Marketing South Africa in Angola & DRC 02 September 2012 Wavela Mthobeli
Mar 29, 2015
Marketing South Africa in Angola & DRC
02 September 2012
Wavela Mthobeli
Slide no. 2 © South African Tourism 2012
South African Tourism is the official tourism marketing organisation of South Africa. We market across the world focusing on three groups of travellers – international leisure travellers, the domestic and regional traveller, and business tourists who travel to South Africa for conferences and incentives.
SA Tourism is the tourism marketing organisation of South Africa
Understand the market
Choose the attractive segments
Market the destination
Angola has been identified as a core market and DRC as an investment market in the SA Tourism portfolio of markets and a route to market strategy was developed in 2011 to define SA Tourism’s entry strategy into the market and define marketing strategies to grow tourism from this market. This booklet has been developed to help market South Africa in Angola. Detailed information on our marketing plans in each market is available from our Regional Director: Africa & Middle East (see address on the back cover).
As the information in this booklet was sourced in the development of the marketing strategy, it does not include the latest data available on the Angolan market. Current information on the Angolan market is available on our website www.southafrica.net/research.
A key part of our business is to:
May 2012 3 | Copyright © 2012 SA Tourism
Focus Markets Within Africa
Below is the outcome of the fourth portfolio review process that took place during July/August 2009 and which covers the the country SAT will focus its marketing from 2011/12 to 2013/14
Africa Americas Asia & Australasia Europe
Core Markets
Angola
Botswana
Kenya
Nigeria
South Africa1
USA1Australia1
India
France1
Germany
Netherlands
UK1
Investment Markets
DRC
Mozambique
Brazil
Canada
China (incl. Hong Kong)
Japan
Belgium
Italy
Sweden
Tactical Markets
Lesotho
SwazilandNew Zealand Ireland
Watch-list Markets
Malawi
Namibia
Zambia
Zimbabwe
Argentina Republic of Korea
Austria
Denmark
Portugal
Spain
Switzerland
Strategic Importance
Bahrain, Oman, Qatar, Saudi Arabia
Strategic Air Links/Hubs
Egypt, Ethiopia, Ghana, Mauritius, Senegal,
Tanzania, UAE
Malaysia
Singapore
Co
un
try
Ma
na
ge
r
Re
gio
na
l D
irect
or
Sta
keh
old
er
Ma
na
ge
r
Glo
ba
l C
ha
nn
el
Ma
na
ge
r
Responsibility2011 –
2013/4
Note: 1indicates business tourism hubs
May 2012 4 | Copyright © 2012 SA Tourism
Market Phase and Key Characteristics
ConsumerConsumer
ProductProduct
MarketingMarketing
Overall StrategyOverall
Strategy
CompetitorCompetitor
ChannelChannel
Uninformed, price insensitive, multi-purpose
Very individualised Status oriented Few One-stop-shops Unsophisticated, isolated,
experience based Combine with trade
initiatives
Develop positioning
Seek information & opportunity; discover leisure
Emergence of packages (seeking scale effects)
Emerging specialisation/focus
Integrate products; information/choice provider
“Shout”: get as many as you can
Facilitate scale effects (e.g., packages)
Very informed, price sensitive, focus on leisure
Specialised packages
High competition Clear focus Specialisation; information
provider Adapt trade and market to
select segments Understand segments and
select
MarketSymptoms
MarketSymptoms
TourismAuthorityActions
TourismAuthorityActions
Tourism Industry Life Cycle
Note: 1The duration of the four phases of the life cycle may vary significantly; their graphical representation with equal distances may thus be misleading. Source: Framework based on Michael Porter: Competitive Strategy, 1980, Chapter 8 (Industry Evolution)
Tourism in African markets is still in a nascent stage.
Time1
KenyaNigeria
USA
Germany, Netherlands, France, UK, Japan
Italy
SADC, DRC
IndiaSouth AfricaBrazil
This phase may be very long
China, Australia
Botswana
Introduction Growth Maturity
Percentage of population
travelling for leisure
Angola
Mozambique
May 2012 5 | Copyright © 2012 SA Tourism
Agenda
Angola within SA Tourism’s portfolio
Angolan Market Context
Angolan Tourism Market
Angolan Travellers
Messages, Channels and Products for the Angolan Market
May 2012 6 | Copyright © 2012 SA Tourism
Economic GrowthEconomic Growth Angola in the African ContextAngola in the African Context
Macro-Economic Outlook
Economic Growth (1)
The Economist and the IMF ranked Angola as the fastest growing economy from 2001 to 2010, with an annual average GDP growth rate of 11.1%
However, analysts predict that Angola will not be among the top 10 countries in the world between 2011 and 2015
The Economist and the IMF ranked Angola as the fastest growing economy from 2001 to 2010, with an annual average GDP growth rate of 11.1%
However, analysts predict that Angola will not be among the top 10 countries in the world between 2011 and 2015
GDP at Constant Prices and GDP Growth in Angola, 2005–2015E, in Kwanza Bn
CountryGDP
(USD Bn)
GDP per Capita (USD)
GDP Growth Rate (%)
Nigeria 206.7 1,324 7.4%
Angola 85.8 4,812 5.9%
Kenya 32.4 888 4.1%
DRC 12.6 189 5.4%
Mozambique 10.2 473 6.4%
Country Comparison, by GDP, GDP per Capita1 and GDP Growth Rate1, 2010
The Economist and the IMF ranked Angola as the fastest growing economy from 2001 to 2010, with an annual average GDP growth rate of 11.1%
343329
312294
277258
244242
214
178
150
0
50
100
150
200
250
300
350
400
450
5.8%
17.3%
15E14E13E12E11E10E09E08070605
Note: 1At constant prices Source: Monitor and Grail Primary Research and Analysis; “Angola’s Uncertain Future”, The Economist, Nov 2007; “2009 Investment Climate Statement-Angola”, US Department of State; CIA World Factbook; “Africa’s Impressive Growth”, The Economist, Jan 2011; “Oil, Glorious Oil”, The Economist, Jan 2010
May 2012 7 | Copyright © 2012 SA Tourism
Geographic Economy
CABINDA
~60% of the oil resources in Angola are situated in the Cabinda province
CABINDA
~60% of the oil resources in Angola are situated in the Cabinda province
LUANDA Luanda is the most active
region in terms of the economy– Most of the country’s
wealth is concentrated here
– It is the most populous region in the country, accounting for one third of the country’s population
LUANDA Luanda is the most active
region in terms of the economy– Most of the country’s
wealth is concentrated here
– It is the most populous region in the country, accounting for one third of the country’s population
UPCOMING CITIES Although Luanda remains
the centre of activity in Angola, there are people who have decided to move/return to other cities– Benguela– Lobito– Lubango– Huambo
These cities are perceived to offer better lifestyles and/or business opportunities
UPCOMING CITIES Although Luanda remains
the centre of activity in Angola, there are people who have decided to move/return to other cities– Benguela– Lobito– Lubango– Huambo
These cities are perceived to offer better lifestyles and/or business opportunities
Luanda is the most important city economically, and is likely to remain so for the foreseeable futureLuanda is the most important city economically, and is likely to remain so for the foreseeable future
Luanda is the most important province in the country, accounting for ~90% of Angola’s economic activity. It is also the most populated province in the country.
