Monday, May 28, 2007

The value of a survey is….


The survey as a marketing tool is a valuable resource to marketers and retailers alike and for years they have been conducted on behalf of companies at prices that, on reading will immediately expel every last bit of air from your lungs. That is, of course unless you have been taken out for an equally expensive lunch prior to receiving the invoice (in this instance the price will look quite reasonable).

There are essentially three reasons why most surveys are spectacularly inaccurate:

  1. It's a fact that when most people are approached by a person holding a clipboard and asking questions, they lie. It is recorded that the most inaccurate survey ever was a salary survey conducted by beautiful women wearing a bikinis and of course holding clipboards.
  2. If the price quoted by the survey company knocks only some of the wind out of the clients lungs (usually due to the fact that the lunch wasn't quite expensive enough) the client may ask to reduce the number of people interviewed, thus taking the sample from a massive and representative 1000 people to a somewhat less accurate 100. Given the fact outlined in point one this may in-fact make the survey 10 times more accurate, but it's unlikely.
  3. It would be unfair for the company conducting the survey to charge such a massive fee and then tell the client that everyone isn't ecstatically happy with their product, service or anything else. So they don't. The trick is that in order to secure future business the survey company must highlight one or perhaps two “areas of concern” that should be addressed prior to another survey. Of course the survey company thinks this is very clever and worth charging more for, so they do.

A well conducted survey that incorporates a wide enough pool has its place in the marketing mix but I don't believe that it is a sound basis on which to develop a strategy for a brand / business or even to use as the sole benchmarking criteria for a brand / business, its just not enough. If you know your brand or business well enough then I have no doubt that you would accurately predict the results of the survey, it's the confirmation that you pay for. In addition to this I would also recommend that any survey results should be used internally only, no matter how great they make you look. They won't withstand critical scrutiny.

By the way the results of the survey mentioned above revealed that 80% of men who work more than 20 hours a day and earn in excess of R1m per year could be found on the beach on Wednesdays.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Shoprite remains a target, says UBS
Shoprite remained a prime private equity target, investment bank UBS said after the R15.2 billion bid to acquire the retailer was called off in a major victory for minority shareholders.
Read more

Woolies in R292m BEE deal
Fashion, food and homeware group Woolworths will sell a 10% stake to employees in a black economic empowerment (BEE) deal, the company said on Monday.
Read more

Pick 'n Pay heads for the townships
Pick 'n Pay Stores is planning to move into black townships, a programme that will start by establishing franchise model family and minimarket stores in communities such as Soweto, Attredgeville, Tembisa and Vosloorus.
Read more

Sweet profits for Illovo
Sugar group Illovo Sugar's full-year headline earnings per share rose 43% to 149.1 cents, the group said on Tuesday. Illovo said turnover in the year to end-March came in 15% higher at R6.3bn, with operating profit up 38% to R1.03bn.
Read more

Buyout talk boosts emerging markets
As if emerging markets need another boost, buyouts and takeover speculation are pushing up shares from Taiwan to South Africa. Private equity investors are looking to spend the record $33 billion (R229.4 billion) they raised last year to buy firms in the developing world.
Read more

INTERNATIONAL NEWS

Making Sainsbury's great again
Sainsbury's enters the third and final year of its recovery plan in buoyant form. Both sales and profits for fiscal 2006 (to 24 March 2007) showed a considerable increase, underpinned by solid like-for-likes and efficiency improvements
Read more

TV film claims Tesco and Sainsbury's stores flout hygiene rules
Two of Britain's biggest and most profitable supermarkets are tonight accused of putting public health at risk after secret filming revealed members of staff deliberately extending sell-by and use-by dates on fresh food - and of selling food unfit for human consumption to unsuspecting customers.
Read more

House: Wal-Mart, others can't be banks
Legislation barring commercial companies such as Wal-Mart and Home Depot from owning a special sort of bank overwhelmingly cleared the House on Monday.
Read more

RETAIL FEATURE

Top 30 Ranking by Planet Retail Reveals Changes at the Top
Latest research by Planet Retail highlights major changes in the ranking of the world's largest grocery retailers. Its recently published Top 30 Grocery Retailers Worldwide, 2006 ranking shows that Dutch grocer Ahold is ousted from its Top 5 position, with Japanese hypermarket to convenience store operator Seven & I taking its place. Looking ahead, by 2012 Tesco is set to overtake Metro as the world's third largest grocer while German discounter Schwarz establishes itself in the Top 10.
Read more

