Reprinted from directmarketingiq.com See article at bit.ly/1rBPr2p By Ted Grigg Editor’s Note: The following is an excerpt from “Strategy & Tactics for Boosting Direct Mail Response,” the 122-page report from Direct Marketing IQ that features best practices from leading direct mail experts. Nothing causes the creative team more stress than clients who never seem happy with the creative work. If you’ve been in this business for a while, you know the story only too well. In spite of brilliant execution and access to top creative talent, multiple revisions serve only to raise the temperature of the project. In the end, the breakdown destroys trust and respect on both sides of the aisle. 8 2 FROM THE PRESIDENT 3 OVERCOME SILOS WITH INTEGRATED MARKETING MANAGEMENT 6 TEMPO AWARDS/WINNERS 8 PERIODIC TABLE OF CONTENT MARKETING 9 CADM VOLUNTEER CORPS 10 DM EXPERTS 11 CADM SPONSORS 2014 4 › adMarks is printed by Vision Integrated Graphics Tinley Park and Chicago, IL VOL. 20 • ISSUE NO. 8 • AUGUST ’14 CADM Corporate Partner Creative teams believe they have great ideas to resolve the problem, while other key players (such as the client) have their own ideas about what the problem is and their own vision on how to solve it. How did things get to this point? Without advance agreement on a well-pre- pared Creative Brief by both the creative group and the client, the creative team must work in a vacuum. This sets up the creative project for failure. How can you avoid this nightmare? Prepare a written Creative Brief — the Missing Link for successful creative development. Whose job is it to make sure there is a con- sensus on the assignment and that all parties have reasonable expectations of each other? ad M arks Celebrating CADM SUPERSTARS! The Missing Link to Successful Direct Marketing Ted Grigg CADM Annual Meeting Luncheon The Place to Connect. Communicate. Grow. Please join us Thursday, August 21st, 2014 at Wildfire for the CADM’s 59th Annual Meeting and Luncheon. Meet the 2014–15 Board of Directors, and hear about the State of the CADM, including exciting plans for next year. The luncheon will feature presentations of the Natalie P. Holmes Volunteer of the Year and the Wheelless Mentoring Award. • What: August 2014 CADM Annual Meeting and Luncheon When: Thursday, August 21, 2014 11:30 a.m. Cash Bar & Networking 12 p.m. Luncheon and Program Where: Wildfire Restaurant 159 W. Erie St, Chicago Fee: Member Non-member Before 8/17 $49 $64 After 8/17 $54 $69 To register: Visit www.cadm.org MEMBERS ★ AWARD WINNERS ★ VOLUNTEERS ★ SPONSORS FEATURED IN THIS ISSUE!
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Transcript
Reprinted from directmarketingiq.comSee article at bit.ly/1rBPr2p
By Ted Grigg
Editor’s Note: The following is an excerpt from “Strategy & Tactics for Boosting DirectMail Response,” the 122-page
report from Direct Marketing IQ that featuresbest practices from leading direct mail experts.
Nothing causes the creative team more stressthan clients who never seem happy with thecreative work. If you’ve been in this businessfor a while, you know the story only too well.
In spite of brilliant execution and access to top creative talent, multiple revisions serveonly to raise the temperature of the project. In the end, the breakdown destroys trust and respect on both sides of the aisle.
8
2 FROM THE PRESIDENT
3 OVERCOME SILOS WITH INTEGRATED MARKETINGMANAGEMENT
6 TEMPO AWARDS/WINNERS
8 PERIODIC TABLE OF CONTENT MARKETING
9 CADM VOLUNTEER CORPS
10 DM EXPERTS
11 CADM SPONSORS
201 4
4›
adMarks is printed by
Vision Integrated Graphics Tinley Park and Chicago, IL
VOL. 20 • ISSUE NO. 8 • AUGUST ’14
CADM Corporate Partner
Creative teams believe they have great ideasto resolve the problem, while other key players (such as the client) have their ownideas about what the problem is and theirown vision on how to solve it.
How did things get to this point?
Without advance agreement on a well-pre-pared Creative Brief by both the creativegroup and the client, the creative team mustwork in a vacuum. This sets up the creativeproject for failure.
