Here - MAZ

MAY 2016
Jumpstart Business
Conference with Professor
Malcolm McDonald
MAZ launches new membership
category – MAZ Fellows
Bloodbath in the Zimbabwe’s
Retail Sector - Is it the price
or the promotion?
Repositioning the GLORIA BRAND
to the contemporary market
EXPLORING GROWTH
OPPORTUNITIES IN 2016
TURNAROUND STRATEGIES FOR SUCCESS
FROM THE EDITOR
Strategies for success in
2016
We have started off the year with the theme,
“Exploring growth opportunities in 2016,
Turnaround strategies for success”, in light
of the need to revise strategies, amidst the
financial challenges most organisations
are facing. This edition includes articles
on how relationship marketing, increased
consumer engagement, focusing on unique
markets can build your brand and open up
avenues for growth.
According to an economic analysis by
Intellego Investment Consultants, the
service sector, currently accounting for 60
percent of GDP, grew at an average rate of
8.50 percent per year during 2010-14,
4.30 percent in 2015 and is projected
to grow by over 3.00 percent in 2016.
Articles in this edition will show that this
growth is evident in the competitive nature
of the nation’s retail sector. Some would
even go as far as attributing this growth
to the leveraging of brands on franchising
opportunities. Another contributory factor,
is the telecommunications industry which
remains pivotal to the service sector’s
development.
In order to increase value for marketers
in 2016, MAZ has launched a new
membership category for senior marketers
which was driven through a desire to create
a think tank of members. This network
of “MAZ Fellows” will not only share
marketing intelligence and enjoy benefits
of different service providers, but will be a
platform for formulating policies that will
advance the profession and drive economic
growth. In this first quarter the Association
also hosted Professor Malcom McDonald, a
world renowned business consultant at the
Jumpstart Business Conference. McDonald
has consulted for many major companies
from the UK, Europe, USA, Far East,
South-East Asia and Africa, in the areas of
strategic marketing, marketing planning,
market
segmentation,
key
account
management, international marketing and
marketing accountability.
EDITORIAL
Executive Secretary
Gillian Rusike
[email protected]
Editor
Rumbidzo Dakwa
[email protected]
Marketing Executive
Givemore Zindonda
[email protected]
Contributors
Angela Mpala
Emma Ruzvidzo
Enia Zimunya
Farai Mwakutuya
Intellego Investment Consultants
Memory Nguwi
Omen Muza
Simbarashe Pasipamire
Tendai Maguwu
Workmore Chimweta
DESIGN AND LAYOUT
PRINTERS
We would like to thank our advertisers and
contributors for the continued support of
the magazine. Contact me on rumbidzod@
mazim.co.zw for comments, feedback,
articles and advertising bookings
Marketers are now relying more on mobile Enjoy this edition of the magazine!
marketing (i.e WhatsApp platforms), social
media interaction with the consumer as a
way of increasing brand awareness. This
edition also emphasizes the need to go
back to the consumer and leverage on
relationships in order to remain relevant.
One article points out the need to employ
retentive marketing strategies in order to
realise more sales from existing customers.
PUBLISHERS
tel: +263 4 - 747031/051
marketers.association.of.zimbabwe
@marketerszim
marketers association zimbabwe
www.maz.co.zw
MAY 2016
1
CONTENTS
EDITORIAL
1 Brand Authenticity:
Delivering the brand promise
ON THE COVER
16 Exploring Growth
Opportunities for marketers
in 2016
18 There’s Always Space for
Growth - Start with Insight
5 Jumpstart Conference
with Professor Malcolm
McDonald
14
7 MAZ launches new
membership category –
MAZ Fellowship
Bloodbath in Zimbabwe’s
Retail Sector
22 Repositioning the
GLORIA BRAND to the
contemporary market
MAZ NEWS
11 MAZ launches Digital
Marketing Certificate
COMPANY NEWS
16
20 Steward Bank
introduces Zama Zama
Business Account
26 CAIRNS FOODS LIMITED
re-launches Cashel Valley
Baked Beans and Sun Jam
28 Turn to Turnall for all
your roofing and piping
solutions
THEME ARTICLES
13 Digital Marketing Effectively utilizing Social Media
for Growth
2
MAY 2016
28
46
MARKETING MATTERS
30 MARKETER PROFILE:
Meet Shupai Marware, RTG Commercial
Director
32 Zimbabwean marketing student
comes out tops for IMM in the region
37 How Marketers can effectively
make use of Traffic Volume statistics
34
43 How to use relationship
marketing to retain your customers
5
45 Innovative Communication
Growth Opportunities Around a
WhatsApp Internet
48 Easy Steps That Will Make You a
Master Relationship Builder
INDUSTRY NEWS
33 Breaking the “curse” of the
middlemen
39 9 Issues to consider when
restructuring your organisation
35 Bloodbath in the Zimbabwe’s
Retail Sector
Is it the price or the promotion
39
18
41 Introduction to Concept of
Deposit Insurance System
PERSONAL DEVELOPMENT
26 How to get business referrals
50 A marketers’ guide to real estate
investing
41
48
MAZ NEWS
MAZ hosts the Jumpstart Business
Conference
with Professor Malcolm McDonald
Marketers
Association of Zimbabwe (MAZ)
hosted the Jumpstart Business Conference
from 19 – 21 April at the Rainbow Towers Hotel.
The conference drew interest from business
executives from a wide range of industry
sectors, as the guest speaker was Professor
Malcolm McDonald, a world renowned business
consultant who has consulted for many major
companies in the UK, Europe, USA, Far East,
South-East Asia, Australasia and Africa.
The first session of the conference was targeted at CEOs,
Marketing Directors, Managing Directors and Board Members
and it was under the theme, “Meeting The Marketing/
Finance Boardroom Challenge: How To Develop A Strategy
That Creates Shareholder Value”. The second session which
was targeted at marketers was meant to equip them with
skills on how to create a competitive edge through marketing
strategy.
More about Professor Malcolm McDonald
Professor Malcolm McDonald MA(Oxon) MSc PhD DLitt
DSc, until recently was Professor of Marketing and Deputy
Director, Cranfield University School of Management, with
special responsibility for e-business, and is now an Emeritus
Professor at the University as well as being an Honorary
Professor at Warwick Business School. McDonald is a
graduate in English Language and Literature from Oxford
University, in Business Studies from Bradford University
Management Centre, and has a PhD from Cranfield University.
He is also a Visiting Professor at Henley, Warwick, Aston and
Bradford Business Schools, as well as an academic advisor
Delegates at the Jumpstart Business Conference
at the Oxford College of Marketing. In 2006 he was also
listed as one of UK’s Top Ten Business Consultants by the
Times magazine.
He has written over 40 books, including the best seller
‘Marketing Plans: How to prepare them, how to use them’,
and more than one hundred articles and papers. Coming
from a background in business which included a number
of years as Marketing Director of Canada Dry, Malcolm has
successfully maintained a close link between academic
rigour and commercial application. Some of these companies
he has consulted for include Mobil, American Express, BP,
Kodak, Barclays, Hitachi and Xerox. Malcolm is currently
chairman of six companies and works with the operating
boards of a number of the world’s leading multi-nationals
on all continents. He is an expert in the areas of strategic
marketing, marketing planning, market segmentation,
key account management, international marketing and
marketing accountability.
Develop a Strategy That Creates Shareholder Value
The Professor stated that the overall purpose of strategic
marketing and its principal focus is the identification
and creation of sustainable competitive advantage. There
is a definite link between long run financial success and
excellent marketing strategies. Excellent strategies are those
that target needs based segments and make a specific offer
to each segment. He also emphasised the need to have
clear differentiation, positioning and branding. The common
mistake marketers make, whether from large corporates or
small to medium enterprises is to concentrate on the product.
To the detriment of the company, plans and strategies are
made based on historical data, with little understanding of
product weaknesses or strengths.
Delegates at the Jumpstart Business Conference
Differentiation is the heart of successful marketing
Differentiation is the heart of successful marketing and
this is done by proving that dealing with you will create
advantage for your customer, and not merely make them
avoid disadvantage. The added advantage of a consumer
also includes the emotional contribution which is reinforcing
the “feel good factor”. The Professor emphasised that
although powerful branding is important, effective needs
based segmentation is even more important.
He went on to quote Peter Walshe, Global BrandZ Director,
Millward Brown who stated that:
“Innovation for its own sake will not necessarily create
differentiation. Instead, brands need to show that
they are meaningfully different. Consumers believe
Samsung’s mobile devices are better engineered, but
Apple’s products resonate in a more meaningful and
differentiated way.”
Know and understand your key target markets
He discouraged organisations from rushing around to
introduce new products or diversifying and rightly said that
the “graveyard of commerce” is full of companies who are
ambitious in diversification. It is important to know and
understand key target markets and have a pulse in what
is happening in the market. The foundation of successful
marketing strategy is the ability to understand markets and
customers better than competitors and to allocate scarce
resources (through market segmentation, targeting and
positioning) to create superior customer value.
Digital marketing should not trample actual consumer
engagement
The renowned business consultant said that the trend
nowadays is that, organisations are focused so much on
digital marketing and have forgotten the fundamentals of
marketing. He went on to point out that for many companies,
the greatest threat is not that they fail to keep up with digital
6
MAY 2016
developments, but it is losing sight of the fundamental needs
of their consumers and the underlying long - term drivers of
their business.
Many digital managers focus on the number of “likes”
a Facebook page has or the number of Twitter followers.
McDonald reiterated that if these analytics do not translate
to actual leads or turn into profit – then they are not relevant.
Too much focus on digital marketing is not a tool for success
but rather should complement actual on-the-ground tactics.
Is market research necessary?
McDonald highlighted that most companies run the risk
of measuring “everything to death”. He attributed this
mainly to the irrationality of consumers. Most consumers do
not actually know what they need and actually give false
responses on questionnaires and face to face interaction. He
contended that the most powerful research is OBSERVATION.
Another method of research he recommended is that of
PERCEPTUAL MAPPING. The use of perceptual mapping
is key to finding and understanding what consumers
think about a particular brand or set of brands. With this
information, businesses are able to identify what their
weaknesses are, what their strengths are and who their true
competitors are. It supplies them with the material they
need to see if they are placed in a position that is relevant to
their overall objective. If a business is perceived in a manner
they find unsatisfactory, then they are able to go even further
into research to see what they can do to change that. It also
allows for businesses to see what consumers think of other
brands, particularly their competitors. Regular uses of the
maps can also help track the preferences of consumers, and
see the changes as they happen.
Many of the delegates appreciated the presentations from the
Professor as he shared insights that challenged some of the
strategies marketers have been employing for years. For information
on future MAZ Events, kindly contact mazmembership@mazim.
co.zw. For more information about Professor McDonald and his
work, visit http://www.malcolm-mcdonald.com
MAZ NEWS
MARKETERS ASSOCIATION OF ZIMBABWE
MAZ FELLOWS VIP CARD LAUNCH
Victor Mutyamaenza
Full member
M0102
MAZ FELLOWS MEMBERSHIP
MAZ launches a prestigious category
for members: MAZ Fellows
The
marketers Association of Zimbabwe
(MAZ) has launched a prestigious membership
category that caters for senior marketing
professionals who will serve as custodians of
the marketing profession who have proven
expertise and experience. Members of this
category will be referred to as “MAZ Fellows”,
and will be responsible for fortifying the
profession and the MAZ. The need to come up
with a separate category for Senior Marketers
was driven through a desire to create a think
tank of members, who will advance the
activities of the profession, the MAZ through
active involvement and participation.
Speaking at the launch on behalf of Mike Bimha, Minister
of Industry and Commerce, the Deputy Director of Bilateral
Trade Relations Christine Kazhanje emphasized that
marketers are the brand drivers and should therefore be at
the forefront of marketing activities.
“I have attended a lot of international trade fairs and many
times, I have noticed that it is the CEOs who are trying to
promote the products. I believe it is you marketers who
should drive the brand because you know the products
better,” said Kazhanje.
She encouraged marketers to be aware of government
initiatives that will benefit them for example the
establishment of the National Competitive Commission
which will enable ease of doing business.
The overall objectives of the establishment of MAZ Fellows
is to create a think-tank for the marketing profession and
ensure that networking platforms where policies that will
drive the nation will be formulated. The platforms will forge
possible synergies through exchange programs with both
regional and international marketers.
MAZ Executive Secretary, Gillian Rusike unveiled the
benefits of being a Fellow which are as follows:
- Networking opportunities and participation in MAZ
Activities with a 10% discount on attendance to any MAZ
Event.
- A copy of the MAZ ZimMarketer Magazine delivered to the
MAZ Fellow’s Doorstep.
- Complimentary Attendance to 3 Networking Sessions for
Senior Marketers, known as the Marketers’ Roundtable.
These are candid talks where senior marketers get to meet
with industry leaders, and get insights to aid them in their
careers.