FEATURED BRAND

Tydstroom Fresh Farm Chicken
The current product range consists of Fresh Whole Bird, Retail Fresh Braaipacks, Retail Fresh Portions, Frozen Whole Bird, Frozen IQF Portions, Whole Chicken, Kebabs, Value Added Products, Fixed Mass Frozen Portions & Free Range Chicken. You'll taste the difference and love the goodness.
Read more

MAGAZINES

topCar shifts gear with new print campaign
In line with their philosophy to tell it like it is - automotive publications topCar and topMotor have produced an innovative series of print advertisements that speak volumes about their brand of automotive journalism.
Read more

Facelift for Reader's Digest in South Africa
The South African edition of Reader's Digest magazine has undergone a facelift and the June 2007 issue sports a brand new cover design as the first step in repositioning the magazine for the broader South African middle class.
Read more

BRAND NEW

Introducing the "fruit in jar" range from Rhodes Food Group
Enjoy the delicious taste of choice grade fruit (in fruit juice) packed in a convenient fridge pack size, easy to open transparent jar.
Read more

BRAND ACTIVITY

Clover Mama Afrikas - MBA's in the making
They have been taught the fine art of sewing, making garments, cooking and baking and fine arts and now they know all the ins and outs of running a successful business. 19 of the 21 Clover Mama Afrikas recently successfully completed a course in Basic Finance and Business Skills.
Read more

Douglasdale Dairy "crates" a theft solution
Milk is transported from the dairy to the distributor in milk crates which have become increasingly attractive to informal traders, formal traders and recyclers for their versatility, this has resulted in a major industry crate shrinkage problem.
Read more

NIVEA VISAGE DNAge® Cell Renewal Anti-Age System
NIVEA research and development laboratories have created an intensive and powerful Anti-Age System that rejuvenate the skin at the cell's core!
Read more

Take a Fresh Look at SodaStream
SodaStream has reinvented itself with a whole new range of SodaStream machines, larger bottles and a wide variety of flavours, which promises to make SodaStream a firm favourite again with familiar users and for a whole new generation of South Africans.
Read more

Entries Closing for Carrol Boyes METAL 2007 New Designer Search: SPROUT
After announcing the theme for METAL 2007 in January, Carrol Boyes is urging all South African designers to submit their entries for her New Designer Search before the closing date, 31 May 2007.
Read more

LIQUOR

Bellingham The Maverick Strikes Gold again
Bellingham celebrates gold medal winner, The Maverick Wooded Sauvignon Blanc 2005 in the fifth internationally judged Swiss International Air Line Wine Awards held at the Cellars-Hohenort Hotel on Saturday, 5th of May 2007.
Read more

All eyes On SA as equivalent of half the national vineyard is Set aside for conservation
South Africa's progressive and innovative Biodiversity and Wine Initiative (BWI), has caught the attention not only of the global wine market but also conservationists worldwide, as well as the growing body of retailers and consumers who are choosing to make eco-friendly purchases a part of everyday shopping.
Read more

FMCG JOBS

Syndicate Personnel Specialists
Syndicate Personnel Specialists is a boutique Sales and Marketing Recruitment Consultancy. Through a highly sophisticated search methodology we have dominated our niche market for the past twelve years.
Click here to see latest job opportunities

FEATURED RETAIL SERVICES

UCS on track for R1bn
A strong performance in the six months to 31 March puts UCS on track to achieve R1 billion in revenue at its year-end, says the JSE-listed software and services company.
Read more


UCS Solutions Shines at SAP Partner Awards
At the annual SAP Partner Awards ceremony on Wednesday, 9 May 2007, UCS Solutions was acknowledged for their contribution to the SAP business in the areas of business development and service excellence.
Read more

RETAIL SUPPORT

Pyrotec wins with Guinness
Ad agency, Saatchi and Saatchi decided to go with Pyrotec's innovative folded-card solution when they were given the task of promoting the world famous Guinness on St. Patrick's Day.
Read more

