1.1 Report Structure and Format

Copyrights reserved – HDI, Youth Marketeers, B. H. van den Berg, 2007 Chapter 1

1.1 REPORT STRUCTURE AND FORMAT

Report Structure

This report comprises of three parts:

Part One

Part 1 outlines the need, importance and mechanics of the 2006 / 2007 Generation Next Survey. It includes the following components:

·  Introduction, Logic and Definitions – This briefly outlines the purpose of the survey, indicating the importance of the youth market in marketing brands in South Africa.

In addition, a short discussion is provided of the underlying methodologies and conceptual models as a vehicle with which to deliver the information to marketers. This vehicle, “SA Youth Lifestyle Model” TM (Loubser, Van den Berg, 2002) offers a framework around which the data and information can be interpreted as meaningful knowledge.

·  Methodology – This provides an overview of the phased approach adopted and executed to arrive at the results of this Brand Survey.

A detailed framework of the various models used to standardise the translation of data collected in the brand categories is provided, along with a brief discussion of the techniques developed to interpret the data and convert the information into a brand platform for future strategy development.

·  Sampling – This deals with the underlying assumptions upon which the sample was defined and recruited. The first section deals with the Sampling Strategy, which focuses on defining the inclusion criteria for the youth “target market”, which we refer to as GENERATION NEXT.

The section that follows provides the achieved Sampling Framework and has a brief explanation of assumptions used to determine sub-sample quota targets

Part Two

Part two consists of brand categories defined by sections that constitute the ‘SA Youth Lifestyle Model’, each of which deals with a ‘lifestyle dimension / connection point’ and the results of the Top 10 brands within each brand category that define the consumer’s preferences.

Each ‘lifestyle dimension / connection point’ deals with a specific selection of brand categories (refer to Table 2.1.3). The report on each brand category indicates:

·  The top brands in the category (quantitative)

·  Identified historically relevant insights by age range (comparative)

·  An interpretation of the key drivers that influence the choice of best brand in the category (qualitative) where appropriate

·  Insight into the brand from a local perspective with relevant category specific conclusions relating to the consumption behaviour and trends deserved in the SA urban youth market.

Part Three

Part three consists of two discrete sections, namely:

3.1 Post Script
3.2 References

1.2 CONVENTIONS USED IN THE REPORT

Unlike previous years in which we presented graphics for results, this year we have reduced graphic representations of results to summary tables and focused on commentary on the results instead. A separate report with all the detailed graphic representations and tables is available to subscribers of the report.

The limited number of graphics presented in this report have been generated by Microsoft Excel and are embedded as objects into the document. The document refers to tables, schematics and graphs, which may be situated within the commentary.

Numbering

Numbering in the document is continuous with each single digit number denoting a section of the document. For ease of identification numbering of graphics are aligned with the section numbering. For example in a schematic in section 2.1 of the document will be numbered as follows:

Schematic 2.1.1 (first schematic in section 2.1)

Schematic 2.4.4 (fourth schematic in section 2.4)

The same format has been applied to the graphs and tables.

Indexing

In this report, “frequency” (as a percentage (%) of the total/sub-sample specified) is used as a measure of position in ranking the brands from first to last positions within the specified sample base.

However, since we are also interpreting the performance of each brand from a number of different perspectives (by race, gender, home language) the difficulty arises in comparing each of the attributes using a similar numerical base, especially as the sub-samples by age, race and home language differ significantly. For this reason, most of the comparative data has been indexed to percentages of each sub-sample, i.e. comparative data is shown in the graphs as an index (percentage) of the total sub-sample (the sub-sample may also be referred to as the sub-base for statistical reasons).