Career enhancement through involvement in MAZ
Activities. MAZ wants to create a pool of resource personnel
who will be involved in the embedding of marketing values to
the growing marketers. All fellows will be required to indicate
at least one area where they would want to offer active
participation in the Association and they will be given a
chance to express their talents, whilst at the same time being
given the necessary available coaching for improvement. The
opportunities for career and talent expression will be in areas
to do with:
a. Training and Facilitation
b. Event Coordination and Planning
c. Director of Ceremonies
d. Publication and Articles Contribution for the ZimMarketer,
as well as the MAZ blogs and Social Media Platforms
MAY 2016
7
- Golf Training and Membership: All MAZ fellows who are
interested will automatically qualify for the Golf Training and
Membership facility that MAZ is offering in partnership with
one of the renowned Golfers in the country. Fellows will be
trained over a period of 6 months, and then participate in
the Annual Marketers Charity Golf Day, to be held in August
2016 in conjunction with the Marketers Walkathon.
- All MAZ Fellows are entitled to 10% Discount of all
purchases made at Truworths when they produce the MAZ
Fellows Membership Card.
- All MAZ Fellows are entitled to a visitor’s membership card
and will qualify for 5% discount on refreshments and green
fees when using Chapman Golf Club. For those who would
like to join the club as members, they will be offered suitable
special membership.
Club where there will be given the Cresta Pride Card. Pride
Card Benefits range from hotel discounts, car hire discounts
and food discounts on delectable dishes and many more
services which include 20% discount on accommodation only
from Monday to Thursday, 50% discount on accommodation
only on Friday, Saturday, Sunday and public holidays. They
are also entitled to 20% discounts on Food and Beverage
spent in any Cresta Hotel.
- All MAZ Card carrying fellows are entitled to a 10% discount
on any purchase made at any of the Vinal Investments
outlets. These are: Mugg and Bean, Ocean Basket, Smooch,
Newscafe and Simply Asia.
To apply to become an MAZ Fellow kindly send an email to eniaz@
mazim.co.zw or [email protected]. You can also call
747031/051 for more information
- ALL MAZ Fellows are automatically enlisted in the Cresta
Noma Muzunze explains Truworths benefits to
marketers
Ruddy Makoni from Vinal Investment
MAZ Executive Secretary, Gillian Rusike making a presentation
Christine Kazhanje making a speech at the MAZ VIP Launch
MAZ NEWS
Save the Date: Marketers Winter School 2016
MARKETERS WINTER SCHOOL
THE
SAVE TE
DA
For Bookings contact
[email protected]
Be Accredited As A Marketing Practitioner
(YOUR PATHWAY TO BEING A ZIM CHARTERED MARKETER)
Date: 29June - 02 July 2016
Venue: Great Zimbabwe Hotel, Masvingo
$950 (.................................................................................
Cost Includes Accommodation, Meals, Course material. Excludes Transport and Activities)
................................................................
Marketers Association of Zimbabwe
24 Glenara Ave South,
Eastlea Harare
+263 4 747 031 / 747 051 ,+263 772 596 357
The Marketers Association of Zimbabwe will be hosting the
Marketers Winter School on the 29th of June to the 2nd
of July 2016, at The Great Zimbabwe Hotel in Masvingo.
The Annual Marketers Winter School, which is done in
conjunction with IMM, is the Association’s flagship for
intensive training and Continuous Professional Development
for Marketers.
This training program is divided into 3 phases. Phase 1, is
for marketers who have never attended the Winter School.
Participants in this phase are supposed to have at least a
marketing qualification, from Diploma level, by a recognised
institution. They are also supposed to have recognisable
working experience. In the phase 1 program, participants
are taken through the cardinal stages of Strategic Marketing
Planning. Participants are then given an assignment
which, if successfully completed and meets the assessor’s
satisfaction, makes them attain the Marketing Practitioner
Status.
Phase 2 is for marketers with a desire for Continuous
Professional Development, but also have an inclination
towards obtaining the ZimChartered Marketer Status.
Participants are also taken through pertinent marketing
topics. Phase 3, is for those who are in their final year, towards
the achievement of the ZimChartered Marketer program.
These participants are required to make presentations
as part of their program. The Marketers Winter School is
a must attend for all marketers. Not only does it provide
a professional learning platform, but it gives marketers an
opportunity to network, and share experiences with people
of like mindedness - a powerful tool for learning.
For bookings for this year’s Marketers Winter School, contact our
MAZ Training Coordinator on email, [email protected].
ZARF to host 17th Annual PAMRO
The Zimbabwe Advertising Research Foundation is hosting
the 17th annual conference of the Pan African Media
Research Organisation PAMRO in Victoria Falls from August
21-24.
This year’s theme, “Africa Media Research in a Globally
Connected World”, will bring together experts from the
continent and internationally to look at what marketers want
to know about us and how this relates to the rest of the world.
Market segmentation will be a focal point for this year’s
conference, with discussion on LSMs, their relevance and
whether they need updating. Presentations will address a
wide range of subjects such as television audience research
methodologies and the status of radio, print, Internet and
outdoor research in Africa.
The last PAMRO Conference in Zimbabwe was held at The
Kingdom Hotel 12 years ago when Shepherd Kusada, now
chairman of ZARF’s technical committee, held the position
of founding president of PAMRO.
PAMRO represents African organisations that are conducting
comparable media and products research. Uniquely, this
enables global brands to treat Africa as a single entity and
develop marketing plans that include, in principle, all African
countries, in practice the 15 who are members of PAMRO.
ZARF commissions the Zimbabwe All Media and Products
Survey twice a year from an independent research house
selected by open tender. It undertakes 2,000 face to face
interviews with heads of households to find out what people
buy, read, listen to and watch. This invaluable information
enables marketers to plan their advertising campaigns
accurately, enabling them to reach their target markets in
the most cost-effective way. It can be compared with similar
research by other PAMRO members.
Each year, PAMRO delegates are invited to make a proposalof where
they would want the next conference to be hosted and Major Tikiwa
invited the organisation to Zimbabwe at the Tanzanian conference
last August. Calls for the submission of papers will go out shortly
and anyone in Zimbabwe who would like to present a paper on the
above mentioned theme is encouraged to contact Jennifer Daniels at
PAMRO. Details of how to register are also available on the website
www.pamro.org.
MAY 2016
9
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EXISTING / NEW MEMBERS CONTACT MEMBERSHIP DESK
Marketers Association of Zimbabwe
24 Glenara Ave South,
Eastlea Harare
Phone: +263 4 747 031 / 747 051
+263 772 596 357
Email:[email protected]
MAZ NEWS
MAZ Launches Certificate in Digital
Marketing
The
Marketers Association of Zimbabwe, in
partnership with WSI Academy has launched
the much anticipated Certificate in Digital
Marketing. This was birthed after realizing that
local training programs lacked a specific focus
on digital marketing. Although various subject
areas have been offered as separate modules
or short courses, the Association has come up
with intensive structured training, which will
lead to professional certification.
The first class that has enrolled for the course, has
approximately 40 students. The program, which will be held
over a period of 6 months, is aimed at giving all marketing
and sales practitioners, business people, IT personnel and
any interested individuals an in-depth appreciation of Digital
Marketing. A number of students have expressed that this
course is an eye opener to many aspects of the field, as many
of the topics learnt were things that they would normally
pay an agency to do. The course will help fortify marketing
departments and help students become Digital and Social
Media Managers in their own right.
This self-paced Digital Marketing Certificate is designed for
individuals ready to expand their skills set in today’s internet
driven market. It explores several aspects of the new digital
marketing environment and integrates them into current
business operations. To date, the lessons have covered
digital marketing analytics, social media marketing, search
engine optimisation, mobile marketing, email marketing,
content creation and blogging for business. This course is
targeted at any person who has a desire to increase their
knowledge and appreciation for new media trends.
This course will cover the following modules:
i. Introduction to Digital Marketing:
ii. Digital Marketing Channels
a. The Website: the Destination in all Marketing Digital
Efforts
b. Dynamics of Email Marketing
c. Social Media Platforms and their integration into the
overall Marketing Plans
iii. Paid Online Marketing
iv. The Mobile Marketing Revolution
v. Blogging & Content Creation
vi. Digital Analytics for Marketing Professionals
vii. Social Selling
MAZ has two intakes for the program per year. The next intake will
be in August 2016. Should you wish to register for the next intake,
kindly contact [email protected] or mazmembership@mazim.
co.zw
MAY 2016
11
Digital Marketing: Effectively Utilizing
Social Media for Growth
By Emmagness Ruzvidzo
The year 2015 was a challenging one for a
number of companies in Zimbabwe. Some
companies only managed to survive by slashing
salaries and laying off workers. As is the norm
in some industries, marketing budgets suffer
immensely during this time. The answer to
cutting costs is usually seen to be reducing,
or totally eliminating the marketing budget.
So how do we as marketers thrive under such
conditions?
As a passionate marketer, I had to wonder, is this the end
of an era for professional marketers in the country? I know
definitely not everyone is mourning about their budgets as
some brands are ensuring they maintain a strong brand foot
print in the market, despite the economic challenges. For
most who do not have the privilege of generous marketing
budgets, there is need to be more creative with tight purse
strings. There is no need to conclude that 2016 will be a
depressing year, but rather to make use of digital marketing
which provides much more cost effective tools. Chaffey and
PR Smith in eMarketing Excellence (2013) suggest there
are 5 broad benefits or reasons for adopting the internet for
marketing.
These are to:
- SELL: grow sales
- SERVE: add value by giving customers more information
about your brand
- SPEAK: get closer to customers, create a two-way
dialogue
- SAVE: save costs through creative advertising
- SIZZLE: extend the brand online
Digital marketing, according to the Institute of Direct and
Digital Marketing (IDM), it is an umbrella term for the
targeted, measurable and interactive marketing of products
or services using digital technologies to reach and convert
leads into customers. The key objective is to promote brands,
build preference and increase sales through various digital
marketing techniques. Its activities include the ‘infamous’
Search Engine Marketing (SEM), Search Engine Optimisation
(SEO), Content Marketing, Influencer Marketing, Content
Automation, Campaign Marketing, e-commerce Marketing,
Social Media Marketing, Social Media Optimisation, e-mail
direct marketing, display advertising, e-books, games and
any other form of digital media. It also extends to noninternet channels that provide digital media such as mobile
phones, callback and on hold mobile ring tones.
Social media marketing is the process of gaining website
traffic or attention through social media sites. The trick is
to create content that attracts attention and encourages
readers to share it across their social networks. The resulting
electronic word of mouth refers to any statement consumers
share via the internet about an event, product or service,
brand or company. “Social media is the term commonly
given to Internet and mobile-based channels and tools that
allow users to interact with each other and share opinions
and content. As the name implies, social media involves
the building of communities or networks and encouraging
participation and engagement,” CIPR,2011.
MAY 2016
13
Figure 1. Social Media KPI pyramid. Source: Altimeter
(2010).
such as Facebook, come up with a strategy to make this tool
have an impact on your business.
Figure one highlights the Key Performance Indicators
of social media. For you to be effective, ensure you are
constantly reviewing these and addressing any weak points.
A challenge with social media tools is that we go to those
platforms to ‘hang out’ with our friends and not to be
bombarded by adverts. So, how do we as marketers ensure
we are effective? Form a strategy with clear cut goals. What
are you trying to achieve? It’s easy to set up a page but why
are you setting up that page? Is it to interact with customers,
to increase brand awareness, to educate customers on your
products and services – what’s the objective of having that
tool for your business? Do not just ‘dive’ into social media
through creating presence on Facebook and Twitter. Instead,
listen to customer conversations. Watch how customers
use those tools and how your competitors are using social
media. What are they going to do next and more importantly,
how are you going to make your impact on social media this
year?
The main types of social platforms available include, but
are not limited to Facebook, Twitter, Instagram, Snapchat,
Google+, LinkedIn. The most popular in this country that
businesses have used consistently is Facebook and Twitter.
Other platforms include social publishing and news as well
as social commenting in blogs. You need to decide which
tool makes the most sense to your business. It would be
ludicrous, for example, to have a Pinterest account when
your business does not use imagery to any extent, or
choosing LinkedIn to connect and interact with teenagers.
Once you choose the type of media you want to explore –
14
THEME ARTICLES
Exploring Growth Opportunities for
Marketers in 2016
By Omen Muza
Paradigm Shift Needed
Growing In a Shrinking Market
Gone are the days when customers could easily be swayed
or snared by a few high sounding words; in this dollarized
environment, it is all about the value proposition on the
table in exchange for the customer’s hard earned money.
Marketers will have to realise that it’s less about their
sophisticated (and often cryptic) messages and more about
the underlying products and the solutions they offer. It’s
all about getting closer to the clients and offering them
increased convenience at affordable costs. Marketers must
step back and disengage from the usual habit of self-praise.
