Return To Institutionalism


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The presentation relating to the Return to Institutionalism document - 2007

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  • Return To Institutionalism

    1. 1. Return to Institutionalism Emerging trend from Black Diamonds
    2. 2. Contents <ul><li>What’s going on </li></ul><ul><ul><li>Changes in society </li></ul></ul><ul><li>Institutionalism </li></ul><ul><li>Why & how is this happening </li></ul><ul><ul><li>Black diamonds, Government, BEE, Brand preferences, Intra-urban movements, Education, Strikes, Advertising, Statistics </li></ul></ul><ul><li>Comparison – Industrial Revolution </li></ul><ul><li>The future </li></ul><ul><li>Summary </li></ul>
    3. 3. What's going on? <ul><li>Black Diamonds – the term of the times </li></ul><ul><ul><li>The are essentially the new middle class </li></ul></ul><ul><ul><li>What’s important? </li></ul></ul><ul><ul><ul><li>Media consumption, demographics, psychographics </li></ul></ul></ul><ul><ul><li>Future predictions </li></ul></ul><ul><ul><ul><li>Growth, movements etc. </li></ul></ul></ul><ul><ul><li>How are they integrating into living as “black diamonds” and where are they likely to go? </li></ul></ul>
    4. 4. Changes <ul><li>Political </li></ul><ul><ul><li>system becoming more established </li></ul></ul><ul><ul><li>regulations put into place to facilitate advancement </li></ul></ul><ul><li>Economic </li></ul><ul><ul><li>new credit act </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>advertising </li></ul></ul><ul><ul><li>products designed to appeal to new markets </li></ul></ul><ul><li>Black diamonds </li></ul><ul><ul><li>key focus in this area </li></ul></ul>
    5. 5. Institutionalism <ul><li>Way we make decisions </li></ul><ul><ul><li>world view </li></ul></ul><ul><ul><li>home vs. work – worldview depends on situations etc </li></ul></ul><ul><ul><li>Group vs. individual </li></ul></ul><ul><li>5 Worldviews </li></ul><ul><ul><li>affiliative </li></ul></ul><ul><ul><li>egocentric </li></ul></ul><ul><ul><li>autonomous </li></ul></ul><ul><ul><li>humanistic </li></ul></ul><ul><ul><li>institutional </li></ul></ul>
    6. 6. Consumer Mapping Inner directed Passive Mature Autonomous: Individual Humanistic: Group Affiliation Group orientated Outer directed Active Young, fun, playful, energy Ego Going places Individua-listic Affiliative: Group Egocentric: Individual Institutional: Group Responsibles Buddies High resources Low resources Innovators Believers Achievers Thinkers Discerning Accomplished Independence In-crowd
    7. 7. Institutionalism <ul><li>More money </li></ul><ul><ul><li>life cycle of black diamonds </li></ul></ul><ul><ul><li>highly educated & motivated </li></ul></ul><ul><ul><li>feel responsible - group </li></ul></ul><ul><li>Money in stages </li></ul><ul><ul><li>brand preferences change as stages change </li></ul></ul><ul><ul><li>high priorities: </li></ul></ul><ul><ul><ul><li>car > house </li></ul></ul></ul><ul><ul><ul><ul><li>People thinking more in the long term </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Rather sacrifice luxury car, and have ability to pay off house </li></ul></ul></ul></ul><ul><ul><ul><li>township > suburb </li></ul></ul></ul><ul><ul><ul><ul><li>Moving </li></ul></ul></ul></ul>
    8. 8. Institutionalism <ul><li>what does this money get them? </li></ul><ul><ul><li>material objects </li></ul></ul><ul><ul><li>credibility in society? </li></ul></ul><ul><ul><li>spending their money consciously </li></ul></ul><ul><li>- Black Money </li></ul><ul><li>… but what are they really getting? </li></ul><ul><ul><li>does this money buy them safety and security </li></ul></ul><ul><ul><ul><li>Social </li></ul></ul></ul><ul><ul><ul><li>Job </li></ul></ul></ul>
    9. 9. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education </li></ul><ul><li>Strikes </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    10. 10. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education </li></ul><ul><li>Strikes </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    11. 11. Consumers win with new credit act <ul><li>New regulations regarding loans, credit, mortgages etc. </li></ul><ul><li>Prevents unfair contract agreements and assists consumers heavily in debt </li></ul><ul><li>Great effort on the part of banks and other credit providers to implement system, although “consumers should be protected” </li></ul><ul><li>Old laws exploited consumers </li></ul><ul><li>Should introduce a culture of responsible lending and new protection measures for consumers, which was not available in the past. </li></ul><ul><li>Sources: Sunday Independent, Personal Finance </li></ul>
    12. 12. NCA comes at right time to protect consumer <ul><li>Industry is “ripe for regulation” </li></ul><ul><li>Total volume of consumer credit is R680bn a year </li></ul><ul><li>Intended to protect consumers from unscrupulous money lenders </li></ul><ul><li>Consumers have more rights in reporting misconduct and challenge information </li></ul><ul><li>Confidential information is under stricter protection </li></ul>
