return to institutionalism
DESCRIPTION
The presentation relating to the Return to Institutionalism document - 2007TRANSCRIPT
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Return to Institutionalism
Emerging trend from Black Diamonds
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Contents
• What’s going on
– Changes in society
• Institutionalism
• Why & how is this happening
– Black diamonds, Government, BEE, Brand preferences, Intra-urban movements, Education, Strikes, Advertising, Statistics
• Comparison – Industrial Revolution
• The future
• Summary
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What's going on?
• Black Diamonds – the term of the times
– The are essentially the new middle class
– What’s important?
• Media consumption, demographics, psychographics
– Future predictions
• Growth, movements etc.
– How are they integrating into living as “black diamonds” and where are they likely to go?
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Changes
• Political
– system becoming more established
– regulations put into place to facilitate advancement
• Economic
– new credit act
• Marketing
– advertising
– products designed to appeal to new markets
• Black diamonds
– key focus in this area
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Institutionalism
• Way we make decisions
– world view
– home vs. work – worldview depends on situations etc
– Group vs. individual
• 5 Worldviews
– affiliative
– egocentric
– autonomous
– humanistic
– institutional
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Inner directedPassiveMature
Autonomous: Individual
Humanistic: Group
Consumer Mapping
Affiliation Group orientated
Outer directed Active Young, fun, playful, energy
EgoGoing placesIndividua-listic
Affiliative: Group
Egocentric: Individual
Institutional: Group
Responsibles
Buddies
High resources
Low resources
Innovators
Believers
Achievers
Thinkers
Discerning
Accomplished
Independence
In-crowd
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Institutionalism
• More money
– life cycle of black diamonds
– highly educated & motivated
– feel responsible - group
• Money in stages
– brand preferences change as stages change
– high priorities:
• car > house
• People thinking more in the long term
• Rather sacrifice luxury car, and have ability to pay off house
• township > suburb
• Moving
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Institutionalism
• what does this money get them?
– material objects
– credibility in society?
– spending their money consciously
- Black Money
…but what are they really getting?
– does this money buy them safety and security
• Social
• Job
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education
• Strikes
• Brand Preferences
• Advertising
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education
• Strikes
• Brand Preferences
• Advertising
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The New Credit Act
• It lives up to the expectations of consumers who want standardisation and control
• Wide acceptance of these regulations by consumers and organisations
• People don’t want to be taken advantage of and risk their time and money in places where it may not be viable
• This is an example of systems becoming more advance and the development of protection for others who are becoming more wealthy
• More money means more responsibility, the rich must not profit by making others poor but by maintaining a stable economy
• Systems must be held in place and that means applying them to all people in the population to give everyone an equal chance.
Sources: Sunday Independent, Personal Finance
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New credit act
• This is an example of institutionalism as it has created specific structures and elements of control
• The system has to be adhered to and there is a central governing body
• It means people have less to worry about when dealing with financial transactions
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education
• Strikes
• Brand Preferences
• Advertising
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BEE
• “How do you undo the wrongs of over 350 years in just 10?”
• Internal politics within the BEE structure is rife
– ‘One black, one deal’ mentality
– There is an thought that once a company or black owned company has received a benefit or BEE status it should give chances to other companies, by not entering into any similar dealings
• Problem of only having holding companies
• There may be policies in place to bring about BEE but there also has to be a willingness to transform by corporates.
Sources: M&G, MoneyWeb, Visions of BEE
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BEE
• An implementation of specific rules and regulations in order to help even out the opportunities available to blacks in business
• It is enforced by government and business and therefore falls into the institutional world view because it has strict organisational structures with hierarchies associated with BEE and traditional business practices.
