FNB. This to me was adding real value. Sure, one may argue that we eventually pay for it via bank charges (a subject for another article) but FNB has just saved me R900 at Makro. So I am happy. I was at Engen garage the other day and after filling up the attendant asked if I wanted to pay for my petrol with an E-Bucks card so I obliged. FNB just saved me another R300. Combined I have used R1200 worth of E-Bucks which I can equate to five months worth of bank charges. FNB, you do offer customer value

On the retail side I believe Pick n Pay is moving in the right direction. The introduction of the smart shopper card is nothing short of a master stroke. Not only do I earn points on the shopper card but also continue to earn E-Bucks as I pay for my goods with my FNB card. The smart shopper card points contribute to a cash voucher which I could eventually use at a Pick n Pay store.

As a member of the WRewards programme at Woolworths you will receive lower prices on selected items. Discount vouchers by week to use at a Woolworths store. If you have a MySchool or MyPlanet card, or if you link your Woolworths Difference Card, Store Card or Credit Card to the MySchool MyVillage MyPlanet fundraising programme, they will automatically donate up to 1% of the value of your purchases on your behalf to the school or charity of your choice. This certainly makes me enjoy shopping at Woolworths knowing that a percentage of my spend is going to a good cause.

 I am not a Clicks shopper and don’t have their loyalty card, I can’t ignore the fact that they offer discount vouchers to their members. This can be used in store and also at Nu Metro theatres. They also have regular discount vouchers and promotions for members. This is again a move in the right direction in offering customer value.

Occasionally I go to Dischem and I am a member of their loyalty programme. There is no direct benefit in terms of vouchers or discounts but what they do well is that the points I accumulate is sent to the Dischem Foundation. They in turn support various charities. So, when I turn on 702 and hear the Dischem foundation giving R150 000 to a needy charity it makes me feel good as I am contributing to that charity even though it is indirect. It makes me feel good about shopping at Dischem and will continue to do so.

In the same fold as Dischem is Spar (sadly not nationally). Occasionally I go to the West Rand Lifestyle Centre Superspar. Once you have paid for goods on exit there is a cabinet with a number of pigeon holes. Each Pigeon hole has a name of a school. All I have to do is put my till slip into the school of my choice and then Spar will contribute an amount to that particular school. Again it makes me feel good about shopping there even though there is no direct benefit in terms of vouchers or points. It is a strategy that Spar should look at adopting nationally. There are many schools in South Africa that could use a cash injection.

Who is not doing it very Well?
Checkers is probably one the oldest and finest retailers in the country. Their marketing has promised the consumers the lowest prices and the best products. Their entire business has been built on this promise. Its share price and profitability has increased over the last few years. But with all of its successes have Checkers lost touch with its consumers or failed to keep up with the change in times?

The reason for the question is Checkers latest marketing effort “Our Price Cuts have saved South Africa R200m since January” campaign. I have been intrigued by this campaign as it has numerous TV commercials one with a cute little girl telling the announcer how much she saved at Checkers that day and she is going to buy a bicycle with the savings. A really nice ad and it certainly gets a so cute from my household. The other ads on TV are Fact based ads as to why you should shop at Checkers and how much Checkers is saving you. One ad also has a subtle dig at the Smart Shopper Loyalty programme from Pick n Pay. There has also been various radio ads and of course the inserts in the various newspapers. This was indeed a multi million Rand campaign across various channels. The only way you could miss an element of this campaign is if you were in hibernation. So thank you Checkers for telling us how much you saved us. Is that enough when there are retailers offering both savings and value?  Does Checkers indeed save me money? So armed with their latest insert that I found in the Caxton newspaper (key no. Ninety9cents GNFOCCO341/E&A) I set out to buy a selection of their products to test the savings. The insert reads offer valid from Monday 23/04/2012 until Sunday 06/05/2012. Prices apply to Checkers and Checkers Hyper stores.  The store I chose was Checkers Hyper in Sandton City and for comparison I chose Pick n Pay Hyper in Woodmead. I chose products on the Checkers leaflet and bought the exact same products at both the stores.
The results are below.

1st May - Products On the Checkers Catalogue

*Dairybelle Milk not available at Pick n Pay

Pick n Pay came in at 19% more expensive on the same products. So yes Checkers does save me money. But do they offer long term value. Is paying 19% more for products and gaining loyalty points in the long term sufficient for me to shop at Pick n Pay?

Pick n Pay may argue that of course Checkers would be cheaper since I have chosen to purchase products off their catalogue and also during their promotional period. I decided to do the exercise again but this time I chose mid month and used a Pick n Pay leaflet (key no. 1170606). The reason was to see if Checkers could maintain their low prices over its major competitor outside of its promotional period. So armed with my Pick n Pay leaflet I set out to test this. I have chosen to shop at Pick n Pay Hyper in Northgate and Checkers Hyper in Fourways Mall.  I must say the availability of specials during mid month is quite limited.
The results are below.

*Serena Lasgna and Provita Multigrain were not available at Checkers.