    13. 13. The New Credit Act <ul><li>It lives up to the expectations of consumers who want standardisation and control </li></ul><ul><li>Wide acceptance of these regulations by consumers and organisations </li></ul><ul><li>People don’t want to be taken advantage of and risk their time and money in places where it may not be viable </li></ul><ul><li>This is an example of systems becoming more advance and the development of protection for others who are becoming more wealthy </li></ul><ul><li>More money means more responsibility, the rich must not profit by making others poor but by maintaining a stable economy </li></ul><ul><li>Systems must be held in place and that means applying them to all people in the population to give everyone an equal chance. </li></ul><ul><li>Sources: Sunday Independent, Personal Finance </li></ul>
    14. 14. New credit act <ul><li>This is an example of institutionalism as it has created specific structures and elements of control </li></ul><ul><li>The system has to be adhered to and there is a central governing body </li></ul><ul><li>It means people have less to worry about when dealing with financial transactions </li></ul>
    15. 15. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education </li></ul><ul><li>Strikes </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    16. 16. BEE <ul><li>“ How do you undo the wrongs of over 350 years in just 10?” </li></ul><ul><li>Internal politics within the BEE structure is rife </li></ul><ul><ul><li>‘ One black, one deal’ mentality </li></ul></ul><ul><ul><li>There is an thought that once a company or black owned company has received a benefit or BEE status it should give chances to other companies, by not entering into any similar dealings </li></ul></ul><ul><li>Problem of only having holding companies </li></ul><ul><li>There may be policies in place to bring about BEE but there also has to be a willingness to transform by corporates. </li></ul><ul><li>Sources: M&G, MoneyWeb, Visions of BEE </li></ul>
    17. 17. BEE <ul><li>An implementation of specific rules and regulations in order to help even out the opportunities available to blacks in business </li></ul><ul><li>It is enforced by government and business and therefore falls into the institutional world view because it has strict organisational structures with hierarchies associated with BEE and traditional business practices. </li></ul>
    18. 18. BEE <ul><li>“ A cool concept but it often doesn’t trickle down to the masses” </li></ul><ul><li>“ It needs to be implemented carefully” </li></ul>
    19. 19. Working <ul><li>Becoming time starved </li></ul><ul><ul><li>More need for time management, this an effect of work and becoming more institutional </li></ul></ul><ul><ul><li>Using products and services that facilitate this need which means shopping at specific times, integrating with society </li></ul></ul><ul><ul><li>More value is placed on time and money but what is this getting them </li></ul></ul><ul><ul><li>Old Polychromic, New monochromic </li></ul></ul><ul><ul><li>Because there is such a value on time more structures need to be put into place to make use of time more efficient </li></ul></ul><ul><ul><li>Strikes taking place waste time and therefore create problems, the established and young families with children want the best for their children who only have a limited amount of time at school </li></ul></ul><ul><li>Sources: UCT Unilever – Black diamonds </li></ul>
    20. 20. Time <ul><li>Monochronic: </li></ul><ul><ul><li>Western culture </li></ul></ul><ul><ul><li>Do one thing at a time </li></ul></ul><ul><ul><li>Time is irreplaceable </li></ul></ul><ul><li>Polychronic: </li></ul><ul><ul><li>African cultures </li></ul></ul><ul><ul><li>Many things at once </li></ul></ul><ul><ul><li>Time can be rescheduled </li></ul></ul>
    21. 21. Time <ul><li>Moving into western culture </li></ul><ul><ul><li>Time paradigm shift from poly to mono </li></ul></ul><ul><ul><li>Fit in with society: </li></ul></ul><ul><ul><ul><li>Community meetings (suburban) </li></ul></ul></ul><ul><ul><ul><li>Access control </li></ul></ul></ul><ul><ul><ul><li>Shopping </li></ul></ul></ul>
    22. 22. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education </li></ul><ul><li>Strikes </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    23. 23. Urbanisation in South Africa <ul><li>Large scale rural migration into large urban centres </li></ul><ul><li>Cities are a development of sophisticated groups which organise to relitavely complex structures such as a bureaucracy or army </li></ul><ul><li>Developed from a need to have elements such as structure, protection and management creating a specific class of person with a desire for security </li></ul><ul><li>Development of cities over time was from movement of people from rural to urban areas in search of a better life through these elements </li></ul><ul><li>Growth in industrialized industry required a greater need for educated workers </li></ul><ul><li>Currently moving into a postmodern phase with decentralised power structures </li></ul>