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Copyrights reserved – HDI, Youth Marketeers, B. H. van den Berg, 2007 Chapter 2

2.1 INTRODUCTION

The Sunday Times Generation Next Brand Survey, conducted among South Africa’s urban youth during the first quarter of 2007, is an annual youth brand preference study. The survey that was formerly referred to as the ‘Youth Early Warning System’ (YEWS – 1992-2000) has yielded incredible insights into this elusive market segment over the past decade, but specifically in the past 3 years as the survey has graduated to the Generation Next Survey that has been finding increased industry credibility and popularity through its association with HDI Youth Marketeers, Sunday Times and Monash South Africa.

Why a brand preferences study?

In essence, a brand preference study identifies the preferred brands of a young respondent, as opposed to a recall or awareness study: the urban youths interviewed responded to prompts such as “When I am older…” or “If I had my own money…”. In other words, the brand preference survey attempts to exclude the direct influence derived from parental choices and access. The preference stated by the respondents is therefore their unrestrained potential (future) choice as opposed to that dictated by their home environment. While it is difficult to exclude parental influence, the decision to survey ‘best choices’ devalues parental influence in the quantitative survey phases in most brand categories.

We also acknowledge that in some brand categories dealt with in this survey, parental influence is very strong and interest of the youth is low for example yoghurt and breakfast cereals). Therefore we do not claim that the quantitative methodology totally excludes parental influence or it is absolute. It merely minimises parental influence by ensuring that awareness, recall and usage are not the focus of these.

Why is the urban youth market important to marketers?

Not only does the youth market represent the single largest proportion of South Africa’s population, it also plays a significant role in influencing the brand and/or purchase decisions of others - their parents, siblings or friends. Thanks to hyper-consumerism driven by media today, urban youths are a significant part of the target market for virtually every product or brand. As consumers, they may fall into one or more of the following four consumer sub-segments: -

·  Indifferent market: This describes the products that youths:
- have no interest in spending
- will not purchase with their own money
- have no motivation to negotiate or influence the parent, such as low desire to influence parental choice.

·  Primary market: This describes the products youths want now, and will use their own money to buy. The South African youths are consumers in their own right, Almost 80% of all urban respondents in the sample receive regular pocket money, whilst almost 100% of them receive cash for personal use when they request it from parents

·  Influence market: How they influence others to purchase/utilise products/services (parents, family and friends). Our statistics suggest that the youth market influences a total spend of R6.5 billion – R10 billion every month.

·  Future market: What will motivate them to remain loyal to marketers and brands - or to become a future ‘loyal’ consumer?

Strategic Purpose of the Research Survey

The purpose of this survey is succinctly stated in the following quotation:

The consumer’s long-term emotional relationship and bonding with the brand builds attitudes such as Brand Likeability, Brand Confidence and Brand Loyalty. An offering with high positive response to all three of these attitudes generally achieves high brand credit. (Kuntkes; 2005). Successive and ongoing positive reinforcement of these attitudes by the brand (through learning and stimuli) results in a desire for a long-term relationship with the brand.

These measurable criteria determine whether the promise of the brand meets consumer expectations and whether the offering is on a journey to becoming a stronger brand through vivid, appealing and differentiating mental iconography, or not. (Kuntkes; 2005)

This survey aims to unlock our understanding of how a brand “journeys” in the minds of a young South African urban consumer.

Insights into the SA Youth Lifestyle ModelTM

Whilst the theory is relatively logical, the development of a methodology to focus the research on meaningful outcome (that would lead to real insight and aim at achieving a better understanding of the underlying evolution and adoption decisions through youth age sectors), is challenging.

To this end the Youth Lifestyle Model™ identifies the areas within a young consumer’s life through which they evolve and sustain their image and persona. These are illustrated below:

Diagram 2.1.1: Youth Lifestyle Model (Logic diagram)

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In the diagram, “Home Life” and “Education” are a key influence in all other priorities/touch-points in their ‘world’ while sport and entertainment are closely associated with each other, as are media and technology. It is important to note that this diagram separates each lifestyle priority, although in reality each may influence the other.

The model is used to identify common dimensions related to the youth and identifies specific differences in preferences and behaviour within these activities. This year we add some interesting insights with respect to the ethical dilemmas; issues (that just don’t go away), hopes and fears of out young urban population in SA.

