Principles of Marketing Continuation-of-Chapter-1.pptx
DEPLOY 2015
1. 2015 TRENDS & STRATEGIC IMPERATIVES FOR BRANDS
Media Perspectives Presentation to esteemed Clients - 5th
January, 2015
Sources: AMPS 2014, Nigeria Bureau of Statistics, World Facts Book, Tradingeconomics.com, Naij.com, World Bank Indexmundi.com & TNS
2. KEY INSIGHT & IMPLICATIONS:
Proliferation Of Niche Channels
With Competitive Content Paradigm Shift In Media Planning Convergence & Integration – way to go
1. Genre specialization per channel
2. Channels can run on multiple signal
carriers
3. Brands can target consumers better &
drive positive brand association
4. Access to regional pseudo- networks
with relevant content
1.Planning to be based on content & not stations
2.Consumers have open-ended options
3.Quality content will be in hot demand
Digitalization
of TV
1. Three Signal Distributors one of which is to evolve from NTA will serve as platforms to host multiple
channels covering national/regional markets
2. The transmission standard shall be the DVB-T2 format with MPEG-4 AVC compression format
3. Pursuing the ITU switch over deadline of June 17th
, 2015
3. STRATEGIC IMPERATIVES FOR BRANDS:
Digitalization
1 Take Best Mover advantage and lock down key Niche
channels that address our market segments
• Exclusive partnership with key channels based
on segmentation
• Drive brand association & positioning
2 Create/Partner with existing branded content that
is scalable across touch-points
• Must resonate from the CEP
• Emanate from the Brand essence TG
passion-points
Develop distinct regional strategies leveraging the
pseudo - networks3
Drive integration & Social Currency
4
• Demand 360 communication planning approach as against linear
media silo approach from media agencies
ACTION POINT:
Drive Content & Context Scalability
of TV
4. KEY INSIGHT & IMPLICATIONS:
High Demand On Media
Inventory Harsh Media Payment Regime Non- Compliance Cases On The Rise
1. Politicians buy up media space for
their campaigns
2. Leading to aggressive SOV & media
clutter
3. This could lead to higher media rates
4. Brands may lose existing primetime to
tactical buys from politicians
1. Cash & Carry policy from media suppliers
2. No or less discounts
3. Multiple sales of media airtime & space
Election
Year
1. Increase rate of program displacement on both
national & regional levels
2. Outright non compliance or unscheduled extra
3. Yanking programs off-air without pre notice
4. Non adherence to fixed time buys by stations
1. Elections & related activities will hold from January to mid April 2015
2. Media is critical to connecting & communicating with electorates in different levels of society
3. This will have direct impact on Q1 media landscape for businesses & brands
5. STRATEGIC IMPERATIVES FOR BRANDS:
ACTION POINT:
Develop a localized & Effective Execution Roadmap
1 Maintain Pulse Flighting in Q1’15 & Accelerate to
Burst Levels afterwards
• Avoid head-on collision with election media buzz
• Leverage opportunistic buys during elections for impact
• Reserve budget for key brand initiatives after elections
2 Pre-book all Q1 Media placement in Q4’14
• Conclude all key media placements in Q1’15
• Agency to issue MPOs to key suppliers where
necessary after client approval
Secure/Guarantee all Discounts with Default Penalties3
• Media Agency must guarantee all discounts to
clients
• Ensure strict adherence to all agreement &
penalties for all defaults
Drive Media Integration & Synergy for all Campaign4
• Media strategy must be through-the-line
• Achieve execution excellence for all campaigns
• Post campaign evaluation & re-application of learning
Election
Year
6. KEY INSIGHT & IMPLICATIONS:
BRANDS CONSUMER THE MARKET
1. Low campaign effectiveness due to
high media clutter from political
campaigns & activities
2. Low Recall threshold for brands
following compressed visibility
1. Loss of Top Of Mind Awareness and brand
promise amongst consumers
2. Consumers to rely more on WOM & impulse
purchase leading to low purchase ratio for some
brands
Pressure on
TOMA & Recall
1. Increased political activities will lead to clutter and nuisance value
2 Message recall will be impeded due to excessive materials on air at same time
1. Consumers choices to be largely determined by
advice from experts, loved ones & friends
2. Preponderance of cheap brands into the market
by importers with less effort to convince the
customers to buy
7. STRATEGIC IMPERATIVES FOR BRANDS:
1 Deploy experiential marketing platforms to drive product
trial & trigger purchase
• Create branded activations & experience
centres amplified via ATL media
• Leverage brand ambassadors for advocacy & loyalty
2 Regional media strategy to strengthen presence and
preference
• Partner with traditional leaders &
regional champions to drive advocacy
& influence factor in the regions
Seamless product availability and distribution channels
to enhance effective speed to market objectives3
Partner with OAPs to drive TOMA and connection amongst
the TG
4
• Utilize the followership value of OAPs
as a sales tool
• Drive consumer engagement with
relevant programs anchored by
Popular OAP
