Contents

Page

One Pager:Musa Madala (4)

Brand Strategy:Healthy Audit (6)

Brand Challenge:

Chatz Connect(10)

Finance:Marketing Metrics and Branding (18)

Creative Developeent: Uncomfortable Space (24)

Cirriculum Vitae & References(27)

Acknowledements

My One Pager Core Values

Respect

African humanism

Understand

About being well informed first.

Patience

Enduring the pain.

Authenticity

About being genuine with yourself and others

Growth To have a longterm & sustainable perspec-tive

Mantra

The economically active-forward thinker

Tone

• Optimistic• Sincere• Positiveenergy• Aspirational

Vision

To communicate quality messages that are conscious about the complexities of South Africa.

In order to do this:• Tocreateaspiration• Tohaveatimelessapproach• Toaimforthebestpossibleoutcome• Todifferentiateaccordingly

Mission To establish a superior portfolio experience

Positioning Statement

For the circumspect brand, Musa Madala is an economically active brand strategist who specialises in producing considerate thought-provoking solutions by igniting cre-ativity with real strategy.

Essence

Optimism

Personality Not a simple minded guy

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Message

The collaboration between incorporated in-formation with alternative yet realistic solu-

tions.

Concept

The spirit of a born free

Thespiritofabornfreeencapsulatesanidea of a South African who is free to

many opportunities that others never had before,itmeansanythingispossiblefor

anyone,ifyoustaywellinformed.Butthetransition into the new South Africa hasn’t beensmoothunemploymentrateshavein-creased,6.1millionHIVpositivecitizens,

andlowqualityofeducationforblackSouthAfricans,inadequateinfrastructureand rapid changes in development of the

economy.AsabornfreeIusethesechallengesandourhistoryasinspiration,tomovefor-

ward.

I am not a cliché’ black InthisdayandagebeingblackinSouthAfricameansyouareeitherpoor,emerg-ingorratheraffluent,andinmanywaysthe struggle has transitioned from politi-cal freedom to a mind-set of economical

independence.

Forward thinker

My aim is to help clients in this fast paced

industry have an open-minded approach andnotjustlookatthingsbuttorath-erunderstand.Ibelievethattheroleofbrandsinoursocietyistocommunicatenewmeaningtothepublic.Tofurther

buildcommunicationsthatareessentiallyreflectiveandauthentic,thatcanactively

engageandempowerconsumers.

5

Brand

Strategy

Vega Healthy Brand AuditBrief:

AhealthybrandauditwasconductedtodeterminethebrandhealthofVusi

Thembekwayobrand–basedonthesevenhealthybrandcriteria.Thefollowingswere

determined after this in-depth analysis wasconducted.

Who is Vusi Thembekwayo?

VusiThembekwayoisabusinessspeaker who empowers his audiences with

newknowledge,researchfindingsandtools that they can immediately apply in thebusinessesorcareerstoachieveposi-tiveresults.Thembekwayo,istheyoungestJSEdirectorinSouthAfrica,healsohasaninfluenceoverR4.27billionincapital,

throughboardappointments.

1. Does the brand have a particular purpose?

VusiThembekwayocertainlyhasaparticular and meaningful purpose in so-cietyandinthepublicspeakingindustryinSouthAfrica.HeisregardedasthebestpublicspeakingbrandinthecountryandintherestofAfrica.ItisevidentthatVusiThembekwayoiscurrentlyservingapar-ticularandmeaningfulpurpose,becausehe speaks in four of the seven continents

toover350000peopleperannum.

Rating:8/10It’sclearthatthebrandhasameaningful

purpose

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2. Is this purpose served in all that it does?

ThepurposeofVusiThembekwayoasstatedaboveistoempowerhisaudienceswithnewknowledge,researchfindingsand tools that they can immediately ap-plyinthebusinessesorcareerstoachievepositiveresults.ThefactthatVusimanagesto speak to over 350 000 people per year is evidencethatthebrandpurposeisserved

inallthatitdoes.

Rating:8/10Thebrandpurposeisservedinallthatthe

branddoes

3. Doesthebrandhaveadistinctiveidentity?

VusiThembekwayoistheonlypublic

speakerintheworldthathaseverbeenin-vitedtoappearontheDragonsDenshow.

Heisoneoftheonlyhighly

regardedpublicspeakerstobebilingualinbothZuluandEnglish.Theconsistentred visual identity on the speaker’s digital platformsdifferentiatesandamplifieshe’sbrandimagery.Thespeakerisalsoknown

asthe“RockstarofPublicSpeaking”which is an indication that he one of the

bestintheindustry.