Common Dimensions

Table 2.1.2: The common dimensions of the South African Youth Lifestyle Model

HOME LIFE / ENTERTAINMENT / IMAGE / MEDIA / TECHNOLOGY / EDUCATION

The logic diagram and the brand categories associated with the Youth Lifestyle Dimensions are surveyed for preference in this survey.

The commonalities include the fact that our modern urban youth and their world are truly multicultural. They live in a multi-ethic, multi-cultural world. The mainstream of urban youth cultures often take their cues on how to dress, what to eat, and the latest music craze from evolving and emerging majorities. The multi-cultural dynamic of the environment of our youth drives towards a ‘new urban culture’ with specific differences that differentiate consumer ‘tribes’ that align with specific sub-cultural interests. Peers are therefore included in the diagram as an element of both home life and education as their role in the self-image and lifestyle of Tweens, Teens and Young Adults is significant and far-reaching.

In this survey we focus on the 8 to 22 year old metropolitan / urban consumers, and for the sake of identifying how the various age groups differ in terms of their response to brand decisions, we have divided the respondents into three age ranges.

-  Tweens

-  Teens

-  Young Adults

Logic of the report

1.  LOOKING BACK – REVIEW OF THE PAST THREE YEARS

2.  YOUTH CONSUMERISM

3.  YOUTH PERSPECTIVE OF THEIR WORLD:

a.  Risks / Fears

b.  Issues

c.  Ethics

d.  Hopes

4.  HOW MUCH OF A PURCHASER IS A YOUNG CONSUMER

5.  RESULTS (By Lifestyle Touch Points) – as indicated in the table below

HOME LIFE / ENTER-TAINMENT / IMAGE / MEDIA / TECHNOLOGY / EDUCATION
·  Chocolates
·  Grocery store
·  Snack
·  Sweets
·  Cereals
·  Yoghurt
·  Cold drink
·  Fun place / ·  CD store
·  Eat-out place
·  Malls / ·  Fashion label
·  Motor vehicle
·  Fashion store
·  Male products
·  Female products
·  Brand character
·  Brand icon / ·  Youth magazines
·  TV channel
·  Kids TV channel
·  Radio station
·  Newspaper & supplement / ·  Tech gadgets
·  Cell phone
·  Ringtone provider
·  Online social site
·  Telecommunications Provider / ·  Commentary

Table 2.1.3: Brand Categories

2.2 DEFINITION OF TWEENS; TEENS; YOUNG ADULTS

Together these sub-sectors of the SA Consumer market represent the largest portion of South African Consumers.

Kids/Tweens (defined as primary school learners, ages 8-13 years)

·  Kids/Tweens are still dependent on parental approval and start to develop relationships with brands, but are presently key consumers for brands and still will be in the future.

·  This is the age where they move from pester power into persuasive argument. The difference between a kid and Tween is the ability to rationalise their needs to their parents. Dependence on parents is still a key factor in their decision-making.

Teens (defined as secondary school learners, ages 14-18 years)

·  Teens are the most complex and difficult to target due to their physical transformation from adolescence to adulthood and shift from dependence to desire for independence. To cope with the pressure they form friendship tribes. This makes them a fragmented target market. Friends are often more important than parents and they start making choices independent from their family.

Young Adults (defined as youth who have completed their schooling, ages 19-23 years)

·  Self-achievement and fulfilment is their key priority. They make independent choices. They are key to the economy in the short to medium term and value their family again as they realise the value of interdependence between family and peer members.

What are Tweens, Teens and Young Adults?

Many of the young people represented by the target market are the primary purchasers of household items. It is estimated that more than 50% of Teenage girls and more than 30% of Teenage boys shop for groceries alone, either through necessity or through the parental desire to socialise their children into the ‘art’ of shopping. At Monash South Africa more than 90% of the Young Adults live in self-catering residences and do all their grocery and other shopping without parental or adult guidance.