ACTION POINT:
Create Unit Customer Experience Centres
Utilize Influencers As Awareness & Sales Tools
Pressure on
TOMA & Recall
8. KEY INSIGHT & IMPLICATIONS:
MEDIA CONSUMER COMPETITION
1. Likely cut in media budget across
brands
2. Freezing budget at previous year mark
3. Media rate to remain constant or even
higher in view of political campaign
patronage
1. Low disposable income
2. Consumer to become more discerning and
price sensitive
3. More cheaper options would be patronized
4. Purchases to be restricted to core needs
Low Liquidity
Threshold
1. Decline in oil price fluctuating between $60-$75 with significant impact on revenue
2. Exchange rate 10% devaluation by CBN in Oct 2014
3. Risk of further devaluation in 2015 given the lower oil proceeds
4. Higher interest rate on the back of recent CBN increase in inter-bank borrowing
1. Competitive activities to revolve around
promotions to mop up scarce disposable income
2. More of functional campaigns rather than
emotive campaigns
3. Price war & incentivised marketing
9. STRATEGIC IMPERATIVES FOR BRANDS:
1 Long term deals through pre commitment to circumvent
media rate inflation
• Collaborate with rated content owners
for quarterly spots allocation and extra
benefits
• Utilize these platforms for quick to market flexibility
2 Co-create content with identified partners
• Partner with producers to co-create
content and earn exclusivity benefits,
right of first refusal and rebates
Own Sponsorship platforms to guarantee visibility and
emotional connection with the TG3
Long term investment with estimated media budget
4
• Utilize yearly media budget allocation to
negotiate with key suppliers
• Enjoy better discounts, rebates and
freebies from suppliers
Low Liquidity
Threshold
ACTION POINT:
Optimal Visibility Via Cost Effective Media Buying & Long Term
Negotiation Deals
10. RATIONALE (WHY):
O
KEY INSIGHT & IMPLICATIONS
Online penetration/consumption
spikes year on year
Google – Search/GDN -Search and
GDN reinforce each other
Social –Integration and Engagement
1. Nigeria leads in Africa, with 54.8 Mn
internet users and this puts internet
penetration at 32%+
2. 63% of internet users in Nigeria go
online daily
3. 54% of Nigerians access internet
through mobile
4. 89% mobile penetration in Nigeria
1.High interest rate equates to high CTR
2.103 search queries per second in Nigeria
(Google Data)
3.700+ Google Partners in Nigeria
4.The Display Network reaches 83% of unique
Internet users around the world
1. 24% of internet users in Nigeria are Brand
fans on social network
2. Engagement platform that enables brands
to connect with their consumers
3. Create an ongoing two-way dialogue with
social community
nline On The
Rise
1. Latest AMPS 2014 has shown 4% growth nationally against 2013 figures
2. Mobile is the key driver
3.Internet enabled smart phones are more affordable and accessible
11. STRATEGIC IMPERATIVES FOR BRANDS:
1
2
3
44 GDN
1 Mobile
• More interactive and innovative
• Target by device, operating system, location and gender
• In –App advertising
Search
• Have an “Always on Search Strategy”
• Bid into relevant keywords that resonates with
product
3 Social
• Build engagement with TG around passion points
• Generate conversation around products, day to day
updates & topical issues
• Have contest activations as fans loves freebies
• Leverage Google display network to build reach and
campaign visibility amongst TGs
ACTION POINT:
Play to Win on Mobile, Search, GDN & Social
Brands Must Accelerate their Digital Game
nline On The
Rise
O
12. KEY INSIGHT & IMPLICATION:
Growth Opportunity for
Businesses/Brands
More Discerning & Demanding
Consumer
Need to Offer multiple product
portfolios & segmented marketing
1. Brands must position/leverage gains
from this trend
2. Develop new competencies/SBUs to
harness these opportunities eg. retail
division/geo-marketing
YOY
1. Consumer profiling & understanding
2. Proper interpretation & prediction of
consumer behavioural patterns & dynamics
3. Periodic media, consumer & market
research & evaluation
4. Consumer feedback mechanism
1. Develop robust products that address consumer
demands and resonate market realities
2. Insight & data based marketing communications
aligned with TG segmentation
Growth of
MC & Retail
1. The size & purchasing power of the Nigerian middle class spikes
2. The informal sector is growing
3. The retail market is expanding as reflected in the spread of shopping malls/modern trade
4. Urbanization rate increases annually as new cities/market surfaces
13. STRATEGIC IMPERATIVES FOR BRANDS:
1 Drive Innovation via R&D
• Constantly drive consumer & market
innovation in product & communication
• Create trends don’t follow them
2 Partner Best in Market Agencies
• Work with ONLY the best marketing agencies
• Transform them into your office expansions &
partner in progress
• Co-create with your agencies
Set SMART KPIs3
Track, Evaluate and Apply Learning4
• Periodic exercise involving all parties in a
transparent manner
ACTION POINT:
Take First Mover & Best Mover Advantage in the Market
• Make it collaborative not dogmatic 360*
Approach is preferable
Growth of
MC & Retail
YOY