roots 2013 launch

Revisiting South Africa’s urban landscapeRooted in Reality...

Welcome to ROOTS 2013 : Illusion or reality?

Today – its not about illusions

Just reality

ROOTS is about the real world

SA’s real urban landscapeReal insights and behaviour

Real top of mind

Real communities with real changes

Real buyers and shoppers

Real tool you can use to plan

+6,000,000 PURCHASING DECISION MAKERS

115 suburbs and towns

3,500,000 HOUSEHOLDS

28,500 interviews20%+

Covering A to Z

Mostly rural or informal households

76%

Roots households

24%

SA HOUSEHOLDS

It’s on the money!

Source: Census 2011 and ROOTS 2013

R736 Billion p.a.50%

R -

R 5,000

R 10,000

R 15,000

R 20,000

R 25,000

R 30,000

R 35,000

R 40,000

R 45,000

HH Income pm

Motherwell PE R4,975

Berea DBN R17,136

Ruimsig JHB R41,158

Covering SA’s urban landscape

Cape Towns suburbs

PE and East LondonGarden Route

Durban suburbs, PMB, North and South coast, Zululand and Inland KZN

Bloemfontein & Kimberley

Rustenburg, Harties and Klerksdorp

Limpopo and Mpumalanga’s bustling towns

Gauteng i.e. JHB, PTA Vaal etc.

For the first time some big interviews done in big townships

Soweto

Alex

Umlazi

Mamelodi and Soshenguve

Sebokeng/ EvatonGugulethu

+4,500

29% LSM 9&10 in

2007

LSM 1-30%

LSM 40% LSM 5

4%

LSM 622%

LSM 717%

LSM 814%

LSM 921%

LSM 1022%

37% in 2007

Profile - representative of economic activity

Black50%

Coloured10%

Indian9%

White31%

ROOTS - not from the imagination world

Nor averages – its about your real shoppers

The average respondentHalf black, half other

2.3 kidsHH Income R17,500pm

From homes with children to affluence – its uncovered

42%

57%

Children under 16 in home13% Seapoint/ Camps Bay

66% PimvilleSoweto

9% Sedibeng Vaal

100% RuimsigJHB

LSM 8-10 households

17%

18%

29%

15%

89%

22%

36%

62%

13%

16%

Bought Audio visual P12m

Bought Large appliances P12m

Bought Small Appliances P12m

Bought Furniture P12m

Bought clothes or shoes past 6 months

Have a medical aid

Connect to the internet PM

Have 1 or more vehicle in the HH

Been to a casino p3m

Buy data bundles

Averages - a reference for index – that’s all!High index area 2013 Low index area 2013

45% Secunda/ Bethal 2% Sea Point Camps Bay

43% Kempton 6% East London

53% Ruimsig 7% Plett

37% Krugersdorp 4% Somerset West

99% Pta East 74% Jabavu

63% Durbanville 5% Alex

75% Fourways 13% Kimberley

97% Bedfordview 16% Gugulethu

46% Chatsworth 2% Houtbay

57% Fourways 0.1% Chiawelo

Average 2013Market

Relevant to business: Even the lost pups and the kitty's!

Constantia and Rosebank/ Killarney

Hartebeespoort & Krugersdorp

7%

39%

24% 23%

81% 72%Pets in the home

Relevant to mindset

Durbanville – 33%Somerset West - 30%Constantia - 28%Houtbay - 23%Alberton - 0.7%

Because now more than ever the pressure is on…

05

101520253035404550

2007 2010 2013

Bought past 12 months

Audio VisualSmall AppliancesFurnitureLarge Appliances

-53%

-37%

-52%

-50%

… for all of us to get the job done

And ROOTS is the tool to ease the pressure

And from the board of TNS to tell us more…

The Population.

The Respondent.

Sample design.

The Sampling Frame

Access to difficult areas

Data Forensics and Validation.

Data weighting.

The Result.

The population

115 communities in Urban areas across South Africa Sandton, George, Nelspruit, Rustenburg, Polokwane, Empangeni, Berea, Umhlanga, Hout Bay etc..…

The respondent

Purchase Decision Makers (PDM) in the household ….responsible for making major decisions on purchases in the home or for the family. ……. aged 16 years or older.

