student market-ram

Why Should we talk to the Youth?

OVERVIEW OF THE SOUTH AFRICAN YOUTH MARKET


•The youth market appreciates great experiences. They are very likely to tell their friends about it and more so if there is something to score from the experience in terms of “freebies”. •Youth market consumers make experiential marketing more meaningful because they are willing to engage. •This market also consists of early adopters either setting trends or adapting them early thereafter. It would be imperative then to seed brands at this level. Young people are interested in new products and they are willing to experiment with different brands, making them a very lucrative market to target. Because of the fact that they are trendsetters and have a short attention span due to the immediacy of their digital world, if a brand no longer provides them with up-to-date, new and improved products on a regular basis, they will move onto a brand that will. This is the challenge faced by marketers. •Products such as washing powder and energy drinks should make acquaintances at the youth stage in the hope that they will “poke” back at a later stage when their buying power has increased. •The youth market is acutely sensitive to the tone and delivery in communication.


•The age group of this market is characterised by a desperate need to belong and fit into one’s peer group. This innate belonging filters unknowingly into the youth markets consumer behaviour. •They are very quick to dismiss an idea if they think that it might be a trick or scam. They have a short attention span and are cynical when it comes to advertising and marketing promises therefore truth and transparency is a very important aspect to any marketing strategy when attempting to crack this media savvy generation. •There is power in their fingertips with the ever increasing role that social media communication plays. They have the power to tarnish a brand’s image with a few misplaced tweets. •Mobile phones have been proven to be the accessory of note for the global youth market. South African young people have a mobile phone penetration of 86%, surprisingly not much different from the young market in Europe and the US, who fall between 83% and 87% of mobile penetration.


•Marketing to young consumers is based on the concepts of wants and needs. The market needs to be empowered to give them the confidence to take control, provide them with a sense of belonging and to stand out as a trend setter. •The youth in South Africa, for example, make up approximately 50% of the total population. In 2010, youth between the ages of 8 and 22, had an estimated spending of R95.3 billion, which is a 6.3% increase from 2009. •With regards to popular brands, young people from South Africa as well as other countries around the world (including, Brazil, Denmark, Finland, France, Germany, Greece, India, Italy, Norway, Spain, Sweden and the United Kingdom), vote Coke, Nike, Billabong, Levi's and Adidas as their top 5 brands. •Reputable brands such as Coca-Cola are continuously popular with young adults as they do not compromise their service delivery and remain an affordable and desirable product by the youth. As a result of this, the younger population will tend to be loyal to them, because they remain consistent and trustworthy.

5,887,000 Students

5,401,000 Students (Aged 15-24)

92% of the total Student universe are in the 15-24 age group.

Source: AMPS 2014 AB

DEMOGRAPHICS

DEMOGRAPHIC SNAPSHOT OF THE STUDENT MARKET

(000s)


5,401 457

19 9

0 2,000 4,000 6,000

15-24 25-34 35-49

50+

Age Group 5,025

394 368 100 0

2,000

4,000

6,000

Black White Coloured Indian

Race

LSM 1-4, 1,312.000

LSM 5-7, 2,996.000 LSM 8-10,

1,579.000

78 347 455

1,219 1,157

689 845

1,098

0 500 1,000 1,500

Up to R799 HH R800-R1399 HH

R1400-R2499 HH R2500-R4999 HH R5000-R7999 HH

R8000-R10999 HH R11000-R19999 HH

R20000+ HH Household Income

47% 53%

(000s)

(000s)

(000s)


Students are predominantly between the 15-24 age group with the average age being 19 years.

34% of Students are from households that earn R11,000+

The median Household income for Students is around R7,574 and the median personal income is around R1,110.

1 in 2 Students are from the 5-7 LSM segment.

Around 70% are stay at home singles and 38% reside in Metropolitan

areas.

KEY INSIGHT So What?

BANKING AND FINANCE

Of the total Student universe 40% have a bank account.


60% of students don’t have a personal account with a bank.

None - Personal account,

3,525.000

Main Bank - Personal account,

2,362.000


2,199,000 - said yes they have a savings account with a bank.

