One of our top MBA theses on advertising

Optimal media schedules in emerging markets: A South African perspective establishing the inherent characteristics that influence return on investment for advertising spend.

By Amy Beck

Source: http://repository.up.ac.za/handle/2263/43983  November 2014

ABSTRACT:

The effect of advertising efforts on sales is of significant interest for global brands. Recent developments in emerging markets such as South Africa have brought the concept of consumer purchase behaviour in generating sales, under review. New media schedules are required to transition emerging market consumers to purchase products/services through effective marketing media platforms and through consumer brand equity whilst including price sensitivities into the media-mix. This study adds to the current literature by investigating which variables have the most significant influence in promoting and generating sales in emerging markets through the use of various advertising efforts. The primary focus was to establish an optimal marketing media schedule from which advertisers are able to choose a particular marketing media schedule to maximise their respective firms’ sales. This study investigated marketing media platforms, brand perceptions and price sensitivities. These included the influence of internet, television, radio, press and outdoor media platforms, price sensitivities and consumer brand equity in promoting sales within emerging markets. Data to support the relevant influences was gathered through secondary data from Nielsen Holdings N.V. (an American global information and measurement company) and the South African Research Audience Foundation (SAARF). Six washing detergent brands were selected for the study, where a complete data set could be sourced. The most influential variables in determining sales generation was consumer brand equity followed by price sensitivity. This allowed the derivation of a model extension from models identified in previous literature with the derived model including such influential variables by which brands could determine the most favourable marketing mix schedule and thereby allocate budgetary resources where necessary.

Mozambique economy 2014: recent developments and prospects

 

Mozambique’s offshore fields hold a combined 150 trillion cubic feet (tcf) of gas, estimated to be enough to meet world consumption for more than two years. Negotiations between international consortia and the government to build a USD 40 billion LNG plant are dragging on with several players competing for the contract. The main consortium leaders, the US company, Anadarko, and Italian company, Eni, have reduced their investments in the project, selling stakes to new partners primarily from power hungry emergent economies. This has a two-fold outcome of diversifying funding sources for the LNG projects, while also potentially securing new markets for the final product. New entrants from India (ONGC Videsh) and China (CNPC) joined India’s Bharat Petroleum Corporation, Japan’s Mitsui & Co, Thailand’s PTT Exploration and Production, and Galp Energia from Portugal. With an international partner yet to be selected, LNG production along with the sizeable contribution it will make to public finances is unlikely to start before 2020.

Source: www.clubofmozambique.com

How to Profit From Emerging Market Consumers

See on Scoop.itCentre for Dynamic Markets

cnsumerismThe growing wealth of emerging market consumers is a theme that presents rich opportunity for savvy investors, with fund managers pointing to China as the region of focus.

GIBS Information Centre / GIBSIC‘s insight:

consumerism , EM –  “ emerging market middle-class consumers are estimated to reach 960 million by 2020 against just 77 million baby boomers in the U.S. In addition, emerging markets will add an average $1.2 trillion of consumer spending to the global economy per year between 2012 and 2016 according to MasterCard, while developed markets will add just $700 billion annually.”

See on www.thestreet.com

Ten emerging countries hot on the heels of the BRICS – International | Moneyweb

Moneyweb – Breaking news, independent analysis, latest JSE share prices, exchange rates and data on investment, finance and business in South Africa

GIBS Information Centre / GIBSIC‘s insight:

Emerging countries, dynamic markets – ” (Insurance group) . . . Coface broke the 10 new emerging economies it has identified into two groups.  –  The first comprises Peru, the Philippines, Indonesia, Colombia and Sri Lanka, which it named the PPICS. They had “strong potential confirmed by a sound business environment,” Coface said.

The second group comprises Kenya, Tanzania, Zambia, Bangladesh and Ethiopia.  But these countries are marked by “very difficult or extremely difficult business environments which could hamper their growth prospects,” Coface said.”

See on www.moneyweb.co.za

The End of the ‘Developing World’ / WSJ

The old labels no longer apply. Rich countries need to learn from poor ones.

GIBS Information Centre / GIBSIC‘s insight:

DEveloping countries – “It’s time that we start describing the world as “fat” or “lean.”  –   “Lean” societies approach consumption and production with scarcity in mind. In the so-called least developed nations of sub-Saharan Africa, where the gross national income averages just $2,232 per capita, populations are young and hungry — at times for food, but mostly for opportunity. Nothing can be taken for granted or wasted. But resource constraints have provoked an astonishing bounty of homegrown solutions to the problems philanthropists like Mr. Gates address with charity. If necessity is the mother of invention, lean economies have a distinct advantage.

