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Finding Leader
Opinionfaster growth: New markets
Navigating growth in Africa




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Navigating growth in Africa




1
Introduction							03


2
Urbanisation: an easier target but not that easy				   07


3
Media and mobile							10


4
The opportunity for brands							15


5
Weighing up growth prospects 						18


6
Voices from Africa							20




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                                                                   2
Navigating growth in Africa




When the evolutionary biologist Stephen Jay Gould
famously claimed that there was no such thing as
a “fish”, he wasn’t denying the existence of lots of                                                                          54 countries
underwater-dwelling vertebrates in the sea.
                                                                                                                   with


He simply meant that calling them all fish didn’t        shifts driving the continent’s GDP growth, they must
really help him to understand them. The term             first embrace the immense diversity of a region
obscured rather than revealed, because the
organisms we call fish are such fundamentally
different creatures. In the same sense that Gould
                                                         equal to the combined land mass of the United
                                                         States, Europe, China, India, Mexico and Japan.
                                                         They must recognise that what feel like familiar
                                                                                                                              52 cities
                                                                                                                   within Africa. Of more than,
knew the waters of the world are full of creatures       trends and technologies produce very different
that are not really fish, companies are realising that   results when played out in the contexts of African
the markets of Africa are full of openings that are      markets. They must be prepared to re-engineer


                                                                                                                              1 million
not simply ‘African Growth Opportunities’. African       propositions enthusiastically and repeatedly to fit the
markets, and the different scenarios within them,        very different scenarios that they encounter on the
defy easy generalisation - and cannot be tackled by      ground. And they must be prepared to make tough
                                                                                                                   inhabitants. The same as Western Europe
simply importing brand strategies from one market        decisions about which growth opportunities can be
to another. If brands are to ride the demographic        efficiently exploited – and which cannot.




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Navigating growth in Africa




The opportunity in numbers
                                                         The fluid border of the consumer economy
Evidence of the value of African markets has
                                                         The border between poverty and this middle-class


                                                                                                                                50%
been mounting relentlessly in recent years. Africa
                                                         existence is a constantly shifting one, in Africa as in
contributed six of the world’s ten fastest-growing
                                                         other emerging markets. Members of the’floating’
economies between 2001 and 2010 and is projected
                                                         lower middle class face the ever-present danger
to represent seven of the top ten between 2011                                                                     increase in foreign direct investment since 2005
                                                         of slipping back into poverty and their consumer
and 2015. Its GDP growth is expected to reach
                                                         attitudes overlap in many respects with those of the
5.7 percent in 2013, the highest for any global



                                                                                                                                60%
                                                         upper reaches of the BoP. An income of even $8
region. Foreign direct investment in the continent
                                                         per day would represent immense hardship in the
has increased by around 50 percent since 20051.
                                                         eyes of developed market consumers (it represents
Although 60 percent of Africa’s population continues
                                                         less than half the income of the recognised
to survive on less than $2 per day, these ‘Base of
                                                         poverty line in the UK, for example). However,            of Africa’s population survives on less than $2 per day
the Pyramid’ (BoP) consumers are emerging into
                                                         the increase in disposable incomes and consumer
the mainstream consumer economy at an increased



                                                                                                                               1/3
                                                         choice is expanding African markets, just as Africa’s
rate, able to buy consumer goods on a reasonably
                                                         demographic trends and new technologies enable
regular basis. Over a third of the population in many
                                                         brands to compete in them through new channels.
countries now falls within the ‘middle class’, with an
income of between $2 and $8 per day. McKinsey’s
Lions on the Move study predicts that half of all                                                                  of income is between $2 and $8 per day
African households will have some disposable
income by 2020.




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Navigating growth in Africa




Companies looking to craft compelling brand              marketing is omnipresent in their lives. Brands today
propositions for Africa must set aside many easy         are a part of the landscape in a way that previous
assumptions about the middle-class African               generations couldn’t have dreamed when they first
consumer. They must balance the importance of            encountered the pioneering rural marketing efforts
aspiration and inspiration with the requirement to       of Unilever, P&G, Colgate, Nestlé and others in the
focus on immediate needs; they must recognise            1970s.
the dominance of a local community perspective.
And they must realise, above all, that whilst trends     And the limits of pan-African strategies
and technologies are creating new forms of market        These trends: youth-driven urbanisation, mobile
opportunity, they are not recreating developed           and an established role for brands and marketing,
market opportunities in a new setting.                   provide recognisable levers and channels through
                                                         which companies can pursue shares of increasingly
Pan-African growth themes                                disposable incomes. However this does not mean
To some extent, we can identify broad common             that strategies based around these levers can
themes in Africa’s economic emergence, even if           simply be imported from developed markets, or
these play out very differently in different settings.   even from one African country to the next. The
Africa’s population is a growing and youthful one,       mobile operator Airtel, a dominant force in India,
which is migrating to major urban centres at an          faces many challenges when it comes to translating
accelerating rate. Through the mobile phone, these       this emerging market success to different African
youthful urbanites and their families have access to     countries, often competing with brands that are
a personal communications channel that has the           already well-established amongst BoP consumers.
power to transform their prospects. And through          Pan-African success stories consistently show the
their mobiles as well as TV advertising, billboards      importance of rebuilding brand propositions for each
and typically African ‘entire wall’ advertising, brand   new market.



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Navigating growth in Africa




Critical to this process is an understanding of the         In Egypt, for example, the upper reaches of the
stage that a market has reached, and the true               BoP include many individuals who retain strongly
opportunity for a new company or brand. African             conservative religious and family values; but also
markets are far from virgin territory, and brands that
fail to research competitive landscapes carefully are
liable to suffer for it. They must be aware that, even if
                                                            many embracing more adaptive value systems and
                                                            modern (often urban) popular culture. Brands echoing
                                                            the nostalgic culture of prosperous rural Egypt have
                                                                                                                              52 cities
                                                                                                                   within Africa, have populations of
comparable rival brands appear absent, the consumer         far greater resonance with the first group; brands
needs they seek to service may already be met               addressing changing social values and needs have far
through other, less conventional means.                     greater success with the second.

Local cultural contexts can have a significant influence
on the use of products and the reception for different
                                                                                                                              1 million
                                                                                                                   or more. It is estimated that around
brand propositions. Ethnographic research techniques,
focused on exploring cultural phenomena, have


                                                                                                                              10 million
an important contribution to mapping this cultural
landscape – and TNS has found such approaches
invaluable in identifying the precise nature of
                                                                                                                   young Africans arrive in the labour market a year
opportunities in African markets.