92

90

35

26

11

0 50 100

Mzansi - Personal account

Cheque - Personal account

Student Loan - Personal account

Credit Card - Personal account

Investments - Personal account

Students; Personal Account

(000s)

770

631

445

323

239

217

80

0 500 1,000

Access Accounts via Supermarket

Access Accounts via Cellphone SMS Facility

Have personal loyalty retail store card

Access Accounts via Mobile branches/ATM's

Have Retail Store Card

Access Accounts via Internet

Bought Durable Items on Credit P12M

Students; Financial other

(000s)

784,000 Students make use of eWallet &/or Instant money services

Capitec Bank is the Leading Banking Brand across the Student market


10% of the entire Student universe banks with Capitec Bank, followed by FNB with 9% of the market.

211

499

531

562

570

0 100 200 300 400 500 600

Nedbank

ABSA

Standard Bank

First National Bank (FNB)

Capitec Bank

Student; Banking Brands

(000s)

KEY INSIGHT


40% of Students have a bank account, which leaves 60% unbanked. Banking brands should target Students directly to convert them to have a banking account with them however the key is to offer affordable banking

rates.

So What?

CARS & INSURANCE

169,000 students own use or maintain a car. That is 2.9% of the total student population


Currently 19,000 students said their motor vehicle is

insured while 150,000 said they don’t have motor vehicle insurance.

2,186,000 Students live in households that have vehicles.

Students that own a vehicle, 83% of them own a sedan


0 50 100 150

Car/Sedan/Beach Bug/Hatchback/2 Seater

Coupe - Personal motor vehicle

2-Wheel/4-Wheel Drive - Personal motor vehicle

Station Wagon - Personal motor vehicle

Kombi/Minibus - Personal motor vehicle

140

27

1

1

Students; Personal Vehicle

(000s)

21

13

0 5 10 15 20 25

Engine 125cc or smaller - Motorcycle

Engine bigger than 125cc - Motorcycle

Student; Type of Motorcycle

(000s)

60,000 Student own use and maintain a new vehicle, where as 109,000 own use and maintain a second hand vehicle.

1st for Women is the Leading Insurance Brand across the Student market


The top 3 insurance brands used by Students are; 1st for Women is currently the leading insurance sector across the student

market with 8,000 students underwriting with them. Mi-Way and ABSA insurance are 2nd & 3rd with 3,000 students

underwriting with them.

Volkswagen is the Leading Car Brand across the Student market


26% of Students who own use and maintain a personal vehicle own a Volkswagen and 20% own a Toyota.

4 4

6 7

9 11 12

19 34

45

0 10 20 30 40 50

Fiat Nissan Mazda BMW

Renault Ford

Hyundai Opel

Toyota Volkswagen

Students; Car Brands

(000s)

KEY INSIGHT


2,186,000 Students live in households that have vehicles and these Students can influence what type of car or car brand the household decision

maker purchases at their homes. Students are influential and worth to be targeted by car brands.

So What?

TELECOMMUNICATIONS

5,101,000 Students have a Cell phone


(000s)

5,101,000

Students with Cell phone

3,948,000

Students with Smartphone

60% of Students have a Smartphone.


(000s) 36

162

204

2,294

2,770

4,753

0 4,000

Data bundles only

Contract

Contract & Top-up

Airtime only

Airtime and data

Pre-Paid

Students; Airtime & Data

80% of Students who have a cell phone are on pre-paid. Of the entire Student market that owns a cell phone, 19% of them own a

Samsung.

(000s)

Apple iPhone

Sony Ericsson

LG

Vodafone

BlackBerry

Samsung

Nokia

0 1,000 2,000 3,000

58

59

69

88

959

1,090

2,501

Students; Cell phone Brands

(000s)

43% of Students said yes to using a Nokia cell phone


51% of Students Access Face book on their Cell Phones

977

1,088

2,988

3,597

0 1,000 2,000 3,000 4,000

Social Networking (e.g. Using MySpace, Facebook, LinkedIn, Windows Live Spaces,You Tube,

Twitter,etc.)

Access Twitter

Access Facebook

Instant Messaging / chat services ( e.g Mxit, BBM,

WhatsApp, Apple Messaging)

Students; Used internet via cell phone

(000s)

61% of Students use the internet on their cell phones

for Instant Messaging.