Empower Your Mobile Workers
Industry leaders MTN, ProScan Systems and Intermec Technologies collaborated to launch the Intermec CN3, the world's smallest rugged mobile computer to the enterprise market in southern Africa.
Read more

MARKETING AND ADVERTISING

For the activation of Brands and Brand excellence
A vital cog in any communication strategy, our innovative and avante-garde brand activities drive sales and encourage awareness through interaction and infotainment - in any LSM.
Read more

EVENTS

Spice up your life at the Grand Gourmet Gallivant
It's a moveable feast as the Cape Gourmet Festival's Grand Gourmet Gallivant takes place at GrandWest Casino's various eateries in "The District" restaurant and entertainment section.
Join those in the know and ring a circle in your diary without delay for Wednesday the 23rd and Thursday 24th May 2007.
Read more

Gourmet Festival
18 - 27 May
Lovers of food, fun and the good life unite! It's Southern Africa's premier food, wine and lifestyle event, The Cape Gourmet Festival, and it promises culinary bliss!
Read more

Good Food & Wine Show
24 - 27 May - CTICC
Set your taste buds talking and get ready for some first rate celebrity chefs as they bring you mouth-watering, palate-tingling culinary delights!
Read more

Wacky Wine Weekend
1-3 June - Robertson Valley
The festival will have something for everyone: food fundis, art and music lovers, outdoor and sporty types, the young, the old, and everyone in between!
Read more

Taste The Old Mutual Trophy Wine Show Winners
The trophy, gold and silver winners from the competition judged in Paarl this week will be presented to the wine-loving public in Cape Town and Sandton within three days of the announcement of the results.
Public Tasting Cape Town: Thursday, 7 June 2007
Public Tasting Sandton: Friday, 8 June 2007
Read more

Black Diamond 2007
You can't afford to miss the latest findings from this major new study into the New Black Middle Class by TNS Research Surveys and the UCT Unilever Institute which is based on a large sample of 4 500 people and extensive qualitative research.

  • 12 June 2007 - DURBAN - 9:00 to 11:30 - Holiday Inn, Garden Court
  • 13 June 2007 - JOHANNESBURG - 9:00 to 11:30 - Montecasino
  • 15 June 2007 - CAPE TOWN - 9:00 to 11:30 - Old Mutual Business School

Book now

Major new study shows SA black middle class booming
South Africa's black middle class, increasingly referred to as Black Diamonds, has grown by an astonishing 30% in just over a year, according to a major new study conducted by UCT/Unilever Institute of Strategic Marketing and TNS Research Surveys.
Read more

The Jo'burg Wine Show
15 - 17 June - Gallagher Estate
Following on the success of this year's inaugural Jo'burg Wine Show, plans for the 2007 show are well underway.
Read more

The Jo'burg wine show offers free trade day
The Jo'burg Wine Show, in association with Beeld newspaper will once again offer retailers and trade representatives free entrance to the show from Friday 15 June to Sunday 17 June 2007 at Gallagher Estate.
Read more

SOCAP Breakfast:
What determines a great call centre?
Thursday 28th June 2007
Read more

Africa's Big 7
15 - 17 July - Gallagher Estate
The only event of its kind: The Food, Retail and FMCG expo!
Read more

Don't miss this year's RMF international retail study tour!!
16 September to 28 September 2007
Tour: 6 nights Sydney plus 4 nights Bangkok
Read more

Clicks In The Clink


The New Clicks group released an impressive set of interim results last week. The results will give investors confidence in the turnaround strategy being implemented by their CEO David Kneale and all indications are that the best is yet to come. To see the results click here.

Unfortunately their Musica division has been found selling counterfeit play-station consoles and memory cards. I don't believe for one moment that The New Clicks Group would intentionally sell illegal goods but the law does not regard a plea of ignorance to be solid defence. Given the group's high profile, we may well see the retailer harshly punished for their oversight. This must be a warning to all retailers to ensure that the goods that they purchase and sell need to be thoroughly scrutinised to ensure that they are not party to a crime. If the deal looks to good to be true then it's probably illegal!