    24. 24. Urbanisation in South Africa <ul><li>Occurring at a faster rate in South Africa, but need to separate from immigrants </li></ul><ul><li>Wars are changing from race and ideology as low intensity conflict to high intensity crime including murder and hijacking </li></ul><ul><li>Urbanisation is not a bad thing as long as the process takes on an evolutionary nature </li></ul><ul><li>The process of Urbanisation does not directly result in crime but factored in with declining legitimacy and effectiveness of the state and economic problems it is an issue </li></ul><ul><li>Sources: Urbanisation & Security in SA, M&G, Engineering News </li></ul>
    25. 25. Urbanisation in South Africa <ul><li>Symbolic value of walls protecting properties – getting higher, looking for greater security </li></ul><ul><li>‘ Ecology of fear’ & ‘siege architecture’ </li></ul><ul><ul><li>Terms to describe the climate and process of protection </li></ul></ul><ul><li>Taxi industry – trying to control and protect business </li></ul><ul><ul><li>Disruption in everyone's lives – marches, strikes and taxi warfare </li></ul></ul>
    26. 26. Urbanisation <ul><li>Moving within the urban environment from townships to suburbs </li></ul><ul><li>Benefits </li></ul><ul><ul><li>lower noise levels </li></ul></ul><ul><ul><li>fences and strict divisions of property </li></ul></ul><ul><ul><li>easier to control the area </li></ul></ul><ul><li>47% of black diamonds now live in the suburbs </li></ul><ul><ul><li>50 000 people have moved every month </li></ul></ul><ul><li>They are getting more involved with community activities </li></ul><ul><ul><li>De-centralised power structures </li></ul></ul>
    27. 27. Urbanisation <ul><li>The move towards suburbs </li></ul><ul><ul><li>institutional world view </li></ul></ul><ul><ul><li>suburbs are historically known as being more structured and hierarchical </li></ul></ul><ul><ul><li>everything laid out in a specific place and knowing where everything is. </li></ul></ul><ul><li>Soweto taxi rank used to be a standard taxi rank – quite confusing and unstructured </li></ul><ul><li>Now a structured and organised building with specific lanes, queuing areas and signage </li></ul>
    28. 28. Urbanisation <ul><li>“ The atmosphere in Soweto is different & there is the perception that there are no restrictions” </li></ul><ul><li>“ Blacks who live in the suburbs come back to Soweto over the weekend” </li></ul>
    29. 29. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education & Culture </li></ul><ul><li>Strikes </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    30. 30. Education <ul><li>Black diamonds are are becoming well educated </li></ul><ul><ul><li>University & other tertiary </li></ul></ul><ul><ul><li>these are building blocks of structured society </li></ul></ul><ul><ul><li>promote long term views </li></ul></ul><ul><li>“ There is a distinct difference in the way people conduct themselves once they have had tertiary education” </li></ul>
    31. 31. Why is this happening <ul><li>Government intervention - NCA </li></ul><ul><li>BEE </li></ul><ul><li>Intra-urban movements </li></ul><ul><li>Education & cluture </li></ul><ul><li>Strikes & views </li></ul><ul><li>Brand Preferences </li></ul><ul><li>Advertising </li></ul>
    32. 32. Public-sector & other strikes <ul><li>Wage offer based </li></ul><ul><li>Government and strikers viewed to be at fault </li></ul><ul><li>Schools most affected, and essential-services sectors are not legally permitted to strike. </li></ul><ul><li>Contingency plans put into place to assist learners with exams and to ensure their safety </li></ul><ul><li>Sources: Sowetan, IOL, Die Burger </li></ul>
    33. 33. Public-sector & other strikes <ul><li>“ Strikes affect students negatively, there should be another process instead of striking” </li></ul>
    34. 34. More future focused <ul><li>Becoming future focused means careful and strategic planning, this can include buying a house, life insurance, investments and other activities to prepare for old age </li></ul><ul><li>Although they want suburban development, they still enjoy much of their social life back in the townships, almost a break-away from stricter reality </li></ul><ul><ul><li>Communicate to them differently in these two different environments </li></ul></ul><ul><ul><li>Two different worldviews, depending on location </li></ul></ul><ul><li>Also driving move to the suburbs – better access to services, jobs, security and an instant sign of success </li></ul><ul><li>Townships will also start becoming more institutionalised </li></ul><ul><li>Young families and established are the primary groups </li></ul>