Source: Monitor and Grail Primary Research and Analysis; “Charming Chaos”, The Washington Post
May 2012 8 | Copyright © 2012 SA Tourism
…Leading to Increased Consumerism…Leading to Increased ConsumerismGrowth in the Middle Classes…Growth in the Middle Classes…
Angola’s Growing Middle Classes
SEC Distribution in Luanda (2008–2010) CAGR
’08–’10CAGR’08–’10
This group is focused on status and are thus big spenders
– Prefer international, luxury brands (e.g.: Prada shoes, Louis Vuitton bags, HermN es scarves)
– Drive large luxury SUVs (e.g.: Toyota Prado / VX, Range Rovers)
This group is focused on status and are thus big spenders
– Prefer international, luxury brands (e.g.: Prada shoes, Louis Vuitton bags, HermN es scarves)
– Drive large luxury SUVs (e.g.: Toyota Prado / VX, Range Rovers)
-3%
+23%
+30%
A:
B:
C:
The Angolan demographic landscape is changing, with a wealthy upper middle class emerging. It grew from 9.4% to 15.8%. This group is focused on status and are thus big spenders.
53.7%
35.3%
5.3%1.5%1.6%
0%
20%
40%
60%
80%
100%
2010
42.1%
15.8%
2008
31.8%
9.4%
3.5%
Very Low
Class (E)
Low Class (D)
Middle Class (C)
Upper Middle
Class (B)
Upper Class (A)
• A chauffeur guides
• Drivw shining SUV
• Mostly in smartly suits
• Gated condominium, ferrying a smartly-dressed executive”
– Louise Redvers, Inter Press Service
• A chauffeur guides
• Drivw shining SUV
• Mostly in smartly suits
• Gated condominium, ferrying a smartly-dressed executive”
– Louise Redvers, Inter Press Service
Note: Assume SEC class is linked to income groups: A = >10,000 USD per month, B = 5,000–10,000 USD per month, C = 2,000–5,000 USD per monthSource: Monitor and Grail Primary Research and Analysis; Market Studies; “Rich and Poor — One Country but Worlds Apart”, IPS, Sept 2009; “Rebuilding a Nation”, Mail & Guardian Online, Sept 2008; “It’s Party Time for Luanda’s Elite as Angola Grows Rich on Oil and Gems”, The Observer, Aug 2008; “Media and Market Overview — Angola”, Executive Centre, 2011
May 2012 9 | Copyright © 2012 SA Tourism
Agenda
Angola within SA Tourism’s portfolio
Angolan Market Context
Angolan Tourism Market
Angolan Travellers
Messages, Channels and Products for the Angolan Market
May 2012 10 | Copyright © 2012 SA Tourism
Angolans visiting South AfricaAngolans visiting South Africa
Angolans Visiting South Africa
Overview (1/2)
Angolans Visiting South Africa by Gender Angolans Visiting South Africa by Gender
Angolans Visiting South Africa by Age
In 2011, the number of Angolans visiting South Africa increased to 39k
The major groups travelling to South Africa were single Angolans with no children and married Angolans with children
– In 2009, 32% of travellers were single and 54% were married with children
– However, despite the high number of travellers who are married with children, most Angolans travel to South Africa alone
Angolans across income segments were aware of South Africa, and were willing to visit South Africa
– However, their purpose of visit varied from business-related to multipurpose to leisure
In 2011, 39K Angolans visited South Africa. The Angolan travellers to South Africa are generally 30–39 years old, and are either single with no children or married with children
43% 44% 52% 47%
0%
20%
40%
60%
80%
100%
Female
Male
2009
53%
2008
48%
2007
56%
2006
57%
30% 29% 29% 28%
0%
20%
40%
60%
80%
100%
2009
1%
30%
37%
4%
2008
2%
29%
37%
3%
2007
2%
29%
35%
5%
2006
2%
31%
33%
4%
18-2020–2930–3940–54Over 55
Source: Monitor and Grail Primary Research and Analysis; SAT Departure’s Survey
May 2012 11 | Copyright © 2012 SA Tourism
Volume and Growth of Tourist Arrivals to South Africa (000’s)Volume and Growth of Tourist Arrivals to South Africa (000’s)
Market Attractiveness – Key Indicators
Volume and Spend of Tourist Arrivals to South Africa
Source: Grail Research & Monitor Analysis; SAT Arrivals Survey, 2009–2011
(‘0
00s)
KenyaDRCAngola
23%
Nigeria
9%3%
201120102009
Angola recorded a 3% growth in arrivals and a 2% increase in average spend in South Africa between 2009 and 2011
Average Spend in South Africa per Tourist (ZAR)Average Spend in South Africa per Tourist (ZAR)
(Z
AR
)
KenyaDRCAngola
-4%
2%
Nigeria
10%
-15%
201120102009
3%
May 2012 12 | Copyright © 2012 SA Tourism
Target ConsumersTarget Consumers Messages, Channels and Products
Messages, Channels and Products
Entry Strategy
Overview
Definition of consumer groups based on meaningful variables which differentiate consumer needs and travel behaviour along the buying process
Identification of high growth potential consumer groups based on potential attractiveness to SAT and its ability to win through actionability
Detailed characterisation of consumer groups
A structured process was followed to define and prioritise consumer groups and develop SAT’s communication strategy and its timeframe
Definition of key elements of the message to be used in each market
Identification of the best channels to reach the consumer groups per market
Definition of the key components of the basic package to offer in each market and additional specific components meaningful to the markets
Source: Grail Research & Monitor Analysis
May 2012 13 | Copyright © 2012 SA Tourism
Angolan Travellers
Consumer Groups
The buying process was then mapped for different consumer groups created according to different variables. Lifestyle was proven to be the most significant indicator of travel behaviour
Lifestyle Lifestyle
When analysing the data, it became clear that income was not always a good indicator of lifestyle and travel behaviours, instead, a lifestyle indicator was assigned
– Older respondents earning in a high income bracket could not always afford to lead lifestyles correlated to their income due to large numbers of dependents or other financial burdens
– Younger respondents from wealthy families may not be earning in the high-income bracket, but benefit from familial wealth which allows them to live a “Luxury Seekers” lifestyle
– In one case, spending clearly indicated that a respondent had not been truthful about his income
When analysing the data, it became clear that income was not always a good indicator of lifestyle and travel behaviours, instead, a lifestyle indicator was assigned
– Older respondents earning in a high income bracket could not always afford to lead lifestyles correlated to their income due to large numbers of dependents or other financial burdens
– Younger respondents from wealthy families may not be earning in the high-income bracket, but benefit from familial wealth which allows them to live a “Luxury Seekers” lifestyle
– In one case, spending clearly indicated that a respondent had not been truthful about his income
Note: Lifestyle income p.a for each consumer group: Budget Travellers: USD20k-USD50k; Rising Nouveau Riches: USD50k-USD100k; Luxury Seekers:100k+Source: Monitor and Grail Primary Research and Analysis; SAT Departure’s Survey
Budget TravellersBudget Travellers Rising Nouveau RichesRising Nouveau Riches Luxury SeekersLuxury Seekers
Usually leverage a business trip and stay a little bit longer for leisure or buy for trade
Mainly travel alone Rely on friends or colleagues to gather
information about what to do and where to stay
Look to take advantage of “paying less for the same” by eating out at inexpensive restaurants, relaxing in public parks, shopping at discount stores
Use travel agents to book hotel and flights
Travel usually driven by a personal need (Medical, Event, Study, VFR)
Travel alone, but when possible bring family along (one child at a time)
Rely on friends but also use internet to gather information about where to go
Look to take advantage of “getting much more for the same price” by eating at luxury restaurants, shopping at high-end stores and partying in chic nightclubs
Use travel agents to book hotel and flights
Besides traveling for business, frequently travel for pure leisure
Travel alone, but when possible enjoy the company of friends and family
Rely on friends but also use internet to gather information about where to go
Look for experiences that cannot be obtained in Angola, such as new and different cultures, museums, sights, natural beauty
Use internet to book hotel and flights more often
3 CONSUMER GROUPS EMERGED
May 2012 14 | Copyright © 2012 SA Tourism
Budget TravellersBudget Travellers
Ernesto is married with 8 children and lives in a home in Viana Although Ernesto earns good money (~USD 70,000 per annum) as a