Instead of the long puff pieces about how good your own
products are, let those who use them - your customers - say
how good the products are. People like to hear the good
experiences of others, and usually get influenced positively
by them. My view is that if you really want to improve, you
must find ways of giving customers the opportunity to praise
or trash your products – only then can you begin to earn their
trust, and eventually their loyalty.
The stock-in-trade for banks is money, and
when there is progressively less of it to go
around, competition for it is bound to intensify.
Falling commodity prices mean that there
will be less liquidity coming into the country
since Zimbabwe relies significantly on export
of primary commodities. In addition, the
drought situation means more money will be
going out of the country in exchange for grain
and other food imports. For marketers, their
work is cut out for them, in order to ensure
that their institutions enjoy a bigger or at least
standstill share of a shrinking cake. The cake
is also getting smaller in no small part due to
dwindling disposable incomes as more and
more people are losing jobs, therefore any
growth of market share will have to take place
in the context of a contracting overall market.
But that’s not to say growth will no longer be
possible. It will still be possible but will have
to be at the expense of someone else. The
big question in banking is: Are there growth
markets somewhere, anywhere, out there
waiting for banks to swoop on them? Maybe,
but before I explore such areas of potential
growth, let me sound a note of caution to
marketers.
16
MAY 2016
Marketers must step back
and disengage from the usual
habit of self-praise
You have to be brave (and honest enough) to accept both
bouquets and brickbats in equal measure. Do you really
want to find out what customers think about your institution
and your product? Instead of sitting in your plush office and
drinking copious amounts of tea, go out there and get your
hands dirty!
Ask those standing in a queue at your branch what they
think and how you can improve or go to one of your branches
unannounced and experience your own products. You will
be surprised not only by what you encounter but what you
can achieve if you pay enough attention. If you want to tell
your customers what’s good for them, you have to be willing
to walk a mile in their shoes. Think about how you can
empower, enable and engage your customers. Can any of
these three happen while you are sitting in your office? Can
it happen when you don’t use your own products?
Finding pockets of opportunity for banking institutions
- Tapping into the Unbanked Market Segments
For a while now, it has been said that the money has retreated
to the nooks and crannies of the informal markets; although
noone has ever been able to tell us exactly how much is
hiding there. So without thinking too much, this is a natural
starting point for anyone wanting to grow their financial
services business. As a marketer, I would be keen to know
what products the company has developed, is developing
or intends to develop in order to satisfy the needs of those
who would rather keep their money outside formal banking
channels.
Closure of Correspondent Bank Accounts: What’s the
Bright Side?
The closure of USD nostro accounts by some correspondent
banks means that some local banks will lose the ability to
process international payments in the USD currency at least
until they restore relationships with new partners. For those
not affected by this development, it can be an opportunity
to attract new business. As a marketer, what message do
you craft to attract these new customers on the basis of
real value offered, without merely capitalising on (and even
celebrating) the misfortunes of your peers in the market?
Marketers must step back and disengage from the usual
habit of self-praise
Grain Imports: What Part Do You Play?
It is now all too clear that we have a drought situation on our
hands and the country will have to import tonnes of grain
worth millions of dollars in order to feed its people until the
next farming season. As a marketer, I have to be aware of
what part my organization can play in the value chain for
grain imports – are we solving at least one problem there or
are we just watching? Yes importing grain when we can grow
it is not in itself something to celebrate, but now that it has
become necessary for us to do so, we might as well make
some clean honest money doing it. Are we playing a funding
role or a payment processing one or both?
Tobacco Marketing Season
Every year, the tobacco marketing season, is an opportunity
for significant new money to come into the country since all
tobacco on the auction floors must be bought using offshore
funds. This year the Tobacco Industry Markerting Board
(TIMB) is bullish about prices due to global undersupply of
tobbaco owing to the El-Nino-induced drought. It is therefore
an opportunity for banks to get new money into the system.
The first impulse of tobacco farmers is to spend their hard–
earned money on things like inputs, farming implements,
household assets and a little bit of fun on the side. As a
marketer in a bank, what message are you crafting for these
tobacco farmers so that they can trust you with some of their
money? There are payments to be facilitated and savings in
need of a home. Tobacco is a seasonal crop, so there has got
to be some money set aside for a rainy day. Will you be the
one entrusted with keeping it?
Omen N. Muza is a banker, who also edits the Monthly Financial
Sector Bulletin (MFSB), a monthly roundup of key Zimbabwean
financial sector developments.
It’s all about getting closer to the consumer, COCA COLA
Summer Splash Promotion
THEME ARTICLES
There’s Always Space for Growth Start with Insight
By Workmore Chimweta
2. Insight may Defy LOGIC
Real consumer insight defies all logic. This has
Perhaps we can circle back and reconcile why I am going on
to be the most potent weapon every marketer about insight, when we are exploring growth and how logic
defied. We will do this by exploring the beginning and
in Zimbabwe (and the world) possesses, gets
end of all brand marketing - the target market, which is THE
albeit many are not aware of this. At the heart CONSUMER. For the majority of marketers this consumer
of insight is the disrespect for the proverbial is a woman. Let me refer to 2 examples of profiling for this
“laws of physics and/or economics”. With consumer. We will assume a category like “SALT” which we
real insight, brands and indeed companies all consume (Yes, table salt!)! Who is the target audience for
begin to create headroom for growth, even as table salt?
disposable income recesses, budgets get cut 3. Defining the Target Audience
amidst all doom and gloom. With insight real
Target Audience Definition ‘1’:
connections are made and magic happens.
1. Insight is clarity
It is important to start off this conversation by defining
insight and setting the context for this powerful tool. The
Merriam-Webster dictionary defines insight as ‘the ability to
understand people and situations in a very clear way; an
understanding of the true nature of something’. That has
to be the simplest and most apt way to define insight. It is
clarity. It is truth! In the marketing and branding context it
then simply becomes clarity, about the target audience for
your brand. However, it is not enough to have mere clarity. It
must lead to some action. The best way I can put it therefore
is to say CONSUMER INSIGHT is that absolute crystal clarity
about the target audience and their situation that leads to
brand intervention which creates a positive interaction. What
I want to cement here is that the clarity must lead to an
action which delivers a positive interaction. That is when the
magic happens.
Define the consumer as a HUMAN BEING going through a life
stage
18
MAY 2016
LSM 4 - 12, Women (mostly mothers) with a family size
of 6 with typically an extra 2 dependents living under the
same roof; earns between $50 and $1000 a month from
regular employment, albeit an increasing number are now
informally employed. Lives in a 2 to 4 bedroomed house with
her husband and kids. Watches free to air channels on TV
and sometimes Nigerian movies on DVDs which she borrows
from her friends.
4. Where’s the State of Heart and Mind?
It is at the target definition juncture where we start to see
the difference in brands and companies driving for growth,
and those that are stuck in a rut of going through the paces.
This is where space for growth is created or squashed. There
is a lot that can be said about the description of the table
salt target consumer above.
There is also a deliberate move in there to have you mentally
try to visualise this consumer and flesh out that description
and hopefully critique it. What we will explore is just one of
the areas which is totally neglected in this consumer profile.
This is the one area which ‘moves the needle’ in finding
space for growth. I will call it SoHaM! Where’s the SoHaM?
State of Heart and Mind.
These “consumers” that we speak of daily and try to convert
to patronise our brands are human beings. They have a heart,
they have a mind and points of views! They aspire, they
dream, they long for things, they are emotional, irrational,
they get happy and they get sad and mad! Much more than
their physical state of being and where they happen to live
or whom they live with, there is one thing that ties groups of
them together in a logic defying manner. It is their humanity.
Their intangible state of being. The biggest mistake a brand
custodian can make is to miss this opportunity to define the
consumer as a human being going through a life stage. There
is more potency in the commonality of life stage and SoHaM
than anything else.
The biggest mistake a brand custodian
can make is to miss this opportunity to
define the consumer as a human being
going through a life stage.
Target Audience Definition ‘2’:
A lady settling into motherhood, tentative about her position
in society thus far. She is one who aspires for success
as a homemaker and cherishes the peace of mind she
gets from doing good for her family, whilst seeking the
acknowledgement of her individuality as a modern woman
who has made it and broken through the glass ceiling which
many born of her time and context have failed to do.
Now this second, ‘more human’ consumer profile, if you
recognise it as such, will send you in a direction that creates
space for growth for your brand and your company. Such
a definition, in its orientation, sets you on a journey to
explore this “table salt consumer” in ways that you would
otherwise not ordinarily explore. It also arms you with an
arsenal which can win you battles in the most important
arena of marketing warfare, that of uniquely appealing and
compelling, sustainable BRAND DIFFERENTIATION.
5. Get it right from the start!
Remember that a brand is but a consolidation of distinct
emotional and functional attributes brought affront, for
convenience of reference, under a name and some form
of symbolism. Our ability to sustain this differential is the
key to stepping apart from the competition. It is the key to
creating space for growth. Get back to the beginning and
start with the human being consuming your brand. Start with
well-considered insight. Define what it is. Write this down.
Now, armed with meaningful insight, seek the growth which
is ever present for brands that understand their consuming
humans. Create your own space to grow.
Workmore is the Group Marketing Executive for National Foods,
Zimbabwe. You can follow him on his blog ininiafrica.blogspot.com
for more inspiring articles
We proudly present to you Steward Bank’s newest product offering targeted
at SMEs the Zama Zama Business Account and the Zama Zama Sole Trader
Account.
As part of a group-wide bundled proposition and following consultations with
selected SMEs, the Bank has redesigned its SME offering to address the everyday
business and banking requirements of this important segment. The Steward Bank
SME offering will include:Econet Group SME Bundled offerings
Benefits include free advertising and listing to OWNAI, an e-commerce platform
which will enhance access to markets, discounted mobile data charges from Econet
Wireless Zimbabwe Limited, website development and software solutions from
Muzinda Hub; and a merchant services solution (EcoCash Ta) offered to small
business through Ecocash.
Cash flow Management & SME Financial Literacy Training
Through various feedbacks, we identified basic financial and accounting training as
one of the key requirements of SMEs. To address this, we have partnered with Risk
Flow, a South African company to provide a low cost mobile driven application Cash
Flow Optimizer (CFO) which allows an SME to conduct basic accounting functions
including auto generation of financial statements. This solution will be made
available to all Steward Bank SME customers at no additional cost.
Launch of Steward Bank SME Incubation Pod
The Bank will be launching an incubation pod at our Avondale branch. Once a week,
the entrepreneurial centre will give potential and existing entrepreneurs a meeting
venue with Wi-Fi services (offered in partnership with ZOL) to discuss their business
ideas and meet other entrepreneurs. The bank will also periodically offer training
and coaching to SMEs on any relevant courses using industry experts.
Crowd Funding
Access to funding is one of the critical requirements of SMEs. Whilst Steward Bank
will fund businesses aligned to its strategy, the bank will be launching a crowd
funding platform to bring together SMEs looking for funding and potential investors
looking for returns.
www.stewardbank.co.zw
Member of the Deposit Protection Corporation
COVER ARTICLES
REPOSITIONING THE GLORIA BRAND
The story of making a much loved brand
appeal to the contemporary market
By Angela. E. Mpala
What led to Project Sun?
Gloria is a brand that is turning 96 years old this year. It has been Trusted since 1920. The
opportunity that exists in dealing with heritage brands is that they are brands that are well known
with the older generation and seem to be losing relevance to the younger generation. It was this
dilemma that led to Project Sun which is the code name for the Gloria repositioning campaign.
This is the story of repositioning Gloria from being a well-known, well-loved and trusted flour to
being an iconic symbol that stands for women’s upliftment and empowerment to being more
than just flour. The challenge was to redefine the brand and make it contemporary without losing
the essence of what the brand is about. This required a structured and scientific approach.
Step 1: Consumer insight – “The mother’s hero
moment”
The first step in redefining a brand is to find out
the key functional and emotional attributes that
consumers value in a brand. Through a rigorous
process of exploring the brand’s heritage and
assessing the relationship the target market has
developed over the years, to projecting where
the brand can and will go, the team settled on
a simple articulation of the new Gloria: It rises
every time so that you can shine! The essence of
the campaign focuses on the brand as a catalyst
to a mother’s hero moment while obviating the
role of the product- assurance of baking success
Step 2: Identifying the Opportunity – Singing
is an uplifting catalyst
After identifying the consumer insight, how do we
translate it into something relevant that resonates
with the target market and is aligned to the
brand? To do that aptly, we had to study women.
What do women do on a daily basis?
What do they do when they are happy?
What do they do when they are sad?
How do they celebrate?
The answer is that mums all over the world sing.
They sing when they work, they sing when they
are happy, they sing when sad. When they sing,
their mood is uplifted. When they sing, they uplift
everyone around them! It positively transforms.
The same can be said for Gloria flour which rises
and enables women to shine
Top artists of different genres came together to create a song unique to Gloria.