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Urbanisation:
an easier target but not that easy




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                                            7
Urbanisation: an easier target but not that easy




Urbanisation: an easier target but not that easy
For brands, the accelerating urbanisation of Africa
appears to provide more accessible target audiences
for brand propositions by bringing concentrated
populations within easy reach of product distribution
and marketing. Africa today includes 52 cities with
populations of 1 million or more; the same number
as can be found in Western Europe. It is estimated
that around 10 million young Africans arrive in the
labour market each year – and many of these travel to
rapidly growing cities in order to seek work. In doing
so, they provide a large, concentrated audience that
can be reached efficiently through outdoor media,
served products without relying on unreliable African
roads, and who can serve as a powerful conduit for
brand advocacy, through the many Africans that
return to their rural roots for short visits or longer
stays. It is noticeable that Western multi-nationals
such as P&G and Unilever have shifted research
budgets from tracking the attitudes of rural
population to gaining a deeper understanding of
emerging urban consumers. For most brands,
Africa’s cities now provide the obvious entry point
to their surrounding markets.



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                                                                8
Urbanisation: an easier target but not that easy




Yet city life does not equate to developed market         to growing beer brands. Similarly, mobile banking
opportunities and standards of living, nor to             services – a great force driving inclusion and helping
consumers adopting the behaviour patterns and             to grow markets across Africa – have seen their
attitudes of developed market urban consumers.            growth accelerate significantly following take-up in
There are huge variations as well between the             rural areas.                                                        Kadogo economy
consumer landscapes of Johannesburg, Nairobi,
Kinshasa, Cairo and Benghazi. African cities              Reducing package size to promote affordability is         The ‘Kadogo economy’ or ‘little economy based
encompass great inequality, with many urban               a strategy that can prove equally effective in both       on small pack sizes’ has been a key way for brands
populations remaining in the BoP, and most continue       urban and rural contexts. A typical Nairobi shopper       to become established in Kenya since the 1990s.
to be blighted by blackouts and energy rationing          may visit a local market or Duka several times a day,
that have a huge influence on their inhabitants’          buying items only when required and only in the
priorities.                                               amount required at that particular moment: visiting
                                                          in the morning for a sachet of sugar, picking up a
At the same time, brands cannot afford to confuse         sachet of cooking oil in the afternoon, then a tea
the relative unfamiliarity of rural Africa with a         bag to entertain friends and perhaps a penny portion
relative lack of importance. Patchy data in rural areas   of soap for the evening wash. Brands that can adapt
can blind companies to the contribution they make         to such distinct buying patterns stand to unlock
to current revenues, leading them to miss significant     significant growth opportunities. The Commitment
opportunities, or undermine existing business models      Economy, TNS’s respondent-level analysis of global
when they shift focus to fast-growing cities. Rural       market opportunities, shows that South Africa’s Dark
tracker surveys in the alcoholic beverages sector,        & Lovely shampoo brand could unlock a further $3.4
for example, show higher per capita consumption           million in value by extending its strategy of offering
in small towns and rural areas that gives these           smaller pack sizes and further increasing accessibility
markets disproportionate influence when it comes          and affordability.



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                                                                                                                                                                     9
Media and mobile




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Media and mobile




Within both urban and rural environments, limited       Africa’s mobile lives                                         and smartphones (Android-enabled handsets are
electricity has a huge potential impact on media        For Africa’s growing urban population, as for the             often available for less than $80) are changing the
consumption. DSTV, the South African satellite          families and friends that remain in rural communities,        digital landscape rapidly, leapfrogging Africa past
television company, owes its success across 47          the mobile phone is both an engine of opportunity             the PC to create a digital infrastructure based largely
African countries to a willingness to grapple with      and convenience - through services such as mobile             around mobile technology. In Sub-Saharan Africa,
the impact of generator economies, and the way          banking and money transfers - and a channel for               only 12 percent of the population owns a desktop PC,
in which power shortages compel a TV to compete         entertainment and personal expression. Low-cost               with laptops at the same level of penetration; already,
with the fridge, the mobile phone charger and the       handsets (with basic mobiles available for $8 or less)        18 percent of the population owns a smartphone.
radio for a share of limited electricity. DSTV has
been able to support its growth with new audience         Mobile ownership                                                  mobile phone ownership as % of population
measurement approaches that reflect the reality
of TV consumption in Africa. And it is increasingly
                                                                       93
looking to mobile TV services to help bridge gaps in                             90        90       90           88
                                                            86                                                              86
the availability of conventional TV.                                                                                                  82         80        79
                                                                                                                                                                    71
Several brands have identified social networks, which
can be readily accessed from an increasing number
of mobile phones and can act as a channel for
distributing video content to compatible handsets,
as a valuable support to TV campaigns. Unilever’s
laundry brand, Omo, recently ran an innovative
integrated campaign in Kenya, in which a branded
                                                           Global    Cote       Senegal   South     Egypt    Ghana        Cameroon   Nigeria   Tanzania   Uganda   Kenya
TV game show was linked to a Facebook page with                      D’Ivoire             Af rica
video content.



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Media and mobile




Social networking is already a dominant feature of
African mobile life – and TNS’s Mobile Life study          Phone capabilities
shows strong take-up of mobile banking and mobile
wallet services (which enable consumers to pay for           48           59          71             64             74           56       81        78        75        77
goods using their handset) across countries such as
Kenya, Uganda and Tanzania. These often take the
form of simple USSD solutions that do not depend
on smartphone technology and are therefore widely
accessible to anyone with access to a phone. Despite
the growth in smartphone penetration, the vast
majority of mobiles in Africa continue to be ‘dumb’          19
phones, and the most successful mobile services and                       16
marketing in the region are those making innovative                                                  18                          31
                                                                                       7
use of these platforms.                                                                                              8
                                                                                                                                          8         12        16
                                                                                                                                                                        16
Such applications of mobile technology are not
                                                             33           25          22             18             17           13       11        10        10         6
limited to phones themselves. M-Kopa is currently
                                                            South        Nigeria     Egypt       Ghana          Cam eroon       Kenya   Senegal   Cote       Uganda   Tanzania
trialling a solar lighting system that can be controlled    Africa                                                                                D’Ivoire
remotely through a SIM card. This enables ‘high-risk’
customers, who were previously unable to get credit         Smartphone      Advanced feature phone        Basic feature phone
to pay for electricity, to pay for their lighting on a
day-by-day basis.