colonel in the Angolan Naval Force, he finds it hard to keep up with the cost of living in Luanda
– He is always saving to pay for his children’s education and to buy them clothing, and is looking to move up from his beat-up Corolla
Ernesto travels internationally quite regularly for business and always tries to add on a few days for leisure
He also saves to be able to go on one international trip once every 1–2 years, where he buys items such as furniture or appliances. He rarely spends superfluously on these trips, choosing budget accommodation and skipping the high-end living / dining experience
For these trips, Ernesto will decide where to go based on what he needs to buy and where he thinks he can find those things for the lowest price
He regrets not being able to take his wife and children with him when travelling, because he thinks it is important to learn about new places and to experience new things
Ernesto generally books his tickets through a travel agency but is sure to shop around for the best price
Ernesto is married with 8 children and lives in a home in Viana Although Ernesto earns good money (~USD 70,000 per annum) as a
colonel in the Angolan Naval Force, he finds it hard to keep up with the cost of living in Luanda
– He is always saving to pay for his children’s education and to buy them clothing, and is looking to move up from his beat-up Corolla
Ernesto travels internationally quite regularly for business and always tries to add on a few days for leisure
He also saves to be able to go on one international trip once every 1–2 years, where he buys items such as furniture or appliances. He rarely spends superfluously on these trips, choosing budget accommodation and skipping the high-end living / dining experience
For these trips, Ernesto will decide where to go based on what he needs to buy and where he thinks he can find those things for the lowest price
He regrets not being able to take his wife and children with him when travelling, because he thinks it is important to learn about new places and to experience new things
Ernesto generally books his tickets through a travel agency but is sure to shop around for the best price
Budget Travellers Consumer Group
Consumer Portrait
Despite not generally choosing their destination, these travellers are focused on getting as much out of international trips as they can, especially shopping for everyday items that are expensive in Angola
Meet Ernesto, a 49 year old Angolan
I usually go through a travel agency because TAAG is a lot
of confusion
I usually go through a travel agency because TAAG is a lot
of confusion
Budget TravellersBudget Travellers
Branca is a single mother of 1 and lives in a informal house in Prenda Branca earns ~USD 25,000 per annum working as a computer operator,
but also has an entrepreneurial venture of her own trading clothes She is not a flashy person and works hard to afford the basics She travels extensively for business but has not really been exposed to
travel outside of the places to which her company chooses to send her. When she travels, she is usually on a shoe-string budget and stays at hostels / backpackers
Branca always takes the opportunity to buy a few things when she goes travelling so that she can come home and sell them for additional income
Branca relies on information from people who have travelled to a country before her
– She is interested in whether or not there is crime and whether there are good places to shop
Branca always books directly with a travel agent and is very price-sensitive when it comes to booking any international travel
Branca enjoyed the time she spent in the shopping malls in South Africa the most, and usually spends on only one good dinner when she travels
Branca is a single mother of 1 and lives in a informal house in Prenda Branca earns ~USD 25,000 per annum working as a computer operator,
but also has an entrepreneurial venture of her own trading clothes She is not a flashy person and works hard to afford the basics She travels extensively for business but has not really been exposed to
travel outside of the places to which her company chooses to send her. When she travels, she is usually on a shoe-string budget and stays at hostels / backpackers
Branca always takes the opportunity to buy a few things when she goes travelling so that she can come home and sell them for additional income
Branca relies on information from people who have travelled to a country before her
– She is interested in whether or not there is crime and whether there are good places to shop
Branca always books directly with a travel agent and is very price-sensitive when it comes to booking any international travel
Branca enjoyed the time she spent in the shopping malls in South Africa the most, and usually spends on only one good dinner when she travels
Meet Branca, a 26 year old Angolan
I do business; take advantage of buying a few things to sell
I do business; take advantage of buying a few things to sell
Source: Monitor and Grail Primary Research and Analysis
May 2012 15 | Copyright © 2012 SA Tourism
Rising Nouveau Riches Consumer Group
Consumer Portrait
This group of consumers is extremely aspirational and visits places like South Africa in order to experience world class luxuries at prices that they can afford
Rising Nouveau RichesRising Nouveau Riches
Isis is single and has no children She makes a good salary working in Total’s HR department, and recently
bought herself a sedan She understands the value of money and will never shop for clothes in
Luanda as she believes that it is way too expensive. She would much rather save up for an international trip to do her shopping, and while there stay at a 3 star B&B and spend some time immersing herself in the local culture
Isis is very conscious of living a healthy lifestyle. She goes to gym regularly and is focused on eating well
On weekends, she spends a lot of time out with friends partying and eating out at the local favourites, but she cannot afford to frequent Luanda’s most exclusive venues; she does like to treat herself to a luxury night out once a month though
Isis says that she needs to travel at least every three months because Luanda is so chaotic. She generally likes to spend more than 10 days away to really feel relaxed
Isis was not aware that travel agents could offer packages, but she would be interested in buying a package that didn’t mandate too many activities. When she goes to a new place, she likes to have time to explore for herself
Isis is single and has no children She makes a good salary working in Total’s HR department, and recently
bought herself a sedan She understands the value of money and will never shop for clothes in
Luanda as she believes that it is way too expensive. She would much rather save up for an international trip to do her shopping, and while there stay at a 3 star B&B and spend some time immersing herself in the local culture
Isis is very conscious of living a healthy lifestyle. She goes to gym regularly and is focused on eating well
On weekends, she spends a lot of time out with friends partying and eating out at the local favourites, but she cannot afford to frequent Luanda’s most exclusive venues; she does like to treat herself to a luxury night out once a month though
Isis says that she needs to travel at least every three months because Luanda is so chaotic. She generally likes to spend more than 10 days away to really feel relaxed
Isis was not aware that travel agents could offer packages, but she would be interested in buying a package that didn’t mandate too many activities. When she goes to a new place, she likes to have time to explore for herself
Meet Isis, a 26 year old Angolan
8–10 days vacation is not enough time to relax; you can do and see a lot of things, but it is not long enough if you really
want to relax
8–10 days vacation is not enough time to relax; you can do and see a lot of things, but it is not long enough if you really
want to relax
Rising Nouveau RichesRising Nouveau Riches
Marco is single and has no children
He has a job as a retail salesman but makes regular trips to Portugal and Spain to buy shoes and clothes to sell for extra money
He is a very aspirational person and is driven to move up in life. As a result, status is extremely important to him and he likes to show things like his cellphone off and the upgrades he has made to his Toyota Pick-up