0

1

15

31

39

0 10 20 30 40 50

Telkom Mobile

8 ta

Cell C

MTN

Vodacom

Student; Service Provider


Vodacom is the Leading network service provider Brand across the Student market

%

KEY INSIGHT


Smartphone penetration id high across the Student market, with 60% of Students owning a Smartphone.

As bandwidth technology increasing in South Africa plus further as cheaper Smartphone devices enter the market, Smartphone penetration will

increase even further across the Student market.

So What?

SHOPPING

92

274

277

461

522

529

620

969

1,132

1,329

1,481

0 500 1,000 1,500 2,000

Childrens Sports Shoes …

Womens Sports Shoes P3M

Childrens Shoes P3M

Sport Clothing P3M

Mens Sports Shoes P3M

Children's Clothing …

Mens Shoes P3M

Womens Shoes P3M

Women Inner Clothing …

Men's Clothing Items …

Women's Outer …

Students: Shopping Clothing and Shoes

1,481,000 of Students who buy clothing items, buy women’s outer clothing P3M


(000s)

Mr Price is the dominant Clothing & Shoes Brand across the Student market

198 229 233 236 247 314 333 334

668 681

1,323

0 500 1,000 1,500

Identity - Total clothing Legit - Total clothing

Markham - Total clothing Any other outlet - … Woolworths - Total …Pep Stores - Total …Ackermans - Total …

Truworths - Total clothing Jet - Total clothing

Edgars - Total clothing Mr Price - Total clothing

Students; Total Clothing

125

144

144

156

160

164

173

213

270

300

478

0 200 400 600

Woolworths - Total shoes

Sportscene - Total shoes

Truworths - Total shoes

Other Men S Store - …

Totalsports - Total shoes

Pep Stores - Total shoes

Ackermans - Total shoes

Any other outlet - Total …

Edgars - Total shoes

Jet - Total shoes

Mr Price - Total shoes

Students; Total Shoes

(000s) (000s)


Of the total Students who Shop, 1,958,000 buy in Bulk once a month.

1 Bulk Shop a mth and fill ups 75%

Shop twice a mth every two wks

18%

Shop wkly or almost wkly 6%

Shop twice a wk or almost daily

1% Shop other times 0%

Students; Shopping Frequency


62% of Students shop at Shoprite

420

481

508

576

768

1,029

1,161

2,175

2,185

2,296

3,655

0 1,000 2,000 3,000 4,000

SuperSpar - Total shopping

Township Supermarket - Total shopping

Clicks - Total shopping

Any other outlet - Total shopping

Boxer Superstores - Total shopping

Checkers - Total shopping

Other Local Supermarket - Total …

Pick 'n Pay - Total shopping

Spar - Total shopping

Spaza Shop - Total shopping

Shoprite - Total shopping

Students; Retail Shopping Brands


(000s)

KEY INSIGHT


23% of the entire Student market purchase clothing items from Mr Price.

Students who buys groceries, 75% of them buy in bulk once a month and fill-ups. Students have disposable income and their spending behaviour

is care free.

So What?

FAST FOOD

5,081,000 Students buy Fast Food


(000s)

5,081,000

Students buy fast food

806,000

Students never buy fast food 86% of the

entire Student market buys fast

food.

23% of Students spend more than R100 when they buy Fast Food

5

5

7

9

11

13

31

0 10 20 30 40

Once in 4 - 6 months - Fast food frequency

Less than once in 6 months - Fast food frequency

2 - 3 times per week - Fast food frequency

Once a week - Fast food frequency

Once in 2 - 3 months - Fast food frequency

Once in 2 - 3 weeks - Fast food frequency

Once a month - Fast food frequency

Students; Fast Food Frequency

31

77

486

872

1,027

1,141

1,365

0 500 1,000 1,500

Once a month - Fast food frequency

Up to R10 - Amount spent at fast food

R11-R20 - Amount spent at fast food




More than R100 - Amount spent at fast food

Students; Amount spent on Fast Food

(000s) %


KFC IS THE LEADING FAST FOOD BRAND ACROSS THE STUDENT MARKET

335

407

427

442

506

558

643

725

970

2,820

0 500 1,000 1,500 2,000 2,500 3,000

Pie City - Fast food outlet bought P4W

King Pie - Fast food outlet bought P4W

Wimpy - Fast food outlet bought P4W

Spur - Fast food outlet bought P4W

Steers - Fast food outlet bought P4W

Chicken Licken - Fast food outlet bought …

Debonairs - Fast food outlet bought P4W

Nando's - Fast food outlet bought P4W

McDonald's - Fast food outlet bought P4W

KFC - Fast food outlet bought P4W

Students; Fast Food Brands

In the p4w, Students who

bought Fast Food 51% ordered from

KFC.