On another note, I found today's eighty20 "Fact a Day" very interesting and in fact a bit alarming. Fact: Of South Africa's home owners, 34% inherited their home. 8% used a mortgage bond to finance it. (FinScope 2006). What is alarming about this fact is that if one considers that household debt to income ration is around 73% and only 8% of South African home owners have a mortgage bond then it stands to reason that only a very small percentage of household debt is financing an asset.

This must surely be the reason that the reserve bank is so concerned about the high levels of consumer debt.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Musica faces piracy case
Popular national retail chain Musica has urged customers who believe they might have bought fake Playstation games from any of their branches to bring it to their attention.
Read more

Pilchard's return to west coast brings new jobs to Mossel Bay
The fishing industry is over the moon after pilchard, which baffled the sector and scientists by migrating to the east and south coasts, returned to their traditional west coast grounds.
Read more

Shoprite ends buyout talks with Brait
Shoprite said today it had ended talks on a proposed $2,14bn buyout from private equity firm Brait, which sent its shares up as much as 5%.
Read more

Retail sales growth edges higher
Retail sales growth jumped to 10,1% year-on-year in March, official data showed today, pointing to consumer spending staying high and backing a case for higher interest rates.
Read more

Major coup for Franklins, says Pick 'n Pay
Pick 'n Pay's Australian investment, Franklins discount supermarket chain, has confirmed that two former IGA stores have joined its ranks as franchises outside the existing store network. The Newtown and Springwood supermarkets - owned by Australian retail experts, the Lionis family - showed a combined annual sales turnover of AUD30 million last year and their coming on board is considered a major coup.
Read more

Famous Brands to gobble up territory ahead of World Cup
Famous Brands, which last year opened a new restaurant nearly every second day, is continuing with its aggressive expansion plan ahead of 2010, with plans to open 120 franchises in the coming year.
Read more

New Clicks rolls out more stores as turnaround strategy pays off
New Clicks will roll out 19 stores during the second half of its financial year after escaping the doldrums previously plaguing it.
Read more

INTERNATIONAL NEWS

Agflation takes root as world food prices spiral
Food prices, historically as changeable as the weather, are often put to one side when central bankers and economists gauge inflation, but soaring prices for everything from maize to milk are forcing a rethink.
Read more

Wal-Mart on the hot seat with investors
Investors will be closely watching whether Wal-Mart Stores Inc. meets its earnings forecast today after the world's largest retailer reported its worst decline in one-month sales at established stores in April.
Read more

Investor puts ethics on Tesco's agenda
Supermarket giant Tesco could be forced to appoint an independent auditor to assess its ethics in trading with suppliers after a private investor garnered enough support to put the issue on the company's agenda at its annual meeting.
Read more

Sainsbury to raise FY dividend this week - report
UK supermarket chain J Sainsbury will announce a hike in its full-year dividend this week in a bid to placate shareholders after it turned down a 10 bln stg takeover approach from a private equity consortium earlier this year, according to a report in the Sunday Telegraph.
Read more

FEATURED BRAND

The Lion Match Company
Lion Match places a large amount of their effort into research and development, and is continually striving to improve upon its product formulations and product technology - ensuring that the products are reliable and that the brand retains the household status it has acquired.
Read more

BRAND NEW

The best thing since sliced bread
Introducing Parmalat Maxi-Slice, the convenient slice-on-slice cheese for people on the go.
Read more

Two great, new oral care products from Bio Revive
Problems with the mouth are always painful and difficult to treat. Ointments or tinctures are the usual way of dealing with ulcers and cold sores but these can be difficult and messy to apply. Bio Revive® has produced two great new oral care products to deal with mouth ulcers and cold sores in a hassle free way.
Read more


BRAND ACTIVITY

Douglasdale Dairy milks Bulls win (use a pic from activity)
This week the dairy has brought out a limited edition "blue" 2 litre Full Cream milk bottle, which will be distributed in the Pretoria area from today (16 May) leading up to Saturday's Super 14 final.
Read more

House of Coffees shows FNB employees how to bank on Pod's
House of Coffees and First National Bank (FNB) recently teamed up to entertain and treat employees at BankCity FNB's head office. Employees stood the change to win one of forty Uno : Uno coffee machines. House of Coffees and Russell Hobbs combined their expertise two years ago to bring coffee lovers this innovation in coffee.
Read more