How can you avoid this nightmare? Preparea written Creative Brief — the Missing Linkfor successful creative development.
Whose job is it to make sure there is a con-sensus on the assignment and that all partieshave reasonable expectations of each other?
adMarks
Celebrating CADM SUPERSTARS!
The Missing Link to Successful Direct Marketing
Ted Grigg
CADM Annual Meeting Luncheon
The Place to Connect.Communicate. Grow.Please join us Thursday, August 21st, 2014 atWildfire for the CADM’s 59th Annual Meetingand Luncheon. Meet the 2014–15 Board of Directors, and hear about the State of theCADM, including exciting plans for next year.The luncheon will feature presentations of theNatalie P. Holmes Volunteer of the Year and the Wheelless Mentoring Award. •
What: August 2014 CADM Annual Meeting and Luncheon
When: Thursday, August 21, 201411:30 a.m. Cash Bar & Networking12 p.m. Luncheon and Program
It is almost the end of another program year for CADM — our first as the New CADM! This is an ideal time to recognize all our members who have actively planned, produced and participated in CADM’s manyactivities as we work together to continue building our New CADM.
On pages 9 and 11 you’ll find lists of our CADM Superstars! Congratu-lations and thanks to all of you! Among the Superstars, there are some Leading Lights that I would like to call out for special thanks and acknowledgement:
★ Andy Gold, for her tireless work in making adMarks a great read, and to designer Marilyn Markle, who created the new adMarks look, and edits and produces each issue.
★ Brenda McGowan, for planning and executing three After Hours in the ’Burbs events.Brenda identified the venues, found sponsors to underwrite the events to keep registration fees low, and prepared all the marketing.
★ Randy Hlavac for so many roles, but particularly for spearheading the “New CADM”structure and communications.
★ Brent Carter for initiating and helping to organize the Roundtable Discussions onCADM’s future. (More on the results of these discussions in our next issue of adMarks!)
★ Mickey Alam Khan, for organizing the December Mobile in the Morning event andApril’s Mobile Marketing Day. Mickey planned the programming, arranged for thespeakers, and, through his company, Mobile Marketer, underwrote both events.
★ Tracey Cymbal, for leading the Basic Course Committee. Tracey organized two concurrent Basic Course sessions — one in Chicago and one at Uline’s Wisconsin headquarters. We are in awe of her organizational and leadership abilities!
★ The Vision Team, consisting of Cyndi Greenglass, Randy Hlavac, Ron Jacobs, FrankRoman, (and me) for charting the course and guiding the realization of the “New CADM.”
★ Denise DiSieno, for managing the registration desk, and warmly greeting everyonewith her smile, at CADM events.
★ Frank Ottolino and Digital People, for their long-term, and much valued, sponsorshipof CADM and our activities.
★ Brad Schwab, for his leadership and involvement in so many CADM activities this year.
Brad, with the Tempo Awards Committee, overhauled and updated the entry cate-gories. He and the committee also planned and presented the Tempo Awards Gala.
Brad led the Social Pillar, which sponsored two networking events during the year; andcreated the outline for Roundtable Discussions.
In all his activities, Brad has effectively involved members, colleagues, and graduate students in CADM. In recognition of his ongoing leadership and guidance, we will behonoring Brad with the Wheelless Mentoring Award at the Annual Meeting Luncheon.
★ Jacobs & Clevenger, for our newly designed interactive CADM website, which debuted to much fanfare this spring. The Jacobs & Clevenger design and copywriting team, led byBilly Pyle, gave their time and talent to create a much needed and appreciated new site.
In recognition, Jacobs & Clevenger has been named the 2014 Natalie P. Holmes Volunteer of the Year. The award will be presented at the Annual Meeting Luncheon.
Finally, I thank you, CADM members, for your participation and support of our organiza-tion. I look forward to celebrating with you at the August 21 Annual Meeting Luncheon.
Best regards,
P.S., A huge THANK YOU to our Executive Director, Glenda Sharp, who keeps us all ontrack and organized, and ensures that things happen as scheduled — and with a smile!
2 from thePresident
Susan Kryl
CADM Mission StatementThe Chicago Association of Direct Market-ing serves as the hub for Midwest marketers to network and learn from multidisciplinaryteams in the areas of digital, social, mobile and response marketing.