(000s)

KEY INSIGHT


32% of Students who buy Fast Food, buy once a month and 24% spend more than R100 when they buy Fast Food.

1 in 2 Students who have bought Fast Food in the p4w ordered from KFC.

So What?

ENTERTAINMENT &

LIFESTYLE

57% of Students are interested in Soccer

685

820

823

845

1,011

1,075

1,106

1,145

1,172

1,172

3,356

0 1,000 2,000 3,000 4,000

Walking/Hiking

Athletics

Tennis

Billiards/Pool/Snooker

Boxing/Wrestling

Swimming

Dancing

Cricket

Basketball/Netball

Rugby

Soccer

Students; Most Interested Sports

1,195

1,215

1,442

1,632

1,717

1,800

1,803

1,872

2,229

2,230

2,623

0 1,000 2,000 3,000

Use Computer at Home

Read a free magazine

Attend Lectures

Cook For Pleasure

Read books

Read a free newspaper

Tune into Media

Travel in private transport

Travel in a minibus

Read a newspaper

Attend a church

Students; Life Activity

(000s)


(000s)

1 In 2 Students are interested in Gospel music

663

882

957

976

1,067

2,141

2,346

2,491

2,493

2,902

3,119

0 1,000 2,000 3,000 4,000

Maskhandi

Jazz/Fusion/Blues

Reggae

Pop

African Traditional

Kwaito

Love songs / Ballads

Rhythm & Blues (R&B)

Rap/Hip-Hop

House Music

Gospel

Students; Most Listened to Music

(000s)


49% of Students are interested in House Music.

Rap/Hip hop music has 43% of

Students interested in the genre.

Castle Lite is the Leading Beer Brand Across the Student Market

31

45

67

86

140

143

190

200

0 200 400

Castle Milk Stout

Windhoek Lager

Hansa Pilsener

Carling Black Label

Castle Lager

Amstel Lager

Heineken

Castle Lite

Students; Most Listened to Music

(000s)


686,000

Students drink beer

199,000

Are medium drinkers

Of the entire Student market that drinks beer, 29%

consume the Castle Lite brand.

KEY INSIGHT


3,356,000 Students are interested in Soccer, 57% of the total Student population.

38% of Students travel via minibus taxi weekly. Castle Lite is the leading Beer Brand across the Students.

So What?

PRODUCT CATEGORY

Product consumption across the Student market

Potato chips, 4,945.000

Sweets, 4,381.000 Roll-On,

4,289.000

Fresh milk , 3,914.000

Chewing gum/bubble gum ,

3,847.000

Yoghurt/drinking yoghurt , 3,168.000 Facial products ,

2,689.000 Hand-held ice cream ,

2,276.000

Bread (loaves), 2,245.000

Shampoo , 1,910.000

Chocolate assortments (boxes) , 1,542.000

Hair styling products, 1,369.000

Shaving cream/gel , 906.000


%

Of the entire Student market, 84% consume Potato

Chips.

Hand and body cream/lotion , 5,377.000

Fizzy drinks , 4,853.000

Fruit juice, 3,823.000

Chocolate slab, 2,351.000

Convenience pasta , 1,690.000

Sports drinks , 1,405.000

Acne/skin blemish preparations , 1,093.000

Energy drinks , 990.000

Flavoured alcoholic drinks, 955.000

Beer , 610.000 Brandy , 378.000


Product consumption across the Student market

Shoprite is the Biggest brand in the Student market

32

33

36

37

37

39

43

48

50

62

0 20 40 60 80

Simba Chips

Nik Naks

Clover

Pick 'n Pay

Spar

Vodacom

Nokia

KFC

Coca-Cola

Shoprite


%

Top 30 Student consumer brands.