Rating:8/10Thebrandidentityisevidentandeffective.

4. Isthebrandaneffectiveandengag-ing communicator?

Communications strategies that deliver thetransparencystakeholdersdemand,

inanengaging,enrichingway,benefitthebrand.

VusiThembekwayobrandisaneffectiveengagingcommunicator.Thisismost-ly done through a digital synergy on

thespeakerswebsite,personalblog,In-stagram,FacebookpageandaYouTube

channel.TheDragonsDenshowonMzan-siMagicchannel161,ofwhichisalsoanothereffectivechannelforthebrand.

Although there is a lack of consistency on traditionalcommunicationchannels,thiscanalsobeseenasanotherreasonwhy,

mostpeopleareawareorknowthebrand.

Rating:6/10Onlyonesideofthebrandcommunica-

tionchannelisevidentandcontributingtothebrandatthepresentmoment,thusitreceived an average score for this section

5. Addsvaluetothelivesofpeople?

Entrepreneurship is a very appealing alternative to employment and one that manypeopledreamof.Howeveritisa

difficultthingtopulloffandmanypeoplewhoattemptitfallshort.Byanalysingthebrandintermsofthisabove-mentionedcriteria,itisevidentthatthebrandaddsmeaningfulvaluetoconsumers.Thisisseen through the in-depth information andbusinessinsightsthespeakerspeaksabout,inmostofhe’skeynoteaddressesandpresentationsallovertheworld.

Rating:7/10Withjobcreationbeingaproblemin

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SouthAfrica,thebrandcreatesanalterna-tive to employment for aspiring entrepre-

neurs

6. Buildsustainablerelationshipsbynever taking more than it gives?

Sustainablerelationshipsarebuiltthrough

the Motiv8 Capital Fund of which Vusi Thembekwayoischairman.Thefundisa

human resources management & develop-ment consultancy that specialises in ca-

pacitating managers and leaders to deliver businessresultsthroughtheirpeople,with

afocusonsmallbusinesses.

Rating:7/10Afairscorewasgivenherebecauseas

much the Motiv8 Capital Fund is doing good,usersarestillchargedhighpricesto

jointhefund.

7. Doesthebrandandthebusinessthatunderpinsitdemonstratethatprofitisnotthedriverbutaconsequenceofallthe

above?

Inaninterviewthespeakerspokeaboutaimingtobethebest,notthebiggest“Besttrumpsbiggest”.Inmodern-daybusinessweareplaguedbythealmostcancerous

pursuitofmore.Moremarketshare,morerevenue,morecustomersetc.Thisisev-identthattheVusiThembekwayobrandhasbeenabletosustainitsqualityap-

proachthatanyprofitmade,isfromthe

bestperformance.

Rating:8/10 A high score was given here for the con-

sistency and high quality resourceful information

ConclusionOveralltheVusiThembekwayobrandwastobeahealthyhealthybrand,butwithratherlaggingeffectiveandengagingcommunications.Thelackofanengagingbrandcommunicationsespeciallyontra-ditionalmediasourcescanbeseenasoneoftheprimaryreasonsforalackinbrandawareness.Thiscouldpotentiallyeffectthebrandinthelongrunespeciallywiththreatofnewentrantsinthisindustry.

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“My roots lie in a small town calledTsolo,on the outskirts of Mthatha in the EasternCape”

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Brand

Challenge

Brand Challenge

Brief:Thebriefwastounderstandwhothebrandisspeakingtoandhowtheyshouldspeaktothem.

Background

ChatzConnectBrandIdentityBlueprintMarty Neumeier’s three questions:

1.Whoareyou?ChatzConnectisVoda-com’slargestindependentdistributerof

cellular communications devices (includ-ingtabletsandlaptops),boastingover254

dealershipsinSouthAfrica.

2.Whatdoyoudo? We provide our cus-tomers with exciting deals tailored to suit theirspecificneeds,wantsandexpecta-

tions.

3.Whydoesitmatter?While our compet-itorsonlyofferdeals,weatChatzConnectstrivetobuildrelationshipswithourcli-ents and keep them constantly connected

inanever-evolvingindustry.

