Media ShopTalk: w/c 6 July 2009

The UCT Unilever Institute of Strategic Marketing recently presented their
new research - Project Reboot - to its members.

The presentation is unfortunately too big to send to you or to put as a link
on our web site. We therefore urge to you make contact with your TMS
contact to set up a time from them to take you through this presentation.

The research covers global and local trends and then has a look at six
segments of the SA consumer population which gives us insightful marketing
implications about talking to them during this tough economic time.

The key learning from this research:

Forget what you knew about marketing.

The new economic landscape means that consumers will never be the same
again.

Some key highlights without giving you the entire presentation:

Impact on South Africa

. GDP has fallen from 5% in 2007 to 3% in 2008

. The SA economy is projected to contract by -1% in 2009

. In the 1st quarter 2008, the economy contracted for the 1st
time since 1998

. Business confidence falls to its lowest level since 1998

. Consumer confidence starts to fall

. Jobs - South Africa expected to shed 300,000 jobs in 2009

. Interest rates - interest rates rose five basis points in
recent years, although the reserve bank has been cutting rates as the
recession starts to bite

. Inflation continues to hover above the 6% target and remains
'sticky'

. 140% increase in liquidations

Price comparison: Jan 2008 - Jan 2009

This illustrates a 28.9% shopping basket increase between Jan 2008 and Jan
2009

Some South African companies thriving

Famous Brands sales up 9.3%

Spur profits up by R55 million

Group 5 reports exceptional results

South Africa is a highly complex and fragmented society

One size does not fit all, when it comes to understanding the behaviour of
different segments of the South African market.

Overall Insights:

The end of the world as marketers know it

A new consumer mindset emerges

For the last 15 years, marketers will not have encountered consumers with
this mindset

The six segments include: The strugglers, The Youth, The Pre-Family, Young
Families, Older Black Middle Class and The Prime Timers.

Who are these segments?

The Strugglers: All races LSM 5-7

The Youth: All races aged 16-24 LSM 5+

The Pre-Family: Young, ambitious, single "professionals" aged 25-40, all
races, no children, LSM 8-10

The Young Families: Parents of young children under the age of 12, all
races, LSM 8-10

Older Black Middle Class: Older stable family, majority married with
kids over 12, Black aged 35+, LSM 8-10

The Prime Timers: White, Coloured and Indian, aged 45+, LSM 8-10

In all instances they have a look at financial flexibility, confidence
levels in terms of SA, Lifestyles, shopping and marketing opportunities and
implications.

This research is very interesting and we are sure that it will add value to
any planning session.

This is the MediaShop
OPEN 24 HOURS.. NO PROBLEM!


Formed in 1988 and located in Johannesburg, Durban and Cape Town, one of SA’s leading media agencies, The MediaShop’s 360-degree offering goes beyond merely planning and buying, instead follows carefully defined strategies. The MediaShop modus operandi is to integrate with each client’s business goals and objectives across all communication channels. The MediaShop integrates into client’s marketing team, ensuring the target market not only sees, but internalises, the advertising message. This is The MediaShop. “Open 24 hours… no problem!” For more information, visit www.mediashop.co.za