22
MAY 2016
Step 3: Execution is all in the detail and the ambition
Having conceptualised what needed to be done, the next
step was to implement this momentous task in a way that
displays exceptional execution. To reinforce within ourselves
the drive and size of the project we wanted we renamed the
project from Project Sun to Project ICONIC. This became
our yardstick in everything we did. Before we implemented
anything we asked the following questions:
To participate a consumer buys Gloria 2kg flour and retains
the flour pack for redemption (The empty pack is currency).
A set of collected empty packs can “buy” rewards as shown
below:
Is it ICONIC?
Is it World Class?
We did not proceed until the answer to both of these
questions was YES!
The song recording
The team engaged the services of award winning music
producer and song writer Andrew Baird to come up with the
Gloria song. The brief was clear, it was to be inspiring and
uplifting while driving the key brand attributes.
With the song composed the next step was to identify the
artists that would feature on the song. The thinking behind
this is around the fact that women are such a diverse group
of people. They listen to music that cuts across genres be
it Gospel, R n B, Afro-pop, Sungura, Dancehall and Mbira
fusion. We looked for the ICONIC artists in each of these
categories and came up with the following Sebastian Magacha
(Gospel), Alaina - an upcoming artist from Bulawayo(R n B),
Selmor Mtukudzi (Afro Pop), Sulumani Chimbetu (Sungura),
Shinsoman (DanceHall) and Jah Prayzah with his unique
blend of Mbira fusion.
These top artists brought in their own unique vibe and
experience to make the song unique to Gloria and to
Zimbabwe. The next step was how do we take this to the
consumer and engage them in a way that stands from the
advertising clutter already in the market. A key aspect of
working with celebrities, apart from managing diaries and
treading carefully across entertainment brands was respecting
their talent and unique signatures. A combination of the
clarity emanating from our brand vision and professionalism
by the team delivered a great result. We ended up with a
final product which surpassed our original expectation.
Step 4: How do we increase sales
The birth of Project Qoki/Gogogoi was brought about by
a need to have a revenue element to the repositioning
campaign. As is the case with every company there needs
to be a return on investment and more often than not this
needs to be apparent in the short term timespan, a difficult
thing when trying to build brand equity for the long haul. We
managed to deliver on both.
Using the same insight that women love subtle
acknowledgement this led to the conceptualisation of a
consumer promotion with an objective to create demand
at the household level. The entire route to market was to
benefit from this, via the pull of product by consumers as
they participate in the promo.
Step 5: Taking it to the market
The Gloria campaign was a monster of a project to manage.
The project planning master looked like something from an
engineering project workbook. In terms of roll out sequence,
the key was to set the right environment for the launch.
This meant starting the “communication” a month before
the target launch date in prelaunch hypes. This consisted
of articles in the press to create suspense around the tours,
radio interviews and posters of the tour put up around the
country.
The Gloria song was played free to air in radio. For the
first time ever a new song associated somewhat with a
commercial campaign has received free airplay on rotation.
It was also positively rated on the Star FM rate it or hate it
program. The campaign made a big social media impact.
Gloria worked with Bus Stop TV to produce a comic skit on
the repositioning campaign and the song. It reached over a
quarter of a million people and more that 68K views in 2
weeks.
What is in the next step?
Brand repositioning is a continuous process. This was just
the introduction. There is a lot more to come from Gloria.
Watch this space!
Angela is the Senior Brand Manager at National Foods Zimbabwe.
She is responsible for the Gloria brand
MAY 2016
23
A country-wide bus tour with the artists
Gloria took the artists to the people in a bus tour across the country
A World class stage
Well attended shows
24
MAY 2016
COMPANY NEWS
CAIRNS FOODS re-launches Cashel
Valley Baked Beans and Sun Jam
Since coming out of judiciary management in
2015, CAIRNS FOODS have made great strides
to ensure that it regains lost ground in the
marketplace. The Company has re-launched
two of its most dominant brands on the market
– Cashel Valley Baked Beans and Sun Jam.
Cashel Valley Baked Beans are Zimbabwe’s
favourite baked beans. Sun Jam remains
Zimbabwe’s best mixed fruit jam. In order
to make sure that Cairns Foods continues to
provide the products that Zimbabwean families
have grown to love, the company carries out
consumer surveys, where consumers are
involved in blind tasting to establish local
preferences.
incorporated in 1963 with a vision to become the leading
food and confectionery manufacturer and marketer in the
region, supporting local product suppliers and service
providers. Their production process is carried out and
monitored closely guaranteeing that they adhere to their
dictum to always start right, keep right and finish right. All
these procedures are performed with the Zimbabwean public
in mind. This is done in order to sufficiently address the
food-safety, quality concerns, nutritional value, affordability
and presentation as a whole to ensure international best
standards are upheld.
In support of the Buy Zimbabwe concepts on the 3rd of
March 2016, Cairns Foods re-launched the pea bean seed
out-grower scheme in Manicaland which had been stopped
in 2007. The scheme is expected to benefit 800 farmers
and contribute to supporting 1100 Zimbabwean households.
Cairns Foods will continue to provide healthy, organic
and nutritious food and contribute to the improvement of
productivity, of the Zimbabwean economy.
On the 30th of March 2016, Cairns Foods commissioned
a new Baked Beans Plant in Mutare. The company was
How to get Business Referrals
One
of the very best ways to generate new
sales is by referrals from existing customers
and there are many ways in which you can
encourage this behaviour from your customers.
First, provide excellent customer service that
goes beyond what is expected, to your current
customers so that when you do ask and
encourage them to promote your business they
will be proud to do so.
Get a referral script to get referrals from existing customers
Make it part of your business process to ask your customers
to give you a referral and the best way to ask for a referral is
with a referral script such as “my business is expanding and
I’m looking for a few new customers, who do you know that
I can help?” The best time to ask this question, is a week or
so after you have delivered your product or service, so that
everything is still new and fresh in your customers mind.
Have a contest to get referrals from existing customers
Get your customers to make a video testimonial of why they
love your business. Tell your customers that the person
who gets the most votes on their video promotion will win
something free from you that is designed only for your
audience and current customers.
26
MAY 2016
Give Referral Credits
Let your customers know that you want them to tell others
about you by sending them encouragement to do so in the
form of credits against the work you do for them.
Start an Affiliate Program
You don’t have to open an affiliate programs to everyone that
comes to your website; they can be members only or in this
case customer only affiliate programs. If you have exclusive
deals only for your customers to promote you, they will be
more likely to do so.
Ask for Referrals via LinkedIn
Don’t send out the generic request offered by LinkedIn to get
referrals, instead, take the time to send a special request to
each person that you want to refer you as you’ll get a much
better response.
Ask for Testimonials for Your Website
Within the first 30 to 50 days of doing business with a
customer, send them a form to put a testimonial on your
website. If you use WordPress, there are great testimonial
plugins that you can use to make this process simple for you
and the client.
COMPANY NEWS
Turn to Turnall for all your roofing and
piping solutions
For more than 70 years Turnall has been the
market leader in the manufacture and supply of
asbestos-cement roofing, water and sewerage
conveyance products in Southern Africa.
Turnall is adept in identifying and meeting
changing tastes and trends, creating innovative
and quality products that are appreciated by
thousands of homeowners across the region.
Turnall continues to be innovative and has
introduced the Ravenna concrete tile, nonasbestos sheets, Spanish pavers and a wide
range of piping products to choose from.
Included in the pipes range are AsbestosCement pipes (AC), Polyvinyl Chloride (PVC)
pipes, High Density Polyethylene (HDPE) pipes
and Glass Reinforced Plastic (GRP) pipes.
Turnall tiles turn houses into homes
Turnall’s striking new Ravenna range of concrete roofing tiles
provide a picture-perfect finish to any house, turning it into
a home you can be proud of. Turnall’s new range of Ravenna
tiles are as strong as they are stunning and this all starts
with how they are made. Carefully washed sand, the best
Portland cement, colour pigments and water are mixed to
exact proportions and extruded under pressure, resulting in
a product of the highest quality and a thru-tone finish that
won’t fade. In fact, we’re so proud of our concrete tiles that
each one includes our manufacturers’ mark, so always check
underneath the tile to make sure it is a Turnall tile!
Turning on the style
Turnall builds everything to last. The Double Roman and
Venetian tiles, the mainstay of the company’s variety of tiles,
are no exception. Inspired by classical and medieval Italian
architecture, the Ravenna range adds an instant touch of
class to your home. What’s more, a choice of natural grey,
red or black tiles gives architects and interior designers great
scope for creating beautifully coordinated designs for any
housing or industrial development.
Technical specs
With its deep roll concrete roof tile profile, the Ravenna
Range offers a fresh new look, while creating roofs of
outstanding character that perform exceedingly well with
a pitch greater than 17.5 degrees. Concealed, precisionformed interlocks ensure a snug fit, a very clean roof line
and state-of-the-art protection against wind-driven rain and
water capillary action.
Fascia board
There is nothing more annoying than needing to replace
28
MAY 2016
rotten fascia boards on your home. A typical wood fascia
board requires painting which provides a preventive coating
for protection. This layer of paint will begin to fail as it is
subjected to varying temperatures, sun exposure, and water.
As it fails the wood underneath is no longer guarded against
rotting.
Over time the water running off the roof will deteriorate the
protective layer of paint and destroy the timber fascia on
your house. This problem must be addressed very quickly or
the water will begin to seep into the timber and walls causing
damage. Thankfully there is a solution which eliminates any
possibility of decay or damage to the fascia by using Turnall
asbestos fascia. Its benefits include:
• Affordable - cheaper than timber.
• Long lasting compared to timber.
• Resistant to rot and water damage.
• Strong to support gutters.
• Resistant to termite or other insect attack.
• Virtually maintenance free (cost effective).
• Light, strong and easy to fix.
• Can be painted into any colour.
Pipes
Turnall has supplied for the past half a century both sewer
and pressure pipes. The AC pipes have proven to have a long
life span. Turnall pipes are designed to carry the toughest
loads. They have stood the test of time in the conveyance
of water and sewer and other fluids. Our pipes are available
in 4m length which adequately covers the span of a normal
traffic lane. The materials making the pipes are intricately
blended. They do not separate due to traffic vibration or any
other force. Turnall pipes can be used for culverts on road
storm water drains; shattering on concrete columns and pole
fencing. The new range of PVC, HDPE and GRP pipes are
now part of Turnall’s pipes range after becoming the official
distributor of Marley Pipe Systems (SA) (Pty) Ltd. It has also
been appointed the distributor of Fiberpipe (SA) (Pty) Ltd for
the GRP product range. These distributorship arrangements
guarantee competitive pricing to any alternative.
Non-asbestos roofing
In a bid to satisfy all our market segments Turnall has
now introduced the asbestos-free roofing products made
from new technology fibres. They have the same strength,
quality, dimensions, shape and colour with our popular
asbestos Endurite sheets. Nutech roofing has since gained
acceptance in the market.
MARKETER PROFILE
“If it’s difficult, it
does not mean it is
impossible, THERE IS
ANOTHER WAY”
Meet Shupai Marware, the man behind RTG marketing
team.
Who is Shupai Marware?
Shupai Marware is a 39 year old man, born and bred in
Munyarari Village in Zimunya, Mutare. I am the eldest of
five children. I am happily married to Lydia and we are
blessed with three children.
What inspires you?
I am inspired and motivated by the zeal to learn, grow
and achieve, while adding value to my family, my
organisation and my community. I believe this is the
gateway for bigger possibilities life has to offer.
How can marketers ensure that they remain in the
game and ahead of competition?
I am a believer of new realities and creative solutions.
Marketers should have the ability to anticipate and
predict customers’ unexpressed needs and desires. It
is almost like an out of body experience – it is about
going into the future and returning with new solutions!
While marketing looks at strategic conceptualisation of
opportunities and creatively capitalising on them, the
critical issue is to deliver value primarily to the market
and eventually to the business.
Marketers are faced with shrinking budgets and
ever growing pressure to outperform themselves
and competition. How can marketers achieve
results in a challenging environment?
A challenging environment calls for marketers to be
innovative. You cannot do the same thing over and over
again and expect better or different results. The essence
of innovation is driven by the ideals of continuous
improvement and creation of new realities. Personally
I have coined my active spin at work and at home to
inspire innovation, that is “if it is difficult, it doesn’t
mean it is impossible, there is another way”, and “if you
cannot see it, it doesn’t mean it is not there, find it”.
This drives innovative solutions for business problems
and customer needs, most of which are precipitated by
the operating environment and the emergence of new
trends and tastes.
30
MAY 2016
The present day business environment demands us to
continuously and prospectively see into the future and find
the opportunities ourselves before they manifest themselves.
Ultimately at the meeting point of a customer need and
delivery of a solution, is the birth of sustainable business
relationships – that is the collateral of any organisation.