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Media and mobile




The mobile lives of Africans are built on very          lagging behind many other African markets as a                                     existing distribution network and firm government
different foundations to those of consumers in          result of security concerns and a lack of consumer                                 support. But its real success came from the need for
developed markets and both mobile operators and         awareness. Safaricom’s mPesa mobile money service,                                 urban workers to transfer money easily to their rural
brands making use of the mobile channel must re-        rightly hailed as a breakthrough African model,                                    families. It took the service some time to replicate
engineer their propositions and strategies to reflect   owed its initial success in Kenya to the alignment of                              this success in other markets, where not all these
this. SMS and in particular, USSD technologies often    several critical factors: dominant market position,                                factors were initially in place.
take on a far more significant role than mobile
video or banner advertising, and many of the most         Mobile Banking
successful campaigns are built around broadly
accessible mobile sites to which consumers can be               Kenya                       23                                             50                             10                        17
invited via simple text messages. Developed-market            Tanzania                 14                                             51                        7                        28
mobile strategies cannot simply be imported to
                                                               Uganda              11                                  39                             14                            35
African countries.
                                                          South Af rica            9                                             52                                  23                             16

Innovative approaches to data capture and mobile               Nigeria         6                                            55                               13                           27
engagement are also essential in an environment                           3                                       50                                       25                                  23
                                                           Cameroon
where phones are often shared and usage can be
                                                          CoteD’Ivoire    2                           32                                   26                                  40
sporadic. The mobile marketing company Brandtone
has had considerable success incorporating calls                Ghana     2                                       54                                            25                              20
to action on product packaging that encourage                 Senegal     1                             37                                       28                                 34
consumers to engage with brands via their mobile.
                                                                 Egypt                      23                                                  54                                             22

Egypt demonstrates the potential variety in attitudes         Using           Interested         Not interested    Don't Know
to mobile, with adoption of mobile banking services



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Media and mobile




The mobile operator MTN, currently the only African
representative in the world’s top 100 brands, owes
its success to a continual process of innovation to
ensure affordability in different markets. This has
involved adapting to the secondary handset market,
through which second-hand mobile phones reach
emerging middle-class and BoP communities – and
has driven a strategy of offering airtime in small
package sizes that echo the penny packs of FMCG
brands. It has also led to a demand for constant
innovation to stay ahead in highly competitive
markets – in which rival operators bring out new
tariffs on an almost weekly basis.

Brands leveraging mobile as a channel, either
through social media, SMS or the application of
mobile wallet technology, must therefore shed many
developed market assumptions about intimate,
personalised and always-on devices. For most
Africans, the sharing of airtime and handsets is a
natural extension of existing habits and cultural     hours of BlackBerry Messenger airtime for a specific    recipients a phone number to call accompanied a
values, as well as a logical means of controlling     task, for example. Brands must adapt their strategies   115-character advertising message, are an African
costs. The mobile phone and the media consumed        to such a frequently interrupted, frequently shared     innovation that brands have leveraged with great
through it are experienced on an occasional basis,    channel if they are to succeed. Please Call Me          success. PCM campaigns advertise everything from
with emerging middle-class consumers buying a few     (PCM) messages, a USSD-based service which sends        airlines and car insurance to local village stores.


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The opportunity for brands




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The opportunity for brands




The marketing generation – and their demands            Pepsi have sought to associate their brands with the
Brands themselves represent a new form of               festival of Ramadan; Coca-Cola through a
opportunity in many African markets. Until relatively   post-Revolution sense of happiness and optimism,
recently the role of marketing was restricted to        Pepsi through a corporate responsibility programme
the FMCG category; today it plays a role in driving     linked to Ramadan themes of charity and giving.
awareness and choice across mobile, banking and
more. Brands are highly valued by emerging middle-      The importance of localised brand propositions
class consumers, especially where brand propositions    is shown by the evolution of South Africa’s Tiger
reflect priority needs and can provide accessible       Brands, a market leader in bread and other
quality and credibility.                                categories. Tiger Brands has moved from a simple
                                                        export strategy to one in which it takes control of
In the aftermath of the Arab Spring, North African      every aspect of branding, distribution and strategy
countries such as Egypt, Libya, Morocco and Algeria     in the markets that it targets. When expanding
have demonstrated a strongly heightened degree          into Nigeria, Tiger Brands acquired a local flour
of consumer empowerment, with traditional               manufacturer, providing a ready-made distribution
monopolies questioned and challenged, and brands        and transportation network, and retained the
playing an increasingly visible role in newly dynamic   local branding due to its strength in the market.
markets. Successful branding owes much to local         In other situations, Tiger Brands has adopted a
political and cultural nuance, with heightened          similar acquisition-led approach but introduced its
nationalism in the wake of revolution and political     own brands when research showed that these had
change leading many local and global brands to          greater potential to leverage the infrastructure of the
adopt patriotic messaging and images. Religion          acquired company.
can often play a similar role: both Coca-Cola and




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The opportunity for brands




Competition in the marketing hotspots
Greater attention to brand positioning in part
reflects the demands of emerging middle-class
consumers for robust propositions that can help
to meet their daily aspirations and challenges.                   Kadogo economy
However, it is also a response to an increasingly
competitive marketing landscape. Tiger Brands          In Nigeria’s laundry detergent market, The
cannot expect to have it its own way in a market       Commitment Economy study shows that So
such as Nigeria; Western multinationals such as        Klin of China has stolen a march on P&G’s Ariel
Coca-Cola, Pepsi, P&G and Unilever compete with        and Unilever’s Omo by adopting their traditional
Chinese and Turkish brands that in many markets        strategy of increasing accessibility through
benefit from far stronger cultural ties.               broader distribution and smaller pack sizes. Were
                                                       the western multinationals to fight back by re-
If there is a risk to companies switching attention    establishing distribution and increasing marketing
from rural regions to focus on urban centres it lies   support in key areas, they could regain up to $15
in the greater competition that they face in these     million in value.
environments, and the ‘Power in the Market’2
opportunities that they sacrifice through narrowing
the availability of their products. Brand loyalty is
extremely strong amongst the BoP consumers who
inhabit many rural areas and many of whom will go
onto form the emerging middle class. First mover
advantage can be highly significant, and brands that
are committed enough to establish distribution over
broader areas may be more likely to obtain it.


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Weighing up growth prospects




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                                     18
Weighing up growth prospects




Weighing up growth prospects
Understanding the precise size and shape of such
market opportunities is essential for companies
weighing up the decision to pursue them. There
is no shortage of growth opportunities in Africa,
but the number that can be realised efficiently is
significantly narrower. Companies must take hard-
headed decisions about which forms of growth they
have the will, budget and appetite for risk to invest
in – and which challenges they are prepared to
overcome. In any given situation, the success of their
investment will depend hugely on their ability to
re-engineer their brand proposition to fit the precise
growth opportunity that they have identified.

None of these caveats make Africa any less of
a compelling opportunity for global brands.
Opportunities must be precisely defined, but the
scale of each opportunity is vast nonetheless. By
embracing the diversity of the African cultural and
marketing landscape, companies give themselves
a greater chance of fulfilling them.




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                                                               19
Voices from Africa
TNS uses fictionalised realities, stories compiled from the many different interviews conducted
by our researchers, to help bring to life the experiences of consumers in different markets.




