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CONSUMER DRIVENSTRATEGYTHE CIA WAY

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Brand decisions are made in the rich complexity of life…whynot go there?

CIA’s unique ability to unlock human insightsensures we deliver strategic recommendationsthat are inspired and grounded in the forces ofconsumers realities.

We call it…“reality based strategic inspiration”

18 YEARS OFSTRATEGIC SOLUTIONS...

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18 Yearsof tracking down insights

for winning playersacross an immense

continent…

CONSUMER TRENDS ZA

CONSUMER INSIGHT AGENCY

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CONTEXT TIMELINE

1994 2008 2014THE PARTY IS OVER POST-PEAK SOCIETY

= MINDFULNESSTHE HORSES AREOUT THE GATES

20 years of democracy but no one is sayinganything = the austerity measures of ourtime. Which brand is doing something?

CONTEXT SOCIETAL THEME

MINDFULNESS IS THE CURRENTTHEME OF OUR SOCIETY:

And the subsequent trends fallunder this key theme.

MINDFULNESS

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TREND #1

STATURE INDISCERNING

WISDOM

MINDFULNESS

DISCERNMENT BEYOND THE BARREL:

The new bling is subtlety & class.

The ability to discern a good quality product foroneself through exploration. Being in the knowof the sophisticated language and understandingthe cues of the category.

Forever moving the goal posts of what’sinteresting or bespoke.

HERITAGE // A STORY // SELF DISCOVERY

TREND #1MINDFULNESS STATURE IN DISCERNING WISOM

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TREND #1MINDFULNESS STATURE IN DISCERNING WISOM

THIS GIVES LIFE TO A GLOBALAPPETITE FOR DISCOVERY.

AN OPPORTUNITY TO EXPLOREAND DISCOVER.

CASE STUDY

TREND #4MINDFULNESS AUTHENTICITY CASE STUDY

CRAFT OVERKILL –craft beer, craft pizza, craft bread.

SEEKING VINTAGECRAFTING COFFEE

IN KAYALITSHA

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WHAT IS THECURRENTSTATE OF

WINE?

#GlamInGugsLEARNINGS FROM GUGULETHU WINE FESTIVALMAY 2012

FAX : + 27 21 797 1981 T EL : + 27 21 797 1366 EM AI L : I N FO@ THE - CI A.CO.Z A

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Venue: marquees on the Gugulethu Mall rooftop.Cost: R80 a ticket, which included a booklet, a bag, and a wine-tasting glass.

GOING GLAM IN GUGS

THE CROWD

Images sourced from www.guywithcamera.co.za - Andrew Brauteseth

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#1 Gentrification of townships;

#2 Sophistication winning out over bling;

#3 The rise of individual discernment and the need to demonstrate this;

#4 Increased responsibility related to alcohol consumption (due to the drunk-driving clampdown for those archetypes with cars; rise of the home occasion; buyingliquor in retail outlets rather than venues; increasingly erratic disposable income forLoxion Dreamers);

#5 Organic authenticity coming to the fore.

BIG PICTURE TRENDSIN REAL LIFE

A THIRST FOR LEARNING

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A THIRST FOR LEARNING PUMPING UP THE VOLUME ON DISCERNMENT

There was a massive and highly successful emphasis on education. Food andwine pairing classes were hosted by Nederburg – with wine wheels thatexplained flavour and bouquet notes etc – on the hour, every hour. And theywere always packed. Note this response on Twitter…

As well as these photographs taken of classes taken at different times in theevening:

A THIRST FOR LEARNING PUMPING UP THE VOLUME ON DISCERNMENT

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The booklet that attendeesreceived on arrival carriedstraightforward tips on howto taste wine (from the CapeWine Academy, which alsohad a stand and POS at thevenue), lists of wineries andtheir brands as well as tastingnotes.

A THIRST FOR LEARNING PUMPING UP THE VOLUME ON DISCERNMENT

Four Cousins is the biggest selling winein the country, produced by VanLoveren. Four Cousins is affordable andhas 9% alcohol across all the range soits ABV is low compared to winetypically. Sugar is also re-added backtowards the end of the fermentationprocess, so it’s a sweet wine.

The slightly sparkling rosé tastes likeGrapetiser. They have also justlaunched a lower in sugar variant (notin alcohol) for weight reasons. Again,their stand was very popular.

