Agenda - Enhancing Marketing and Social Research in Africa
Transcript of Agenda - Enhancing Marketing and Social Research in Africa
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Agenda
• Brief background
• How are we succeeding
in Africa?
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Brief milestones
• SCANAD 1982
• JWT 1995
• McCann/ Grey/ FCBTZ/Redsky TBWA 2003 -06
• Listing of Scangroup on the NSE 2006
• WPP takes a 27.5% stake 2008
• JV with Millward Brown, H&K & Squad 2007-09
• JV with Ogilvy Africa & Smollan 2010
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Our Vision
• To be the leading Marketing services
company across Sub Saharan Africa
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What do we provide?
CONSUMER POINTS OF INFLUENCE
+ + IDEA
BRAND
CONSUMER
COMMUNICATION
CHANNEL
CATEGORY
COMMUNICATION PLAN
WHAT
WHICH
HOW
WHEN
What specific
proposition or messageWHAT
HOW
How will it all be stitched
together, to create the
‘big picture’
WHEN
When, in what mood
and frame of mind, with
what deployment
strategy
WHICH
Which channels /
disciplines to reach the
consumer, and how
much money will be
spent on eachCOMMUNICATION TASK
IDEA
The InsightProcess
The Strategic Process
The Creative Process
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Offices with majority Stake
Offices with minority Stake
Affiliate Partners
ScangroupAfrica footprint
Kenya
Tanzania
UG
GABON
ANGOLA
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEA
BEN
INTO
GO
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
BU
MOZAMBIQUECoordination Office
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Offices with majority Stake
Offices with minority Stake
Affiliate Partners
ScangroupAfrica footprint2014
Kenya
Tanzania
UG
GABON
ANGOLA
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEA
BEN
INTO
GO
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
BU
MOZAMBIQUECoordination Office
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Advertising
A partnership with JWT
An affiliation with McCann Erickson
An affiliation with Grey Worldwide
An affiliation with Lowe Worldwide
An affiliation with TBWA
A JV with Ogilvy
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Media Investment & Management
An affiliation with Initiative
An affiliation with MediaCom
An affiliation with Universal McCann
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PR, Research & Digital
A PR joint venture with the WPP Group
A Research joint venture with the WPP Group
A Digital joint venture with SIT Group India
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Speciality Communications
An activation and event management company
Smollan A field marketing JV with Smollan Group SA
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Our Clients
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Revenue Growth (Ksh„000)
LE BUDGET
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Positive Outlook
African Consumer: The Future Is Here
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How the world sees us us
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How we see ourselves
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Let‟s meet the
Spirited
Afro-Optimists
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Who Are They?
• Primary - 18-24 years
• Secondary 25 to 35 years
• Both male & female
• In university, colleges, working -
probably first job, or job-hunting
• Or school drops outs……self employed
formal or informal trade
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What Defines Them
• Many are educated -
or desiring an education
• They are aspirational - want a
better life
• They are catalysts and
influencers within their families
and the community at large
*Source – Youth Dynamix report 2010
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What Defines Them
• Technologically literate and
empowered by technology - tech
stylists, tech leaders
• They are materialistic, and believe
that money can make them happy –
an enabler
• They are seeking out brands that
provide them with a sense of
empowerment, enablement and
belonging - security*Source – Youth Dynamix report 2010
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Attitudes
• “Brands are a key part of
my lifestyle, giving me
status, making me stand
out”.
• Money is key for lifestyle
trends – they spend money
on fashion, entertainment
and relationships
*Source – Youth Dynamix report 2010
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Why Africa
1. Political stability
2. Better governance and democratisation
3. Improved macroeconomic management
4. Improvement in the business environment
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Political Stability
Post conflict countries (social stability, normalisation)
• Angola
• Mozambique
• DRC
• Rwanda
• Liberia
• Sierra Leone
• S Sudan
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Political StabilityStill struggling
• Central African Republic
• Zimbabwe
• Madagascar
Difficult
• Stateless Somalia
• Ivory Coast
• Guinea
• Guinea Bissau
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Better governance and democratisation
• Higher political awareness & maturity
• Africans went to the polls in 2008 in 10 countries
• 70% turnout (98% in Angola)
• Peaceful elections in Ghana, Angola, Rwanda, Zambia
and hopefully Nigeria next month
• Power sharing in Kenya and ……..Zimbabwe??