LIQUOR

Swartland Winery wins Gold at the Concours Mondial de Bruxelles
Swartland Winery, well known for their superb Ports, scooped a Gold medal at the prestigious Concours Mondial de Bruxelles for their 2004 Vintage Port.
Read more

Monis releases exclusive new wooded vintage Muscadel
Monis, one of the oldest and most respected names in fortified wines in South Africa, has released its first vintage Muscadel since 1992, the wood matured Monis Vintage Muscadel 2000.
Read more

Backsberg Viognier strikes gold at Swiss International Airlines Wine Awards
Backsberg Babylons Toren Viognier 2005, a lightly wooded Viognier of exceptional flavour and complexity in Backsberg's esteemed reserve range, has won a gold medal at the 2007 Swiss International Airlines Wine Awards.
Read more

FEATURED RETAIL SERVICES

Executive Business Solutions
EBS analyse the operational risks and loss control of businesses and also recommend/provide cost effective solutions, services and a return on investment.
Read more


BMI Foodpack
To provide Consumer and Business Market Research to our Clients, By our Dedicated Team, Committed to Service Excellence
Read more


RETAIL SUPPORT

Pyrotec innovation for Wellington
The development of a Protag label with an attached Fold-On leaflet is a new Pyrotec innovation.
Read more

Straight talking at Irish supermarket chain with Psion Teklogix voice picking software
Irish supermarket chain Superquinn, based in Dublin, invested in excess of €400,000 with Psion Teklogix's Irish partner Heavey RF, to replace a label stock picking system with advanced voice picking technology.
Read more

MARKETING AND ADVERTISING

Bundling makes cents
That's Hot Promotions offer a customised "value add" bundling opportunity, recent clients have experienced on-shelf sell thro' increases of between 5% and 30%.
Read more

State of the nation scoop for Primedia @ Home
Distributing two million copies of the State of The Nation Address (SONA) to South Africa, in all its diversity, is a formidable task. Primedia @ Home took on the challenge presented by government and delivered - in under 20 days.
Read more

Three decades on, Country Fresh still looks fresh
Sainsbury Design's potential was put to the test when the company was given the task of reviving Country Fresh's bland image over 15 years ago. Sainsbury Design came to the party by letting its creative juices flow.
Read more

Smart Cart's new drive in vegetables and fruit sales
Smart Cart has come up with another innovative first in ambient advertising with their new campaign for the Department of Health, which encourages consumers to spend their money on vegetables and fruit while doing their shopping.
Read more

EVENTS

Gourmet Festival
18 - 27 May
Lovers of food, fun and the good life unite! It's Southern Africa's premier food, wine and lifestyle event, The Cape Gourmet Festival, and it promises culinary bliss!
Read more

Good Food & Wine Show
24 - 27 May - CTICC
Set your taste buds talking and get ready for some first rate celebrity chefs as they bring you mouth-watering, palate-tingling culinary delights!
Read more

Wacky Wine Weekend
1-3 June - Robertson Valley
The festival will have something for everyone: food fundis, art and music lovers, outdoor and sporty types, the young, the old, and everyone in between!
Read more

The Jo'burg Wine Show
15 - 17 June - Gallagher Estate
Following on the success of this year's inaugural Jo'burg Wine Show, plans for the 2007 show are well underway.
Read more

The Jo'burg Wine Show
15 - 17 June - Gallagher Estate
Following on the success of this year's inaugural Jo'burg Wine Show, plans for the 2007 show are well underway.
Read more

Africa's Big 7
15 - 17 July - Gallagher Estate
The only event of its kind: The Food, Retail and FMCG expo!
Read more

CONTACT US

To subscribe to our free weekly newsletter, click on the links below.

SUBSCRIBE
AS:
Brand Manager
Service Provider
Retailer

For editorial:
Tel: (021) 527-7257
Email: editor@fastmoving.co.za

To advertise:
Cape Town - Vivienne Ross
Tel: (021) 527-7132
Email: vivienne@fastmoving.co.za

Johannesburg - Liezel Geldenhuys
Tel: (011) 679-5072
Email: liezel@fastmoving.co.za

Client liaison:
Denise Smit

Tel: (021) 527 7253
Email: denise@fastmoving.co.za