In Lagos, Nigeria, a three-story schoolhouse rises above the waters in Makoko, a fishing hamlet floating on the city lagoon. Made from simple recyclable materials, the school embodies climate resilience and appropriate technology — and educates 100 students daily.

In Khayelitsha, a poor township in South Africa, a stack of repurposed shipping containers serves as a health clinic. Lynette Denny, an obstetrician in Cape Town, uses them for cervical cancer screenings. Her staff does “everything but operate” in the containers. Dr. Denny sees 20 to 30 women each afternoon.

Meanwhile, start-ups in Africa measure their seed-funding rounds in comparatively modest figures. M-Pesa, the mobile-phone banking juggernaut now used by 86 percent of households in Kenya, began with investments of about £900,000 (about $1.5 million) from Vodafone and the British government. Despite lacking the resources richer economies take for granted, similarly lean ventures generate billions of dollars south of the Sahara.   –  So what makes an economy “fat”? The United States is a prime example. Plenty is normal. Gross national income is close to $50,000 per person.

See on www.nytimes.com

Why does this investment guru say emerging markets are worth the risk?

As executive chairman of Templeton Emerging Markets Group, Mark Mobius has connected the dots allowing international investment in foreign markets.

GIBS Information Centre / GIBSIC‘s insight:

Mark Mobius– “More recently, as investors move away from emerging markets, Mobius remains confident in the long-term value of emerging market investing. In a Jan. 30 blog post he explained, saying:

“The bottom line for emerging markets, as I see it, is that the long-term investment case hasn’t dramatically changed. And I don’t see it changing as long as these three themes remain in place: emerging markets’ economic growth rates in general continue to be at least three times faster than those of developed markets; emerging markets have much greater foreign reserves than developed markets; and the debt-to-GDP ratios of emerging market countries generally remain much lower than those of developed markets.”

See on www.smartplanet.com

Kenneth Rogoff looks beneath the turmoil roiling emerging economies’ equity and currency markets. – Project Syndicate

Emerging-market equities and exchange rates are again under severe downward pressure, but are the underlying economies really as fragile as global traders seem to fear? The short answer, for a few, is probably “yes,” but, for most, “not quite yet.”

GIBS Information Centre / GIBSIC‘s insight:

core problems –   “At the core of emerging-market problems, however, is policy and political backsliding. Here, there are significant differences among countries. In Brazil, the government’s efforts to weaken the central bank’s independence and meddle in energy and lending markets have harmed growth.  –   Turkey is suffering acute challenges to its democratic institutions, as well as government pressure on the central bank. Russia’s failure to develop strong independent institutions has made it difficult for an entrepreneurial class to emerge and help diversify the economy.   In India, central-bank independence remains reasonably strong, with the Reserve Bank of India now mulling a move to an inflation-targeting regime. But a sustained period of populist policies has weakened trend growth and exacerbated inflation.

See on www.project-syndicate.org

How Big Are Emerging Markets? – Sizemore Insights

Graphic: Comparing emerging markets to Western companies by market cap.

GIBS Information Centre / GIBSIC‘s insight:

market size, Economist –  “South Africa (EZA)–which is one of my favorite markets for the next decade–has a market cap about the size of General Electric (GE), the sixth-largest publically-traded company in the world with a market cap of over $260 billion.  For a country of South Africa’s population size (a little over 50 million people) and level of development (per capita GDP of about $6,000), that represents a high level of market depth and sophistication.  Compare that to Egypt, which has a market cap on par with Burger King (BKW) at less than $8 billion.

See on charlessizemore.com

Safest Emerging Markets Banks 2013 | Global Finance

Global Finance presents its annual ranking of the soundest banks in the developing world

GIBS Information Centre / GIBSIC‘s insight:

EM banks – “Outside South Africa, rating coverage of banks in sub-Saharan Africa remains small, and only South African institutions hold investment-grade ratings.

 

HOW WE MEASURE THE SAFETY OF BANKS

 The safest banks chart compares the ratings for the world’s largest 500 banks, based on asset size. Long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service were used. Where possible, ratings on holding companies were used rather than operating companies, and banks that are wholly owned by other banks were omitted. Within each rank set, banks are rated according to asset size, based on data for the most recent annual reporting period provided by Fitch Solutions and Moody’s. In previous years we assigned a “tie” score to banks that had the same number of points and had assets within $5 billion of each other. We have changed our methodology on this point and will no longer be giving “ties.” Ratings are reproduced with permission from the three ratings agencies, with all rights reserved. A rating is not a recommendation to purchase, sell or hold a security, and it does not comment on market price or suitability for a particular investor.


Under Creative Commons License: Attribution Share Alike

See on www.gfmag.com