Sample Design

Complex multi-stage stratified sampling at the EA level.

The Sampling Frame – the set of source material

from which the sample is selected.

Prof. Stoker developed an EA sampling frame which Dr. Ariane Neethling has updated and adjusted annually based on the 2007 Community Survey, annual estimates and most recently Census 2011. It is regularly adjusted to make use of the most up to date and accurate information available such as GIS dwelling counts from GTI .

Access to Difficult areas

TNS prides itself on negotiating access to difficult areas. Outlined procedures have been approved by an independent external sampling expert.

EA based sampling More detailed level sampling, considered one of the most accurate approaches to obtain a true reflection of the population of interest due to the relative homogeneity within any given EA.

Data Forensics and Validation

The data must reflect the rigorous and robust

sampling – which allows us to generalise

the total population of households / PDM’s

per community with confidence.

Extensive checks backs on interviews - 33%

Area profiles checked against previous years and other available and comparable external data.

Weighting

Dr. Ariane Neethling has weighted and benchmarked the data, by community, against her sampling frame, which has been updated according to the 2011 Census municipal and provincial data.

The samples for Roots 2010 weredesigned and drawn similar to those ofRoots 2007. The weights, which werecalculated in the same way as in theprevious study, were within acceptablelimits. No abnormal or unusual skewswere found.

The samples for Roots 2013 weredesigned and drawn similar to those ofRoots 2010. The weights, which werecalculated in the same way as in theprevious study, were within acceptablelimits. No abnormal or unusual skewswere found.

Luckily, I can say the same thistime……

Dr. Ariane Neethling

The Questions 45 minute in home interview based on behaviour across numerous shopping categories.Objective – to “open” as many business categories as possible.

Demographics – including Black Diamond Segments and LSM 1 - 14 Average Issue Readership – Community, Daily, Weekly and Weekend Papers and Weekly Mags.Information Sources .

Shopping Centres

Travel

Personal occurrences

Community Involvement

Studies

Health and Beauty

Environmental activity

Home and home maintenance

What we have in the home (garden to solar heating to pets)

Technology in the home

Shopping for the home from appliances to soft furnishings

Toiletries

Clothes and Shoes

Take Aways

Groceries

Exercise

Loyalty programmes

Cell phone ownership and usage

Internet usage, how where and what.

Digital Life Segmentation

Cars and car maintenance

Finance – Personal accounts

Long term insurance

Short term insurance

Casinos

We’d love to control shoppers but there are other fundamentals at play

ROOTS gets you to grips with reality

51 Southgate Mall

41 JHB CBD

28 Protea Gardens Mall

21 Bara Mall

20 Westgate

A long time ago before the malls…

Source: ROOTS

More choice less travel

Source: ROOTS

Last year the shrink went on…

15%

13%

15%

20%

24%

15%

52%

58%

11%

13%

17%

17%

24%

24%

54%

59%

21%

20%

41%

13%

51%

28%

Bara Mall

Westgate Mall

JohannesburgCBD

DobsonvilleCentre

Southgate Mall

Protea GardensMall

Jabulani Mall

Maponya Mall

2007

2010

2013

1.Dobsonville SC 79%2.Westgate 62%

1.Meadowpoint 69%2. Dobsonville SC 67%

1. Southgate 75%2. Maponya 59%

1. Protea Gardens 75%2. Maponya 63% 1.Maponya 98%

2. Pimville SQ 70%

1. Jabulani 92%2. Maponya 46%

Have mall - won’t travel

ROOTS has over 900 malls on its dataset

Their catchment areas

The shopper profiles

The biggest malls

New malls

Their changing profiles

Where else do they shop/ visit?