Shoprite is the Biggest brand in the Student market

20

21

21

21

21

21

22

23

23

23

19 20 21 22 23

Beacon Smoothies

Disprin

Doritos

Maggi

Vaseline Blue Seal

Cadbury

Lucky star

Mr Price

Grand-Pa

Panado

23

24

26

26

27

28

29

31

31

32

0 10 20 30 40

Always

Clere

Shield

Danone NutriDay

Ricoffy

Lay's

Fusion

Chappies

MTN

Halls

%


Top 30 Student consumer brands.

%

KEY INSIGHT


Shoprite has the highest % consumption across the Student market. As the brand is a retailer, a high number of Students shop from Shoprite. The second most consumed brand by the Student market is Coca-Cola.

So What?

1,713,000 Students are medium TV viewers

825

828

852

862

1,022

1,252

3,247

4,061

4,191

4,738

0 1,000 2,000 3,000 4,000 5,000

Vuzu

M-Net Movies Action

SuperSport 4

MTV Base

Mzansi Magic

Channel O

SABC 3

eTV

SABC 2

SABC 1


1 in three Students are from

homes that pay a DStv subscription. 156,000 Students are able to

receive DStv Catch-up services. (000S)

94% of Students have watched TV in the past 7 days.

Metro FM is the Leading Radio Brand in the Student market

351

431

461

471

519

536

767

778

1,218

1,274

0 500 1,000 1,500

Capricorn FM

East Coast Radio

99.2 YFM

Gagasi FM

Thobela FM

Lesedi FM

Umhlobo Wenene FM

5FM

Ukhozi FM

Metro FM


29% of Students listen to

Community radio stations in the past 7 days.

92% of Students listened to the radio in past 7 days.

(000S)

70% of Students read a newspaper or magazine

70

307

1,164

1,164

1,427

1,608

1,679

2,591

2,594

3,255

4,112

0 5,000

Any AMPS Newspaper or Magazine

Any AMPS Alternate Monthly Magazines

Any AMPS Subscriber Mag

Any AMPS Store Magazines

Any AMPS Daily

Any AMPS Weekly Magazine

Any AMPS Weekly

Any AMPS Monthly Magazine

Any AMPS Newspaper

Any AMPS Magazine

Any AMPS Newspaper or Magazine


44% of Students read

any AMPS Newspaper.

55% of Students read a magazine.

(000S)

20% of Students read the DStv magazine

446

452

521

595

604

696

764

769

879

1,148

0 500 1,000 1,500

You

Move!

Sunday Times

Bona

Soccer Laduma

Drum

Daily Sun

Jet Club

Kickoff

DStv


14% of Students read the Daily Sun newspaper.

15% of Students read

Kick-off soccer magazine.

(000S)

88% of Students have seen an OOH ad in the past 7 days

1,616

1,628

1,708

1,907

2,575

3,481

3,583

3,815

0 2,000 4,000 6,000

Bus Shelters

Trailer ads

Building Wraps

Buses

Dustbins

Billboard ads

Minibus taxi ads

Street Poles

Students; OOH Media

(000s)


5,628,000

Students have seen OOH ad p4w

5,187,000

Students have seen OOH ad p7d

Of the entire Student population, 65% have been

exposed to street poles in the p7d.

54% of Students go to the Cinemas

1,707

1,216

907

739

522

442

356

192

96

11

0 500 1,000 1,500 2,000

Up to 12 months

Up to 6 months

Up to 5 months

Up to 3 months

Up to 8 weeks

Up to 6 weeks

Up to 4 weeks

Up to 14 days

Up to 7 days

Yesterday


13% of Students go to the Cinema every 3 months.

46% of Students have never

been to the Cinema.

(000S)

3,346,000 Students have internet access


(000s)

5,887,000

Students

3,346,000

Students have accessed the internet p7d

57% of the entire Student market has accessed the internet in the p7ds.

KEY INSIGHT


Of the entire Student population, 65% have been exposed to street poles in the p7d and 57% of the entire Student market has accessed the

internet in the p7ds. Students predominately listen to the Radio and watch TV. 94% of

Students have watched TV in the past 7 days and 92% of them have listened to the radio in past 7 days.

So What?

THANK YOU!

Source For Statistics : AMPS Jan - Dec 2014 Data crafted by : Nkateko Mongwe

student market-ram

Documents

young market

youth market consumers

global youth market

youth stage

market needs

lucrative market

south african young

young consumers