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                                                                                                        20
Peter’s story
             Peter Njoki is the eldest child of three, the only son and the main   Peter’s first money-making venture was to take the family’s basic
             hope and comfort to his mother Mary since her husband passed          Nokia 1100 and lend it, for a fee, to others in Koch. Everyone
             away. He lives with his family in ‘Koch’, a sprawling Nairobi slum    would club together and buy airtime and then share the usage:
             that is home to thousands of families. Peter’s father was             people couldn’t easily afford this by themselves. Recently
             a boda boda (bicycle taxi) driver but the family had to sell the      though, Safaricom brought out lower value top up vouchers
             bike to pay for his funeral expenses. Mary now helps to make          so that each person buys for themselves.
             ends meet by selling mangoes. However, the main support for
             the family these days is Peter, who dropped out of school to          As a Kenyan, Peter is proud to be on Safaricom, and when
             take on as money became tight.                                        the national operator introduced the mPesa mobile money
                                                                                   service, he quickly used it to start up his next big project; taking
             Peter has always loved phones. From the age of 10, he was             responsibility for the funds in the neighbourhood ‘chama’ or
             nicknamed <mtundu wa simu> or ‘the take-apart guy”                    saving group. His latest idea is to market a game to teenagers
             because of his habit of rebuilding and customizing handsets.          based on missed calling. He is getting the slum kids to try out
             In Koch, most people like Nokias. As they say, you could use          the idea and is refining it. He then plans to ask the chama for
             one as a ball in Rugby sevens and it would still work. There are      investment to try and launch the game himself at schools or
             cheaper, fake Chinese versions on the market, but you can’t           colleges. Kids prefer to play than learn but he reckons if he can
             depend on these in the same way. Pete is now 23 years of age          find an educational angle, the schools might also be interested.
             and he has loads of phones. Or rather, he has loads of phone
             parts. He sometimes heads to River Road to help the small             Besides paying for his sister’s school fees, Peter has been able to
             traders fix phones and when he was there last year he saw an          invest in a genuine, second-hand pair of Nike Airs for himself.
             ad for the new Ideos smartphone. He is now saving to get one.         He feels these went some way towards impressing his girlfriend
                                                                                   Faith, and the couple already have big plans for the future:
Share this                                                                         looking to buy a property on the outskirts of Nairobi and Focus
                                                                                                                                            In putting
                                                                                   money aside for their kids’ education.
                                                                                                                                                     21
Christine’s story
             The day starts early for Christine Awino. Her meetings often begin      – and though she has never used it herself, she has made sure her
             at 7am – and by then she has already been awake for close to            daughters know how to get in touch with her this way, if ever they
             two hours. First, she must prepare herself, ensuring that she is well   need to.
             turned-out for a day spent with her interior design clients. She
             checks in on the house girl that lives with her family in a gated       Christine may be busy – but work is only a means to an end for her.
             community in the South C district of Nairobi, ensuring that she is on   The most important feature of her life is her family. She is proud
             course to get her 5 daughters ready for school on time. Then she        of her husband, who owns a taxi business – and proud of the fact
                                                                                     that they have already been able to pay off their mortgage together.
             has time for a quick breakfast before she leaves the house.
                                                                                     She will not discuss how much she and her husband earn; it’s not
             As an entrepreneur, Christine knows that she must be creative –         appropriate for a married woman to talk that way. She exposes
             and open-minded. Besides the interior design for which she is best      as little of her personal life as possible and although she has a
             known, she also paints and organises events. The vast majority of       Facebook profile, she is very cautious about how she uses it. These
             her work comes through word of mouth and recommendation. She            things are not good for marriage.
             recently launched a website to advertise her business after friends
             who make furniture told her that they were getting more orders by       Christine is a strict disciplinarian. She enforces order on her children
             advertising online. In her office she has a computer with Internet      as a way of ensuring that they behave well, get a good education
             access and email but it is her mobile that is her business lifeline.    and can get ahead in life. Her sense of order also helps her to keep
             Without it how could she stay in touch with clients and pick up         time available for her family in her hectic week. She often works
             emails when working on location? Her two eldest daughters, aged         on both Saturdays and Sundays, heading to her office to avoid
             12 and 10, both have phones. She bought them so the two girls           distractions. But she always takes her family to church; always makes
             could stay in touch with her when not at home – and also so they        time to take them to the swimming pool on Saturday afternoons.
Share this   can play games, take photos and download music the way their            And always has two hours free on weekend mornings for playingIn Focus
             friends do. A friend told her about the Please Call Me mobile service   with her girls.
                                                                                                                                                          22
Rejoice’s story
             Rejoice Buadi has always worked hard. In the village where she grew      favourites; when she hears a particularly inspiring hymn she likes to
             up, thirty miles from Ghana’s capital Accra, there is simply no other    share it with her friends using the Bluetooth feature on her phone.
             way to survive. Rejoice rents a plot from a neighbour and farms
                                                                                      Whenever a neighbour needs a phone, Rejoice is happy to lend hers.
             yams and the woody shrub cassava, which she sells in order to feed
                                                                                      Last month, when one of the other farmers fell sick, she gave the
             her family. Usually there is enough to make ends meet; but when
                                                                                      phone to his wife to call a relative with a car who could take him
             the rains fail she is forced to borrow money. And the rains are far
                                                                                      to hospital. Rejoice does not consider charging money to loan her
             less predictable these days.
                                                                                      mobile this way.
             Rejoice’s great support is her community. They rally around to lend
                                                                                      Her ambition is to save money. She wants to stop having to rely on
             her money when times get tough. And they support in other ways
                                                                                      the social groups from which she borrows when neighbours cannot
             as well. When local kids steal the money she makes from selling her
                                                                                      afford to lend to her. Many are reasonable but some charge very
             yams, the village headman sounds a gong to rally the community
                                                                                      high interest rates – and these are the ones she is often forced to
             to find the perpetrators. “In the community there is harmony,”
                                                                                      turn to when times are most desperate.
             she says.
                                                                                      A bank account would help her to save and also to protect her
             Rejoice gives back to her neighbours in any way that she can. When
                                                                                      money from thieves. By saving she can help to secure the future of
             she has water, she freely shares it with those who have none. In
                                                                                      her two daughters, and ensure they continue in education. But there
             recent years she has something else that she can share: a mobile
                                                                                      are no bank branches near her village. Her cousin in Accra has told
             phone. It was her husband who first gave her this device and
                                                                                      her that some mobile operators now offer banking services. Rejoice
             showed her how to use it – and her 9-year old daughter who came
                                                                                      hopes that they will soon make such services available in her area.
             up with the idea of sending SMS messages to stay in touch with her
                                                                                      Until then, she will continue trusting to God and her community to
             cousin in Accra, without the need for expensive phone calls. Rejoice
Share this   uses her mobile to listen to her favourite hymns whilst out working
                                                                                      support her.                                              In Focus
             in her fields, or keeps up with the religious radio shows that are her
                                                                                                                                                         23
You may
             be interested in...                           About the authors                                          References
Video: Peter’s story >                        TNS has a strong presence in Africa, with teams in
                                              17 markets across the region. This piece was developed
Base of the pyramid in context >
                                              in collaboration with a number of experts, including:
Digital media in sub-saharan Africa >
                                              Melissa Baker                 Zoë Lawrence
Mobile commerce reaches the tipping point >   Bob Burgoyne                  Kim MacIlwaine             1. The Economist
                                              Karin Du Chenne               Aggrey Maposa              2. ‘Power in the mind’ is a measure TNS uses alongside
                                              Tamer El Naggar               Arnold Miller              ‘power in the market’ to establish the growth
                                              Charlotte Garin               Margarita Putter           opportunities for brands – see You can’t always get what
                                              Steve Hamilton-Clark          Ryan Versfeld              you want to learn more.
                                              Neil Higgs                    Anastacia Wangari




                 Share this                                                                                                                             In Focus

                                                                                                                                                                  24
About In Focus
In Focus is part of a regular series of articles that takes an in-depth look at a particular subject, region or
demographic in more detail. All articles are written by TNS consultants and based on their expertise gathered
through working on client assignments in over 80 markets globally, with additional insights gained through
TNS proprietary studies such as Digital Life, Mobile Life and The Commitment Economy.