For instance – in cape town

Top Malls Cape Town LSM 4-7 Cape Town LSM 8-10

1. Promenade Mitchells Plain Canal Walk

2. Town centre Cavendish Square

3. Cavendish Square Kenilworth Centre

4. Sanlam centre Khayelitsha

N1 City Mall

5. Canal Walk V&A Waterfront

Ever-Shrinking catchment areas: Eg Bedfordview Edenvale

83%

60%65%

54%

68%60%

2004 2007 2010 2013

% of Bedfordview Edenvale decision makers who visited in past 3 months

Eastgate

Source: Roots

Living local – shrinking catchments

Category <15 minutes <30 minutes > 30 minutes travel time

Food and groceries 68% 93% 7%

Good restaurant 55% 88% 12%

Shoes and Clothes 49% 84% 16%

Appliances and AV equipment

43% 79% 21%

DIY and home goods 45% 78% 22%

New home 34% 64% 36%

Base: All areas , shoppers with a vehicle in Household






66% 93% 7%


New home 49% 76% 24%

more choice – less travelUmhlanga/ Durban North

Base: Umhlanga/ Durban North , shoppers with a vehicle in Household






19% 50% 50%


New home 11% 32% 68%

less choice – must travelGugulethu

Base: Gugulethu, shoppers with a vehicle in Household

Shopping happens locally

40

Bulk shop with fill ups in the month except in…

0

20

40

60

80

100

One big bulk shop a month and some fill-ups Shop twice a month/every two weeks

Shop weekly or almost weekly Shop twice a week or almost daily

44%

Base: Fully and partly responsible for buying food and groceries

57

29

12

2

33

23

38

6

56

21

19

4

40

17

36

7

Bulk with fill ups inthe month

Twice a month

Weekly/ Almostweekly

Twice week/ almostdaily

54

26

17

3

36

14

41

9

Cape more weekly but move across board to twice a month

Frequency of shopping

2007 2010 2013

Q: How do you do your food and grocery shopping in the average monthBase: All/ part responsible for food and grocery shopping

What form of transport is used when shopping

9%

52%

32%

6%

0.4%1%

Top indexBefordview/RuimsigDurbanville & Mondeor

Top indexTsakane/ KwaThemaSedibeng & Orlando

Top index Zola / Eldorado ParkJabavu & Berea

Ladysmith/ EmpangeniChatsworthTop index

Understanding how the catchments change

Suburb 2007 2013

Midrand 53% Black83% LSM 8-10

60% Black79% LSM 8-10

Milnerton/ West Coast

8% Black86% LSM 8-10

13% Black85% LSM 8-10

Kempton Park 35% Black74% LSM 8-10

47% Black88% LSM 8-10

Polokwane metro suburbs

30% Black74% LSM 8-10

64% Black54% LSM 8-10

Centurion PTA was Verwoerdburgstad!

14% Black78% LSM 8-10

43% Black87% LSM 8-10

And how thin markets are

Market Average 2013 High index area 2013

Low index area 2013

Bought Audio visual P12m 17% 45% Secunda/ Bethal

2% Sea Point Camps Bay

Bought Large appliances P12m 18% 43% Kempton 6% East London

Bought Small Appliances P12m 29% 53% Ruimsig 7% Plett

Bought Furniture P12m 15% 37% Krugersdorp 4% Somerset West

Bought clothes or shoes past 6 months

89% 99% Pta East 74% Jabavu

Bought DIY equip or paint p12m 17% 32% George 4% Umlazi

Have 1 or more vehicle in the HH

62% 97% Bedfordview 16% Gugulethu

Been to a casino p3m 13% 46% Chatsworth 2% Houtbay

Have a burial society account 20% 59% Soshenguve 1% Ballito

Have a tablet 2% 28% Fourways 1.4% East London

2010 Noordhoek 43%2007 Fourways 71%

What is clear…

…area by area ,things change

Community – not a level playing fieldFamily done in p12 months All

Roots areas

Bedfordview/ Edenvale

Durbanville/ Belville

Zola -Soweto

Regularly attended religious gatherings (e.g. at a church or mosque etc) in your local area or community 32 25 44 41

Socially interacted with your neighbours 32 3 26 64Made a point of getting to know your neighbours 22 1 21 40Actively supported local businesses (for example spazas and formal shops or cafes) 14 0 30 24Attended an event(s) at a local community centre 11 1 4 11Supported your local community charities such as the SPCA or children's homes 4 1 11 0

For retail

The economics of retail are very local. There are economies cross border in many areas… but if you want to be the best you have to be the best local retailer.