The test indicates that Checkers were 23% more expensive than Pick n Pay. Note the products were exactly the same.  So what does it prove, simply that Checkers with all the will in the world will not be able to offer low prices all the time? The same can be said for Pick n Pay. It is simply not a sustainable strategy.

Consumers need to be offered value so that their loyalty can be maintained. The introduction of the Smart Shopper card by Pick n Pay is a move in the right direction in offering value. The fact that they have over 5 million shoppers using their card illustrates its success. It is time for Checkers to take a hard look at their offering and move beyond low prices.

As a retailer identifying ways to tap into loyalty to win over consumers for the long-term is critical. No longer is standing on a rooftop with a bell in one and a megaphone in the other shouting low prices sufficient to attract and maintain customer loyalty.

Launching a loyalty programme is not cheap. As Pick n Pay will tell you that whilst they showed healthy revenue growths of 8% in their last trading update (2nd April). Their operational expenses were significantly up and that was mainly attributed to the launch of Smart Shopper. However, the expected medium to long term incremental increase in revenue due to Smart Shopper programme will eventually pay for cost of the programme.

As indicated previously saving money at major retailers such as Checkers or Pick n Pay are hygiene factors consumers expect it from them. Adding value to consumers is no longer a myth but a reality. So I would expect Checkers to respond in a more meaningful way to Pick n Pay’s Smart Shopper offering rather than looking at advertising to solve what really is a business issue.

Bidvest Bank Shubh Yatra (Happy Travels)

Bidvest Bank – Shubh Yatra
Over the last little while I have been subjected to the most irritating ad known to radio. It is from Bidvest bank, advertising their foreign currency services to the Indian community. The ad is currently being flighted on Lotus Fm. The delivery of the ad in the typical Peter Sellers type Indian accent is actually quite annoying. It is a clear cut illustration of a creative team that missed the mark. It seems they were ill informed on the brief or the strategic planner just did not quite think this through. This type of stereotyping of a community is past it’s sell by date and is no longer remotely funny.  I am sure the client and the creative team must have approved this ad on a Friday during lunch. One would have thought that Bidvest would want to make an impression and inroads into a community who regularly travels abroad especially to India. Sadly an opportunity missed. I would rather go to Steve and his Beep bank to buy my foreign currency than to go to a bank that has chosen to talk to me in a disrespectful manner.
The Indian community is probably among the simplest to market too. If one listens to Lotus FM, watch Eastern Mosaic on TV or any of the Indian channels on DSTV, the advertising is largely based on targeting a grouping of people say LSM 8-10 rather than Black, White or Indian.  The ads that appear on SABC TV or ETV are the same used to target the Indian sector of the market. And they do work. The ads that appeal to a white or a black person will in most instances also appeal to a person of Indian descent, unless of course it is in another language.
Hats off to Bidvest in thinking that they should have a specific ad to the Indian Diaspora, however in their attempt they got it completely wrong. How could they have improved it? Simply, using groupings from AMPS and TGI would have given them an understanding of the audience. A visit to Chatsworth Centre in Durban or Trade Route Mall in Lenasia would have also helped. This would have provided them with an opportunity to observe their target audience and simply just hear them speak. Even people from India don’t speak English in the way the ad portrays it.
The creative team may argue that this is a fun and tongue and cheek way of getting a message across.  Maybe so, but it is still offensive and an outdated way of marketing a message.  If Radio was the main driver of the message it should have been made simpler and less odious.  I have no doubt that it has given a few people in the boardroom and recording studio a few laughs, but unfortunately it just does not work. This is a typical example of a great initiative talking to a specific audience gone horribly wrong.  All I can say to Bidvest is ensure that your Insight into your target market is correct. Speak to them in a tone and manner that is not condescending.
Bidvest Bank Shubh Yatra (Happy Travels). This ad is a definite DOUBLE ZERO.

An Advertisers Nightmare

I read with great interest and amusement the article from Yvonne Johnston (http://www.bizcommunity.com/Article/196/12/50582.html). From the outset I would like to declare that I have a great deal of respect for Yvonne and I am also one of her fans. She was in her time a great media mind and now an absolutely fabulously great marketer. Her credentials at Brand SA are proof of this.

I am still a news junkie. My day starts with News24, Iafrica, Businessday and Sky news online. It helps keep me in perspective on what’s happening in the world. I don’t own an Ipad, Kindle or iphone. I do own a Blackberry which helps me keep track of all my e-mails. I don’t he use it for surfing the net as the screen is too small so I use my laptop for that. I am proud of my simple technology use; it helps me stay in check. I am happy to pick up my novel and read it as it is and occasionally put in a donkey ear in case I can’t find a bookmark. Does that make me Technophobic don’t think so. In fact I consider myself very techno savvy. I just don’t own many gadgets and I am not an early adopter. I believe that both the online and offline media have a place and marketers can use them both to reach me.

I am also an art collector. Once every quarter I go to an auction at my son’s Montessori school and buy a few pieces. They may not have the same monetary value as a Picasso But the emotional value by far exceeds any Picasso.