OFFICERS
President: Susan Kryl, Kryl & Company
Immediate Past President: Frank Roman, Happy As You Decide To Be
DIRECTORSMickey Alam Khan, Mobile Marketer, Mobile Commerce Daily and Luxury Daily
For a complete contact list of CADM’s volunteer leaders, visit www.cadm.org.
2013–14 Leadership Team
(ISSN# 1083-611X)
(USPS # 13036)
is published monthly except combined issues of december/january and may/june by CADM P.O. Box 578Westmont, Illinois 60559-0578312.849.CADM (2236) www.cadm.org
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insider Insights 3Overcome Silos With Integrated Marketing Management
Reprinted from dmnews.comSee article at bit.ly/1k8SDDZ
By Ginger Conlon, Editor in Chief
“The number of opportunities to engage customers has rapidly expanded and exploded,”Gartner Research VP Kimberly Collins said atthe Gartner Customer 360 Summit — and farmore so than marketing budgets have. What’smore, few marketers ever “throw things out”;they just add to their ever-expanding marketingmix, Collins says. But many of these channelsare and remain siloed. As a result, customersare often left “confused and unhappy with inconsistent and contradictory messages andtreatment across channels,” she said.
So how can marketers create a more holistic,consistent customer experience? Collins recom-mended adding a new set of Four P’s to themarketing roster:
1. Align People,
2. Automate Processes,
3. Measure and Optimize Performance, and
4. Make Marketing a Profit Center.
Marketing may never have a P&L, she said,but there needs to be insight into how market-ing impacts revenue. (And yes, the old Four Psof marketing — product, price, promotion,and placement — still apply, Collins said.)
1. The first is Executional Processes, or campaign management processes such as in- and outbound marketing, segmentation,and lead management and nurturing. “It’sabout driving that top line,” she said.
2. The second is Operations Processes, or marketing resource management (MRM)processes including planning and financialmanagement and marketing fulfillment. “Saving money here allows marketers to domore of the sexy, innovative things that can differentiate a brand,” Collins said.
3. The third is Analytic Processes such as marketing mix optimization, marketing ROIanalysis, and marketing performance man-agement. Collins noted that there are areasof overlap among the three, like voice of the customer and content marketing.
But where should marketers focus first or emphasize more? Just about every area is hot
This means departmental and channel-basedsilos within marketing need to be aligned andintegrated to create collaborative marketing; in other words, integrated marketing manage-ment, says Collins. There are three processareas within this integration that marketersneed to focus on, she pointed out: 5›
I have found that it is out of the abundance of such knowledge that creative teams are able to generate the highest possible response ratesfrom their work.
As such, the marketer does the homework needed to write the creativestrategy, and the creative team spends at least 50% of its time learningabout the client and his product, customers and past creative efforts thatinform the Creative Brief.
I see the Creative Brief as a meldingof the marketing plan with the creative strategy. Let’s look at thecharacteristics of strong CreativeBriefs, versus weak ones.
Strong Briefs:• Quantify the objective
• Organize the information accurately
• Reveal emotional insights that might lift response
• Respect the overall brand
• Summarize information about the client, the client’s customer and the competitive environment
• Include samples of past winners and losers
• Supplies any available competitive samples
Weak Briefs:• Lack an offer or guidance for developing a strong offer
• Focus on the client’s needs rather than those of the target audience
• Do not provide essential information as needed for the project
• Omit concrete and factual support for the claimed product benefits
• Disregard basic target market information such as mailing list descrip-tions, demographics and any other pertinent customer information
How about the organization of the final document? Creative Briefs cantake on many different and useful formats. But here are the seven essentials of the effective Direct Marketing Creative Brief.
1. State the objectives
2. Describe the customer benefits
3. Define the target audience
4. Discuss the offer
5. Summarize the customer’s perceptions about the advertiser’s product
6. Provide the “givens” and brand requirements
7. Reveal the relevant budgets. •As the owner of DMCG, a direct marketing consultancy based in Dallas,Texas, Ted Grigg brings deep and broad direct marketing experience to hisclients across the country. In the last 25 years, he has spent several hundredmillion dollars for direct marketing clients in all available direct responsemedia. Ted acts as a personal “think-tank” for direct marketing planning and strategy development. He can be reached at [email protected].