Taking business relationships to another level involves
migrating customers from mere clients to advocates and
eventually partners, so much that they become priority
stakeholders of the business.
You have worked in the hospitality sector throughout
your career, what excites you about the Tourism and
Hospitality industry?
The Tourism and Hospitality industry is a platform where
business and leisure investment, travellers, tourists,
environmentalists and host communities interface physically
and emotionally creating an economy that integrates with
the rest of the world.
Rainbow Tourism Group won numerous awards in
2015. How did you manage to achieve this success?
This was achieved through a culture of territorial leadership
that has been nurtured and driven by our CEO Mr. Tendai
Madziwanyika since the RTG turnaround started in 2013.
The RTG team is a cluster of ambitious winners who have
chosen to lead the market despite the challenging operating
and internal environments. In short RTG is now driven by
focused team members accountable to each other, the
business and the customer. This is why new innovations like
RTG Virtual, RTG Mobile, RTG Auctions, Rainbow Delights,
RTG Inspirations and innovative promotions and loyalty
programs have become major revenue generation streams in
the organization. Creation of an innovations team, business
process re-engineering and working with the Standards
Association Of Zimbabwe has gone a long way in positioning
RTG in one of the best quadrants in the market and in the
mind of the consumer. We have not arrived yet and we will
continue to drive growth through innovation in all facets of
our business.
As Commercial Director for the country’s second
largest hospitality Group what is your typical day like?
My typical day is so cluttered with “must dos”, from a daily
briefing with the CEO in the morning zeroing on daily strategic
and tactical review based on daily market intelligence insights,
and refocusing the same thereof, based on new information;
to execution of Sales and Marketing, and General Business
Management tasks, working with Head Office, our hotels
and South Africa based teams, reviewing and refocusing
business performance. Meeting customers and partners is a
daily process while keeping a cross functional interface with
fellow senior managers helps ensure that the team is singing
from the same hymn book!. You just need to be very agile
and be able to line up the critical issues ahead of others,
while experience and discernment helps in getting and doing
things right first time. More often than not, you have only
ONE chance to make a difference.
What does it take to become a successful divisional
team leader?
You need to have both conceptual (the soft aspects), and
implementation (the hard stuff) skills especially relating to
your area of specialization, and then general understanding
of business and how it relates to macro and micro issues.
Eventually it’s about results and how they transform into
numbers. You should be both a team builder and a motivator
and if possible, surround yourself with people who can be
equal or better than you. On the other hand, you should have
both form and functionality. Teams respond well to these
things.
What can we look forward from the Group?
Rainbow Tourism Group will consolidate its position in
Zimbabwe as a market leader championing domestic
tourism, and delivering diversified benefits to industry
players through the RTG Virtual platform. RTG will lead home
grown innovations with global relevance as we continue on
our quest for growth and market dominance.
ROADMAP TO SUCCESS
1999 – BSC Honours Degree in Tourism and Hospitality Management
2005 – ACCA DipFM - Finance Management
2007 – BBA in Marketing Communications Institute of Marketing Management of South Africa
2011 – Masters Degree in Business Leadership (MBL) UNISA
CAREER PATH
2013 to date
2011 - 2012
2009 - 2011
2006 - 2008
2005 - 2006
2003 - 2005
2002 - 2003
2000 - 2001
1999 - 2000
– Commercial Director RTG
– Group Sales Executive RSA Office Cresta Hospitality
– Group Sales Manager RSA Office African Sun
– National Sales Manager African Sun
– Marketing Manager Leisure Zimsun
– Sales & Marketing Team Leader Cresta Hospitalty
– Area Sales Manager Cresta Jameson and Cresta Oasis
– Assistant Sales & Marketing Manager Cresta Lodge
– Front Office Operator Cresta Lodge
MAY 2016
31
MARKETER PROFILE
Zimbabwean marketing student comes
out tops in the region
By Joseph Katete
Tendai
Maposah made Zimbabwe proud as
she was announced the top student in the
region for 2015, by the IMM Graduate School
of Marketing. Tendai was awarded with 12
distinctions in the 17 modules for a Diploma in
Marketing Management.
This was announced at this year’s graduation ceremony,
which was held on Saturday, 2 April 2016, at the Celebration
Centre in Harare for over 200 Zimbabwean students who
completed different studies. IMM specialises in business
management, marketing and supply chain management.
She attributed her success to hard work and being organised.
She has already enrolled for a Bachelor of Business
Administration with the same institution. She is currently
employed as an Internal Sales Representative for HP Lubes,
the authorised distributors of Castrol Products in Zimbabwe.
Meanwhile, the Vice Chancellor of the Midlands State
University, Professor Ngwabi Bhebhe who was the Guest of
Honour at the graduation ceremony commended IMM for its
Tendai Maposah receives her award for Top Student
32
MAY 2016
efforts in developing Africa through education.
“We are also excited by the efforts that are being made by
the Institute of Marketing Management Graduate School to
sustain its vision of becoming an institution that strives to
be the distance learning provider of choice and the centre
of excellence for marketing, supply chain and business
disciplines in Africa. It is indeed gratifying that the school
aims to achieve this vision through continually bestowing
relevant marketing, supply chain and general business skills,
knowledge and competencies to its students,” he said.
IMM is an open and distance learning institution which
offers
internationally
accredited
qualifications.
It
forms partnerships in Africa and elsewhere to produce
accomplished professionals in the fields of Business
Management, Marketing and Supply Chain Management.
It was established over 60 years ago, making it one of the
eminent graduate schools in the region.
Joseph Katete is a qualified journalist, certified Marketing
Practitioner and practising Public Relations Executive.
INDUSTRY NEWS
Breaking the “curse” of the middlemen
By Farai Mwakwutuya
In 2015, I hosted three carpenters from the
famous Glen View Area 8 complex on my
radio show Enterprise Zimbabwe on Zifm.
During the discussion, I came across the
term “magombiro” for the first time. To the
uninitiated, these are middlemen who claim
to represent the carpenters, charge inflated
prices and pocket the difference but also
extract a commission from the craftsmen. They
have become such a menace that they deny
clients direct access to the carpenters, both
carpenters and potential clients to the extent
that some, mainly women, turn back before
getting what they are after.
Unfortunately, this “rent seeking culture” and living off the
hard work of people trying to make an honest living has
manifested itself in so many other spheres of business in
Zimbabwe, such as public transport, flea markets, and car
sales amongst others. Some trace its origins to commuter
omnibus “mahwindi”. But at least they served a purpose and
added value to the kombi owner. However the “Magombiro”
are detrimental to the Glenview craftsmen.
The fact that these unscrupulous “magombiro” whose
actions are tantamount to robbery are allowed to continue
holding innocent business people at ransom with impunity
is a discussion for another day. Today, I proffer my practical
examples of how small businesses encumbered by middlemen can circumvent them and speak directly to their market.
Middlemen (Magorimbo) deny clients direct access to the carpenters; harass
both carpenters and potential clients
MAY 2016
33
The prevailing economic environment has transformed how
business is usually done. It has introduced unconventional
distribution channels, changed customer behavior and called
on businesses to be flexible in order to survive. One of the
major requirements is the imperative to lower operating costs,
something going direct to the customer allows and which
ultimately lowers the cost of the product or service, thereby
responding to the shrinking disposable incomes.
Utilize social media
The furniture makers can leverage social and digital media
to speak directly to their target market. Setting up Facebook
pages, WhatsApp groups amongst others can allow them to
send out their catalogues and generate orders electronically,
bypassing the menacing middlemen. The prolific growth of
mobile payments can facilitate easier payments with the funds
going straight their own pockets as opposed to a third party.
Using social media will no doubt allow the furniture makers to
reach out to a much wider target market, cost effectively than
the ones who are able to brave a trip to their stalls.
Get closer to your market
On another programme, a listener who runs a beverage making
business bemoaned delays in receiving payments from some
of his distributors, which were adversely hampering his
operations. It goes without saying that unhealthy cash flows
can suffocate small businesses. The final consumer of his
beverage, buying it out of a tuck shop or shop, is paying cash
for it, but somewhere along the line the cash is being held up.
So the advice for the beverage maker too is to get closer to
his customer. How? Perhaps opening up factory sales direct
to individuals or to smaller distributors who can pay cash, for
example, the growing number of vendors who now sell water,
drinks and even chocolates at traffic lights in the CBD.
Go to where the market is
Lastly a valuable lesson about cultivating relationships can
be learnt from players in the second-hand clothing (mabhero)
industry. I met a young man who vends second hand clothes
at Birmingham roundabout in Harare’s industrial area. Some
of his biggest customers are top executives from the plushest
offices in town. But you will never see their expensive vehicles
parked at Birmingham roundabout. Instead he has a standing
arrangement with them. When the latest consignment of shirts,
chinos and shoes arrive, they want to be the first to know and
want him to bring them to their offices. These private fitting
and sales sessions answer the customers need to not be seen
in public buying “mabhero” but also, by going to the client the
vendor is appealing to the customers’ egos. This makes them
feel important as you will have notified them first about new
arrivals and also by going the extra mile to offer convenience.
These are both time-honored principles that are relevant and
applicable to any type of business.
Go where the consumer is - you will not see top executives
buying second-hand clothing (mabhero)
34
MAY 2016
INDUSTRY NEWS
Bloodbath in the Zimbabwe’s Retail
Sector - Is it the price or the promotion?
By Enia Zimunya
As
the economic environment bites, there
has been an increasing effort by Zimbabwean
companies to maximise on their marketing
expenditure, and ensure that their short term
activities are manipulated to increase profits.
The retail sector has been leading the pack
in these activities through an increase in
sales promotions throughout the year. The
promotions have been so fierce, that at any
given time of the year, the possibility of having
a promotion running is now the norm, and not
an exception.
TM Pick and Pay Big Rewards promotion
TM Pick and Pay Supermarkets have conducted massive
promotions which ran throughout the year, and these have
brought some relief to consumers as prices were significantly
reduced for some products. In 2015, they introduced an
innovative promotion, known as Big Rewards promotion,
whereby customers were rewarded with a stamp for
purchasing goods worth $5 and above. Customers were then
asked to redeem the stamps in exchange for stainless steel
knives, should they reach the required number of stamps.
This was an exciting and fresh promotion, which saw women,
who are the primary retail and household goods shoppers,
rushing to buy groceries in order to refurbish their kitchens.
This promotion almost overshadowed traditional promotions
run by competing retails outlets. In 2016, the same
promotion was introduced, with rewards being expanded to
other cutlery besides knives. The same strategy to target the
lady shopper was employed. It remains to be seen however,
if this one will prove as exciting as the 2015 promotion was,
given the increase in the number of stamps one has to get in
order to get a reward. As the year progresses, TM Pick and
Pay will also embark on additional promotions, including the
Bargain Bonanza promotion, all in a bid to drive volumes.
OK Supermarkets still invest heavily in the OK Grand
Challenge Promotion, with big prizes on offer such as motor
vehicles and household furniture. In 2015 there were 44
cars up for grabs as well as residential stands.
However consumers seem to have mixed feelings about
the different promotions offered by these fierce competing
giants. Questions that arise are:
Who is the targeted shopper in each promotion?
Do the targeted shoppers enjoy the notion of a quick reward
for example getting a cutlery set once one collects the
required stamps, or the probability of buying goods in order
to stand a chance to win a vehicle?
In the end, the consumer is not so much concerned about
what they have won, but more on the dollar saved. According
to the Consumer Council in September 2015, the consumer
basket for a family of six marginally decreased by 0,34% to
$559,11 due to minimal decline of prices of goods in the
basket. During the month under review, the price decreases
were as a result of quite a number of promotions that were
being run by various supermarkets and these included Bon
Marche’s Live It Up Fiesta, TM’s Bargain Bonanza Promotion
as well as the Save Big and Win Promotion at Choppies. With
the price sensitive consumer, it remains to be seen whether
the attraction of a promotion, as well as the reward they get
from participation is the key factor in their deciding to shop
at a retail outlet, or it all comes down to the price factor.
MAY 2016
35
It is critical however, for marketers to carefully plan and
coordinate their retail promotions, and not just embark on
promotions, just because a competitor is doing so. According
to https://www.promorati.com/blog/how-to-plan-the-perfectsales-promotion-campaign/, there are 10 critical steps
needed to plan a successful sales promotion. These are:
1. STATE CLEAR OBJECTIVES
For a retail promotion to succeed there is need for singleminded and clear objectives. For example, is it to increase
sales of a particular product, attract a different audience or
reinforce brand values? Ask yourself how you will determine
whether it has been a success or not, and what data will be
used to evaluate this. This will help to clarify any grey areas.
2. IDENTIFY THE AUDIENCE AND MESSAGE
Make sure you understand your primary audience, and
be rigorous in drilling down to identify the profile of this
audience. How do they behave? Where do they spend their
time? What do they care about? Create a persona to bring
the audience to life, and put yourself in their shoes. This
will help come out with tactics that appeal to your audience.