– a new concept in African politics
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Improved macroeconomic management
• Monetary policy, inflation management and growth
• Exchange rates and capital management
( Remittances $25B for 08…)
• Fiscal policy and public investment
• Emerging of the „middle class‟ civil society
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Improvement in business environment
• Ranked 3rd on the pace of reform after Europe and
Central Asia
• Senegal, Burkina Faso & Botswana in the top 10 in doing
business reformers in 07/08
• Intensified trade with emerging powers – India, China &
Brazil reduced dependence on OECD
• African „Brain Gain‟
Source: World Bank ‘Doing Business 2009 Report‟
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Average Growth Rates of African Regions
Average Growth Rates of African Regions
2007 2008E 2009P 2010P
Central 4.0 5.0 2.8 3.6
East 8.8 7.3 5.5 5.7
North 5.3 5.8 3.3 4.1
South 7.0 5.2 0.2 4.6
West 5.4 5.4 4.2 4.6
Africa 6.1 5.7 2.8 4.5
Sub-Saharan Africa 6.4 5.5 2.4 4.7
Source: IMF World Economic Outlook
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Key Challenges
• The global financial crises severely hampered Africa‟s otherwise robust growth plan – Reduced levels of FDI – 2007 $53B – 2008 $62B
– Falling commodity prices
– Depressed export demand
• Reversing recent political and economic developments
• Corruption
• Poverty
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Advertisers on the Continent
Local ClientsBank, Cellular , Utility & Public sector clients
African Multinational Clients Airtel, MTN, Vodacom, DStv, Eco Bank, Kenya Airways, SAB Miller, EABL, Stanbic Bank etc
Multinational ClientsCoca-Cola, Unilever, Reckitt, P&G, Nokia, Diageo, Barclays, LG, Samsung, etc
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Category Mix
Cellular – Local plus Pan African – over 50% of the spend
Financial Services – Local, Pan African & International
Beverages – Local & International, Alcoholic and non
Social and Behavioral Change – NGO, USAID etc
FMCG – Local, Pan African & Multinational
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Kenya
Tanzania
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
GH
AN
A
BOTSWANA
SIERRA LEONNE
UG
Airtel
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Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
Vodacom/Vodafone
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GUINNEA BISSAU
Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
RW
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
GUINNEA
LIBERIA
TOG
O
BU
MTN
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Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
GH
AN
A
BOTSWANA
SENEGAL
SIERRA LEONNE
Tigo Footprint in SS Africa
Tigo
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Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
Coca-Cola
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Kenya
Tanzania
GABON
ANGOLA
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
MALAWI
MOZAMBIQUE
UG
SAB Miller
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GUINNEA BISSAU
Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
Diageo
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GUINNEA BISSAU
Kenya
Tanzania
GABON
ANGOLA
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RWBU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
UG
MOZAMBIQUE
MALAWI
Unilever
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GUINNEA BISSAU
Kenya
Tanzania
GABON
ANGOLA
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANAMOZAMBIQUE
MALAWI
UG
SENEGAL
Nestle
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Kenya
Tanzania
UG
GABON
ANGOLA
MOZAMBIQUE
ETHIOPIA
SUDAN
EGYPT
LIBYA
ALGERIA
MOROCCO
DRC
SOUTHAFRICA
NAMIBIA
ZIM
ZAMBIA
MADAGASCAR
SOMALIA
C.A.REPUBLIC
NIGERIA
SENEGAL
MALINIGER
CHAD
MAURITANIA
IVORYCOAST
LIBERIA
GUINNEA
RW
BU
GUINNEA BISSAU
GAMBIA
COMOROS
EQ. GUINNEAB
ENIN
TOG
O
MALAWI
TUNISIA
WESTERNSAHARA
LESOTHO
SWAZILAND
REUNION
MAURITIUS
ERITREA
DJIBOUTIB. FASO
MAYOTTE
SIERRA LEONNE
GH
AN
A
BOTSWANA
Reckitt
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Our strategy is to take a long term view by;
• Invest and develop global best practices
• Understanding cultures and market conditions
• Developing Africans to grow our African franchises
• Hire the best people
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Key Growth Markets
1. Nigeria
2. Angola
3. Mozambique
4. Ghana
5. DRC
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Other Opportunity Markets
1. Franco Phone countriesCameroon, Senegal, Gabon
2. Uganda
3. Tanzania
4. Rwanda
5. Zambia
6. Madagascar
7. S Sudan
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Our long term strategy
• Offer global best practices to our clients
across all marketing service discplines
• Across all geographies in Sub Saharan
Africa
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The FutureWe are excited about Africa's future. Today's Africa is exemplified by
the many success stories and stronger economic growth being driven
by the dynamism of its people and economies. We therefore used the
opportunity of our new Africa Strategy to listen, learn and define how
we could better support the continent's aspiration as it maintains the
momentum of economic reforms over the next decade,” said
Obiageli Ezekwesili, the Vice President of the
World Bank for Africa Region.
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We will succeed in Africa
Thank you for your time