Situational Analysis

Competitor Analysis

ChatzConnect’smaincompetitorsareother network operators and cell phone providers in the telecommunications in-dustryincludingVodacom,MTN,CellC,

Telkom,Vodacom4UandCellucity.Vodacom

According to the most recent full-year re-port,SouthAfrica’sbiggestmobileopera-torbysubscribers,Vodacom,noteda3,8%declineinusersto31.4million(SAMobileSubscribers,2015).AlthoughVodacomremainsintheleadbysomemargin,itisimportanttonotethebrandhasdroppedfromover50%marketshare,tojustfewerthan40%inthespaceoftwoyears(2012-

2014).OnSeptember92015,VuyaniJarana,chief

officer at Vodacom Business announced anR8billionnetworkinvestmentstrategy.Hedeclaredthatthecompanyisfocusingonchallengingincumbents,TelkomandNeotel,especiallyintheconvergedservic-esmarket.JaranaalsostatedthatVoda-complanstoexpandservicesinmobile,

machine-to-machine solutions and cloud computing,andalsofocusongrowingservicesintherestofAfricaaswell.Ac-

cording to Jarana the large enterprises for convergedservices-mobileandfixed-iscurrentlyR25billioninSouthAfrican

marketvalue.Howeverduetothefactthattherearemanyincumbentsandlittleroomforentry,Jaranaadmitsthatwinningin

thismarketwillbeverydifficultforVoda-com.

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Therefore,Vodacomisworkingonim-provingnetworkcapillarity,increasingservicedeliveryandinnovation.The

brandisalsofocusingonleveragingbusi-ness-to-consumer (B2C) strategies in or-der to gain market share (Vodacom plans aggressivenetworkexpansion,2015).Sim-ilarly,Vodacomisplanningtoconsolidateitspositioninthemarketbyacquiringonoftheincumbents,Neotel,forR7billion.However,TheCompetitionCommissionhas recommended that the Competition TribunalapprovetheacquisitionofNeo-tel,butwithstringentconditions(Voda-complansaggressivenetworkexpansion,

2015).Alongside the strategy to enter the con-vergedservicesmarket,Vodacomisalsointerested in tapping into multinational companies,whicharecomingtoAfricaandlookingforasingleICTprovider.Therefore,Vodacomhasinvestedinin-frastructure and has employed people

whoareabletopushthebrandforward,instillingconfidenceinpotentialforeignmultinational investors (Vodacom plans aggressivenetworkexpansion,2015).

Vodacom4U

Since2003,VodacomhasoperatedtheVodacom4UFranchise,inordertoap-peal to a younger and more modern tar-getaudiencebetweentheagesof16-35.

Through constantly updating social media accounts,Vodacom4Uhasbeenableto

successfully interact with their young con-sumers and keep them informed with the latestdealsandevents,oneofthebiggestandmostexcitingbeingPlettRage(The

HistoryofVodacom4U,2014).

CelluCity

CellucitywasthefirstmobilecompanyinSouthAfricaandlikeChatzConnect;it

offersVodacomcontracts,upgrades,prob-lem free porting to the latest phones and thewidestchoiceoforiginalaccessories.For16consecutiveyears,Cellucityhaswonthe“VodacomDealeroftheYear”

award for outstanding customer service in its28stores.ThesestorescanbefoundinsomeofthebusiestregionalmallsinSouthAfricaandthebrandfocusesontargetingmiddle-income customers (Introducing

Cellucity,2015).

MTN

Incontrast,Vodacom’sbiggestcompetitorandSouthAfrica’ssecondlargestmobileoperator,MTN,reportedinMarch2015thatitsuserbasehadincreasedby8,9%to21millionsubscribers.However,accord-ingtoarecentreport,MTNiscurrentlyentering discussions with pan-African

mobilephonetoweroperator,IHSHold-ing,withplanstosellitsSouthAfrican

towerportfolio.Ifthedeal,worthanesti-matedR26billion,goesaheadthenMTNwillbecomethesecondSouthAfricanmo-bileoperatortoreducecostsbyoffloadingtowerassets(MTNmayselltowers,2015).

MTN has followed a similar strategic model in other West African markets and foundtheventuretobeasuccess.Accord-ingtoBloomberg,MTNSouthAfricahasaround19000sitescountrywide,andthedealwithIHSwouldresultinamassive

reductionofcostsandsubsequentdebtin

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thecompetitivemarket,whereinpriceshavefallensignificantly.

MTN also engages with the South African communitybyreachingoutandofferingrewardstoloyalcustomers.Followinga2014campaignbyschoollearnersfrom

underprivileged areas in the Western Cape,MTNgrantedfreeWikipediaac-

cesstoallMTNsubscribers,ensuringthatstudents from these areas are provided

with exposure to a ‘well- rounded educa-tion’(MTNgivesfreeaccesstoWikipedia,

2014).