3. SET YOUR BUDGET
This is especially important in a depressed economy like
Zimbabwe. Every dollar counts. Your primary goal is to achieve
the campaign’s objective as cost-effective and profitable as
possible. Start with a cost-plus budget calculation.
4. DECIDE WHICH MEDIUM/MEDIA TO USE
Investigate the best way that will reach your target
demographics with your brand message. The chosen
medium, or media, needs to not only be effective at reaching
the right person, but it must be cost-effective.
5. WORK OUT HOW THE CAMPAIGN WILL BE EVALUATED
This ties firmly back to step one – be clear on your objective
and be clear on how you will measure the success of this
objective. The brand and its board members will need to
know exactly how the campaign investment has delivered a
return. If your objective was to increase sales, be clear on
whether these sales figures will be based on a core number
of flagship retailers, sales in a particular geographic region
or online and offline sales, for example.
6. IDENTIFY THE CHALLENGES OF THE BRIEF
Every brief will have some challenges that need to be
addressed to achieve the campaign objective. These may be
challenges specific to the category or the market, or perhaps
relating to brand perception or even competitor activity.
Identify these challenges at the beginning of any campaign
planning process, and work out which factors need to be
considered to address these.
36
MAY 2016
7. PLAN A COMMUNICATIONS STRATEGY TO SUPPORT
YOUR CAMPAIGN
A campaign needs to be supported by a communications
strategy to ensure maximum awareness, and therefore
maximum ROI. There are multiple ways of doing this, from
advertorials in key publications to PR, SMS advertising,
online display advertising, supporting microsites and field
marketing, for example. Go back to your primary audience
and focus on how they behave and where they consume their
media. This will inform the most effective communications
strategy to meet your objectives
8. GET THE CREATIVE RIGHT
There are three key factors at play in ensuring that the
creative work behind a promotion is successful. It must be:
a) SEEN: Make sure that your primary consumer is aware of
the promotion.
b) INTERESTING: Ensure that your audience are engaged by
the added value offered.
c) UNDERSTOOD: Communicate the offer quickly: it must
not be at all ambiguous or require the consumer to take time
to understand it.
9. COMPILE A CHECKLIST
Put a time plan together to ensure that you have factored in
enough time for every aspect of the campaign to be fulfilled
in time for the launch date. For example, with regards to
the creative alone, this must be presented and feedback
provided before actually being developed.
10. EVALUATE THE CAMPAIGN
This is often forgotten and vitally important. So many brands
fail to properly evaluate the performance of the campaign
they have run, and cannot therefore carry vital insights into
future work.
Ask yourself, did the campaign meet its objectives? How
did your customers react to the promotion? Bring your
service partners into the discussion and evaluation of your
promotion, and find out what lessons and insights they can
share with you. Ask what the impact of a campaign will
be on future costs. Conclude by identifying how all parties
could have run the campaign better, and apply these lessons
next time. Keep learning, keep improving.
Enia Zimunya is the Client Relations and Training Manager at the
Marketers Association of Zimbabwe. An MAZ Accredited Marketing
Practitioner, she holds an MSc in Marketing from the National
University of Science and Technology, and is an avid commentator
of marketing issues. You can follow her @eniablessed.
INDUSTRY NEWS
How Marketers can effectively make
use of Traffic Volume statistics
By Simbarashe Pasipamire
The Zimbabwean business environment is getting tougher
and tougher as each day passes by. Consumer spending
is fast declining and every brand owner’s goal is to ensure
survival despite working with reduced marketing budgets.
These days every cent counts therefore marketers have to
ensure return on investment. When it comes to advertising,
every marketer knows that the key to successful advertising
is knowing how much to allocate toward specific types
of advertising as well as properly identifying your target
audience in order to reach the right consumers. As such
if your goal is to increase visibility through advertising, you
need to maximise on the positioning of your brand.
Usually when a marketer or advertising agency places
adverts on radio, television or print media, they have some
clues with regards to the potential reach of the advert.
This information is usually guided by the viewership and
readership statistics provided by the Zimbabwe All Media
Products Survey (ZAMPS). When it comes to outdoor
advertising, the challenge is finding the optimum place
to place a billboard or a banner. For outdoor adverts to be
effective and bring maximum returns for the marketer, the
advert has to be strategically located to reach the masses.
Outdoor advertising is a secondary medium as a result it
is ideal for brand-building, creating name recognition, and
supporting a campaign. To get maximum benefits, you need
statistics on the flow and volume of traffic.
Before placing an outdoor advert on a certain location, some
of the questions a marketer should ask are:
a) What is the minimum volume of traffic that passes on a
given road on a daily basis?
b) On average, how many consumers will see the billboard
advert on a daily basis?
c) If I want to advertise in a particular road, what section of
the highway is available?
Of late I have observed the increasing number of billboards
infrastructure along Borrowdale Road. As one travels along
this road, one will not miss the congestion of billboards
along that road. Although this road seems to be congested
by billboards, most of the advertising space is usually
subscribed and one hardly notices an empty AD space on
the billboards. Although there are many dynamics behind
the preference for Borrowdale road by both brand owners
and outdoor advertising agencies, traffic volumes are also
key. Ironically when you travel along other roads, you hardly
notice any out door advertising infrastructure and yet some
of these roads are equally busy.
Traffic volumes are dynamic and change over a period of
time. The sprouting of new residential locations over time
results in a shift over time. It is based on this fact that every
brand owner, AD agency and Outdoor advertising company
has to constantly refer to traffic volume statistics for insights.
The Research Methodology
Having noticed on some of the challenges Marketers
Association embarked on a traffic volume study in November
2015. The initial research covered Samora Machel and
Borrowdale Road. A physical or manual count was done for
city inbound traffic during the morning between 0600hours
and 1000hours. During the evening a manual count was also
done for outbound traffic from 1600 hours to 2000 hours.
Daily traffic volume counts were collected for a period of oneweek. Weekly average traffic volumes were then calculated.
The traffic volume collection point for Borrowdale Road was
a point just after the intersection between Borrowdale Road
and Churchill Avenue when going to Sam Levy Village. Traffic
data was also collected from just after the intersection of
Samora Machel and Glenara Avenue when going towards the
CBD.
During the study the traffic volumes were classified as light
vehicles, commuter omnibus, trucks and buses. The results
for Samora Machel are shown by the inforgraphic overleaf.
A traffic volume statistics report would help dispel all
these concerns, as it includes the amount of traffic passing
through a particular point at a given time, which acts as a
guide for marketers.
MAY 2016
37
4758
Light vehicles
9, 516
(If each car has an average number of 2
people)
440
Commuter
Omnibus
6,600
(If each commuter omnibus has an
average number of 15 passengers)
Based on the results, if on average each passenger vehicle has two people and each commuter omnibus has 15 people
including drivers, the minimum potential number of city inbound consumers that would be exposed to any advertising
outdoor advert placed along Samora Machel in an area close to the data collection point is 16,116 between 0600 hours
and 1000 hours.
For detailed reports for both the Samora Machel and Borrowdale Road, please contact the Marketers Association of Zimbabwe.
9 Issues to consider when restructuring
your organisation
By Memory Nguwi
Your organisations at some stage in the
future will need to go through some form of
reorganisation, transformation or restructuring.
Restructuring assignments are complex and
many of them fail to create the value that
stakeholders would be anticipating. Having
witnessed many such projects, I would like to
share some of my observations.
First employ diagnostic analytics
My first observation is that companies are incorrectly
diagnosing the problem. Before you restructure, you need to
be able to correctly diagnose the issues that are impacting
your business. Depending on how severe your company
problems are, you may need to employ diagnostic analytics
such as a productivity analysis and headcount analysis. A
productivity study helps you establish the true reasons why
the company is struggling.
It tells you which inputs are eating into your profitability from
a volume, price and value analysis. The temptation for most
restructuring projects is to focus on financial analysis. This
gives a narrow view of what is impacting the performance
of your business. If you are pressed for time you may just
want to do a headcount analysis using regression techniques
to check the number of employees required in each role
considering the volume and quality of outputs produced.
Get rid of self-interest oriented leaders
Observation number two is failure to convince key
stakeholders that change is necessary. Political fights,
driven by self-interest, emerge at this stage and if not
managed, the restructuring exercise will fail. With corruption
and poor corporate governance, the useless members of
your Board, executives and others, seize this opportunity to
prove their political might. If those leading the restructuring
exercise are united, they must identify individuals who
are very enthusiastic but secretly undermining your efforts
mainly through deliberate miscommunication and passive
resistance. Be ruthless with such individuals as a lesson for
those who might want to follow the same route.
Make an urgent move!
The third observation is failure to move with urgency to stop
the business from bleeding. We notice that most executives
announce the start of a restructuring programme but their
actions on the ground do not show urgency and the need
to save the business. Once you are done with your analysis
or even before you complete your analysis, you need to
stop the company from bleeding. Plug all the loopholes
urgently where you are losing revenue and customers in all
departments. Do this ruthlessly without fear or favour. Once
the bleeding has been stopped, it will likely conserve cash
to allow you to move to the deeper aspects of restructuring.
MAY 2016
39
Do the correct culture diagnosis
Observation number four is that most restructuring projects
fail to recognise the impact that culture has on current and
future business performance. Regardless of the depth of your
financial engineering and other changes you implement, as
long as you do not work on the cultural aspect of the business,
whatever positive changes you may bring will be short-lived.
You must do the right culture diagnosis. Remember that
organisational culture, like the “climate,” is very difficult
to change as it has enduring characteristics. The changes
we see where people claim they have changed the culture
is the “weather” of the organisation; it changes from day to
day and that cannot be used to anchor a transformation and
restructuring programme.
redesign the business model. Struggling companies are
saddled with old business models that served them well
in the past but are no longer relevant for the new breed of
customers of today. Without this review you are unlikely to
realise the full value of your restructuring efforts.
Observation number eight is the obsession with headcount
reduction. Headcount reduction alone without changing
fundamentally how you conduct your business will not yield
anything. Yes, you will have temporary cost relief. However,
overall, you are increasing job insecurity and stress even
amongst critical employees that were not going to be affected
by the restructuring process. These critical employees will
leave before you are even half way with your restructuring,
creating new and even more demanding challenges.
Take out “rusty” management
Your Board should be united
Observation number five is failure to change the leadership.
Most executives you find in struggling organisations are the
authors of the company’s misery. You will not be able to
achieve any meaningful change if you leave them there. This
is even a bigger challenge where such executives have been
in their posts for a long period. While the average CEO tenure
in developed countries is 5 years, in Zimbabwe it’s over 15
years. How do you expect an individual who has presided over
failure for that long to then lead your turnaround strategy?
To be effective with a turnaround where the leadership has
been there for a long time you need to take out the CEO and
in some instances the entire executive team.
Observation number nine is a disjointed Board with no
common vision. Restructuring exercises are a fertile ground
for Board fights. These fights sometimes spread to those
impacted by the changes. This results in total political chaos
driven by individual self-interest. You will not succeed when
your Board is not united towards a common vision. Individual
members will spend more time trying to prove who has more
power at the expense of the important business matters.
This is the biggest obstacle and the hardest to resolve.
Struggling organisations need a comprehensive rescue
plan that addresses the underlying root causes instead of
dealing with symptoms. In designing the rescue plan avoid
the temptation to implement insufficient interventions and
implementing them too late. The key variable that you must
never ignore is frequent and honest communication with all
key stakeholders.
Don’t be obsessed with fancy titles
Observation number six is that some restructuring exercises
fail to design an appropriate organisational structure
to support the new business strategy. Where it’s done,
sometimes it’s done in a haphazard way resulting in no
impact or negative impact on the business. Increase the
span of control and remove all one on one reporting in your
structure as a starting point. Do away with fancy titles meant
to promote people’s egos at the expense of the business. Big
and fancy titles create expectations that will be difficult to
manage going into the future. If you find that your executives
are obsessed with the big and fancy titles at the expense of
value creation, you have the wrong team.
I appreciate you reading this article. My views are meant to stimulate
debate on issues affecting businesses and I welcome contributions
against or in support of these views.
Memory Nguwi is the Managing Consultant of Industrial Psychology
Consultants (Pvt) Ltd a management and human resources
consulting firm. Phone 481946-48/481950/2900276/2900966
or cell number 077 2356 361 or email: mnguwi@ipcconsultants.
com or visit our website at www.ipcconsultants.com
Change how you conduct the business
Observation number seven is the failure to review and
You will not succeed when your Board is not united towards a common vision
Introduction to Concept of Deposit
Insurance System
Regulatory intervention attempts to maintain
financial stability and at the same time induce
greater efficiency of financial markets. Banks
play a critical role in the economy by acting as
intermediaries between savers and borrowers
through facilitating the payments system
and also acting as agents of monetary policy
implementation. Banks are generally highly
leveraged institutions susceptible to liquidity
and solvency challenges. As such, they are
therefore exposed to the risk of runs either
because of loss of confidence in the bank itself
or from a loss of confidence in the banking
system as a whole.