Terry Leahy – ex CEO Tesco when asked about Tesco going International

Roots gives you the intelligence to be the best..locally

Luckily most successful SA retailers know this…

This has implications for other businesses

Know The Local Potential

Credit cards – areas that have or areas that don’t…

0

5

10

15

20

25

30

35

40

45

50 Rosebank/ Killarney 43%

Meyerton 17%

Umlazi 0.6%

Is marketing just about awareness?

No – its about awareness+++

ROOTS is a measure of the share of mind dedicated to brands…

…which brand is likely to be thought of , by shoppers

Share of mind– Food and grocery stores been into in the past month – THOSE DAMN AVERAGES!

50.4

45.0

28.3

27.6

23.3

15.1

12.9

12.9

12.8

12.6

hyper

Spaza shop

Base: wholly or partly responsible for food and grocery shopping

0

10

20

30

40

50

60

70

80

90

100

Shoprite Pick n Pay SparCheckers Pick 'n Pay Hypermarket Spaza ShopClicks Woolworths Fruit & Veg CityCheckers Hyper

Spazashop

What’s on the radar , differs by area

56 Base: wholly or partly responsible for food and grocery shopping

Share of wallet – where spend most food and grocery money – a tale of many cities

57

Bloemfontein

Other

Ladysmith*

Middelburg

Base: wholly or partly responsible for food and grocery shopping* Ladysmith East Ezakheni

Total Base35.4 22.7 22.5 15.1

Mosselbay57.1 13.4 8.9 10.0

Northcliff/Melville 28.9 34.0 23.1 17.3

Chatsworth24.4 18.0 40.3 13.5

Lower South Coast 24.6 18.8 20.9 25.5

Somerset West47.9 20.5 19.2 15.7

Talking money – the top 4 overall but…

Base: Have Savings, transaction, cheque, credit card or bond account

Destinations for large appliances – past 12 months

Cape Town1. Game2. Lewis3. Makro4. Tafelberg5. OK

Mpumalanga1. Game2. HiFi3. Beares4. Electric Express5. Lewis

Soweto1. Fair Price2. Morkels3. Russells4. Joshua Doore5. Game

Pietermaritzburg1. Game2. Makro3. Hirschs4. Checkers Hyper5. OK

East Rand1. Game2. HiFI3. Morkels4. Geen & Richards5. House & Home

Computers or computer equipment – P12m

39% 18% 17% 10% 6%

JHB North1. Incredible

Connection2. Game3. HiFi4. Dion Wired5. Makro

Bloemfontein1. Incredible

Connection2. Kloppers3. HiFi4. Game5. Makro

Garden Route1. Incredible Connection2. Game3. HiFi4. Independent5. House & Home

Durban1. Game2. Makro3. Incredible

Connection4. Hirschs5. Dion Wired

Pretoria1. Game2. Incredible

Connection3. HiFi4. Independent5. Makro

47% smartphone

53% not smartphone

Fourways 87% Centurion 79%Ruimsig 83%

Mamelodi 73% Ladysmith 78%Diepkloof 73%

For brand too – an example of relevancy

88% have cellphones

Base: Have a cellphone and service provider with

Chatsworth

Merebank

Port Elizabeth

Kimberley

Phoenix

Kempton

Richards Bay

Polokwane

PTA central

Pimville

Middelburg

eMalaheni (Witbank)

Secunda Bethal

Mokopane(potgietersrus)

PTA North

Lower South Coast

Gugulethu

Ladysmith

Mitchells Plain

Sedibeng

42% 46%

1%13%

Prepaid, 77

Contract, 20

Top up, 4

1. 2. 3. 4.Specialist 5.

All areas 20% 19% 17% 16% 11%

Alberton 45% 20% 16% 1% 5%

Soshonguve 16% 50% 10% 7% 5%

Berea 5% 6% 38% 9% 33%

Athlone 9% 7% 17% 55% 2%

Pretoria East 29% 33% 3% 7% 36%

Bought DIY or paint in the past 12 months

DIY or paint in the past 12 months

….the real battle for share of mind happens on the ground

In reality…

Its ok – I can rely on lots of loyal customers…

You’re the best! real or fantasy?