4 insider Insights1
› The Missing Link to Successful Direct Marketing (continued)
I believe that job falls primarily on the marketer and not the creative director. Of course, both the marketer and the creative team should collaborate on the written document.
But getting the client’s approval and documenting the creative approachrequires a holistic perspective combining the knowledge of the cus-tomer, the market environment and the offer itself into a unified creativeimplementation plan. The marketer or account manager enjoys a uniqueposition for developing such a document.
Some creative people take exception tothis disciplined approach in favor of rely-ing 100 percent on their intuitive skillswhile spending little time learning moreabout the client, their customers andother seemingly extraneous information.
But undisciplined creative brilliance often depends upon anecdotal assumptions that are often wrong. It’s like paying a skilled bricklayer tobuild a house without an architectural plan or an architect to design anoffice building without detailed input on how the customer intends touse it.
The creative team should have the facts that relate to the customer’s target market, competitive environment, and other inside knowledgethat may not appear to relate directly to the problem at hand.
Should all of these people receive the same mail piece?
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The marketer does the homework neededto write the creative strategy, and the
creative team spends at least 50% of itstime learning about the client…”
in marketing today, Collins said, so it can bedifficult to prioritize. It comes down to whattype of customer engagement strategy an organization wants, she said. For example, active, or real-time, marketing focuses more on event-triggered marketing, personalization,and contextual marketing. There’s also emo-tional, or customer experience and loyalty marketing, where the goal is to strengthen thecustomer relationship. Another area is rational,or social marketing, which includes crowd-sourcing and online communities. A fourth isethical, or moral, marketing such as affinitymarketing.
Integrated marketing management drivesclosed-loop customer engagement that supportsand helps to blend those areas, she said.
Collins recommended several steps that marketers can take to help make integratedmarketing management a reality. The initialsteps are to start the dialog between marketingand IT, and to assemble a team with partici-pants across the marketing ecosystem and IT
to audit marketing processes and technologiesand identify opportunities. Once those are inplace, appoint a marketing operations director,determine the organization’s customer engage-ment strategy, and then set supporting objec-tives and KPIs.
Additionally, determine which marketingstrategies and processes require automationand set a timeline to implement the neededtools. Finally, develop a flexible integrated marketing management roadmap and a marketing optimization management strategy.
“Marketing is [arguably] the most complex department within an organization today,”Collins said. CMOs are dealing with a compli-cated ecosystem and face a nexus of disruptiveforces, including pervasive access via mobileand circles of influence via social. Integratedmarketing management is what marketingleaders need today to help conquer that com-plexity and deliver on customers’ expectationsfor a consistent and relevant experience.•
As editor-in-chief of Direct Marketing News, Ginger Conlon develops and directs its editorial vision and content strategy. She was recently cited as one ofthe “Top 100 Most Social Cus-tomer Service Pros on Twitter,” by Huffington Post contributorVala Afshar, CMO and CCO at Enterasys Networks. Ginger has contributed toseveral business books, including Capitalizing onthe Voice of the Customer, CyberSelling, andCRM at the Speed of Light. Additionally, she isquoted in two chapters of the recently released Big Data Marketing, by Teradata CMO LisaArthur.
Ginger Conlon
Overcome Silos With Integrated Marketing Management (continued)3
On Thursday, July 17 CADM hosted nearly 70of the Midwest’s top marketing and creativetalent at its annual Tempo Awards Ceremony.TheWit Hotel’s cibo matto space offered amodern and elegant ambiance that was a perfect fit for honoring 2014’s best marketingwork in terms of strategy, creativity and results.The work honored at the event included directmail, print, digital and interactive, and socialmedia.
Brad Schwab, 2014 Tempo Award Chair -person was the night’s emcee/host. Brad congratulated all of the companies who submitted entries, thanked the countless volunteers and judges who help make theaward ceremony happen, and recognized theCADM and Tempo Sponsors — Digital People,FCB, General Marketing Solutions, QuadGraphics, and Umarketing.