    35. 35. My culture <ul><li>It’s becoming more important to keep with a specific culture and hold onto that </li></ul><ul><ul><li>By singing only your own anthem and not another countries, anthems have a particular space in the institutional world view and represent something greater than yourself. </li></ul></ul><ul><li>Although general reactions and and reactions are changing to everyday life situations. </li></ul><ul><ul><li>Essentially people are looking for structure and are taking actions toward a more institutional society </li></ul></ul>
    36. 38. Brand preferences <ul><li>Looking at aspirational and middle class brands </li></ul><ul><li>Moving up, this is what they will look at initially </li></ul><ul><li>Family & traditional conscious choices, all in the same magazine… </li></ul><ul><li>The Afropolitan </li></ul>
    37. 41. <ul><li>Relating old traditions with modern means </li></ul><ul><li>Future oriented </li></ul><ul><li>Creating structure out of what was chaos </li></ul>
    38. 44. Advertising <ul><li>Looking at black oriented magazines </li></ul><ul><li>Success and future oriented </li></ul><ul><li>Showing what is now “acceptable” in society or how they are living </li></ul>
    39. 45. Statistics <ul><li>87% of South Africa’s new black middle class regard medical aid as a necessity, yet only 26% belong to a medical aid scheme – expect change in the future </li></ul><ul><li>47% of people with no education attend religious services weekly or monthly, as opposed to 66% of people with post matric education </li></ul><ul><ul><li>Religion is a indicator of institutionalism </li></ul></ul><ul><li>19% of black South African’s are interested in finding out how to insure their assets </li></ul><ul><li>Only 2% of blacks have asset insurance compared to 53% white, this is set to increase </li></ul>
    40. 46. Industrial revolution similarities
    41. 47. Industrial revolution <ul><li>As systems were put into place more structure was required and demanded by the people </li></ul><ul><ul><li>Working conditions developed </li></ul></ul><ul><ul><li>Social systems were re-organised </li></ul></ul><ul><ul><li>Architecture & city planning evolved to meet the needs of social and economic changes </li></ul></ul><ul><li>Industrial revolution </li></ul><ul><ul><li>Increased emphasis on education & training </li></ul></ul><ul><ul><li>Journals, encyclopedias </li></ul></ul><ul><ul><li>“ The Industrial revolution witnessed the triumph of a middle class of industrialists and businessmen over a landed class of nobility and gentry .” </li></ul></ul>
    42. 48. Summary
    43. 49. So really what is it? (in a nutshell) <ul><li>Institutionalism is the process of moving towards a structured and controlled society. </li></ul><ul><ul><li>Everyone wishes to feel secure and have equal rights </li></ul></ul><ul><ul><li>It is a group affiliation, meaning that people do thing for that greater good rather than just personal gain </li></ul></ul><ul><li>The ‘return’ involves the Black Diamonds and is concerned with new lifestyle options </li></ul><ul><ul><li>They are becoming middle class society and want to protect it. </li></ul></ul>
    44. 50. Implications <ul><li>Bedding down of middle class </li></ul><ul><ul><li>Roles are becoming more defined and identifiable for these people who are returning to institutionalism </li></ul></ul><ul><li>Family to play bigger role </li></ul><ul><ul><li>As they move away from the townships, people who move with them will become closer </li></ul></ul><ul><li>Making a difference in community </li></ul><ul><ul><li>Standing up, protecting and fitting in to society </li></ul></ul><ul><ul><li>Becoming legitimate in society </li></ul></ul><ul><ul><ul><li>Physical manifestation through architecture, design, advertising etc. </li></ul></ul></ul>
    45. 51. Implications <ul><li>Communicating to this trend </li></ul><ul><ul><li>Social life in the townships means that’s where they may be relaxing and having fun </li></ul></ul><ul><ul><li>More structure and institutional based advertising in the suburbs and at their clubs, associations and media that is consumed in these areas </li></ul></ul><ul><ul><li>Any communication should be structured and future focused with specific guidance </li></ul></ul>
    46. 52. What does this mean for your business? <ul><li>They will & already have less time, and need more security – in terms of institutionalism </li></ul><ul><ul><li>Make it easy to understand your offering and provide and communicate your support </li></ul></ul><ul><li>They will be looking for products that benefit not only themselves but also their community and even history </li></ul><ul><ul><li>Make sure they know where you stand, tell them who you support </li></ul></ul><ul><ul><li>Products like Hola 7 from Cell C </li></ul></ul>
    47. 54. Hola 7 from Cell C <ul><li>celebrity status - Zola </li></ul><ul><li>he knows his roots and supports them _ Soweto </li></ul><ul><li>special starter pack </li></ul><ul><li>1% of all revenue generated will go into CSI initiatives </li></ul>
    48. 55. Thank You.