Or polygamously loyal…

Shoes & clothing

Of all PDM’s who have shopped at Edgars (2,233,406) in the past 6 months for shoes and clothes

Shoes & clothing

Of all PDM’s who have shopped at Jet(1,440,756) in the past 6 months for shoes and clothes

Patterns stay the same…Supermarket

Of all PDM’s who have shopped at Woolworths (692,536) in the past month for food and groceries

Even chicken lovers cross the line…

Of all PDM’s who have bought take-aways at KFC(3,208,368) in the past month

You also bank with who? Never!

ROOTS get to grips with the flirts

30% of ‘nedbankers’ have an account at another bank!

You share the same customers as your competitors

Fine, I’ll focus on a specific target market…

Bummer of a birthmark Hal…

Warning: Targeting a segment within your category could be lethal

Some evidence: Clearwater Mall shoppers

35 37 43 30 37 39

45 44 4546

50 48

21 19 12 24 13 13

26 2643

1836 27

8 8

8

6

14135 6

2

4

74

61 60 4772

4456

Clearwater Mallshoppers

Clearwater Mall andEdgars shoppers

Clearwater Mall andTruworths shoppers

Clearwater Mall andWoolworths

shoppers

Clearwater Mall andJet shoppers

Clearwater Mall andMr Price shoppers

16-34 years 35-49 years 50+years Black Coloured Indian White

Source: Roots 2013 Base: Shopped for shoes/ clothes in the past 6 months

Age & race

JHB South: Southgate shoppers

2 2 2 3 4 124 19 15 14

31 24

27 28 30 3027

31

21 18 22 2117 17

17 22 20 22 12 169 10 11 10 8 1014 14 10 12 21 13

33 27 23 2837

33

1818 20 22

1717

21 24 2421

1622

14 17 24 18 9 13

Southgate Mall Southgate Mall andEdgars

Southgate Mall andTruworths

Southgate Mall andWoolworths

Southgate Mall andJet

Southgate Mall and MrPrice

LSM 1-5 LSM 6 LSM 7 LSM 8LSM 9 LSM 10 Less than R3 999 per month R4 000 - R7 999 per month

Source: Roots 2013 (Household weight) Base: Shopped for shoes/ clothes in the past 6 months

LSM’s & Household income

KZN: Gateway shoppers

35 38 49 35 31 40

30 3230

33 37 32

34 29 21 31 32 27

20 1930

22 17 204 4

66 6 6

55 64 4543

74 58

21 13 19 304

16

Gateway shoppers Gateway and Edgarsshoppers

Gateway andTruworths shoppers

Gateway andWoolworths shoppers

Gateway and Jetshoppers

Gateway and MrPrice shoppers

16-34 years 35-49 years 50+years Black Coloured Indian White


Age & race

Brand profiles differ by area - shoes and clothing

0 0 2 2 0 14 424 19

7 66 6

27 28

13 1210 12

2118

17 1728 29

17 22

26 28

52 49

9 1036 37

4 4 14 14 8 98 6

33 2716 159 11

1818

17 1624 23

21 2433 36

55 56

14 17 26 28

Clearwater Mallshoppers

Clearwater Mall andEdgars shoppers

Southgate Mall Southgate Mall andEdgars

Gateway shoppers Gateway and Edgarsshoppers

LSM 1-5 LSM 6 LSM 7 LSM 8LSM 9 LSM 10 Less than R3 999 per month R4 000 - R7 999 per monthR8 000 - R11 999 per month R12 000 - R24 999 per month R25 000+ per month


Food and groceries etc.

39 39 38 4020 16

35 35 26 2629 32

26 25 36 3451 52

33 33

100 100

8 8

13 11

0 0

26 26

54 55

0 0

66 66

5 426 23 9 1011 8

46 49

21 1915 14

11 11

10 1132 36

13 12

32 30

36 384 4

27 29

Boksburg Boksburg: Pick nPay F&G Shoppers

Pimville Pimville: Pick n PayF&G Shoppers

Constantia Constantia: Pick nPay F&G Shoppers

16-34 35-49 50+ BlackColoured/ Indian White Less than R3 999 pm R4 000 - R7 999 pmR8 000 - R11 999 pm R12 000 - R24 999 pm R25 000 + pm

Source: ROOTS 2013* Food & grocery shopper base: 5,398,050 PDM**Household weight used for monthly HH income.