The high energy continued with representativesfrom each of the event sponsors presenting the17 category winners from the 95 submissions.The evening was capped off with the presenta-tion of the three Special Awards of the night:
Innovation & Excellence in Print ProductionAward: Andy Gold of ASG Direct and adMarkseditor, presented the award to Zocalo Groupfor their “Turning Low-Interest Candy into aMust-Taste Experience” campaign.
The Jay Gondelman Award (excellence in digital/social/mobile marketing): Tracey Cymbalof Evoke Productions presented the award toZocalo Group, again for their “Turning Low-Interest Candy into a Must-Taste Experience”campaign.
The Past Presidents Award: Frank Ottolinofrom Digital People, a long-time partner ofCADM, presented the night’s best in classaward to the American Bar Association for their “Be A Leader” campaign.
It was a memorable and inspiring night of net-working, good food and celebrating success. Pictures from the gala event are shown here; visit CADM’s Facebook page for more. •Event photos by David Ferris
Tempo Awards Honor Top Marketing Talent
(Top to bottom)TheWit Hotel’s cibo matto room offered an ideal space to showcasewinning entries.
The Zocalo Group took home the Innovation & Excellence in Print Production Award for their Werther’sCandy mailing. The campaign alsoreceived the prestigious Jay Gondel-man Award.
American Bar Association’s “Be ALeader” interactive marketing campaign won the coveted PastPresidents’ Award.
One chief content marketer, Chris Lake ofEconsultancy, drives home the idea of marketing as a science with his Periodic Tableof Content Marketing (see below). Lake is inspired by Russian chemist and inventorDmitri Mendeleev — who created his own version of the periodic table of elements(which most of us remember from high schoolchemistry classes). In his colorful chart, Lakegives us a playful, yet acutely reflective depiction of content marketing in 2014.
Curating and crafting valuable content can beexecuted and measured in a myriad of ways —from the creation of blogs and webcasts tocase studies and polls. Lake indicates in hisseven-step guide to success that marketersmust first determine the strategy, format, content types, and platform, and then quantifythe success of their campaigns through trackingmetrics and mapping goals. Sound likes scienceto me.
Without question, content marketing can bolster brand awareness, advocacy, and ofcourse sales. The Periodic Table of ContentMarketing is a great way for marketers to embrace their craft as an exact science — and have a little fun too. •Natasha Smith is a Senior Editorfor Direct Marketing News andcovers marketing, technology,and social media trends. Shejoined DMN in February 2014.Her journalism experience in-cludes reporting and producing at Cotton Candymagazine, NBC New York, News 12 New Jersey,and CNN in Atlanta.
The Periodic Table of Content MarketingReprinted from dmnews.comSee the blog at bit.ly/1tuV5EN
By Natasha D Smith, Senior Editor, DMNews
I think most marketers can agree that the industry is part creative, part technical, and certainly part mathematical with constant track-ing of metrics, KPIs, sales, and other numerics.But I don’t know if most marketers think ofthemselves as scientists. I’d like to challengethat thinking and consider the Merriam-Web-ster dictionary definition of an exact science:science, such as physics, chemistry, or astronomy,whose laws are capable of accurate quantitativeexpression. Although some of marketing is instinctive, the field is arguably evolving moreinto an exact science every day with quantita-tive expressions that can be measured for accu-racy in seemingly every marketing channel —social, email, mobile, display ads, and ofcourse, direct mail.
★ 2013-14 CADM Volunteer Corps ★The officers, members of the Board of Directors, and staff of the Chicago Association of Direct Marketing would like to sincerely thank the following CADM Members for their generous time, energy, and drive to imagine, create, and implement CADM’s extensive Programming.
This last year these dedicated CADM Members envisioned and created 11 Events!
You can see by the participation below, being part of CADM’s Volunteer Corps or Speaker Series will expose you to a broad cross-section ofChicago’s direct marketing community. Join us.
CADM’s Strength is its Membership. CADM’s Strength is YOU!Kelly Abeles, American Dental Association
Mickey Alam Khan, Mobile Marketer
Mary Pat Anders, Midan Marketing
Scott Ballew, A. Eicoff & Co.