About TNS
TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and
stakeholder management, based on long-established expertise and market-leading solutions. With a presence
in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands
individual human behaviours and attitudes across every cultural, economic and political region of the world.
TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups.

Please visit www.tnsglobal.com for more information.

Get in touch
If you would like to talk to us about anything you have read in this report, please get in touch via
enquiries@tnsglobal.com or via Twitter @tns_global




                  Share this                                                                                      In Focus

                                                                                                                        25

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Navigating growth in Africa

  • 1. Finding Leader Opinionfaster growth: New markets Navigating growth in Africa Share this In Focus
  • 2. Navigating growth in Africa 1 Introduction 03 2 Urbanisation: an easier target but not that easy 07 3 Media and mobile 10 4 The opportunity for brands 15 5 Weighing up growth prospects 18 6 Voices from Africa 20 Share this In Focus 2
  • 3. Navigating growth in Africa When the evolutionary biologist Stephen Jay Gould famously claimed that there was no such thing as a “fish”, he wasn’t denying the existence of lots of 54 countries underwater-dwelling vertebrates in the sea. with He simply meant that calling them all fish didn’t shifts driving the continent’s GDP growth, they must really help him to understand them. The term first embrace the immense diversity of a region obscured rather than revealed, because the organisms we call fish are such fundamentally different creatures. In the same sense that Gould equal to the combined land mass of the United States, Europe, China, India, Mexico and Japan. They must recognise that what feel like familiar 52 cities within Africa. Of more than, knew the waters of the world are full of creatures trends and technologies produce very different that are not really fish, companies are realising that results when played out in the contexts of African the markets of Africa are full of openings that are markets. They must be prepared to re-engineer 1 million not simply ‘African Growth Opportunities’. African propositions enthusiastically and repeatedly to fit the markets, and the different scenarios within them, very different scenarios that they encounter on the defy easy generalisation - and cannot be tackled by ground. And they must be prepared to make tough inhabitants. The same as Western Europe simply importing brand strategies from one market decisions about which growth opportunities can be to another. If brands are to ride the demographic efficiently exploited – and which cannot. Share this In Focus 3
  • 4. Navigating growth in Africa The opportunity in numbers The fluid border of the consumer economy Evidence of the value of African markets has The border between poverty and this middle-class 50% been mounting relentlessly in recent years. Africa existence is a constantly shifting one, in Africa as in contributed six of the world’s ten fastest-growing other emerging markets. Members of the’floating’ economies between 2001 and 2010 and is projected lower middle class face the ever-present danger to represent seven of the top ten between 2011 increase in foreign direct investment since 2005 of slipping back into poverty and their consumer and 2015. Its GDP growth is expected to reach attitudes overlap in many respects with those of the 5.7 percent in 2013, the highest for any global 60% upper reaches of the BoP. An income of even $8 region. Foreign direct investment in the continent per day would represent immense hardship in the has increased by around 50 percent since 20051. eyes of developed market consumers (it represents Although 60 percent of Africa’s population continues less than half the income of the recognised to survive on less than $2 per day, these ‘Base of poverty line in the UK, for example). However, of Africa’s population survives on less than $2 per day the Pyramid’ (BoP) consumers are emerging into the increase in disposable incomes and consumer the mainstream consumer economy at an increased 1/3 choice is expanding African markets, just as Africa’s rate, able to buy consumer goods on a reasonably demographic trends and new technologies enable regular basis. Over a third of the population in many brands to compete in them through new channels. countries now falls within the ‘middle class’, with an income of between $2 and $8 per day. McKinsey’s Lions on the Move study predicts that half of all of income is between $2 and $8 per day African households will have some disposable income by 2020. Share this In Focus 4
  • 5. Navigating growth in Africa Companies looking to craft compelling brand marketing is omnipresent in their lives. Brands today propositions for Africa must set aside many easy are a part of the landscape in a way that previous assumptions about the middle-class African generations couldn’t have dreamed when they first consumer. They must balance the importance of encountered the pioneering rural marketing efforts aspiration and inspiration with the requirement to of Unilever, P&G, Colgate, Nestlé and others in the focus on immediate needs; they must recognise 1970s. the dominance of a local community perspective. And they must realise, above all, that whilst trends And the limits of pan-African strategies and technologies are creating new forms of market These trends: youth-driven urbanisation, mobile opportunity, they are not recreating developed and an established role for brands and marketing, market opportunities in a new setting. provide recognisable levers and channels through which companies can pursue shares of increasingly Pan-African growth themes disposable incomes. However this does not mean To some extent, we can identify broad common that strategies based around these levers can themes in Africa’s economic emergence, even if simply be imported from developed markets, or these play out very differently in different settings. even from one African country to the next. The Africa’s population is a growing and youthful one, mobile operator Airtel, a dominant force in India, which is migrating to major urban centres at an faces many challenges when it comes to translating accelerating rate. Through the mobile phone, these this emerging market success to different African youthful urbanites and their families have access to countries, often competing with brands that are a personal communications channel that has the already well-established amongst BoP consumers. power to transform their prospects. And through Pan-African success stories consistently show the their mobiles as well as TV advertising, billboards importance of rebuilding brand propositions for each and typically African ‘entire wall’ advertising, brand new market. Share this In Focus 5
  • 6. Navigating growth in Africa Critical to this process is an understanding of the In Egypt, for example, the upper reaches of the stage that a market has reached, and the true BoP include many individuals who retain strongly opportunity for a new company or brand. African conservative religious and family values; but also markets are far from virgin territory, and brands that fail to research competitive landscapes carefully are liable to suffer for it. They must be aware that, even if many embracing more adaptive value systems and modern (often urban) popular culture. Brands echoing the nostalgic culture of prosperous rural Egypt have 52 cities within Africa, have populations of comparable rival brands appear absent, the consumer far greater resonance with the first group; brands needs they seek to service may already be met addressing changing social values and needs have far through other, less conventional means. greater success with the second. Local cultural contexts can have a significant influence on the use of products and the reception for different 1 million or more. It is estimated that around brand propositions. Ethnographic research techniques, focused on exploring cultural phenomena, have 10 million an important contribution to mapping this cultural landscape – and TNS has found such approaches invaluable in identifying the precise nature of young Africans arrive in the labour market a year opportunities in African markets. Share this In Focus 6