Marco is also extremely price-sensitive; he is always on the lookout for deals and tries to travel internationally when he can find the cheapest air tickets. When there he usually stays at 2-3 star hotels or with family
Marco only ever travels to Spain and Portugal because he feels comfortable there and knows all of the best places to shop. He can be very effective in using his trips to purchase high-quality merchandise for his business, but also in terms of maximising his relaxation time
Marco is thinking about visiting a new destination like Dubai or Singapore, because his friends have been talking a lot about them
He hasn’t considered travelling to South Africa because has heard it is difficult to get a visa
Marco is single and has no children
He has a job as a retail salesman but makes regular trips to Portugal and Spain to buy shoes and clothes to sell for extra money
He is a very aspirational person and is driven to move up in life. As a result, status is extremely important to him and he likes to show things like his cellphone off and the upgrades he has made to his Toyota Pick-up
Marco is also extremely price-sensitive; he is always on the lookout for deals and tries to travel internationally when he can find the cheapest air tickets. When there he usually stays at 2-3 star hotels or with family
Marco only ever travels to Spain and Portugal because he feels comfortable there and knows all of the best places to shop. He can be very effective in using his trips to purchase high-quality merchandise for his business, but also in terms of maximising his relaxation time
Marco is thinking about visiting a new destination like Dubai or Singapore, because his friends have been talking a lot about them
He hasn’t considered travelling to South Africa because has heard it is difficult to get a visa
Meet Marco, a 39 year old Angolan
I say trust: I feel at home in relation to language, people and
places, and already know the products I need and trust the
quality
I say trust: I feel at home in relation to language, people and
places, and already know the products I need and trust the
quality
Source: Monitor and Grail Primary Research and Analysis
May 2012 16 | Copyright © 2012 SA Tourism
Luxury Seekers Consumer Group
Consumer Portrait
These consumers are aware of the social value that is placed on travel and are interested in being able to interact with their peers when it comes to discussing the most interesting travel destinations
Luxury SeekersLuxury Seekers
Jose is a married entrepreneur with 3 children
As a self-made man, Jose has a very strong work ethic and only sleeps 4–5 hours every night
He gets up early to go to gym as often as he can, and tries to maintain a healthy lifestyle, even with his hectic work schedule
Jose owns a large mansion in Talatonia, where he lives with his family. His 4-car garage houses his 4x4s and family sedans
Jose is not restricted in his travel behaviour by money at all: he recently spent 47 nights at the Sheraton in Dubai with his entire family
Although Jose enjoys travelling internationally and does so often, he still travels domestically more frequently
Jose has taken advantage of fully inclusive packages before, but believes that the prices charged for packages in Angola are inflated
Jose travels to ensure that he is exposed to new cultures and people. He thinks that knowledge is one of the most valuable things in life and wants to be exposed to lots of new and different things
He also thinks that life is short and sees international travel as a way of living life to the fullest
Jose is a married entrepreneur with 3 children
As a self-made man, Jose has a very strong work ethic and only sleeps 4–5 hours every night
He gets up early to go to gym as often as he can, and tries to maintain a healthy lifestyle, even with his hectic work schedule
Jose owns a large mansion in Talatonia, where he lives with his family. His 4-car garage houses his 4x4s and family sedans
Jose is not restricted in his travel behaviour by money at all: he recently spent 47 nights at the Sheraton in Dubai with his entire family
Although Jose enjoys travelling internationally and does so often, he still travels domestically more frequently
Jose has taken advantage of fully inclusive packages before, but believes that the prices charged for packages in Angola are inflated
Jose travels to ensure that he is exposed to new cultures and people. He thinks that knowledge is one of the most valuable things in life and wants to be exposed to lots of new and different things
He also thinks that life is short and sees international travel as a way of living life to the fullest
Meet Jose, a 43 year old Angolan
Travel agents in Angola are not serious — they don’t have enough
information and provide poor service
Travel agents in Angola are not serious — they don’t have enough
information and provide poor service
Luxury SeekersLuxury Seekers
Patrick is single and has no children His work as a consultant does not bring in a lot of money, but he has a very
wealthy European family who has bought him his LandCruiser and who pays for his apartment
Despite his affluent background, Patrick still has aspirations of making it on his own and is very aware of the world around him, from politics to popular culture
Patrick understands that living in Luanda has de-sensitised him to the value of a dollar, as he easily spends over USD 400 on a night out
Patrick is very image conscious and spends time going to gym and taking care of his appearance. He always dresses well but is never flashy
He uses the new iPhone but doesn’t feel like he needs to flash it around as a status symbol
Patrick likes to travel purely for leisure and always prefers to go with friends. He usually stays at 5 star hotels / resorts and lives large on these trips
He likes to read up on a destination through travel blogs and magazines before he goes there, identifying the ‘cool’ places to visit and things to do
Patrick does not ever buy packages, but would be interested in being able to customise one for himself. He doesn’t use travel agents except for business trips as he doesn’t trust them
Patrick is single and has no children His work as a consultant does not bring in a lot of money, but he has a very
wealthy European family who has bought him his LandCruiser and who pays for his apartment
Despite his affluent background, Patrick still has aspirations of making it on his own and is very aware of the world around him, from politics to popular culture
Patrick understands that living in Luanda has de-sensitised him to the value of a dollar, as he easily spends over USD 400 on a night out
Patrick is very image conscious and spends time going to gym and taking care of his appearance. He always dresses well but is never flashy
He uses the new iPhone but doesn’t feel like he needs to flash it around as a status symbol
Patrick likes to travel purely for leisure and always prefers to go with friends. He usually stays at 5 star hotels / resorts and lives large on these trips
He likes to read up on a destination through travel blogs and magazines before he goes there, identifying the ‘cool’ places to visit and things to do
Patrick does not ever buy packages, but would be interested in being able to customise one for himself. He doesn’t use travel agents except for business trips as he doesn’t trust them
Meet Patrick, a 26 year old Angolan
I always Google the top 5 nightclubs before I go
I always Google the top 5 nightclubs before I go
Source: Monitor and Grail Primary Research and Analysis
May 2012 17 | Copyright © 2012 SA Tourism
Agenda
Angola within SA Tourism’s portfolio
Angolan Market Context
Angolan Tourism Market
Angolan Travellers
Messages and Products for the Angolan Market
May 2012 18 | Copyright © 2012 SA Tourism
Messages, Channels and Products
Key Messages – Overview
Messaging for each market is made up of a number of key components of differing importance
Note: Colour-coding is intended to help with identification of similarities in messages across different consumer groups, white boxes indicate no similaritySource: Grail Research & Monitor Analysis
Key Components of Message
Cosmopolitan, urban living
Cosmopolitan, urban living
1st-world destination
1st-world destination Value for moneyValue for moneyOnly a couple of
hours awayOnly a couple of
hours awayAngolaAngola
High ImportanceHigh Importance
Affordable cosmopolitan destination with great cities and diverse activities at 1st-world standards only a short flight away from Luanda
Building awareness: TV, internet and social media