In mitigation, governments around the world established
Deposit Insurance Systems (DIS) - a bank deposit guarantee
scheme which ensures that depositors are reimbursed part
or all of their deposits in the event of a bank failure. There
are currently over 100 DIS in operation in the world and
about 41 countries are studying and contemplating adopting
DIS. Africa has nine explicit DIS namely, Algeria, Kenya,
Tanzania, Zimbabwe, Nigeria, Morocco, Uganda, Libya
and Sudan. Countries like Ghana, South Africa, Malawi,
Lesotho, Zambia and Mozambique are also working towards
establishing DIS in their jurisdictions.
Merchant Bank, United Merchant Bank, Zimbabwe Building
Society and First National Building Society.
The Deposit Protection Fund is established under Section
13 of the Deposit Protection Corporation Act [Chapter
24:29]. The primary objective of the Fund is to compensate
depositors in full or in part, for losses incurred in the event of
insolvency of a contributory institution. The Fund is vested
in and administered by the Deposit Protection Corporation
(DPC). The Corporation commenced operations on the
1st of July 2003, and its primary objective is to provide
deposit protection to depositors in institutions licensed to
operate banking or finance business in Zimbabwe such as
commercial banks, merchant banks, building societies,
finance houses, discount houses and deposit-taking
microfinance institutions.
Public Policy Objectives
DPC’s main objectives as stipulated in the Deposit Protection
Corporation Act (Chapter 24:29) entails:
• Protecting depositors by providing an orderly means of
compensation in the event of a member bank failure.
• Contributing towards the stability of Zimbabwe’s financial
system.
• Enhancing public confidence in the financial system by
establishing a framework for the resolution of failing or failed
banks.
Establishment of DPC
• Enhancing competition between different sectors and
institutions in Zimbabwe’s financial system.
The government of Zimbabwe established a deposit
insurance system following the deregulation of the sector
in the early 1990s which exposed the banking sector to
structural vulnerabilities and risk management. The need
for a deposit insurance system was underscored by bank
failures in the market mainly Universal
• Promoting sound business practices in contributory
institutions.
• Protecting the Fund against loss.
As provided for in the law and the public policy objectives,
DPC is designed as a risk minimizer. Besides compensating
depositors in the event of a bank failure, DPC also actively
participates in the resolution of failing or failed member
institutions, curatorship and liquidation of closed banks.
of their clients.
Benefits of Deposit Insurance
• Deposit insurance reduces the likelihood of panic
withdrawals and bank runs thereby contributing to the
stability of the financial sector and overall economic growth.
• Guarantees compensation up to the insurable limit
for eligible deposits in the event of failure of a member
institution.
• There is no charge to depositors for the protection provided
by DPC. Banks bear the cost of deposit insurance on behalf
42
MAY 2016
• The protection is provided by DPC automatically once a
depositor opens an account with a member institution. No
application is required.
For further information:
• Call: (04) 250900-1/252336 or Email: [email protected].
Also visit www.dpcorp.co.zw
Retain your consumers through
effective relationship marketing
By Tendai Maguwu
Relationship
one. Relationship marketing enables marketers to bring
their customers close to their enterprises and brands which
facilitates brand loyalty and the generation of referrals.
Despite the prevailing challenges, relationship marketing
creates brand advocates who help marketers to market their
brands to new customers free of charge thereby reducing
marketing costs.
marketing
is
everything
marketers do to create lasting relationships
with customers. It is increasingly becoming a
must for most marketers especially in view of
prevailing economic challenges in Zimbabwe.
The liquidity crunch has seen most consumers Trust
tossing brand loyalty out of the window as they Relationship marketing is about building relationships with
strive to stretch their hard-earned dollar through customers. Relationships are the glue that bind humans
bargain hunting from one brand to another. together and for this reason customers tend to prefer brands
The scenario calls for retentive marketing which are driven by relationship-conscious enterprises.
strategies in order to retain customers. This It is marketers’ role to cultivate relationships with brand
or put in place programmes which encourage,
helps marketers to use less effort to market consumers
espouse and practice relationship marketing as this builds
their brands and realise more sales from their trust among customers. It is a natural human trait to trust
existing customers.
people who one relates well with. Trust is what drives repeat
Benefits of relationship marketing
Relationship marketing, which is a retentive marketing
strategy, has a number of benefits compared to acquisitive
marketing which involves continuously acquiring customers
as it has no mechanism to retain the acquired customers.
This is also referred to as the leaky bucket syndrome.
Reduced marketing costs
brand purchases and fuels referrals.
Improved customer experience
In the past transactional relationships between brands and
their customers was the order of the day until emphasis was
now on the importance of exceptional customer service. Today
mere customer service is no longer enough as customers now
judge brands by evaluating their brand experiences.
Research has established that it costs as much as five times
to get a new customer compared to retaining an existing
Customers now judge brands by evaluating their brand experiences
MAY 2016
43
Customer experience (CX) has
assumed unprecedented importance,
especially in service brands, and
one way of ensuring consistently
great customer experiences is
through adopting a relationship
marketing strategy. CX is not just
a service strategy, it is a brand
facilitating consumers to live the
brand momentarily in their quest for
solutions to their daily problems. It is
the feeling of a DIY enthusiast using a
Black and Decker hand drill to create
holes in a piece of wood he is working
on. It is the feeling of relief from thirst
and the accompanying thrill and fun
that accompanies the consumption
of Coca-Cola. Put differently, it is
not about the drill but the thrill. It is
not about Black and Decker but the
experience. It is not about Coca-Cola
but the cold cola. Brand names just
become reference points as the brand
experience takes centre stage.
WORKS HARDER
GOES FURTHER
Just like human society, relationship
marketing helps to bring customers
close to brands. A close relationship
between a brand and its customers
enables marketers to get customer
insights which are useful in improving
their brand experiences. Customers
who are close to brands normally
do not make an issue out of price
adjustments compared to ordinary
customers. This helps enterprises
to realise more value from the same
customers.
Leveraging relationship marketing
Jupiter Harare J063133
Bringing customers closer
With its 2.2ltr diesel engine, cruise control, generous ground clearance
and a 2 000kg payload, the Ford Ranger 4x2 Single Cab is engineered to
work harder and go further.
Adopting relationship marketing as a
strategy is one thing but leveraging
it for maximum marketing benefit,
which improves an enterprise’s
bottom line, is another. In order to
benefit from adopting a relationship
marketing strategy locate it in your
overall marketing strategy and clearly define how it is going
to contribute towards the achievement of your marketing
goals. Craft a relationship marketing programme which you
can then roll out over a given period of time. This helps you
to stay focused on the strategy. It is exciting to adopt the
strategy but with time the excitement and steam fizzle out.
A detailed and time-specific programme helps a marketer
to stay on course. Come up with an assessment method to
evaluate the success of the programme. Assign a resource to
run with the programme so that it does not fall off the rails
along the way. Put in place listening points for customer
feedback during the rollout stage. Constantly review the
programme in order to make the necessary adjustments to
customer feedback and the realities of the market.
The journey continues...
44
MAY 2016
Croco Motors
1 Telford Road, Graniteside, Harare
Sales
Harare: Ruth: 0777 027 216, Hatson: 0774 822 199,
Kunofiwa: 0772 434 332, Phil: 0774 109 248,
Henry: 0772 129 375
Croco Masvingo: Gary: 0773 580 451, Reeves: 0772 402 777
Croco Bulawayo: Johanne: 0773 790 916, Taurai: 0777 942 361
Croco Chiredzi: Nyarai: 0772 728 859
Croco Selous: Albert: 0772 285 379
[email protected]
www.crocomotors.co.zw
The adoption and implementation of a relationship marketing
strategy is not an event. It is a process whose results are
directly proportional to the effort, commitment and resources
which a brand marketer invests in it. The important thing is
to get started.
Tendai Maguwu is a brand consultant who specialises in helping
SME entrepreneurs and other entrepreneurs to create more value
for their customers using branding as a strategy to anticipate, meet
and exceed their customers’ needs and to grow their businesses.
You can access more of his work on his blog, www.greatbands.
wordpress.com. You can also contact him on +263 774 354 997 or
[email protected].
Innovative Communication and
Opportunities around Zimbabwe’s
WhatsApp Internet
By Nigel Gambanga
Every
three
months
Zimbabwe’s
telecommunications regulator, the Postal And
Telecommunications Regulatory Authority Of
Zimbabwe (POTRAZ), releases a quarterly
industry report. For industry insiders this
provides a snapshot of local telecommunications
from a reliable source. For anyone outside it,
it appears to be just another boring collection
of government figures that glorify the work of
handful of operators.
The report, however, is more than just dry and unimaginative,
even for the technology and geek-averse. It has always
communicated information that has the potential to influence
decisions and shape trends even outside technology.
A lot of the information form these reports has already
become a central part of any discussion on the country’s
development and its growth opportunities. For example, in
the latest edition, our national mobile penetration which now
stands at 95.4% has maintained a growth trend, pointing to
the increasing significance of mobile communication.
The rate of internet access which stands at 48.1% is also
experiencing an upward surge, indicating the expansion of a
future market and business centre as well as the expansion
of an avenue for trade and commerce which the World Wide
Web has shaped out to be.
One interesting figure that stood out in the entire report
was the popularity of WhatsApp. In the last quarter of
2015, bundles for the Instant Messaging application were
responsible for 34% of Zimbabwean internet traffic. This
effectively classifies WhatsApp as the most frequented
internet based service in Zimbabwe ahead of familiar
favourites like Facebook.
There’s quite a bit of insight to take away from that number.
Over a third of internet use is being directed to a service that
was primarily designed to be a tool for chatting.One safe
conclusion that can be drawn from this nugget of information
is that Zimbabweans are keen on using the internet for
communication more than anything else. However, a closer
look at how WhatsApp has evolved actually shows a more
intricate picture.
People don’t just use WhatsApp for short messages and
acres of text anymore. The application, which has undergone
a number of changes over the past few years, is a keen driver
of information exchange and it has become an ideal platform
for enhancing the human connection in a way that makes
technology easier to conceptualise for most people than it
has ever been.
Its ability to move images, sound and video at great speeds
and convenience have made it more than just a conduit
for text engagement. At the same time features like group
communication, broadcasting, calling, the recently added
option to send documents as well as its cost effectiveness
all position it as more than just the phone call alternative
that it started out as in 2012.
MAY 2016
45
Our national mobile penetration which now stands at 95.4% has
maintained a growth trend
Where is the opportunity for everyone?
The numbers on WhatsApp, mobile penetration and
increased internet access all scream of the opportunity that
lies in mobile technology and the placement of this one
IM service as an expression of very same opportunity. The
question though, is whose opportunity is it, and where is it?
So far, the best examples of an embraced WhatsApp
opportunity have surfaced in industries where media is the
commodity.For obvious reasons sound and visual artists as
well as content creators were quick to buy into WhatsApp,
turning it into the primary platform for promoting a new
video, distributing popular material and even selling a new
hit single.
That might be easy to understand, but it still leaves most
people in business feeling marginalised. Not everyone is
selling a record, distributing a concert flier or promoting a
comedic clip just to harvest thousands of views that justify
ad buys. So how should WhatsApp be any relevant?
The truth is, it all comes down to the aspect of an enhanced
human connection. The 34% exemplifies that Zimbabweans
have turned to this one mobile application because it
embodies that connection and it does it with more ease and
simplicity than anything else in their immediate reach.
This should be enough to determine decision making
on product and service promotion, brand awareness and
visibility. It behoves the most aggressive service provider and
producer to consider WhatsApp as a tool for getting the right
messages across, to the greatest number of people, in the
most engaging way, and at the most reasonable cost.
As far as growing a brand, promoting a product or developing
a presence is concerned, WhatsApp is the platform to explore
intricately in 2016. This is the same message that social
media pundits have been shouting out for close to decade
now.
If the POTRAZ report and its boring numbers are anything
to go by in 2016, WhatsApp, as part of that sub-genre
of technology that blends with communication should
be entrenched in any forward thinking discussion for
businesses and services. If it’s not for the convenience that
it personifies, then at least it should be for the 34% that
shows how significant it is for Zimbabwe.
Artists as well as content creators were quick to buy into WhatsApp, turning it into the primary platform for promotion
46
MAY 2016
PERSONAL DEVELOPMENT
10 Easy Steps That Will Make You a
Master Relationship Builder
Are you looking for a new job, new customers,
new investors, or new opportunities? You likely
know that networking is one of the best ways
to find them. Unfortunately, if you’re like most
people, networking doesn’t come that naturally.
How do some people go off to cocktail parties
or workshops and come home with a list of new
acquaintances who are ready, willing, and able
to help with their success?
