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In this third article in the series, Andrea Opoku explores the most effective communication channels for the different types of African consumer
So far in this series of articles on ‘Who is The African Consumer? ’we’ve looked at the market conditions and the business opportunity on the continent, and we’ve examined the seven socio-economic groups and their changing purchasing habits and preferences.
In this, the third and final instalment, we’ll take a look at the most effective marketing communication channels for each socio-economic group and will round up the series with some points on how to best serve the African consumer.
Overview of Media Penetration
TV remains the most frequently used and trusted with 80% of sub-Saharan Africans saying it is a significant source of grocery information for them. Print media is also important and is used by 70% of sub-Saharan consumers.
These figures do vary by country. Media penetration in Ghana for example is 95% for TV, 92% for radio and 33% for Internet. The slower penetration of print is driven by low literacy rates - 67% of the population. Penetration of newspapers (32%) and magazines (12%) in Ghana is lower than what was observed in other African countries.
Word of mouth is really very important – 50% sub-Saharan and 81% North Africans gather information on products and services from friends and family. In Egypt, for example, recommendations are 3 times as important as they are for those in UK and US.
Mobile phones and digital channels are increasing in importance. 22% of urban Africans spend more than 10 hours a week online. In order of frequency their online activities include: use of social networks, email, watching video, listening to music, keep up with news, search for information. As prolific users of the Internet and social media, the use of Facebook, Twitter and LinkedIn and other sites is on the rise.
In 2010 there were 43% more Google ads clicked on in Africa than there were in Western Europe.
To that end viral communication is becoming increasingly critical to reach African consumers. Companies and brands should look for ways to leverage the Internet and social media to advertise, provide product information, create buzz to build brand awareness, and educate consumers.
Most buying decisions are made at the point of purchaseso in-store advertising is particularly important. In North Africa for example, 58% of consumers use in-store advertising to gather information on clothing.
Effective Communications across the Socio-Economic Groups
This section refers to the socio-economic groups that were examined in part one of this series of articles and outlines the media each group responds to the most.
Tier One: Trendy Aspirants and Progressive Affluents
Wealthy, urban and well-educated Africans with high income and high spending, they represent 28% of the population.
They have high usage across all media - TV, radio, Print, Internet & Mobile. Penetration is particularly high across Internet and social media. They also have the highest usage of internet-based activities on mobile phones and over half have more than one mobile line.
Integrated communications across all media and viral campaigns work the best amongst this group.
Tier Two: Balanced Seniors and Struggling Traditionals
Middle-aged and middle income Africans with average spending, they account for 27% of the population.
They have above average consumption of mass media (TV and radio), low print consumption, and generally zero access to Internet. That said there is above average ownership of mobile phones (75% amongst Struggling Traditionals) and they are the least likely to upgrade their current handsets to new devices.
TV and radio are most effective amongst this group and low-tech mobile communications such as text messaging can be utilised.
Tier Three: Evolving Juniors, Wannabe Bachelors and Female Conservatives
Made up of low income, low spend consumers; collectively this group makes up 45% of the population.
Very much like Tier Two, they are receptive to TV and radio but score low on print and Internet penetration. Similarly they are likely to own a mobile phone, which they use primarily for text messaging.
The Wannabe Bachelors in this group are more receptive to advertising, and whilst only 75% of Evolving Juniors own a mobile phone, those that do have a higher Internet penetration and usage of advance mobile features.
So again, mass media and low-tech mobile communications are effective. Also introducing Internet and social media communications will attract interest.
How to Serve the African Consumer?
Africa is a huge continent, focus where it matters
Focus on the regions/countries/cities where you can efficiently get your products or services in front of the customer. At the moment the opportunities lie in urban areas and the largest cities on the continent.Get the timing right
Entering the market when consumer demand and income levels are optimal for your product category or service is key. This will occur at different times for products with low price points compared to luxury goods.Develop locally relevant quality products
Quality and affordability are critical buying factors in Africa and cannot be compromised when localising products. However understanding what quality means to the African consumer is paramount – this often means durability. There are examples of companies designing products specifically for the market - Samsung did this by creating televisions with built-in power surge protectors.Businesses that emphasize the quality of their products and reinforce the message through sampling, advertising and marketing will be the most effective. Educating sales people and storeowners who are trusted influencers at the point of sale, can also be an effective route.
Ride the youth movement
Given the size of the population and its potential economic power, its worth paying particular attention to Africa’s youth. Focus should be on: the fact that the youth are very brand conscious; the great importance of the Internet; and affordability is critical.Build your brand right now!
The brand loyalty amongst African consumers means getting your brand into your consumers’ initial consideration set at an early stage will pay off further down the line.The data in this series of articles is only a small portion of the information gathered by various research firms. If you are seriously considering entering the African market, make it a point to access the wealth of detailed information that is available but also carry out your own ‘on the ground’ research before making any major market entry decisions.
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