Information gathering / driving purchase: travel agents, internet and social media
Airfare, transfers and a 4-star hotel close to shopping and other “luxury 1st-world activities”
Key Message(s)Key Message(s) Key Channel(s)Key Channel(s) Key Product(s)Key Product(s)
May 2012 19 | Copyright © 2012 SA Tourism
BASIC PRODUCT OFFERINGBASIC PRODUCT OFFERING
Messages, Channels and Products for the Angolan Market
Drive Purchase – Products: Some Options (1/3)
Angolans do not like the idea of traditional packaged holidays crammed with activities, but would be open to simple packages that bundle flights and accommodation
Note: 1 Based on the range of nights spent by the majority of Angolans when in South Africa; 2 Prices based on normal rate; they may decrease when negotiated Source: Monitor and Grail Primary Research and Analysis
4- or 5-Star Accommodation, preferably linked to a shopping centre (e.g.: Sandton Sun and Towers in Johannesburg, Radisson Blu Cape Town)
Return Airfare
These packages can also be used to drive increased spend by adding a shopping component to the itinerary or ensuring that the accommodation is linked to a shopping centre (e.g. Michelangelo)– Angolans who travel almost always include
some shopping in their trips In addition, it is important for these packages
to include information on the world class activities nearby (e.g.: restaurants, nightclubs and even spa’s)
AirfareAirfare Return airfare in economy class
TransferTransfer Transfers (airport > hotel > airport)
HotelHotel
4- or 5-star hotel in a major city (e.g.: Johannesburg, Cape Town, Durban)– Angolans travelling to South Africa are used to
paying “South African 4-star hotel prices” for much lower quality accommodation in Angola
Length of StayLength of Stay 4 nights or 7 nights1
PricePrice ~ USD1,800 for 4 nights, ~USD 2,500 for 7 nights2
Transfer
AdditionalsAdditionals
Components of a Package
May 2012 20 | Copyright © 2012 SA Tourism
OFF-PEAK PROMOTIONS OFF-PEAK PROMOTIONS
For the low price of...during the months of June and July
EVENT-DRIVEN PACKAGESEVENT-DRIVEN PACKAGES
Components of a Package
WEDDING DESTINATIONWEDDING DESTINATION
Messages, Channels and Products for the Angolan Market
Drive Purchase – Products: Some Options (2/3)
Additional elements and “reasons to travel” can be added to the basic package to create limited offer promotions, event-driven packages and wedding-destination packages
Source: Monitor and Grail Primary Research and Analysis
4- or 5-Star Accommodation(e.g.: Beverly Hills Umhlanga, Michelangelo Johannesburg)
Return Airfare
Memorable Event (e.g.: Durban July,
Cirque du Soleil, U2)
4- or 5-Star Accommodation, preferably linked to a shopping centre (e.g.: Sandton Sun and Towers in Johannesburg, Radisson Blu Cape Town)
Return Airfare
South Africa is a popular wedding destination for couples from developed countries all over the world – Low prices and beautiful scenery
In the longer-term, SAT could promote South Africa as a convenient and memorable wedding destination for Angolan couples– Increase frequency of travel and spend
Offering the same basic package at lower prices during off-peak months
Drive consumers to travel during low seasons to ensure that available airlift is used throughout the year – Increased frequency
Event-driven packages can be used to drive increased frequency
In addition, it can be used to trigger travel in Angolans considering South Africa, but who have not done so yet
International concerts and shows
Transfer
Transfer
Components of a Package
May 2012 21 | Copyright © 2012 SA Tourism
Messages, Channels and Products for the Angolan Market
Drive Purchase – Products: Some Options (3/3)
In addition, it will be important to ensure that travel agents and online sites encourage consumers to stay longer, return more regularly and bring their friends and family to South Africa through highlighting specials offered by collaborators and / or groundhandlers
Source: Monitor and Grail Primary Research and Analysis
DRIVING INCREASED LENGTH OF STAYDRIVING INCREASED LENGTH OF STAY
DRIVING INCREASED FREQUENCYDRIVING INCREASED FREQUENCY
ENCOURAGING TRAVEL WITH FRIENDS AND FAMILYENCOURAGING TRAVEL WITH FRIENDS AND FAMILY
Highlight hotels which offer free / bonus nights Drive customers to visit more than one region in South Africa
– Create deals whereby consumers stay with one hotel group wherever they travel in exchange for bonus nights (e.g.: Shop South Africa’s 3 major cities with Radisson and get 2 free nights)
Highlight hotel frequent guest programmes Link to events throughout the year (e.g.: Visit
South Africa for these 3 events in 2011 and receive 10,000 bonus points on your frequent guest programme)
Highlight hotel offers where kids stay free Link to kid-friendly activities (e.g. uShaka
Marine World, Gold Reef City)
Marketing South Africa in the DRC
May 2012
May 2012 23 | Copyright © 2012 SA Tourism
Context: Africa is Important
Focus Markets Within Africa
Below is the outcome of the fourth portfolio review process that took place during July/August 2009 and which covers the period 2011/12 to 2013/14
Africa Americas Asia & Australasia Europe
Core Markets
Angola
Botswana
Kenya
Nigeria
South Africa1
USA1Australia1
India
France1
Germany
Netherlands
UK1
Investment Markets
DRC
Mozambique
Brazil
Canada
China (incl. Hong Kong)
Japan
Belgium
Italy
Sweden
Tactical Markets
Lesotho
SwazilandNew Zealand Ireland
Watch-list Markets
Malawi
Namibia
Zambia
Zimbabwe
Argentina Republic of Korea
Austria
Denmark
Portugal
Spain
Switzerland
Strategic Importance
Bahrain, Oman, Qatar, Saudi Arabia
Strategic Air Links/Hubs
Egypt, Ethiopia, Ghana, Mauritius, Senegal,
Tanzania, UAE
Malaysia
Singapore
Co
un
try
Ma
na
ge
r
Re
gio
na
l D
irect
or
Sta
keh
old
er
Ma
na
ge
r
Glo
ba
l C
ha
nn
el
Ma
na
ge
r
Responsibility2011 –
2013/4
Note: 1indicates business tourism hubs
May 2012 24 | Copyright © 2012 SA Tourism
Agenda
DRC within SA Tourism’s portfolio
DRC Market Context
DRC Tourism Market
DRC Travellers
Messages, Channels and Products for the DRC Market
25 | Copyright © 2012 South African TourismMay 2012
Extreme PovertyProjected GDP Growth
The DRC has high economic potential but nevertheless the economy remains small and the country is considered the poorest in the world
CountryGDP (USD Bn)
GDP per Capita (USD )
GDP Growth Rate (%)
Nigeria 206.7 1,324 7.4%
Angola 85.8 4,812 5.9%
Kenya 32.4 888 4.1%
DRC 12.6 300 5.4%
Country Comparison, by GDP, GDP per Capita and GDP Growth Rate, 20101
In 2010, the DRC was ranked the lowest GDP per capita in the world
More than three-quarters of the population live on less than 1 USD per day
Extremely high rates of poverty and inequality with a Gini coefficient of 40%
Fewer than 20% have reliable access to water and electricity
A large portion of the country is isolated from the capital in Kinshasa
Note: 1At Constant Prices (2000)Source: Grail Research & Monitor Analysis; IMF; CIA Factbook
Real GDP Growth Rates1
8.1%
6.8%7.0%
5.4%
2.8%
6.2%6.3%
5.6%
7.8%
2013E2012E2011E2010E20092008200720062005
Rea
l GD
P %
Cha
nge
Economic
Current Economic Situation is Small but Promising
26 | Copyright © 2012 South African TourismMay 2012
Economic
A Few Key Economic Drivers
GDP growth is and will continue to be driven by agriculture and mining sector performance, supported by infrastructure development and increased FDI
GDP GrowthGDP Growth
FDIFDI
AgricultureAgriculture
Infrastructure DevelopmentInfrastructure Development
Outlook
Drivers
The mining sector is expected to recover strongly in 2010-11, with copper exports expected to increase by 25%
Several new mining facilities are scheduled to start production in 2010-11, which should boost output levels
“BMI believes that the Congolese mining sector can reach an average annual growth rate of between 4.7% across our forecast period”1
Note: 1Business Monitor InternationalSource: Africa News; New Markets Research; Infrastructure Consortium of Africa; Office of the US Trade Rep; African Trade Policy Notes – Worldbank
MiningMining Wholesale / RetailWholesale / Retail
Support
The agricultural sector is expected to increase as producers and traders start to benefit from improvements in national infrastructure
The government has undertaken various reforms in the law on the Agricultural Code to attract private investment
The South African retail group Shoprite plans to start trading in the DRC by the end of 2010 or early 2011 after investing up to ZAR400 MM