Alyssa Gelbard, founder of career consulting firm Resume
Strategists, has broken down the process into easy-to-follow
steps that will help the most introverted or inexperienced
networker start making valuable new contacts immediately
and may even help some seasoned networkers do it better.
Here is her step-by-step guide:
1. Join lots of groups.
The first step toward networking is finding events to attend
where you can meet people who might be useful for you
to know. “Join college, grad school and even high school
alumni groups and follow them on LinkedIn and Facebook
(in some cases) to learn about events,” she says. And if there
are groups, such as Greek Life groups, that you belonged to
right after college but have let lapse, consider re-joining.
2. Become a do-gooder.
Charitable and non-profit groups give you a chance to help
make the world a better place, and they often give you
contacts you would otherwise never have with powerful or
accomplished people. So Gelbard suggests seeking out
48
MAY 2016
fundraising events for causes or charities that appeal to
you, as these can be excellent opportunities to meet new
people. Volunteering also gives you the chance to expand
your network, she says.
3. Seek out events within your industry and your organization.
Industry conferences, trade association meetings,
educational sessions and meet-ups are a great way to meet
people who may be able to help you in many different ways.
But don’t forget to also network within your own organization
by attending work meetings and volunteering for new
projects. Even if you are the boss, you never know what
contacts, family members, or other resources people in your
company may have.
4. Dress the part.
Make sure to dress appropriately for any event you attend.
That means not that you should wear your best or most formal
clothes, but clothes that fit in with the other attendees and
the occasion. (Being the only person in a business suit at
a sporting event where everyone else is wearing jeans and
team jerseys is almost as bad as being the only person in
jeans at a formal cocktail party.) If you’re not sure what
others will be wearing, ask someone else who is going, or
one of the event organizers.
Whether the event is casual or formal, spend a little time
on your appearance. Fair or not, people who don’t know
you will attempt to glean information about you from your
appearance, even if they’re not consciously aware of doing
so. “The care you put into your appearance translates to the
level of attention to detail that you bring to your work and
how you represent your organization and yourself,” Gelbard
says.
5. Give anyone speaking to you your full attention.
“Do not appear distracted or uninterested, especially while
others are speaking,” Gelbard warns. “You may be creating
a lasting negative impression on new contacts, colleagues,
clients and business partners. This is key when networking
externally, but is just as important when networking within
your organization.”
6. Put away your phone.
“Avoid standing by yourself and focusing your attention on
your phone. It is one of the biggest networking mistakes
people make,” Gelbard says. “If you are shy, feel insecure
or don’t know how to network, attend an event with a
colleague or friend but don’t spend the whole time talking
to that person.” If you absolutely need to look at your phone
because you are waiting for an important message or need to
check up on your kids, then step into a restroom, a hallway
away from the event, or another reasonably private place.
Gelbard warns, “If you attend a networking event, it is not
the time to text or check emails, Facebook, stocks or the
score of the game.”
7. Pay attention to your own conversation style.
“For example, consider how you introduce yourself and
others,” Gelbard says. “Also, be sure to ask engaging
questions about others, such as their job, company or
interests. You can also ask about topics relating to the event
you are attending or industry trends.”
It is important to be an active listener, she adds. “It is hard
to make lasting connections if every conversation is all about
you. Do not be afraid to ask thought-provoking questions;
however, try to avoid controversial topics when first meeting
people.”
8. If you’re stuck for a conversational opener, talk about the
event itself.
Seek out charities that appeal to you in order to
meet new people
“Use the commonality of the event itself as a starting
point (e.g. attendees are all alumni of a specific college,
are all attorneys or are all volunteers/supporters of a youth
education program),” Gelbard says.
9. Send a follow-up message soon after the event.
“Follow up with an email after you meet new people at
networking events and request to set up meetings and phone
calls soon after (if appropriate) while you are still top-ofmind,” Gelbard advises.
She also recommends connecting with your new contacts on
LinkedIn, making sure you send a personalized connection
request. You can remind them of where you met, and your
head shot will remind them of who you are, which Gelbard
says, may be important if they met a lot of people at the
event. Sending a LinkedIn invite means they will have the
chance to learn more about you from your profile and postings
as well. You may even discover that you have contacts in
common you did not know about.
10. Focus on giving rather than receiving.
“Relationships are two-way streets, so share resources
and make introductions to contacts whom you think may
be beneficial for your new connections to meet,” Gelbard
advises.
Send along articles they may find useful, and offer your
expertise or assistance whenever it might be appropriate. A
new contact who offers information or help without asking
for anything in return will be considered a very valuable
contact indeed. “People will see you as a resource and may
recommend you to others,” Gelbard says.
Extracted from - http://www.itechsum.com/inc-com/item/26607810-easy-steps-that-will-make-you-a-master-relationship-builder
Seek out events within your industry
MAY 2016
49
A Marketers Guide to Real Estate
Investing
Real estate may be viewed as a challenging
type of investment, but it offers a great deal of
benefits and can provide significant financial
returns.
There are a variety of ways to invest, with only some proving
to be exponentially profitable. Among those tried and
tested are business ownership, securities investment and
speculation, and the ever reliable real estate.
As implied, there are definite pros and cons to investing in
real estate, and understanding both will provide you with
a better understanding of why to invest in it and what to
expect as you go along.
Pros to Real Estate Investment
1. Capital Growth
The value of investment property eventually grows over time
and can be financially beneficial when well chosen. Apart
from steady capital growth, gains can also be made via
regular monthly rental returns.
2. It is a safe investment
While there are still risks involved, real estate is still a
forgiving investment. Even if a purchase is the worst house
in its area, chances are that its value still increases over
time. Real estate is also an asset that can be insured against
most risks for example fire or damage caused by natural
calamity, tenants damaging property or breaking the lease.
50
MAY 2016
Also to clear your doubts about the worse-case scenario and
if factors beyond your personal control happen, such as
if the market goes down, your real estate investment will
remain intact. All you have to do is wait, because at the end
of the day, people need homes, and the demand will always
overpower supply.
3. Vast knowledge is not required to start
Extensive expertise is not needed to begin investing in
real estate, unlike with stocks or opening up a business.
Investors are also in full control of their properties, making
all the decisions and controlling all returns.
4. Flexibility is King
The great thing about residential properties is their flexibility.
Apartments or houses can either be used by their owners as
their primary residence (or more commonly referred to as
end-use), or these properties can be rented out. In fact, it is
not unheard of for some people to buy a prime property and
have it rented out, while they rent somewhere else, usually
where rents are more affordable.
5. Asset Control and Appreciation
Prime properties in low density suburbs, are well positioned
to appreciate over time. A combination of factors, such as
great location, strong leasing market, proximity to leisure and
lifestyle centers, and impeccable transport infrastructure,
make a property highly sought after, which almost always
makes sure that its value will appreciate overtime.
Cons of Real Estate
About Lamudi
1. Lack of Liquidity
Lamudi is an online real estate marketplace that offers
property buyers, sellers, landlords and renters a secure and
easy-to-use platform to find or list properties online.
Although property can be sold when needed, the process
is not as quick as selling other investments like stocks and
bonds. This is one of the reasons many experts say that the
best strategy for real estate investment is to buy and hold.
For feedback or more information visit zw.lamudi.com or follow us
2. Ongoing Costs
Along with the initial costs of investing in property,
ongoing costs of fitting out the property, repairs,
utilities, insurance, among others, must also be
considered.
3. Constant Tenant Lookouts
Not all properties for rent will have tenants all
the time, and during these periods, the space will
serve for as an expense than as an asset. Hence,
it is important that as a real estate investor you
should have a backup plan to minimize its impact
in your cash flow.
Start Budgeting and Consider Working with
an Expert
An inevitable facet of investing, is that your
finances are what ultimately determines if
and when you will be able to begin investing
in real estate. However, it does not necessarily
mean that you will let that stop you. There are
reputable developers and agents on platforms
like zw.lamudi.com that offer the most flexible
payment schemes yet deliver high-quality
properties on time all the time.
Real estate’s old adage, “location, location,
location” cannot be overemphasized. In fact, in
order to maximize your asset’s starting value, go for
a location that is livable, full of opportunities, and
in proximity to numerous business, commercial,
and retail establishments.
Never Compromise Your Asset’s Quality
Finally, buying real estate is about the finished
product as well. For instance, prime locations
might be attractive to renters offhand, but it is
still the property that closes a rental deal. In
order to ensure that the property you are buying
is of high quality, go with a quality project by a reputable
developer, as top and reputable developers are expected to
deliver quality finished on time all the time.
on Facebook, Twitter: @LamudiZimbabwe or email to contact@
zw.lamudi.com or call 0783184019
MAY 2016
51
Incorporating brand equity in valuing
firms
The tremendous advancement in technology and ease of
transportation continue to transform the world into a global
village. With it, the value of a firm’s brand is gaining more
prominence at the expense of its tangible assets, product
or even number and/or skills of its employees. Investors are
also catching onto the bandwagon and attempting to place
a dollar figure on a company’s brand(s) when they value a
company. Gone are the days when the value of a company
was largely a function of the income producing capacity of
its operating assets and other factors of production, whilst
ignoring the potential market reach and income that can be
generated simply because of a strong brand name.
Financial analysts, as advisors to investors, typically value
firms using four methods – net asset valuation, discounted
cash-flow, relative valuation and economic value added
methodologies. Each of these valuation approaches can
incorporate the value of the firm’s brand in various ways. The
net asset valuation method values a firm by subtracting the
value of its liabilities from its total assets. Whilst assets are
predominantly tangible assets such as land and buildings,
plant and machinery, among others, the estimated value
of the firm’s brands (sometimes referred to as goodwill)
can also be added as another asset. Using the discounted
cash-flow analysis approach, the analyst seeks to project
the future cash-flows that the firm is likely to generate and
discount them to ascertain their value as of today. In making
such cash-flow projections or forecasts, part of the income
and cash-flows to be generated by the firm are presumed to
be arising from the firm’s brands as it attracts customers.
A relative valuation approach assumes the firm should have
a value similar to its peers in the same industry hence similar
multiples to earnings such as price-to-earnings (P/E) ratios
and price-to-book values (P/B) should apply. However, where
it is clear that the strength of the firm’s brand is stronger
than that of its peers, it follows that it should be valued at a
premium to its peers, hence a premium can be applied to its
P/E or P/B multiples. The value to be derived from the firm’s
brand(s) can also be incorporated into the economic value
added valuation model as a value addition.
It is therefore clear that investors do see the benefit of
strong brands and the future value that can be derived from
them, hence are incorporating them into various company
valuation metrics. It is therefore no coincidence that the
largest companies as valued by investors (through their
market capitalisation) also tend to be consumer-oriented and
have very strong brands. For instance, Apple Inc., the largest
company in the United States by market capitalisation,
topped the 2015 Most Valuable Brands - a survey which
was carried out by Forbes Magazine. Locally, companies that
are associated with strong brands such as Delta Corporation,
Econet Wireless, Innscor and BAT Zimbabwe account for
over half the market capitalisation of the Zimbabwe Stock
Exchange (ZSE).
52
MAY 2016
“It is more valuable for a firm to focus
more on building its brand than other
pillars of the business”
Every company ultimately derives its existence from its
consumers and, save for commodity producers. Consumers
tend to associate themselves with certain brands, hence
becoming a critical source of future revenues for the firm.
Some experts have even argued that it is more valuable for
a firm to focus more on building its brand than other pillars
of the business, such as financial or production capacity.
Indeed some local companies which almost collapsed either
due to a plethora of challenges, were easily resuscitated,
thanks to their strong brand equity that has been cementing
over the years. Examples that readily come to mind include
Lobels Bread and Biscuits and Cairns Limited (Willards,
Charhons, among others). Investors who poured money into
such companies, which had more debts than assets, were
attracted mostly by their brand equity.
A number of international firms have sought to leverage on
their strong brands through franchising which is an easy
avenue to spread their wings geographically and boost income
by allowing local operators to use their brands in return
for a royalty payment. This is very popular in the food and
hospitality sectors where brands such as KFC, McDonalds,
Holiday Inn, among others, are found all over the world with
no extra expansion costs expended by the brand owners.
Another emerging trend is where companies leverage on
the strength of their brands and established customer base
to diversify their product offerings. For instance, telecoms
firms in the country have ventured into financial services
riding on their brands to offer mobile money.
Companies leverage on the strength of
their brands and established customer
base to diversify their product offerings
It is therefore a clear testament that building a brand has
become synonymous with building value for a firm. It is,
however, equally important to ensure that the brand equity
is maintained and defended. As such, incidences of bad
publicity can easily destroy a brand and firms need to invest
in avoiding such. Corporations are focusing more and more
on building brand authenticity, by ensuring that the firm’s
corporate values and culture are reflected in their brand(s)
and the brand lives true to its promise.
*This report was contributed by Intellego Investment Consultants
(Pvt) Ltd, a Harare-based investment consultancy and corporate
advisory firm.
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