Roseanne Bartle, Umarketing
Alexis Berger, Kargo
Lisa Bishop, Gray Television
Josh Blacksmith, FCB
Hunter Bradford, Millenial Media
Michael Bryers, FCB
Thomas Byrne, Byrne Direct Marketing
Brian Camen, Ogilvy
Alex Campbell, Vibes
Brent Carter, Restaurant.com
John Connellan, The Executive Technique
Andy Crestodina, Orbit Media Studios
Tracey Cymbal, Evoke Productions
Joe DeCosmo, Enova International
Bess Dilulio, Umarketing
Gerilyn Difatta
Denise DiSieno, Packaging Printing Specialists
Patrick Feeney, Blue Cross Blue Shield
Wil Ferrell, Starcom MediaVest Group
David Ferris, Ironwheel Works
Cyndi Greenglass, Diamond Marketing Solutions
Andy Gold, ASG Direct
Amy Guisto
Jerry Hannigan, College of DuPage
Rich Hagle, Racom Communications
Charlotte Hansen, MobileFuse
Holly Harle, Diamond Marketing Solutions
Randy Hlavac, Northwestern University and Marketing Synergy, Inc.
Richard Hren, Hren & Associates
Denise Hughes Valles, FCB
Ron Jacobs, Jacobs & Clevenger
Susan Jones, Susan K. Jones and Ferris State University
Christopher Krohn, Restaurant.com
Susan Kryl, Kryl & Company
Sid Liebenson, Priests of the Sacred Heart
Dasher Lowe, OgilvyOne
Richard Marcus, Infogroup
Marisa Marinelli, Quad/Graphics
Marilyn Markle, Markle Design Group
Brenda McGowan, Anchor Computer
Dave McSweeney, Diamond Marketing Solutions
Randy Mitchell, Jacobs & Clevenger
Patrick Moorhead, Catalina
Suz Murphy
Jack Philbin, Vibes
Pam Pole
Billy Pyle, Jacobs & Clevenger
Phyllis Reda, Ami Marketing
Dirk Rients, DDB Chicago
Frank Roman, AsHappyAsYouDecideToBe.com
Brad Schwab, Schwab Group
Jim Sherman, Gamma Partners
Mark Tack, Vibes
Ellen Valentine, Silverpop
Randy Wait, Leapfrog Online
Brian Wright, e-querryUSA
Mark Ziner
Please let us know if any 2013-14 Volunteer Member was omitted from this list.
CADM is extremely grateful to all of our Volunteer Corps! We couldn’t do it without YOU!
Lessons on Segmentation from Coca-ColaSouth Africa
Clearly the U.S. has no monopolyon smart marketing plans. Anything you can share on globalmarketing?
In May I was privileged to travelon a study trip organized by theUniversity of South Carolina’sMoore School of Business. Oneof our visits was to meet with
executives from Coca-Cola South Africa(www.cocacola.co.za/), and to visit some ofthe small Spaza Shops in rural towns. During a briefing at Riverside Country Estate outsideJohannesburg, we learned that South Africa isa top 10 global market for Coke, both in termsof sales and profits. Quite impressive consider-ing that Coke sells in 200 countries worldwide.
Our host spent much of his time explainingthe segmentation plan that Coke has adoptedsuccessfully in South Africa. It focuses on thefact that the country essentially has two realities.
Reality #1 – Developed• Advanced
• Sophisticated
10 ask theDM expertsAsk the DM Experts
by Susan K. Jones, Susan K. Jones & Associatesand Ferris State University
“Ask the DM Experts” is a monthly adMarksfeature. Professor Susan K. Jones draws onthe knowledge of CADM members andother authorities to answer your questions— so tell her what you want to ask! ContactSusan at [email protected] or follow heron Twitter @sjones9200.
To serve these markets effectively, Coke usesdeciles to divide the population by living standards.
Living standards 1-6 represent 65% of the population and are characterized as follows:
• 34.2 million people
• 21% of income
• Household daily disposable income of 106Rand (approximately $10.60) — note that the average household in these segmentsmay include an average of 10 people withperhaps only one breadwinner
The main thing that Coke tries to provide thesecustomers is product that is relevant, affordable,and “local and traditional” — e.g., the SpazaShops described below. The ideal is that Cokealways be “within an arm’s reach of desire.”