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BEE
“A cool concept but it often doesn’t trickle down to the masses”
“It needs to be implemented carefully”
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Working
• Becoming time starved
– More need for time management, this an effect of work and becoming more institutional
– Using products and services that facilitate this need which means shopping at specific times, integrating with society
– More value is placed on time and money but what is this getting them
– Old Polychromic, New monochromic
– Because there is such a value on time more structures need to be put into place to make use of time more efficient
– Strikes taking place waste time and therefore create problems, the established and young families with children want the best for their children who only have a limited amount of time at school
Sources: UCT Unilever – Black diamonds
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Time
• Monochronic:
– Western culture
– Do one thing at a time
– Time is irreplaceable
• Polychronic:
– African cultures
– Many things at once
– Time can be rescheduled
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Time
• Moving into western culture
– Time paradigm shift from poly to mono
– Fit in with society:
• Community meetings (suburban)
• Access control
• Shopping
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education
• Strikes
• Brand Preferences
• Advertising
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Urbanisation
• Moving within the urban environment from townships to suburbs
• Benefits
– lower noise levels
– fences and strict divisions of property
– easier to control the area
• 47% of black diamonds now live in the suburbs
– 50 000 people have moved every month
• They are getting more involved with community activities
– De-centralised power structures
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Urbanisation
• The move towards suburbs
– institutional world view
– suburbs are historically known as being more structured and hierarchical
– everything laid out in a specific place and knowing where everything is.
Soweto taxi rank used to be a standard taxi rank – quite confusing and unstructured
Now a structured and organised building with specific lanes, queuing areas and signage
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Urbanisation
“The atmosphere in Soweto is different & there is the perception that there are no restrictions”
“Blacks who live in the suburbs come back to Soweto over the weekend”
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education & Culture
• Strikes
• Brand Preferences
• Advertising
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Education
• Black diamonds are are becoming well educated
– University & other tertiary
– these are building blocks of structured society
– promote long term views
• “There is a distinct difference in the way people conduct themselves once they have had tertiary education”
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Why is this happening
• Government intervention - NCA
• BEE
• Intra-urban movements
• Education & cluture
• Strikes & views
• Brand Preferences
• Advertising
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Public-sector & other strikes
• Wage offer based
• Government and strikers viewed to be at fault
• Schools most affected, and essential-services sectors are not legally permitted to strike.
• Contingency plans put into place to assist learners with exams and to ensure their safety
Sources: Sowetan, IOL, Die Burger
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Public-sector & other strikes
“Strikes affect students negatively, there should be another process instead of striking”
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More future focused
• Becoming future focused means careful and strategic planning, this can include buying a house, life insurance, investments and other activities to prepare for old age
• Although they want suburban development, they still enjoy much of their social life back in the townships, almost a break-away from stricter reality
– Communicate to them differently in these two different environments
– Two different worldviews, depending on location
• Also driving move to the suburbs – better access to services, jobs, security and an instant sign of success
• Townships will also start becoming more institutionalised
• Young families and established are the primary groups
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Brand preferences
• Looking at aspirational and middle class brands
• Moving up, this is what they will look at initially
• Family & traditional conscious choices, all in the same magazine…
The Afropolitan
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• Relating old traditions with modern means
• Future oriented
• Creating structure out of what was chaos
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Statistics
• 87% of South Africa’s new black middle class regard medical aid as a necessity, yet only 26% belong to a medical aid scheme – expect change in the future
• 47% of people with no education attend religious services weekly or monthly, as opposed to 66% of people with post matric education
– Religion is a indicator of institutionalism
• 19% of black South African’s are interested in finding out how to insure their assets
• Only 2% of blacks have asset insurance compared to 53% white, this is set to increase
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Industrial revolution
similarities
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Industrial revolution
• As systems were put into place more structure was required and demanded by the people
– Working conditions developed
– Social systems were re-organised
– Architecture & city planning evolved to meet the needs of social and economic changes
• Industrial revolution
– Increased emphasis on education & training
– Journals, encyclopedias
“The Industrial revolution witnessed the triumph of a middle class of industrialists and businessmen over a landed class of nobility and
gentry.”
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Summary
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Implications
• Bedding down of middle class
– Roles are becoming more defined and identifiable for these people who are returning to institutionalism
• Family to play bigger role
– As they move away from the townships, people who move with them will become closer
• Making a difference in community
– Standing up, protecting and fitting in to society
– Becoming legitimate in society
• Physical manifestation through architecture, design, advertising etc.
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Implications
• Communicating to this trend
– Social life in the townships means that’s where they may be relaxing and having fun
– More structure and institutional based advertising in the suburbs and at their clubs, associations and media that is consumed in these areas
– Any communication should be structured and future focused with specific guidance
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What does this mean for your business?
• They will & already have less time, and need more security – in terms of institutionalism
– Make it easy to understand your offering and provide and communicate your support
• They will be looking for products that benefit not only themselves but also their community and even history
– Make sure they know where you stand, tell them who you support
– Products like Hola 7 from Cell C
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Thank You.