  • 7. Urbanisation: an easier target but not that easy Share this In Focus 7
  • 8. Urbanisation: an easier target but not that easy Urbanisation: an easier target but not that easy For brands, the accelerating urbanisation of Africa appears to provide more accessible target audiences for brand propositions by bringing concentrated populations within easy reach of product distribution and marketing. Africa today includes 52 cities with populations of 1 million or more; the same number as can be found in Western Europe. It is estimated that around 10 million young Africans arrive in the labour market each year – and many of these travel to rapidly growing cities in order to seek work. In doing so, they provide a large, concentrated audience that can be reached efficiently through outdoor media, served products without relying on unreliable African roads, and who can serve as a powerful conduit for brand advocacy, through the many Africans that return to their rural roots for short visits or longer stays. It is noticeable that Western multi-nationals such as P&G and Unilever have shifted research budgets from tracking the attitudes of rural population to gaining a deeper understanding of emerging urban consumers. For most brands, Africa’s cities now provide the obvious entry point to their surrounding markets. Share this In Focus 8
  • 9. Urbanisation: an easier target but not that easy Yet city life does not equate to developed market to growing beer brands. Similarly, mobile banking opportunities and standards of living, nor to services – a great force driving inclusion and helping consumers adopting the behaviour patterns and to grow markets across Africa – have seen their attitudes of developed market urban consumers. growth accelerate significantly following take-up in There are huge variations as well between the rural areas. Kadogo economy consumer landscapes of Johannesburg, Nairobi, Kinshasa, Cairo and Benghazi. African cities Reducing package size to promote affordability is The ‘Kadogo economy’ or ‘little economy based encompass great inequality, with many urban a strategy that can prove equally effective in both on small pack sizes’ has been a key way for brands populations remaining in the BoP, and most continue urban and rural contexts. A typical Nairobi shopper to become established in Kenya since the 1990s. to be blighted by blackouts and energy rationing may visit a local market or Duka several times a day, that have a huge influence on their inhabitants’ buying items only when required and only in the priorities. amount required at that particular moment: visiting in the morning for a sachet of sugar, picking up a At the same time, brands cannot afford to confuse sachet of cooking oil in the afternoon, then a tea the relative unfamiliarity of rural Africa with a bag to entertain friends and perhaps a penny portion relative lack of importance. Patchy data in rural areas of soap for the evening wash. Brands that can adapt can blind companies to the contribution they make to such distinct buying patterns stand to unlock to current revenues, leading them to miss significant significant growth opportunities. The Commitment opportunities, or undermine existing business models Economy, TNS’s respondent-level analysis of global when they shift focus to fast-growing cities. Rural market opportunities, shows that South Africa’s Dark tracker surveys in the alcoholic beverages sector, & Lovely shampoo brand could unlock a further $3.4 for example, show higher per capita consumption million in value by extending its strategy of offering in small towns and rural areas that gives these smaller pack sizes and further increasing accessibility markets disproportionate influence when it comes and affordability. Share this In Focus 9
  • 10. Media and mobile Share this In Focus 10
  • 11. Media and mobile Within both urban and rural environments, limited Africa’s mobile lives and smartphones (Android-enabled handsets are electricity has a huge potential impact on media For Africa’s growing urban population, as for the often available for less than $80) are changing the consumption. DSTV, the South African satellite families and friends that remain in rural communities, digital landscape rapidly, leapfrogging Africa past television company, owes its success across 47 the mobile phone is both an engine of opportunity the PC to create a digital infrastructure based largely African countries to a willingness to grapple with and convenience - through services such as mobile around mobile technology. In Sub-Saharan Africa, the impact of generator economies, and the way banking and money transfers - and a channel for only 12 percent of the population owns a desktop PC, in which power shortages compel a TV to compete entertainment and personal expression. Low-cost with laptops at the same level of penetration; already, with the fridge, the mobile phone charger and the handsets (with basic mobiles available for $8 or less) 18 percent of the population owns a smartphone. radio for a share of limited electricity. DSTV has been able to support its growth with new audience Mobile ownership mobile phone ownership as % of population measurement approaches that reflect the reality of TV consumption in Africa. And it is increasingly 93 looking to mobile TV services to help bridge gaps in 90 90 90 88 86 86 the availability of conventional TV. 82 80 79 71 Several brands have identified social networks, which can be readily accessed from an increasing number of mobile phones and can act as a channel for distributing video content to compatible handsets, as a valuable support to TV campaigns. Unilever’s laundry brand, Omo, recently ran an innovative integrated campaign in Kenya, in which a branded Global Cote Senegal South Egypt Ghana Cameroon Nigeria Tanzania Uganda Kenya TV game show was linked to a Facebook page with D’Ivoire Af rica video content. Share this In Focus 11
  • 12. Media and mobile Social networking is already a dominant feature of African mobile life – and TNS’s Mobile Life study Phone capabilities shows strong take-up of mobile banking and mobile wallet services (which enable consumers to pay for 48 59 71 64 74 56 81 78 75 77 goods using their handset) across countries such as Kenya, Uganda and Tanzania. These often take the form of simple USSD solutions that do not depend on smartphone technology and are therefore widely accessible to anyone with access to a phone. Despite the growth in smartphone penetration, the vast majority of mobiles in Africa continue to be ‘dumb’ 19 phones, and the most successful mobile services and 16 marketing in the region are those making innovative 18 31 7 use of these platforms. 8 8 12 16 16 Such applications of mobile technology are not 33 25 22 18 17 13 11 10 10 6 limited to phones themselves. M-Kopa is currently South Nigeria Egypt Ghana Cam eroon Kenya Senegal Cote Uganda Tanzania trialling a solar lighting system that can be controlled Africa D’Ivoire remotely through a SIM card. This enables ‘high-risk’ customers, who were previously unable to get credit Smartphone Advanced feature phone Basic feature phone to pay for electricity, to pay for their lighting on a day-by-day basis. Share this In Focus 12
  • 13. Media and mobile The mobile lives of Africans are built on very lagging behind many other African markets as a existing distribution network and firm government different foundations to those of consumers in result of security concerns and a lack of consumer support. But its real success came from the need for developed markets and both mobile operators and awareness. Safaricom’s mPesa mobile money service, urban workers to transfer money easily to their rural brands making use of the mobile channel must re- rightly hailed as a breakthrough African model, families. It took the service some time to replicate engineer their propositions and strategies to reflect owed its initial success in Kenya to the alignment of this success in other markets, where not all these this. SMS and in particular, USSD technologies often several critical factors: dominant market position, factors were initially in place. take on a far more significant role than mobile video or banner advertising, and many of the most Mobile Banking successful campaigns are built around broadly accessible mobile sites to which consumers can be Kenya 23 50 10 17 invited via simple text messages. Developed-market Tanzania 14 51 7 28 mobile strategies cannot simply be imported to Uganda 11 39 14 35 African countries. South Af rica 9 52 23 16 Innovative approaches to data capture and mobile Nigeria 6 55 13 27 engagement are also essential in an environment 3 50 25 23 Cameroon where phones are often shared and usage can be CoteD’Ivoire 2 32 26 40 sporadic. The mobile marketing company Brandtone has had considerable success incorporating calls Ghana 2 54 25 20 to action on product packaging that encourage Senegal 1 37 28 34 consumers to engage with brands via their mobile. Egypt 23 54 22 Egypt demonstrates the potential variety in attitudes Using Interested Not interested Don't Know to mobile, with adoption of mobile banking services Share this In Focus 13