Cell C

AlthoughCellCisnotrequiredtopublishannualreportscontainingthenumberofitssubscribers,in2014,thecompany

reportedimpressivegrowth.AccordingtotheJSE-listedBlueLabelTelecomsinterimresultspresentation,itwasreportedthatCellChasgrownfrom18.1millionusersin2014,to20millionusersin2015.ThismeansthatCellChasseenthebiggest

growthintheshortestspaceoftime,withalmost25%marketshare(SAMobileSub-

scribers,2015).InAugust2015,TelkomCEOSiphoMase-

ko,claimedthat“attherightprice”hewouldbuyCellCandacquireits20mil-lionusers.MasekoexplainsthatTelkomisnear the end of phase one of a majorturn-aroundstrategy,whichincludesjobcuts,outsourcing services and selling certain portfolioproperties.Duetothefactthat

Telkomhas“virtuallynoborrowingsandastrongbalancesheet,”the

CompanyisabletotakeonCellC’sdebtof€160million(Telkomlookingintobuying

CellC,2015).

HoweverifTelkomdoesacquireCellC,then the company will not only inherit anenormoussumofdebtbutalsoCellC’sconsumerbacklashregardingslownetworkspeedsaswell.However,on

September92015,CellCreportedthatithas invested R 427 million into Western Capeinfrastructure,betweenJuneand

December2015.ThismeansthatCellCiscurrently focusing on improving customer relationsandsatisfaction,byincreasingstabilityandthecapacityforusersintheWesternCape,sothatcustomerscanlookforward to improved speed and conven-ience(CellCExpandsLTENetwork,

2015).Porter Five Forces

Bargainingpowerofbuyers

Thisreferstohoweasilybuyersareableto drive down prices of a certain product orservice.InthecaseofChatzConnect,thebargainingpowerofbuyerswouldbequitehigh,becauseChatzConnectisnotaspopularasmajorcompetitorsare,thebrandneedsapointofdifferentiation.

CurrentlyChatzConnecthaveabrandin-dentasbeing“deal-makers,”whichmeansthatpricecompetitivenessisresponsibleforinstillingabargainingpowerintothemindsofbuyers,beforethefirstactual

contactpoint.

Threatofsubstitutes

Currently,therearemanysubstitutesforthegoodsonofferatChatzConnectstoresandthusitisveryeasyforChatzConnectdealstobesubstitutedbyother,perhapsmoreconvenientdeals.DuetothefactthatChatzConnecthassuchawideandunfocusedtargetaudienceframework,

thebrandis‘lost’amongststronger,more

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streamlinedbrands,whichworkforandappealtospecificgroupsofpeople.With-outaclearbrandidentityblueprintand

strategy,ChatzConnectisatriskofsubsti-tutionbyothernetworkoperators.

Threat of New Entrants

Another important aspect to take into consideration is the threat of new entrants intothemobilemarketwhereChatzCon-nectiscurrentlysituated.Thefollowing

list details threats of new entrants that will haveaneffectonChatzConnect:

.PEPCell–OneofSouthAfrica’sbiggest

cell phone sellers (Airtime and cell phone products)forVodacom,MTN,CellCand

8ta.Jetrecentlylaunched,JetCellular,whichisanindependentcellularbrand(airtime,datapackagesandcellphoneproducts).

.Me&youmobilenetworkstores(RoamonCellC’snetwork),whichwasintroducedto address the frustration that consumers feelwithcurrentmobilenetworksexpen-sivepackages,complicatedcontractsand

poorcustomerservice(i.e.CellC).

These new entrants pose a threat directly toChatzConnect,asalloutletswillbe

competingforprice,demandandproduct.

Bargaining Power of Suppliers

An assessment of how easy it is for suppli-erstodriveuppricesisreferredtoasbar-gainingpowerofsuppliers.WithregardstoChatzConnect,cellphoneretailers

depend on their suppliers for items such as cellphoneproducts,packaging,accesso-ries,airtimeandmarketingcatalogues.It

is also important to note that competition betweensuppliersdecreasestheiroverallbargainingpower.Thesuppliersofcell

phoneproducts/contractsforChatzCon-nectarecurrentlySamsung,Apple,Black-berry,Nokia,HuaweiandLG.Sincethereareasmallnumberofcellularcompaniesinvolved,thesesuppliershaveimmensepower to influence the prices of cellular

devices.Vodacom’swarehousesareusedtosupplyChatzConnectwithstock,whichmeansthattheyareincontrolofthebar-gaining power over the supply of devices

toChatzConnectdealerships.