I shop at Edgars and Mr. Price. I enjoy the Spar and also go to the Pick n Pay. I get my medicines from Dischem and refuse to go to Clicks because I find them to be very un friendly.

I don’t own a PVR. I seem to like my TV Live and NOT recorded. What’s the point of watching Steven Gerrard scoring against Man Utd on a recording? Sure the PVR has a place. There are some awesome programmes that one would want to keep for watching over and over again. The best part of watching TV is waiting for the ads. Its entertainment value is in some instances better then the programming. How else would I have been suckered into believing that one bottle of Sunlight Liquid will wash 1000 dishes (I do the dishes sometimes) or the Mr. Muscle ad telling me of its Multi purpose use or the Dygon helping me clear the bugs? I am a convert on these products. I moved my bank account to FNB as they said “How can we help you” and they gave me that limited edition VISA Electron card with the World Cup trophy embedded on it a real collector’s item and worth moving my bank account.

I go to the movies and I am always the first in the popcorn Queue because I don’t want to miss the start of the ads.

The 2010 world cup gave many advertisers the platform to showcase their products and talent. Who in their right mind would fast forward the MTN Ayoba ad or the Waving the flag ad of Coke? They gave me goose bumps throughout the world cup. And I still want to watch them. They were absolutely mind blowingly patriotic.

My current favourite is the Boxer ad series from Toyota. They just talk to me. It is like the advertiser has taken the trouble to know me. I like TV and TV advertising. Did I mention it helped pay my salary for the last 20 odd years and also helped buy those art pieces at the Auction? 

So how would an advertiser reach me well he will have to fork out R100 000 for a 7de laan spot on S2, an English Premier league package on S3 for about R500 000 and R2000 for Jhansi Ki Rani on Zee TV. I love soaps some of them are great.  Let’s not forget the news channels, eNews, NDTV, CNN, Sky and BBC.  My favourite media habit is 702 in the morning and Afternoon and also the Redi Dereko and Chris Gibbons shows.

I am an Advertisers Nightmare. It would cost them Gazillions to reach me whereas MS. Johnston well it seems R40 000 per month (before discount) on the Daily Maverick will do the trick a bargain I’d say for such a quality audience. And I am unashamedly proud to say it Mr. Advertiser I am a media junkie and it’s going to cost you money to reach me.

The Big Consumer Rip Off

On Thursday I took my wife and son to the airport. They were travelling to Durban to attend a family wedding. While waiting for them to board I decided to go for some breakfast. I chose a famous bakery that I often used to frequent in Fourways. They make the most amazing bread and croissants. Anyway I sat at a table and ordered some tea and a toasted sandwich. In front of me was the take away section. There was a lot of people bussing around and buying stuff inside the bakery. Above the coffee station I noticed a sign which read “NO TILL SLIP” “NO COFFEE”. I looked at this quite surprised and could not believe that in this day of customer service someone could be so arrogant as to have such a sign. Surely there are other ways of telling customers to please present a till slip before asking for coffee. The sign was big and bold. I wonder what the foreign tourists during the World Cup thought of it or did they just brush it off and say we seen it in other countries as well. The point is we need to show customers we care and present ourselves with some humility. Whether the bakery takes the sign off or not I sure they will continue to flourish. My appeal would be to do it properly.

Which now brings me to the big Consumer rip off? As indicated my wife and son are in Durban so I used the opportunity to go and watch a movie. The movie I wanted to see was “I Hate Luv Stories” A Bollywood movie which was showing only at the Zone in Rosebank. I paid my R49 for the ticket. I stood in the refreshment queue and ordered a Medium Popcorn and Medium Coke Zero, it cost R35. The same size coke instore at a supermarket would cost no more than R10 and popcorn at best another R10. Doing the sums that would mean I just paid R15 more than normal price or 57% more. How do they justify this? Wait it gets worse. I happen to glance at the top of the menu selection of stuff you could buy at a kiosk. Bottle water that I could buy at the Pick n Pay for R6 I now had to fork out R14 for the privilege of drinking it inside a cinema. As with most Bollywood movies there is an interval. So at the interval I was feeling low on Sugar and bought a Chocolate and a Coke Zero which cost a further R40. So my little night out at the movies cost me R124 just to watch one movie. I have not added in the R45 for the dinner after the movie or the petrol getting there. The movie was great and worth the ticket price but the TreatZ that went with it was a bit expensive and I felt that I was ripped off. With the volume of Water that they sell at the cinema I have no doubt that they get a good deal on price. If we assume that they buy it for R5 they sell it for R14 that would make a profit of 280%. A tad much I would say. Even popcorn one could argue that the unit cost is much lower than the selling price. The cinema does not allow me as a consumer to bring my own food beverage inside so I am forced to buy at the cinema at these ridiculous prices. It would be interesting to see how the new consumer act can tackle this issue. I have no issues with the cinema charging whatever it wants for its food and beverage that is their right but then it must allow me as a consumer to choose whether I buy from them or not. I can’t watch a movie without Water and Popcorn. However I would like to buy it at a price I am willing to pay.