  • 14. Media and mobile The mobile operator MTN, currently the only African representative in the world’s top 100 brands, owes its success to a continual process of innovation to ensure affordability in different markets. This has involved adapting to the secondary handset market, through which second-hand mobile phones reach emerging middle-class and BoP communities – and has driven a strategy of offering airtime in small package sizes that echo the penny packs of FMCG brands. It has also led to a demand for constant innovation to stay ahead in highly competitive markets – in which rival operators bring out new tariffs on an almost weekly basis. Brands leveraging mobile as a channel, either through social media, SMS or the application of mobile wallet technology, must therefore shed many developed market assumptions about intimate, personalised and always-on devices. For most Africans, the sharing of airtime and handsets is a natural extension of existing habits and cultural hours of BlackBerry Messenger airtime for a specific recipients a phone number to call accompanied a values, as well as a logical means of controlling task, for example. Brands must adapt their strategies 115-character advertising message, are an African costs. The mobile phone and the media consumed to such a frequently interrupted, frequently shared innovation that brands have leveraged with great through it are experienced on an occasional basis, channel if they are to succeed. Please Call Me success. PCM campaigns advertise everything from with emerging middle-class consumers buying a few (PCM) messages, a USSD-based service which sends airlines and car insurance to local village stores. Share this In Focus 14
  • 15. The opportunity for brands Share this In Focus 15
  • 16. The opportunity for brands The marketing generation – and their demands Pepsi have sought to associate their brands with the Brands themselves represent a new form of festival of Ramadan; Coca-Cola through a opportunity in many African markets. Until relatively post-Revolution sense of happiness and optimism, recently the role of marketing was restricted to Pepsi through a corporate responsibility programme the FMCG category; today it plays a role in driving linked to Ramadan themes of charity and giving. awareness and choice across mobile, banking and more. Brands are highly valued by emerging middle- The importance of localised brand propositions class consumers, especially where brand propositions is shown by the evolution of South Africa’s Tiger reflect priority needs and can provide accessible Brands, a market leader in bread and other quality and credibility. categories. Tiger Brands has moved from a simple export strategy to one in which it takes control of In the aftermath of the Arab Spring, North African every aspect of branding, distribution and strategy countries such as Egypt, Libya, Morocco and Algeria in the markets that it targets. When expanding have demonstrated a strongly heightened degree into Nigeria, Tiger Brands acquired a local flour of consumer empowerment, with traditional manufacturer, providing a ready-made distribution monopolies questioned and challenged, and brands and transportation network, and retained the playing an increasingly visible role in newly dynamic local branding due to its strength in the market. markets. Successful branding owes much to local In other situations, Tiger Brands has adopted a political and cultural nuance, with heightened similar acquisition-led approach but introduced its nationalism in the wake of revolution and political own brands when research showed that these had change leading many local and global brands to greater potential to leverage the infrastructure of the adopt patriotic messaging and images. Religion acquired company. can often play a similar role: both Coca-Cola and Share this In Focus 16
  • 17. The opportunity for brands Competition in the marketing hotspots Greater attention to brand positioning in part reflects the demands of emerging middle-class consumers for robust propositions that can help to meet their daily aspirations and challenges. Kadogo economy However, it is also a response to an increasingly competitive marketing landscape. Tiger Brands In Nigeria’s laundry detergent market, The cannot expect to have it its own way in a market Commitment Economy study shows that So such as Nigeria; Western multinationals such as Klin of China has stolen a march on P&G’s Ariel Coca-Cola, Pepsi, P&G and Unilever compete with and Unilever’s Omo by adopting their traditional Chinese and Turkish brands that in many markets strategy of increasing accessibility through benefit from far stronger cultural ties. broader distribution and smaller pack sizes. Were the western multinationals to fight back by re- If there is a risk to companies switching attention establishing distribution and increasing marketing from rural regions to focus on urban centres it lies support in key areas, they could regain up to $15 in the greater competition that they face in these million in value. environments, and the ‘Power in the Market’2 opportunities that they sacrifice through narrowing the availability of their products. Brand loyalty is extremely strong amongst the BoP consumers who inhabit many rural areas and many of whom will go onto form the emerging middle class. First mover advantage can be highly significant, and brands that are committed enough to establish distribution over broader areas may be more likely to obtain it. Share this In Focus 17
  • 18. Weighing up growth prospects Share this In Focus 18
  • 19. Weighing up growth prospects Weighing up growth prospects Understanding the precise size and shape of such market opportunities is essential for companies weighing up the decision to pursue them. There is no shortage of growth opportunities in Africa, but the number that can be realised efficiently is significantly narrower. Companies must take hard- headed decisions about which forms of growth they have the will, budget and appetite for risk to invest in – and which challenges they are prepared to overcome. In any given situation, the success of their investment will depend hugely on their ability to re-engineer their brand proposition to fit the precise growth opportunity that they have identified. None of these caveats make Africa any less of a compelling opportunity for global brands. Opportunities must be precisely defined, but the scale of each opportunity is vast nonetheless. By embracing the diversity of the African cultural and marketing landscape, companies give themselves a greater chance of fulfilling them. Share this In Focus 19
  • 20. Voices from Africa TNS uses fictionalised realities, stories compiled from the many different interviews conducted by our researchers, to help bring to life the experiences of consumers in different markets. Share this In Focus 20
