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Roots 007 Reveals New Shopping And Media Behaviour Insights

Emerging Markets Marketing

South Africans love fast food and health supplements; cannot live without cell phones; enjoy community newspapers, and regularly stock up on food and groceries. These are just some of the insights gleaned from the Newspaper Advertising Bureau's (NAB's) latest ROOTS 007 research, independently conducted by Research Surveys.

"Our ongoing research began in 1980 and 26 years later, our ROOTS 007 survey has evolved considerably and today predominantly covers consumer retail habits rather than mere media consumption," says NAB Joint Managing Director John Bowles. "In addition, the digital lifestyle has arrived and identifying how consumers use this medium is an essential research issue."

"Analysis from data is so telling that retailers and media agencies can effectively, rather perfectly, pinpoint advertising target markets in focused catchment areas. An excellent planning tool, Roots 007 identifies and drills deeply into advertiser's markets."

"The rainbow nation has become a reality at community level," says NAB's Research Manager Lynne Krog. "Using our proprietary research history one can track back and see the most significant changes in terms of where black PDMs (Purchasing Decision Makers) used to live, work and shop, and importantly, where they are now. Demographic changes began as early as 2001 but the most significant transformation has been between 2004 and 2007."

"Extrapolating trends exposed by our research, I predict that by the next ROOTS survey, the level of black PDMs will overtake the percentage of white counterparts," she says.

Lynne goes on to say that between 2004 and 2007, the number of black PDMs moving into the suburbs escalated rapidly. Southern Johannesburg ratcheted up from 20% -  35%, the Vaal area 27% - 35 %, Northern Johannesburg 25% - 29%, Pretoria 14% - 26%, East Rand 12% - 25%, West Rand 8% - 12%. In Kwa-Zulu Natal, Newcastle has jumped from 21% - 36%, Empangeni 18% - 33%, Pietermaritzburg 21% - 27% and Durban Central from 8% - 18%.

"The northern suburbs of Johannesburg tell an interesting story. They contain some of the wealthiest communities in the country, both in terms of income (Average Monthly Household Income (AMHI)) and Asset Wealth (LSM related). In these wealthy communities, more than 30% of PDMs are black, with the most notable being Sandton with an AMHI of R27 500, 41% LSM 10 and 41% of PDMs being black."

"Midrand has an AMHI of R23 700, 29% in LSM 10 and 54% of PDMs being black, whereas Fourways' AMHI is R22 200, 30% in LSM 10 and 31% black PDMs. North East Johannesburg (Bramley, Lombardy) has an AMHI of R21 000, 19% in LSM 10 and 48% of PDMs are black," says Lynne.

"Another interesting dynamic to note in these communities is the predominant home language presenting as English (more than 50% in each) followed by an African language, mostly isiZulu. The rainbow nation is alive and flourishing in the Northern suburbs!"

She adds that in Cape Town a similar dynamic is in play in Hout Bay, Noordhoek and Durbanville / Bellville, but with the coloured population rather than the black.

Of all PDM's interviewed, research titbits include:

  • By numbers of visitors, the top shopping centre in Gauteng is Southgate followed by the Johannesburg CBD, Cresta and Eastgate.

  • Durban's most frequented shopping centres are Pavillion, Gateway and Musgrave, whilst Cape Town's Century City, Canal Walk and Cavendish Square prove the most popular.

  • Of PDMs interviewed in Johannesburg, 80% indulge in regular take-aways, followed closely by the Pretoria/Vaal areas (78%) and Cape Town (71%).

  • Throughout South Africa, KFC is the favoured fast food outlet (60%) followed by Spur (35%).

  • The emerging markets are currently the biggest monthly bulk shoppers (59%), while Cape Town (40%) and Johannesburg (37%) PDMs prefer frequent shopping trips of every two weeks or more.

  • Pick 'n Pay is the most favoured retailer for food and groceries for PDMs living in Johannesburg and Cape Town, while Shoprite / Checkers is king in Pretoria, Vaal, Durban, Soweto and Alexandra.

  • Johannesburg PDMs are on top when it comes to having four or more technological items in the home (PVR's, PC's, Plasma Screens etc) at 51% followed by Pretoria (48%) and Cape Town (39%).

  • As a cellular service provider, Vodacom dominates Johannesburg, Pretoria and Cape Town while MTN and Vodacom are neck and neck in the Durban, Soweto and Alexandra areas.

John Bowles claims community newspapers remain the best-read newspapers anywhere in the country. "68% of all PDMs interviewed attest to regularly reading a community newspaper as opposed to just 8% of any Afrikaans weekly, 28% of any English weekly and 8% of any black weekly newspaper."

ROOTS 007 has confirmed community newspapers still offer the best value in terms of reach and frequency than any other newspaper or medium, in any catchment area. To ensure our community papers reflect the information acquired from the research we are reviewing the editorial focus of each publication.

"ROOTS 007 has also identified fascinating Soweto shopping patterns," says John. "In the past, many Soweto residents visited malls outside Soweto such as Southgate. The volume was so high it elevated Southgate to the number one position. However, as an outcome of the major shopping centre developments coming online in Soweto, this trend is changing."

The new centres in Soweto accompanied by similar developments in other predominantly black areas will precipitate major shifts in consumer shopping patterns - prompting more spend in the suburbs they live in as opposed to neighbouring areas.

Footnote:
Focused on 92 dedicated urban areas, over 22 000 interviews were conducted with heads of households or Purchasing Decision Makers, resulting in one of the most comprehensive urban retail surveys.

The Research methodology is backed by SAARF - interviewing took place during April and November 2006 strategically to avoid seasonal fluctuations like Christmas. The overall sample consisted of 22 716 interviews (white 10 676, black 7 723, coloured 2 044 and Indian 2 044) with 64% LSM 7-10 breakdown and 28% LSM 9 and 10 breakdown.

E-Tabs UK is involved for the first time, as is the Black Diamonds Research in association with UCT Unilever Institute. Access to ROOTS 007 data is available through: E-Tabs, Telmar, IMS and Eighty20.

Issued on behalf of:
Newspaper Advertising Bureau (NAB)
John Bowles / Gill Randall
T: +27 11 889 0600

Prepared by:
Owlhurst Communications
Chirene Campbell
T: +27 11 234 6520

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