Living standards 7-10 represent 35% of thepopulation and are characterized as follows:
• 18.6 million people
• 79% of income
• Household daily disposable income of 612 Rand (approximately $61.20).
The main things that Coke tries to providethese customers are products that are appro -priate for pantry loading (larger containers), relevant, offering perceived value, convenient,cognizant of health and wellness (i.e., juicesand waters), and variety. This customer is likelyto purchase Coke at larger outlets like grocerystores and Makro, a Sam’s Club type venturethat is part of Walmart.
Spaza ShopsRepresentatives from Coca-Cola of South Africakindly took our group on a visit to several SpazaShops in the townships surrounding Johannes-burg. Spaza Shops are usually small stores thatmight be in storefronts or even in a spare roomof someone’s home. They carry basic needs likebread and other groceries, and — of course —Coca-Cola. Such shops provide much-neededincome for their owners, many of whom areunable to find formal employment. Or perhapsa woman with an employed husband will runsuch a shop for extra income.
Q.A.
Because Coca-Cola holds a staggering 84%market share for sparkling beverages in SouthAfrica, it’s not surprising that most of the SpazaShops display large signs outside with theCoca-Cola logo and the name of the shop. Theshops often feature temporary sales promotionposters — during our visit these signs weretouting the World Cup in Brazil, and invitingSouth Africans to “adopt” Brazil as a country.
Coca-Cola knows that in the soft drink world,“if it’s not cold, it’s not sold” — so they workwith Spaza Shop owners to provide various refrigerated containers to hold their wares.Coke reports that shops receiving this type ofhelp typically see a 20-25% increase in sales.
Even street vendors benefit by this program —they can be chosen to receive a barrel-likecooler to keep their drinks cold and ready tosell even in the hot summer months outdoors.
Why is Coca-Cola so dominant in South Africa —both in the Spaza Shops and in hotels andrestaurants? During apartheid, shareholders’distaste for the apartheid regime led manyfirms to pull out of South Africa. Coke did so,but they moved corporate headquarters overthe border to Swaziland, and kept supplyingSouth Africa with their products. Meanwhile,Pepsi pulled out completely. Pepsi returned inthe 1990s only to retreat again — they have re-entered the marketplace in recent years andare slowly gaining market share, but Cokeseems to be more concerned with so-calledlocal “B brands,” such as Kingsley and Twizza.
Coke officials admit that these “B brands” havea good product, and that these products are offered at a lower price. For example, in aGAME store (another part of the Walmart subsidiary), a 2-liter container of Coke mightsell for 180 Rand (about $1.80 at current con-version rates) whereas the “B brands” sell thatsame container for 100 Rand (about $1.00.)
To keep prices down in the Spaza Shops —where single-serving sizes are popular — Cokeuses returnable glass bottles and offers 300 ml.of the product for the equivalent of 40 to 50U.S. cents. Often the product is consumed on-premises and the glass bottle returned rightaway for cleaning and re-use. •
★ 2013–2014 CADM Sponsorship Partners ★The CADM officers, members of the board of directors, and staff would like to sincerely thank the following companies for their partnership
and generous sponsorship of CADM’s many activities, programs, and services during this past year. Sponsorship partners include both financialand in-kind contributions.
• ANCHOR COMPUTER
• BRADNER SMITH & COMPANY
• CONTINENTAL ENVELOPE
• DIGITAL PEOPLE
• FCB CHICAGO
• FCL
• GENERAL MARKETING SOLUTIONS
• GLASERDIRECT
• JACOBS & CLEVENGER
• JAPS-OLSON COMPANY
• LINDENMEYR MUNROE
• MOBILE MARKETER
• NATIONAL DISTRIBUTION SYSTEMS
• OGILVY ONE
• QUAD/GRAPHICS
• SHARPER ASSOCIATIONS
• SILVERPOP
• SIRVATKA CREATIVE SERVICES
• STRATEGIC DATA INTELLIGENCE
• SUMOTEXT
• TRIBUNE DIRECT MARKETING
• ULINE
• UMARKETING
• VALID USA
• VIBES
• VISION INTEGRATED GRAPHICS
Please let us know if a 2013–14 sponsoring company was omitted from this list!
CADM is extremely grateful to all of our sponsors!