Page 6 - HGR July High Res
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Brand Loyalty

   If you’re a marketer                      marketing, that buyer behaviour at an        you. It all comes down to mental and
  and believe that your                      individual level is random but that aggre-   physical availability and a brand’s ability
  brand has 100% loyal                       gated buyer behaviour can be predicted,      to be thought of in a buying situation by
consumers, you are sadly                     very accurately, as is the case in any       as many people as possible, on as many
                                             random system,” says Spark Media Joint       occasions as possible.”
         mistaken.                           CEO Gill Randall.
                                                                                            She goes on to say that studies of
This is according to Spark Media and data      ROOTS 2016 shows that of the 2.4 mil-      hundreds of categories reveal that more
backed by Caxton’s urban community           lion PDM’s (Purchase Decision Makers)        than 50% of profits come from light buy-
survey, ROOTS 2016, the largest quanti-      who have shopped for shoes and cloth-        ers (not 80-20 as we have been lead to
tative survey of its kind in South Africa.   ing at Edgars, 40% have also shopped at      believe). ”Let’s take Coke as an example.
                                             Mr Price, Woolies (36%), Truworths (4%),     63% of profits come from people who
  ”We know from our affiliation and          Jet (21%) and Ackermans (18%).               drink just one Coke a year, simply be-
close dealings with marketing scientists                                                  cause there are so many of them.”
at The Ehrenburg Bass Institute, the           ”Every brand’s market comprises of
world’s largest centre for research into     heavy, medium, light and non users,”           ”Even in the banking sector, custom-
                                             says Gill. ”It also stands to reason that    ers are shared with competitors,” she
                                             your customers are everybody else’s          says. ”27% of PDMS who have a bond
                                             customers who sometimes buy from             with African Bank, have a Standard Bank
                                                                                          savings account and 20% have a Capi-
Global furniture                                                                          tec savings account. 12% of PDMS who
consumption forecasts                                                                     have a bond with ABSA also have a FNB
                                                                                          Cheque account and 19% of PDMS who
According to CSIL estimates, world           scenario to 2017.                            have an ABSA student loan also have a
furniture consumption amounts to about         70 countries covered: Algeria, Argen-      FNB savings account.
USD 390 billion continuing the real terms
growth trend registered so far. This is the  tina, Australia, Austria, Bahrain, Belgium,    As a result, Randall stresses that
combined result of different performanc-     Bosnia-Herzegovina, Brazil, Bulgaria,        marketers shouldn’t profile brand users
es across the main geographical areas.       Canada, Chile, China, Colombia, Croa-        when planning their target market, but
                                             tia, Cyprus, Czech Republic, Denmark,        rather category users - coffee drink-
  A sustained recovery is underway in        Egypt, Estonia, Finland, France, Germany,    ers as opposed to Nescafé drinkers for
some traditional manufacturing areas         Greece, Hong Kong, Hungary, Iceland,         example.
and a deceleration of growth is reported     India, Indonesia, Ireland, Israel, Italy,
in others. Now more than ever reliable       Japan, Kazakhstan, Kuwait, Latvia, Leba-       ”Growth for a brand comes largely
insights by country and by region are im-    non, Lithuania, Malaysia, Malta, Mexico,     from acquiring new customers, as op-
portant to fully understand the furniture    Morocco, Netherlands, New Zealand, Nor-      posed to existing customers buying more
market and its trends.                       way, Oman, Philippines, Poland, Portugal,    often. So, mass reach of a category is
                                             Qatar, Romania, Russia, Saudi Arabia,        much more cost effective than investing
  The new edition of CSIL report ”World      Serbia, Singapore, Slovakia, Slovenia,       into frequency strategies with existing
furniture outlook 2016-2017”, price EUR      South Africa, South Korea, Spain, Sweden,    customers. That’s not to say that existing
1600, is now available.                      Switzerland, Taiwan, Thailand, Turkey,       customers shouldn’t be in your sights,
                                             Ukraine, United Arab Emirates, United        but never at the expense of finding new
  This study provides an overview of the     Kingdom, United States, Venezuela,           ones.”
world furniture industry with historical     Vietnam.
statistical data (production, consumption,                                                  ”The irony is that heavy or regular
imports, exports) and furniture markets                                                   users of any brand need less nudging to
                                                                                          buy an already ‘salient‘ brand.”

                                                                                            Topline ROOST 2016 data is available

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