Rivalry amongst competitors

As the pace of innovation in the telecom-municationsindustryrapidlyincreases,localmobileserviceprovidercompanieshavebecomefiercelycompetitiveinordertoremaindynamic,andultimatelyin-

creaseoverallmarketshareandrevenue.Therefore,rivalryisfierceinthecellular

industry,ascompetitorsareconstantlytry-ing to steal and up their market share from oneanother.SouthAfricahasthethirdhighest expenditure on cell phones per

GDP.Althoughrivalryisrifeinthisindus-try,itismoreintensebetweencompetitorswhooffersimilardealsandaresuppliedbythesamesource.ChatzConnectandCellucitybothofferVodacomdealsand

useasimilarcolorscheme(red,whiteandblue).However,whileCellucitytargets

middletohigh-incomeearnersandhas26storesnationwide,ChatzConnectboastsover 254 stores and focuses on appealing tolowerLSMgroupsaswell(AboutUs:

ChatzConnect,2014).

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S.W.O.TAnalysis

Strengths

ChatzConnectisVodacomSouthAfrica’slargest super independent dealer of cellu-larcommunicationsdevices,boastingover254storesacrossthecountry.ChatzCon-necthasanefficientregionalspecificpric-ingstrategyalongwitha16-pagebrochurethatisdistributedmonthly.Thebrochureincludesallthelatestdeal,promotion

and package information that is required whenbuyingacellphoneorsigningupforalong-termcontract.Inaddition,Chatz

Connecthasastrongsenseofcommunity,friendshipandfamiliaritywithcustomers,whichhasbeenbuiltandsustainedoverthepast21-years.ThisisimportantwhenconsideringthefactthatmostChatzCon-nectdealershipsarebasedinsmalltownsandruralareassuchasLenasiaTownship,inSOWETO,Gauteng(ChatzConnect:

AboutUs,2014).

Weaknesses

Firstlythereisnoofficialtargetaudience.Instead there is a diverse range of indi-

viduals from various regions who support ChatzConnect,butarenothappywiththe overall communication skills of the brand.Additionally,ChatzConnectdoesnot have a call center or a service center and are therefore reliant on Vodacom for communicationandrepairs.Lastly,ChatzConnecthasminimalbrandawareness

andisnotconsidereda“fun”brandbytheSouthAfricanyouth.Similarly,theolderagegroupsareunawarethatChatzCon-nectevenexists.Duetothedealership

natureoftheChatzConnectstores,thereisaninconsistentbudgetsupplyandalack

of uniformity amongst the various deal-erships.Somestoresaretoosmallanddonot have room for stock (or cannot keep stockduetocrime,whichwillbeex-

plainedunder‘Threats’),whileothersaretoooldandeitheroverorunderbrandedbybothChatzConnectandVodacom,

whoisthesupplier.

Opportunities

Asexpressedinthecompetitoranalysis,there are many opportunities for growth

inthetelecommunicationsindustry.Although Vodacom market share has declinedsince2012,thecompanystillremains South Africa’s leader in the in-

dustrywith39%marketshare.ThismeansthatChatzConnectisbeingsuppliedbyapowerfulbrand,whichisintheprocessofexpandingintonewterritory,investingininfrastructureandplanningtocollaboratewithbigmultinationalcompanies.There-fore,itwouldbebeneficialforChatzCon-necttocapitalizeontherelationshipthatitshareswithVodacom.Consumersneedtobemadeawareofthisconnectionand

thefactthatChatzConnectofferssuperiordeals,whencomparedtoVodacom.SinceChatzConnectdoesnotcurrentlyhaveanimpressivesocialmediapresence,thereisan opportunity to grow online and ulti-matelyincreasebrandawareness,which

willpositivelyaffectsalesaswell

Threats

ChatzConnectstoresthataresituatedinrural South African areas are in danger of beingtargetedbycriminals.Forexample,in2010,fourarmedmenrobbedaChatzCellularshopintheLenasiaTownship.TheChatzemployeesweretiedupand

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themenwereabletoleavewithstolencellphones,accessoriesandcash(ChatzVodacomStoreRobbed,2010).Inordertopreventincidentslikethis,theChatz

Connect (or otherwise creatively named) storedealersinsmallruraltownsbeganto limit the amount of stock kept inside stores.However,somedealershipsstill

continuetobetargeted,astheirareinsuf-ficientsecuritysystemsinplacetodeter

criminalsandensuresafetyofthevaluablemerchandise.Theftisamassiveproblem

asitsetsthecompanybackandthrowstheindependentdealersintodebt.