The Chief Executive of Shoprite, Basson, was quoted as saying the group would start trading by the end of next year, and that the first two stores would be located in Kinshasa and Lubumbashi
27 | Copyright © 2012 South African TourismMay 2012
Increasingly Negative Current Account BalanceIncreasingly Negative Current Account BalanceIncreasingly Negative Current Account BalanceIncreasingly Negative Current Account Balance Productivity Increasing SlowlyProductivity Increasing SlowlyProductivity Increasing SlowlyProductivity Increasing Slowly
High Government Debt in Slow DeclineHigh Government Debt in Slow DeclineHigh Government Debt in Slow DeclineHigh Government Debt in Slow DeclineDramatic Decrease in InflationDramatic Decrease in Inflation
Considering a few key indicators, the DRC made some significant economic improvements since 2000, but the fundamentals still require vast improvement
Source: IMF
% o
f GD
P
18%
550%
20082000
-532%
Consumer Price Inflation
-15.9%
-4.0%
20092000
-11.8%
Current Account Balance as Percent of GDP
136%
217%
20082002
-81%
Government Debt as Percent of GDP
GDP per Person Employed, Constant 1990 PPP$
554640
20082000
+15.5%
% o
f GD
PU
SD
Economic
Financial Indicators Show Relative Improvement%
cha
nge
28 | Copyright © 2012 South African TourismMay 2012
Major Ethnic Groups in the DRC
Population
Diverse Ethnic Groups
There are four main ethnic groups in the DRC; the majority of the population practicse Christianity
Source: CIA Country Profile; Gateway Africa; Library of Congress
Lu
ba
Mo
ng
o DRC has four major ethnic groups: Luba,
Mongo, Kongo and Mangbetu-Azande (Hamitic). In addition, DRC has over 200 African ethnic groups of which the majority are Bantu
Religious affiliations are: Roman Catholic 50%, Protestant 20%, Kimbanguist 10%, Muslim 10%, other (includes syncretic sects and indigenous beliefs) 10%
The Luba– Known to be a very creative group of people but historically known to be ambitious and inclined to nepotism with better literacy rates
The Mongo- Live in the African equatorial forest, south of the main Congo River bend and north of the Kasai and Sankuru Rivers
Ethnic Group Spread in the DRC
Ko
ng
o The Kongo – Live along the Atlantic coast
of Africa from Pointe-Noire) to Luanda, Angola. Like the Luba they are historically known to be ambitious and inclined to nepotism
Ha
mit
ic The Hamitic - Found in the east and north
east of the country that originally come from Darfur in southern Sudan and Ethiopia
29 | Copyright © 2012 South African TourismMay 2012
Population
Influx of Expats
There are several expat and immigrant groups present, which could represent potential tactical groups
Source: UN MONUSCO; IOM – International Organisation of Migration; Vodacom; National Agency for Investment Promotion; Mining Weekly
UN and Diplomatic ExpatsUN and Diplomatic Expats International ImmigrantsInternational Immigrants Global MNC expatsGlobal MNC expats
Potential tactical target groups Potential tactical target groups
African RefugeesAfrican Refugees
The UN has been more active in the DRC due to high levels of social unrest and violence (Estimated number of expats ~ 20,000)
Spillover benefits of marketing in DRC, more tourists from Asia– Approximately 10 000
military expats are from India, Pakistan and Bangladesh
– India and SA already have a favourable economic, political and cultural relationship
DRC could potentially be used to gain access into other markets– North African immigrants
estimated ~ 92,000 but are unskilled
– There is a substantial Belgian population due to DRC’s colonial past
– Russian immigrants are present in the DRC estimated ~ 36,004
– Indian immigrants are mostly employed in telecoms and auto repairs estimated ~ 23,274
DRC have few MNC’s concentrated in 3 sectors (Mining, ICT and Financial services)
MNC expat community is estimated to be quite small in DRC – Due largely to social unrest
i.e. BHP Billiton runs its DRC operations in Johannesburg
– Vodacom only employs 600 people with less than 10% being expat
Refugees are not attractive as a target segment– Refugees live below the
poverty line– Refugee numbers in DRC
have declined by 10% p.a. between 2000 and 2008 to 155,162
– 72% of all refugees are from Angola
30 | Copyright © 2012 South African TourismMay 2012
Population
Large Division of Rich and Poor
The richest 20% of the population account for 51% of the total income earned in the DRC
Source: WorldBank; Grail Research & Monitor Analysis
Household Income Breakdown by Population, 2006
Per
cent
of T
otal
Cou
ntry
Inco
me
/ Con
sum
ptio
n
Lowest 20%
5%
Fourth 20%
9%
Third 20%
14%
Second 20%
21%
Highest 20%
51%
“Our country is extremely rich [in terms of natural resources]; however,
there are only two classes [the rich and the poor]”
– Claude Nyamugabo, Minister of SME
“Our country is extremely rich [in terms of natural resources]; however,
there are only two classes [the rich and the poor]”
– Claude Nyamugabo, Minister of SME
“My wish, it is the emergence of a Congolese middle class”
– Gaspard-Hubert Lonsi Koko, President of the Union of Congo
“My wish, it is the emergence of a Congolese middle class”
– Gaspard-Hubert Lonsi Koko, President of the Union of Congo
Highest 10% makes up 35% of
the total income of the DRC
31 | Copyright © 2012 South African TourismMay 2012
Population
Small Concentration of Wealth
Commercial activity is concentrated in the regions surrounding; Kinshasa and Lubumbashi
Source: NL EVD Int; Invest in DRC; OECD; Action Against hunger; High Beam Research; US Institute of Peace; Commercial Bank of Congo
Key Commercial Clusters
KinshasaKinshasa
LubumbashiLubumbashi
Kinshasa is the capital, and most populated city (~10M inhabitants) in DRC
Kinshasa has a young population, with more than half the people under 22 years of age, and a small proportion over 50
It is the centre of economic activity and many companies are headquartered here
Kinshasa has the best physical infrastructure i.e. rail, ports and roads
The built-up area of Kinshasa is divided into industrial, residential, and commercial zones
Lubumbashi is the second largest city of the DRC (population of 1.5M in 2010)
Copper and cobalt mining continues to be Lubumbashi's principal economic activity
Lubumbashi is an important tourist destination in the DRC
There are many European foreign nationals living there, particularly at the managerial, professional, and commercial level
There is a growing demand for housing, office, shopping and other community related facilities in the city
32 | Copyright © 2012 South African TourismMay 2012
Congolese Consumers
Who are the Congolese and What Do They Do? (1/2)
Note: 1Society of Ambiance Makers and Elegant PeopleSource: Monitor Grail Primary and Secondary Research and Analysis
Congolese are proud, life-loving, and status conscious people that have learnt to face life’s issues, while enjoying the simple pleasures available
…while looking to enjoy la ‘belle vie’1, which includes night life, music, dancing
and good food
“Congolese’s slogan is ‘Inzo ya ngolo, Mvuatu ya ngolo, Nketo ya ngolo’ (Beautiful house, beautiful clothes, beautiful woman)”
– Congolese Journalist at Congo Vision
“Kinshasa has several bars and clubs and so only few African cities are as lively”
– Congolese Consumer
The Congolese are generally proud and status conscious...
“Appearance is crucial for Congolese. They prefer to wear expensive branded clothes rather than eat. It is the SAPE1 phenomena”
– Congolese Consumer
“Travelling is a luxury so when I travel, I always share my experience and show the pictures taken to my friends just to show off”
– Congolese Consumer
…they are ingenious and enduring, always seeking business opportunities
to improve their day-to-day life...
“Salaries are insufficient to meet family’s expenses in DRC. To make ends meet, people are forced to have one or more side businesses”
– Congolese Consumer
“I always say that Congolese are the most resourceful people in the world”
– Congolese Journalist at RFI
33 | Copyright © 2012 South African TourismMay 2012
Congolese Consumers
Who are the Congolese and What Do They Do? (2/2)
...they tend to prefer travelling abroad rather than in DRC
“DRC is undeveloped and it is difficult to travel within the country due to lack of road and infrastructure. ”
– Congolese Consumer
“I prefer travelling to developed countries where I can experience luxury and look for business opportunities”
– Congolese Consumer
A nation that likes its music and language...