  • 21. Peter’s story Peter Njoki is the eldest child of three, the only son and the main Peter’s first money-making venture was to take the family’s basic hope and comfort to his mother Mary since her husband passed Nokia 1100 and lend it, for a fee, to others in Koch. Everyone away. He lives with his family in ‘Koch’, a sprawling Nairobi slum would club together and buy airtime and then share the usage: that is home to thousands of families. Peter’s father was people couldn’t easily afford this by themselves. Recently a boda boda (bicycle taxi) driver but the family had to sell the though, Safaricom brought out lower value top up vouchers bike to pay for his funeral expenses. Mary now helps to make so that each person buys for themselves. ends meet by selling mangoes. However, the main support for the family these days is Peter, who dropped out of school to As a Kenyan, Peter is proud to be on Safaricom, and when take on as money became tight. the national operator introduced the mPesa mobile money service, he quickly used it to start up his next big project; taking Peter has always loved phones. From the age of 10, he was responsibility for the funds in the neighbourhood ‘chama’ or nicknamed <mtundu wa simu> or ‘the take-apart guy” saving group. His latest idea is to market a game to teenagers because of his habit of rebuilding and customizing handsets. based on missed calling. He is getting the slum kids to try out In Koch, most people like Nokias. As they say, you could use the idea and is refining it. He then plans to ask the chama for one as a ball in Rugby sevens and it would still work. There are investment to try and launch the game himself at schools or cheaper, fake Chinese versions on the market, but you can’t colleges. Kids prefer to play than learn but he reckons if he can depend on these in the same way. Pete is now 23 years of age find an educational angle, the schools might also be interested. and he has loads of phones. Or rather, he has loads of phone parts. He sometimes heads to River Road to help the small Besides paying for his sister’s school fees, Peter has been able to traders fix phones and when he was there last year he saw an invest in a genuine, second-hand pair of Nike Airs for himself. ad for the new Ideos smartphone. He is now saving to get one. He feels these went some way towards impressing his girlfriend Faith, and the couple already have big plans for the future: Share this looking to buy a property on the outskirts of Nairobi and Focus In putting money aside for their kids’ education. 21
  • 22. Christine’s story The day starts early for Christine Awino. Her meetings often begin – and though she has never used it herself, she has made sure her at 7am – and by then she has already been awake for close to daughters know how to get in touch with her this way, if ever they two hours. First, she must prepare herself, ensuring that she is well need to. turned-out for a day spent with her interior design clients. She checks in on the house girl that lives with her family in a gated Christine may be busy – but work is only a means to an end for her. community in the South C district of Nairobi, ensuring that she is on The most important feature of her life is her family. She is proud course to get her 5 daughters ready for school on time. Then she of her husband, who owns a taxi business – and proud of the fact that they have already been able to pay off their mortgage together. has time for a quick breakfast before she leaves the house. She will not discuss how much she and her husband earn; it’s not As an entrepreneur, Christine knows that she must be creative – appropriate for a married woman to talk that way. She exposes and open-minded. Besides the interior design for which she is best as little of her personal life as possible and although she has a known, she also paints and organises events. The vast majority of Facebook profile, she is very cautious about how she uses it. These her work comes through word of mouth and recommendation. She things are not good for marriage. recently launched a website to advertise her business after friends who make furniture told her that they were getting more orders by Christine is a strict disciplinarian. She enforces order on her children advertising online. In her office she has a computer with Internet as a way of ensuring that they behave well, get a good education access and email but it is her mobile that is her business lifeline. and can get ahead in life. Her sense of order also helps her to keep Without it how could she stay in touch with clients and pick up time available for her family in her hectic week. She often works emails when working on location? Her two eldest daughters, aged on both Saturdays and Sundays, heading to her office to avoid 12 and 10, both have phones. She bought them so the two girls distractions. But she always takes her family to church; always makes could stay in touch with her when not at home – and also so they time to take them to the swimming pool on Saturday afternoons. Share this can play games, take photos and download music the way their And always has two hours free on weekend mornings for playingIn Focus friends do. A friend told her about the Please Call Me mobile service with her girls. 22
  • 23. Rejoice’s story Rejoice Buadi has always worked hard. In the village where she grew favourites; when she hears a particularly inspiring hymn she likes to up, thirty miles from Ghana’s capital Accra, there is simply no other share it with her friends using the Bluetooth feature on her phone. way to survive. Rejoice rents a plot from a neighbour and farms Whenever a neighbour needs a phone, Rejoice is happy to lend hers. yams and the woody shrub cassava, which she sells in order to feed Last month, when one of the other farmers fell sick, she gave the her family. Usually there is enough to make ends meet; but when phone to his wife to call a relative with a car who could take him the rains fail she is forced to borrow money. And the rains are far to hospital. Rejoice does not consider charging money to loan her less predictable these days. mobile this way. Rejoice’s great support is her community. They rally around to lend Her ambition is to save money. She wants to stop having to rely on her money when times get tough. And they support in other ways the social groups from which she borrows when neighbours cannot as well. When local kids steal the money she makes from selling her afford to lend to her. Many are reasonable but some charge very yams, the village headman sounds a gong to rally the community high interest rates – and these are the ones she is often forced to to find the perpetrators. “In the community there is harmony,” turn to when times are most desperate. she says. A bank account would help her to save and also to protect her Rejoice gives back to her neighbours in any way that she can. When money from thieves. By saving she can help to secure the future of she has water, she freely shares it with those who have none. In her two daughters, and ensure they continue in education. But there recent years she has something else that she can share: a mobile are no bank branches near her village. Her cousin in Accra has told phone. It was her husband who first gave her this device and her that some mobile operators now offer banking services. Rejoice showed her how to use it – and her 9-year old daughter who came hopes that they will soon make such services available in her area. up with the idea of sending SMS messages to stay in touch with her Until then, she will continue trusting to God and her community to cousin in Accra, without the need for expensive phone calls. Rejoice Share this uses her mobile to listen to her favourite hymns whilst out working support her. In Focus in her fields, or keeps up with the religious radio shows that are her 23
  • 24. You may be interested in... About the authors References Video: Peter’s story > TNS has a strong presence in Africa, with teams in 17 markets across the region. This piece was developed Base of the pyramid in context > in collaboration with a number of experts, including: Digital media in sub-saharan Africa > Melissa Baker Zoë Lawrence Mobile commerce reaches the tipping point > Bob Burgoyne Kim MacIlwaine 1. The Economist Karin Du Chenne Aggrey Maposa 2. ‘Power in the mind’ is a measure TNS uses alongside Tamer El Naggar Arnold Miller ‘power in the market’ to establish the growth Charlotte Garin Margarita Putter opportunities for brands – see You can’t always get what Steve Hamilton-Clark Ryan Versfeld you want to learn more. Neil Higgs Anastacia Wangari Share this In Focus 24
  • 25. About In Focus In Focus is part of a regular series of articles that takes an in-depth look at a particular subject, region or demographic in more detail. All articles are written by TNS consultants and based on their expertise gathered through working on client assignments in over 80 markets globally, with additional insights gained through TNS proprietary studies such as Digital Life, Mobile Life and The Commitment Economy. About TNS TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups. Please visit www.tnsglobal.com for more information. Get in touch If you would like to talk to us about anything you have read in this report, please get in touch via enquiries@tnsglobal.com or via Twitter @tns_global Share this In Focus 25