Onalessintrusivenote,othercellularcommunicationdevicesdistributorsand

network providers in the industry such as MTN,CellC,Telkom,andVodacomarealsoathreattoChatzConnectbecause

they all compete for customers from the samemobilemarket.Asmentionedabove,ChatzConnect’saffiliationtoVodacom

isanopportunityforgrowthandsuccess.However,otherindependentdistribu-

tors of Vodacom cellular communication devicesandcontracts,likeVodacom4UandCellucity,arebiggerthreatsbecause

thereislimiteddifferentiationbetweenthebrands.Therefore,itiscrucialforChatzConnecttofocusonofferingcustomersabetterVodacomexperiencethanthat

whichisofferedbytheothertwo.

Key Issues

. Howmightweunderstandwhothetarget audience is?

. Howmightwedevelopcoherent,consistent and concise communication

strategies in order to improve the current-lyunclearbrandidentity?

. Howmightweimprovethelackofbrandawareness,recallandrecognition?

. HowmightweeffectivelycapitalizeonVodacom’smonopolizationofcellular

towers?

SMARTObjectives

Todefineacleartargetaudiencethatisconnectedbycommonneeds,wantsand

expectations–bySeptember2015.

Toincreasebrandawareness,recallandrecognition,oneyearafterthecampaign

activationin2016.

TounderstandtheChatzConnectbrand:whattheydo,andwhyitmattersinordertoshapeameaningfulbrandidentityblue-printthatiscoherent,consistentandcon-

cise-bySeptember2015.

ToemphasizetherelationshipbetweenVodacom (the supplier and service pro-

vider)andChatz,andusethisconnectiontoincreasesalesbyaminimumof20%by

theendof2017.

Brand Positioning

ToVodacomconnectionseekers,ChatzistheVodacom“specialist”thatdeliverstai-loreddeals,whilstofferingcustomerstheopportunitytobeconnectedtoadiverserangeofsuperiorVodacomproducts.

Vision TobeSouthAfrica’smostapproachable

Vodacomconnection“specialist”,strivingto meet all customers’ communication

needs,wantsandexpectations.

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Mission

ChatzaimstoconsistentlydeliverthemostexcitingVodacomdeals,infriendlyenvironmentswherecustomersareable

to develop strong relationships with their individualdealers.

Personality

Chatzisreliable,proficient,friendly,trust-worthyandexciting.

Chatzissomeoneyouknowyoucantrustbecauseoftheirdeepunderstanding,

knowledgeandpassion;theyaretheguruadvicegiver.

Values

Trust-Loyalty-Fun-Accessibility-Friendship

Message

GetconnectedtothebestVodacomdeals.

Creative Concept

The Specialist

Wechosetheconceptof“TheSpecialist,”as we wanted to focus on the very impor-tantrelationshipbetweenChatzandVoda-com.SinceVodacomboasts54%ofmobilespacemarketshare,webelieveChatzcanbenefitfrommakingtheassociationwithVodacommoretransparent.Similarly,webelievethata“VodacomSpecialist”isanappropriatetitleasChatzhasbeenoffer-ingVodacomdealsforovertwentyyears.

AlthoughChatzoffersadiverserangeofproducts and

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Finance

Marketing

Metrics

Times Media Group Marketing Metrics and Branding

Brief: We were required to select twopubliclylistedcompaniesontheJohannesburgStockEx-change and compare and their

financialreports.

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Times Media Group (TMG)Brand Background

Times Media Group (TMG) is a media andentertainmentcompanythatinforms,educates,entertainsandconnectspeople.They aim to provide compelling content

andcreativesolutionstoenrichlives,help-ingpeopletoknowmore,domoreandtoliveinspired.Thegroupfocusesonbuild-inginternalandexternalpartnerships,

investing in quality content delivered via physicalanddigitalchannelstobestserve

theircustomers’needs.

TheTimesMediaGroupLimitedispublic-ly traded and listed as TMG on the Johan-nesburgStockExchange(JSE-2013).The

groupwasestablishedin2007andformer-lyknownasAvusaMedia,butafterbeingacquiredbyaunitoftheMvelaphandaGroup Limited (trading as MVG on the

JSE)in2012thenamewaschangedtotheTimesMediaGroup.

TMGisalevelfourB-BBEEcontributor,with55.64%blackownership-13,43%ofitbeingblackfemaleownership.In2013TMGacquiredtheremaining50%stakein Business Day Financial Mail (BDFM) fromPearsonPublishersintheUK-mak-

ingTMGBDFM’ssoleshareholder.