“Congolese enjoy their music a lot and rarely play foreign music. Someone who would work towards promoting Congolese music would be seen as a hero in the Congo”
– Canadian Centre of Intercultural Learning
“Congolese speak French only when it is not possible to communicate in local languages”
– Congolese Consumer
...Congolese are family oriented and this impacts their travelling decisions
“Congolese are taught to contribute to the family’s well being by respecting their elders and providing for family”
– Australian Department of Immigration
“I prefer travelling to visit my family than going to a country where I do not have relatives”
– Congolese Consumer
They are proud of their music, local languages and family, although they prefer international over domestic travel
Source: Grail Research & Monitor Analysis; Canadian Centre of Intercultural Learning; Australian Department of Immigration
May 2012 34 | Copyright © 2012 SA Tourism
Agenda
DRC within SA Tourism’s portfolio
DRC Market Context
DRC Tourism Market
DRC Travellers
Messages, Channels and Products for the DRC Market
35 | Copyright © 2012 South African TourismMay 2012
Congolese Visiting South AfricaCongolese Visiting South Africa
Consumers
Overview (1/2)
Congolese Visiting South Africa by Gender Congolese Visiting South Africa by Gender
Congolese Visiting South Africa by Age In 2010, the number of Congolese visiting South Africa
increased to 33,101 from 16,079 in 2005
In terms of demographics, in 2009, 27% of travellers were single and 46% were married with children
On average, 86% of Congolese travel alone, 9% with one other person
Congolese across income segments were aware of South Africa, and were willing to visit South Africa
However, their purpose of visit varied from VFR (37%) to business (34%) to pure holiday (11%)
In 2011, more than 33k Congolese visited South Africa; the Congolese travellers to South Africa are generally males between the ages of 30 and 54, and are either single or married with children
27% 34% 27%
2008
73%
2007
66%
2006
73%
14% 19% 11% 1%2%4%
13%6%
2006
40%
34%
8%
2008
34%
41%
2007
37%
37%
18-20
21-29
30-39
40-54
55+
Source: Grail Research & Monitor Analysis; SAT Departure’s Survey
Female
Male
36 | Copyright © 2012 South African TourismMay 2012
Volume and Growth of Tourist Arrivals to South Africa (000’s)Volume and Growth of Tourist Arrivals to South Africa (000’s)
Market Attractiveness – Key Indicators
Volume and Spend of Tourist Arrivals to South Africa
Source: Grail Research & Monitor Analysis; SAT Arrivals Survey, 2009–2011
(‘0
00s)
KenyaDRCAngola
23%
Nigeria
9%3%
201120102009
Angola recorded a 3% growth in arrivals and a 2% increase in average spend in South Africa between 2009 and 2011
Average Spend in South Africa per Tourist (ZAR)Average Spend in South Africa per Tourist (ZAR)
(Z
AR
)
KenyaDRCAngola
-4%
2%
Nigeria
10%
-15%
201120102009
3%
37 | Copyright © 2012 South African TourismMay 2012
Where to Play: Consumers
Target Customers
In the DRC three consumer groups were identified; the level of education and stated income emerged as the most significant influences on travel behaviour
Social Status
Respondents with a lower income and lower levels of education often perceived travel to be an opportunity to augment their supplemental income through entrepreneurial (commercial) activities
Respondents who were educated abroad, and returned to DRC to find positions as executives in MNCs, had different travel preferences and behaviours than the other two consumer groups
Finally, respondents who were born into wealthier families and earn high incomes are used to the concept of international travel for pure leisure
Stated Income
Education
Entrepreneurs
Mainly travel for business shopping Mainly travel alone Rely on friends or colleagues to
gather information Looking for value for money
experiences, and to save as much money as possible in order to purchase more
Purchase tickets mainly at airline counters, sometimes asking friends and family for help
Go Getters
Travel usually driven by a personal need (Medical, Event, Study, VFR)
Travel alone, but when possible will bring a friend
Rely on friends but also use the internet to gather information about where to go
Looking for world class experiences, mainly in shopping and nightlife, with some cultural activities
Use airline counters to purchase tickets
Well-To-Do Travellers
Frequently travel for pure leisure Typically travel with family Rely on friends but also use the
internet to gather information about where to go
Look for luxury world class experiences in restaurants, spas and shopping with some cultural activities
Use airline counters and, to a lesser extent, travel agents to book travel and accommodation
Source: Grail Research & Monitor Analysis
38 | Copyright © 2012 South African TourismMay 2012
EntrepreneursEntrepreneursEntrepreneursEntrepreneurs
Antoinette is married with no children She works for a local bank, in the accounting department Antoinette rarely goes on the internet, but enjoys discovering the
new functions on her mobile phone Antoinette enjoys going to Dubai, especially for the shopping, but
also appreciates the infrastructure and modernity She likes buying nice clothes for herself, and luxury goods to resell
in Kinshasa Activities such as safari, wildlife and nature are not the key travel
motivators for her Her trips are generally 3 times / year, for about 5 days each time The fact that the visa process to Dubai is very simple and fast also
encourages her to choose this destination over others
Antoinette is married with no children She works for a local bank, in the accounting department Antoinette rarely goes on the internet, but enjoys discovering the
new functions on her mobile phone Antoinette enjoys going to Dubai, especially for the shopping, but
also appreciates the infrastructure and modernity She likes buying nice clothes for herself, and luxury goods to resell
in Kinshasa Activities such as safari, wildlife and nature are not the key travel
motivators for her Her trips are generally 3 times / year, for about 5 days each time The fact that the visa process to Dubai is very simple and fast also
encourages her to choose this destination over others
Alain is married with 3 children He works as a mid-level employee for a local mining company He travels a lot for business, and has started a side business with
his wife to supplement their income Alain may access the internet from time to time, but he prefers
talking to people when gathering information For their honeymoon, he and his wife took a 4 week trip to China
and Dubai, in part for shopping opportunities He has been to both Dubai and China several times, and has built
up his network of contacts there which help him to find the best deals
His trips to China usually last 7-10 days, to Dubai slightly shorter Although he has already travelled to SA, Alain will visit again if he
gets a good deal on the flight ticket and hotel
Alain is married with 3 children He works as a mid-level employee for a local mining company He travels a lot for business, and has started a side business with
his wife to supplement their income Alain may access the internet from time to time, but he prefers
talking to people when gathering information For their honeymoon, he and his wife took a 4 week trip to China
and Dubai, in part for shopping opportunities He has been to both Dubai and China several times, and has built
up his network of contacts there which help him to find the best deals
His trips to China usually last 7-10 days, to Dubai slightly shorter Although he has already travelled to SA, Alain will visit again if he
gets a good deal on the flight ticket and hotel
Entrepreneurs Consumer Group
Consumer Portrait
These travellers are focused on getting as much out of international trips as they can, especially shopping for everyday items that are expensive in the DRC
Meet Antoinette, a 25 year old Congolese ConsumerMeet Alain, a 40 year old Congolese Consumer
Source: Grail Research & Monitor Analysis
“My wife and I started a side business together, so when we travel we
are looking for opportunities”
“My wife and I started a side business together, so when we travel we
are looking for opportunities”
“You can buy luxury goods in Dubai for 1/3 of the price…plus the visa process is very
easy”
“You can buy luxury goods in Dubai for 1/3 of the price…plus the visa process is very
easy”
39 | Copyright © 2012 South African TourismMay 2012
Go Getters Consumer Group
Consumer Portrait
This group of consumers is extremely aspirational and visits places like South Africa in order to experience world class luxuries at prices that they can afford
Go GettersGo Getters
Victorine is single and has no children She works for an international bank in the accounting dept Victorine likes her job, and has plans to move into management in
the next 3 years Victorine surfs the internet from work, and has a facebook account
but is not yet very active She still lives at home with her parents, but has plans to move into
an apartment with friends of hers this year For vacation, Victorine loves to go to island destinations; she has
been to Ile Maurice and Madagascar and would love to see the Caribbean
Her trips are typically once a year, for about 7-14 days She compares South Africa to the US and the EU, and prefers to
travel to there as it is closer to DRC
Victorine is single and has no children She works for an international bank in the accounting dept Victorine likes her job, and has plans to move into management in
the next 3 years Victorine surfs the internet from work, and has a facebook account