CASE STUDY #2 WINE:AFFORDABLE SOPHISTICATION

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Alvis Drift has just launched NaughtyGirl in direct competition to FourCousins. Its POS has a distinctlyHoity-Toity feel, a brand that is hugein loxion.

CASE STUDY #2

NAUGHTY GIRL:

KWV’s jimmyjagga ‘fushion wine spritzer range’ also hada stand and was well patronised. As you know,jimmyjagga was launched, in the words of theirInnovations Director, “to compete with premium ready-to-drink products such as Smirnoff Spin…” It has an ABVof 4%; is purported to be a quality product (and pricedso), in a clear glass bottle with non-girly packaging.

CASE STUDY #3 WINE FUSHIONIT’S NOT JUST ABOUT WINE

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NB - SOUTH AFRICA IS A WORLD APART

South AfricaA good training ground, but it canmake you AFRICA UN-FIT with its

formal trade, first world comforts,marketing reach, acc data….etc

LESSONS FROMAFRICA

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NOTA

SMALLOPPORTUNITY

EASTERNEUROPE

Japan

2050AFRICA’S POPULATION@ 2.4BILLION

more than all of these together!

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Africa 3rd World Poverty?Or… Key Player in the MAJORITY WORLD?

THE RISE OF THE EMC AFRICAN CONSUMER

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AFRICA’s EMC ESTIMATED AT300 MILLION ON A CONTINENT OF 1 BILLION PEOPLE

RSA

“If current trends continue, most of Africa will be middle income by 2025”- Leading world bank economist for Africa, Wolfgang Fengler

In the RISING TIDE of change, of hope & progress, there isimmense pressure to look as if ‘I am progressing’…

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UNDERSTANDING OUR UNIQUE EMERGING MIDDLE CLASS

New consumers, with optimistic aspirations

SOCIAL CAMOUFLAGE IS WHAT YOU SEEREALITY LOOKS DIFFERENT

SOCIALCLADDING

REALITY

ClothingHairCarHomeSkinChildren image

Food ShortagesBad sanitationStruggleHustleFrugalityLimited educationLittle infrastructureCrimeFear

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SOCIAL CAMOUFLAGE IS DIGNITY

THIS FAÇADE IS VITAL TO MY SENSE OF SELF-RESPECT AND OF HOPE.

CATCH THE M GENERATIONAL WAVE

More than 50% of Africa’s population is under 20.The time to grow BRAND LOYALTY is NOW.

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2. THE AFRICAN DICHOTOMY

Rapid change has left us with the African Dichotomy…

TWO WORLDSAFRICA STRADDLES

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“If you want an idea of what Nigeria can offer the worlds more fearless investors, raise a glass to SAsupermarket chain Shoprite. Last year its seven Nigerian branches sold more

Moet & Chandon than its 600 RSA stores combined”.

//www.theguardian.com/world/2014/jan/09/nigeria-promise-for-investors

NIG

SOME HAVE

NIG

SOME HAVE LESS

50% OF AFRICAN’S STILL LIVE ON LESS THAN $2 A DAY(Estimated to drop to 30% over next decade)

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THE QUESTION IS NOT WHY AFRICA?

HOW?IT’S

“What works in other parts of the world, may not work in Africa” – G Fritz,Shoprite Group, 1500 stores in 16 countries

2WORLDS

GH

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STREEE…T…CHING THE BUDGET TO GO FURTHER: BUYING 1’S

TO SURVIVE, WE HAVE TO BE FRUGAL

- Getting good life in small measures -

ALMOST ANYTHING IS SOLD IN 1’SWashing powder, stock powder, Milo, rice, eggs, cigarettes, matches, sanitary pads…

FRUGAL

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TENSIONMODERNITY VS TRADITION

PRIDE IN TRADITION, BUT EMBRACING MODERNITY

There is a blending of cultures happening – modern + tradition.

GH

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One Strategy is modernity, blended with a deep connection to theknown and trusted

PRIDE IN TRADITION, BUT EMBRACING MODERNITY

?

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NIGLEARN

&INNOVATE

till it hurts??

CONTACT USTEL: +27 21 797 1366EMAIL: info@the-cia.co.zaFAX: +27 21 797 1981