TMG’s principle activity is operating me-dia and entertainment assets and its oper-ations are carried out through a total of 5

businesses:

Media:23+national,regionalandcom-

munitynewspapers.Over32magazinesinconsumer,

businessandspecialistfields.Digitalandbroadcastenterprises.

Entertainment: operates cinema multi-plexesinSouthAfrica.

HoldsrightstothedistributionofDVDproductsbothintherentalandtrade

markets.Holdsprestigiousdistributionlicensesfor20thCenturyFox,Disney,Warner,the

BBC,Universalandvariousindependentstudios.

Retail:operates46storesinupmarketshopping centres and at major South Afri-

canAirports.

BooksandMaps:operatesfivemajorpub-lishingimprints.

MusicandManufacturing:produces,pub-lishesanddistributespre-recordedmusic.

Performance Measures: TMG

Profitability

Abilitytoprovidefinancialrewardssuffi-cienttoattractandretainfinancing.

1. GrossMargin

=GrossProfit Sales

=19560000005310000000

=0.3683Gross margin measures the level of earn-ingsincomparisontosales.Forevery

R1.00worthofsalesTMGgeneratesR0.37

grossprofit

2. NetIncomeMargin

= Net Income After Interest and Tax Sales

=2170000005310000000

=0.0408

Net margin measures the percentage of profitsthecompanygeneratesforeach

randofsales.Itreflectstheabilitytocon-trolcostsandmakereturnonsales.TMGgeneratesareturnof4.08%ontheirsales.

3. ReturnonAssets

= Net Income After Interest and Tax Total Assets=217000000 4 099 000 000

=0.0529

Thisratiomeasurestheoverallprofitabilityfromthecompany’sinvestmentinassets.TMGgeneratesa5.29%returnonassets.

Liquidity

Abilitytomeetshort-termobligationsandefficientlygeneraterevenues.

1. CurrentRatio

= Current AssetsCurrentLiabilities

=23410000001272000000

=1.8404

TMGhas1.84timesmorecurrentassetsthancurrentliabilities;thereforehave

sufficient assets to cover their short-term obligations.TMGhaveacurrentratiothat

isproportionaltoitsoperatingcycle.

2. AcidTestRatio

= Current Asset- InventoryCurrentLiabilities

=2341000000-17420000001272000000

=0.4709

Theacidtestratioisamodificationofthecurrentratio.Somecurrentassetssuchasinventoriesmaybedifficulttoconvertintocash;thereforetheacidratiohelpsmeas-urethecompany’sabilitytomeettheircurrentobligationsbasedonthemost

liquidassets.Liquidassetsincludecash,marketablesecuritiesandaccountsre-

ceivables.MycalculationsshowthatTMGhaveR0.47liquidcurrentassetsforeach

R1.00currentliabilities.

Solvency

Abilitytogeneratefuturerevenuesandmeetobligations.

1. FinancialLeverage

= Total Assets Total Equity

= 4 099 000 0002199000000

=1.8640

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Thisratioshowsthat1.8640portionofthecompany’sassetsarecontributedbytheowners.Thismeansthattheuseof

borrowedmoneytoincreaseproductionvolume,andthussalesandearnings.

2. Debt/EquityRatio

=TotalLiabilities Total Equity=19000000002199000000

=0.8645

Thisillustratesthattheownerscontributea0.8645portionofthecompany’stotalas-sets.Itindicateswhatproportionofequityanddebtthecompanyisusingtofinance

itsassets.

3. InterestCover

=NetIncomebeforeInterestandTax Interest Expense

= 332 000 000 23 000 000

=14.4348

Thisratioillustratesthat14.4348istheamountthatthecompanyisabletogener-ate income or cash flow protection to the long-termcreditors.Thisbasicallymeas-

uresthenumberoftimesacompanycouldmaketheinterestpaymentstoit’sdebtorswithearningsbeforeinterestandtax.Thisisquiteahighratiocoverage,whichmeansthatthereislesspossibilityofbankruptcy

forthecompany.

Efficiency

Measureofhoweffectivelytheassetsofthebusinessarebeingapplied.

1. AssetTurnover

= Sales Total Assets=5310000000 4 099 000 000

=1.2954

Thisratioillustratesthat1.2954isthetotal efficiency level that the total assets

produce.Itcanalsobesaidthatthisisthetotal revenue for every Rand spent on the

assetsofacompany.

2. ReceivableCollectionPeriod

=AccountsReceivable Sales

= 495 000 000 4099000000x365days

= 44 Days

This ratio shows that it takes 44 days on averagetocollectsalesrevenueforTMG.