but is not yet very active She still lives at home with her parents, but has plans to move into
an apartment with friends of hers this year For vacation, Victorine loves to go to island destinations; she has
been to Ile Maurice and Madagascar and would love to see the Caribbean
Her trips are typically once a year, for about 7-14 days She compares South Africa to the US and the EU, and prefers to
travel to there as it is closer to DRC
Meet Victorine, a 28 year old Congolese Consumer
Go GettersGo Getters
Tino is married, but has no children He works for Tigo telecom as a sales manager He lives with his wife in a two bedroom apartment on the outskirts of
Kinshasa Tino accesses the internet through his mobile phone, and also when
he is at work; he has a facebook account Tino usually takes one vacation per year with his wife; they try to
see new places and visit friends and family to reduce costs Their trips are typically 10-14 days, depending on the distance and
the cost Tino has aspirations to see new places; he has been to London
once and would love to see the rest of Europe He views South Africa as a country with high quality of life,
developed infrastructure, and quality shopping
Tino is married, but has no children He works for Tigo telecom as a sales manager He lives with his wife in a two bedroom apartment on the outskirts of
Kinshasa Tino accesses the internet through his mobile phone, and also when
he is at work; he has a facebook account Tino usually takes one vacation per year with his wife; they try to
see new places and visit friends and family to reduce costs Their trips are typically 10-14 days, depending on the distance and
the cost Tino has aspirations to see new places; he has been to London
once and would love to see the rest of Europe He views South Africa as a country with high quality of life,
developed infrastructure, and quality shopping
Meet Tino, a 32 year old Congolese Consumer
“I like to check out fun, modern places…my wife enjoys checking
out the shops too”
“I like to check out fun, modern places…my wife enjoys checking
out the shops too”
Source: Grail Research & Monitor Analysis
“Vacation is a way for me to relax…I love
going to islands and going to the beach”
“Vacation is a way for me to relax…I love
going to islands and going to the beach”
40 | Copyright © 2012 South African TourismMay 2012
Well-To-Do TravellersWell-To-Do TravellersWell-To-Do TravellersWell-To-Do Travellers
Jean Marc is married with 3 children He is a senior executive at DHL consulting to other companies He considers himself very “virtually connected” with accounts on
facebook, linked in, and hi5 Jean Marc takes at least one or two vacations a year with his family,
almost always to a long haul international destination These trips last on average 3 weeks, but could last as long as 4-6
weeks Jean Marc seeks new and interesting destinations, but also enjoys
returning to the same location if he had a very pleasant experience Prestige / high status is a key driver of his destination choices For him visa, money and language are not issues for travelling as
long as he can have ‘la belle vie’ (beautiful life)
Jean Marc is married with 3 children He is a senior executive at DHL consulting to other companies He considers himself very “virtually connected” with accounts on
facebook, linked in, and hi5 Jean Marc takes at least one or two vacations a year with his family,
almost always to a long haul international destination These trips last on average 3 weeks, but could last as long as 4-6
weeks Jean Marc seeks new and interesting destinations, but also enjoys
returning to the same location if he had a very pleasant experience Prestige / high status is a key driver of his destination choices For him visa, money and language are not issues for travelling as
long as he can have ‘la belle vie’ (beautiful life)
Virginie is married with 5 children She works as an HR manager, as well as helps her husband with a
car rental business on the side She is tech savvy due to her business ventures, but rarely has time
to surf the web or engage in social networking Virginie’s family is very important to her, having family vacation
time is very neccessary As a family, they tend to take one long vacation which lasts about 4
weeks For family trips, she lets the kids decide on the location, as long as
their grades in school have been satisfactory Virginie also takes separate shorter vacations with her husband,
typically to beach destinations, at least once a year Virginie and her family have never encountered visa issues
Virginie is married with 5 children She works as an HR manager, as well as helps her husband with a
car rental business on the side She is tech savvy due to her business ventures, but rarely has time
to surf the web or engage in social networking Virginie’s family is very important to her, having family vacation
time is very neccessary As a family, they tend to take one long vacation which lasts about 4
weeks For family trips, she lets the kids decide on the location, as long as
their grades in school have been satisfactory Virginie also takes separate shorter vacations with her husband,
typically to beach destinations, at least once a year Virginie and her family have never encountered visa issues
“I decide where to go based on what interests me…Europe and the US
are always good choices”
“I decide where to go based on what interests me…Europe and the US
are always good choices”
“I let the kids decide where we all go on vacation…this year they wanted to go to
Atlanta”
“I let the kids decide where we all go on vacation…this year they wanted to go to
Atlanta”
Luxury Seekers Consumer Group
Consumer Portrait
The Well-To-Do Travellers view vacations as relaxing leisure time, and can be very flexible on their destination choices; the vacations are longer than the other consumer groups and typically they travel with their families
Meet Virginie, a 43 year old Congolese ConsumerMeet Jean Marc, a 37 year old Congolese Consumer
Source: Grail Research & Monitor Analysis
May 2012 41 | Copyright © 2012 SA Tourism
Agenda
DRC within SA Tourism’s portfolio
DRC Market Context
DRC Tourism Market
DRC Travellers
Messages, Channels and Products for the DRC Market
May 2012 42 | Copyright © 2012 SA Tourism
Messages, Channels and Products
Key Messages – Overview
Messaging for each market is made up of a number of key components of differing importance
Note: Colour-coding is intended to help with identification of similarities in messages across different consumer groups, white boxes indicate no similaritySource: Grail Research & Monitor Analysis
Key Components of Message
Accessibility and affordability
Accessibility and affordability
Modern infrastructure
Modern infrastructure
Variety of business and leisure opportunities
Variety of business and leisure opportunities
DRCDRC
High ImportanceHigh Importance
Affordable and accessible destination, which offers modern infrastructure and multiple opportunities in terms of business and leisure
Building awareness: TV, internet and social media
Information gathering: travel agents and other partners
Driving purchase: travel agents, airlines and social media
Airfare, transfers and 3- or 4-star hotel (for Go Getters) and 2- or 3-star hotel (for Entrepreneurs) in a major city, hotel with free shuttles to city center
Key Message(s)Key Message(s) Key Channel(s)Key Channel(s) Key Product(s)Key Product(s)
43 | Copyright © 2012 South African TourismMay 2012
Objective: Drive Increased Arrivals through Basic Product Offerings
How to Win: Consumer and Product Communication
Basic Product Offering Options
The offering would differ slightly by priority consumer group with a combination of various elements as opposed to a package
Source: Grail Research & Monitor Analysis
EntrepreneursGo Getters
Airfare Return airfare in economy class Airfare Return airfare in economy class
Transfer Transfers (airport > hotel > airport) Transfer Transfers (airport > hotel > airport)
Hotel
3 or 4 star accommodation in a major South African city e.g. Cape Town, Durban or Johannesburg
Close proximity to nightlife and shopping
Hotel with free shuttles to city centre
Hotel
B&B or 2 star accommodation in a major South African city e.g. Cape Town, Durban or Johannesburg
Close proximity to shopping
Hotel with free shuttles to city centre
Length of Stay 7 to 12 nights Length of Stay 7 to 12 nights
Service Visa processing assistance Service Visa processing assistance
44 | Copyright © 2012 South African TourismMay 2012
Objective: Drive Increased Spend through Promotions and Add-On’s
Source: Grail Research & Monitor Analysis
EntrepreneursGo Getters
How to Win: Consumer and Product Communication
Promotions and Potential add-on Offers
Promotions and other offerings would further help to drive arrivals and increase spend
Others
Promotions Promotions
Night out on the town in a limo Special access to private clubs Discounted concert and sporting
event tickets Increased luggage allowance
Shopping advice, coupons Discounted freight offers Business interpreter services Increased luggage allowance
Off-peak flight reductions Discount on second flight for
significant other/friend Flight/accommodation discounts
on stays longer than 10 days
Off-peak flight reductions Discount on second flight for
business partner Flight/accommodation
discounts on stays longer than 10 days
Others
May 2012 45 | Copyright © 2012 SA Tourism
For more information contact our Johannesburg office:South African Tourism
Bojanala House90 Protea RoadChislehurstonSandton, 2196
Private Bag X10012Sandton 2146
Call centre: +27 83 123 6789 Email address: [email protected]
Website: www.southafrica.net