Geography=demography

shopper profiles closely match the area profile - not some idealised description of a brand profile!

advertising was simple but sexy

It was much easier

National media got the reach

It was easy to plan

It was more about being different

There was little pressure

Today that’s part of the imagination world

Coming home – rooted in reality

87

The challenge for marketing communication today

Reach, Reach and Reach

And did we mention…

Whether its of affluent areas

0

10

20

30

40

50

60

70

80

90

Ruimsig Durban North Houtbay

89

90% LSM 8-10 79% LSM 8-1099% LSM 8-10

42

38 8 10

710

15

1

22

3 4 2

106 5

31

3 2 2 15

7

03 4 5

14

2

812

914 12

7 6 4

1511

7369

6668657171

67

05 3

7 85 5

15

Tsakane andKwa Thema

Bedfordviewand Edenvale

Benoni Boksburg Brakpan Germiston Kempton Springs

Community Paper Beeld Daily Sun The Star

City Press Rapport The Sunday Times

of a region - East Rand

of relevant markets:eg Secunda Bethal for Audio Visual Equipment p12m

78% read

Every week

14% read Huisgenoot11% read Rapport

10% read Beeld

14% read Daily Sun

REACH

of the middle class

0

10

20

30

40

50

60

70

Soweto LSM 4-7 markets

Local newspaperDaily SunInternetSunday SunSunday Times

REACH

of the techies!

0

10

20

30

40

50

60

70

80

Fourways - topinternet area (75%

access pm)

Buy Data bundle forinternet (all areas)

Local newspaper

Best Daily newspaper

Best weekendnewspaperBest Weekly magazine

REACH

of shoppers: Clearwater Mall p3m

67%15%

13%

9%

REACH

Read their local paper

Or even of ABSA credit card holders…

Local newspapers reach 74%

REACH

No matter what market, demographic or area you need to reach…

…No other media can deliver these numbers with one exposure a week!

Why?

Community newspapers’ operate on the ground

Area by area…

Editorial and shopping information cater for South Africa’s different geo-segments

Our readers are your shoppers

the area profiles match the reader profiles

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sandton - JHB SandtonChronicle

Chatsworth -Durban

ChatsworthRising Sun

Athlone - CapeTown

Athlone News Orlando -Soweto

Urban News -Orlando

Black Coloured Indian White LSM 4 to 6 LSM 7 to 8 LSM 9 to 10

Maximum reach area by

area

When buyers are planning

their shopping

Delivered to the correct

markets

Delivered at the right time

Reach +

A great success story

In contrast to other newspaper categories…

Circulation 1997 to 2012 – Community Papers V Daily and Weekend Papers Verified Circulation

25 722 000

34 934 000 3 066 935

4 080 269 3 383 812

2 344 044

6 426 197

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1997

1997

1998

1998

1999

1999

2000

2000

2001

2001

2002

2002

2003

2003

2004

2004

2005

2005

2006

2006

2006

2006

2007

2007

2007

2007

2008

2008

2008

2008

2009

2009

2009

2009

2010

2010

2010

2010

2011

2011

2011

2011

2012

2012

Population (Adults 15+) AMPS - Right hand axis Total Daily and Weekend Papers Circulation

Local Papers (Sold&Free)

36% increase in population

174% increase in circulation

Source: ABC/ VFD (1997 – 2012) Note: Local Papers excludes Shoppers Friend, Inside Out, Homemakers Fair & Hometalk

ROOTS resembles reality

All dailies / weekends ABC down -

11% since 2009

ROOTS all dailies weekends reach

down -12% since 2009

103

But Buffet says it best- on why Berkshire Hathaway invested $344 million into local press in 2013

“Newspapers continue to reign supreme in the delivery of local

news. If you want to know what’s going on in your town –whether the news is about the mayor or taxes or high school

football – there is no substitute for a local newspaper that is doing its job. A reader’s eyes

may glaze over after they take in a couple of paragraphs about [national or international news]; a story about the reader himself or his neighbours will be read to

the end.”

Roots is your view on reality

Thank you! – back to life – back to reality

Available free from the 18th April 2013 from:

www.nab.co.zaTop line results on your usb card

roots 2013 launch

Documents