3. DaysOfInventoryAtHand

= InventoryCostofsalesx365days

= 500 000 0003354000000x365days

= 54 days

21

4.OperatingCycle=Noofdaysinreceivable+No of days in inventory

54+44 =98days

IttakesTMGonaverage96daystogeneratecashfromcurrentassets,theircurrentratioisbelowtheoperatingcycleturnoverrate,this

would implies that they do not have sufficient currentassetstocovercurrentliabilitieswith-

intheoperatingcycle.

Market Reputation

MarketRatioswillbeusedinanattempttomeasure the economic status of TMG within themarketplace.Inorderforinvestorstoeval-uate and monitor the progress of their invest-

mentscanusethesevalues.

1. EarningsPerShare

= Net Income After TaxNo.OfShares=217000000124000000

=1.74

Growth in earnings is often monitored with Earningspershare(EPS).Itexpressestheearningsofacompanyonapersharebasis.

2. Price/EarningsRatios

= Market Price Per Share Earnings Per Share

=28.761,74=16.53

Investors often to refer to the Price/Earnings

ratio as a rough indicator of value for acompany.TMG’sP/Eratiois16.53

which means that the company is selling 16.5timesit’sofearnings.

3. DividendYield

= Dividend Per Share Market Price Per Share

=1.2228.76=0.0425=4.25%

The dividend yield is an important as-pect for investors interested in a source

of an income as it gives investors an indication of how much dividends are paidbythecompany.Theratiocalcula-tion shows that an investor would earn

4.25%inincomefromTMG.

4. NetAssetValuePerShare

= Equity (Net Assets)No.OfShares=2199000000124000000

=17.73The Net Asset Value per share expresses thetotalnestassetsofabusinessonapersharebasis.Thereforewe’reabletocomparethebookvaluesofabusinessto the stock price and gauge the dif-

ferencesinvaluations.TMGhasaNetAssetValueofR17.73pershare.

CONCLUSION: TMGSTRATEGIC RECOMMENDATIONS

In order for TMG media to improve theirfinancesandfinancialstandpoint,it is imperative to set certain SMART objectivestoattaincertainfinancial

goals.Afteranalyzingthenumbersand22

financesoftheTimesMediaGroup,afewrecommendationscanbemadeinorderto

improvetheirfinancialstatus.

“Its time to fully understand

rural &

townshipconsumers”

23

Creative

Development

Creative Development

Brief: Toidentifyanuncomfortablespaceandcreateatenblogjournaland

document experiences

Concept: The Dull Uniform

24

Creative Rational

UponreceivingthisbriefIwasfacedwithtaskoffindinganuncomfortablespace,ofwhichIfinddiscomfortin.FormeIgen-erally found discomfort with things that wereassociatedwithmasculinity.Mascu-linity are set of characteristics and qual-ities or forms of roles that are generally

foundtobetypicalformen.WhenIlookatmasculinityandmasculineculture,myinterpretationoftheideaarebasicrequire-ments that are set on people that ultimate-

lychangeaperson’sbehaviour.Iambasicallyuncomfortablewithmas-culinetraitsandcharacteristicsthateffectaperson’sbehaviourandgeneralwayof

thinking.I then decided to investigate and represent this through my ten day intervention and decidedtoweartheclassicblazerandtieattire.Whichwouldrepresentaformof

masculinity,‘leader’,‘cooperate‘,‘entrepre-neuretc.IwantedtoinvestigateandseetheeffectsoftheattireandthechangeofbehaviourthatwouldoccurwhenI’dbe

seenbypeopleatschoolandaroundCapeTown.

After thorough research I found articles on masculinity and found that hegemonic masculinity is a concept where men main-tainandactincertainwaystobasically

dominateinsociety.Thatmasculinityrep-resents a cultural ideal of a form of man-hoodthatrelatetobeingthe‘ToughGuy’‘Leader‘and‘Breadwinner’.Thatmenareinconstantbattlenotbeseenwithasso-ciatedwithfemininity.Iamanindividualwhoaspirestotopmanagementandbusi-nessbutthecontradictionisthatthisareaof work is an area with dominant acts of masculinitythatultimatelyeffectpeople’s

personalitiesandbehaviours.Theissueinthisfieldisthatinorderforanindi-

vidualtobecomesuccessfulhe’srequiredto portray stereotypes and characteristics

that are incline with masculine culture like beingdefiantorlookingdignifying.Thistheneffectsaperson’sidentityandbehav-iourandforcesthemthink,actandreactdifferentlywhichissomethingI’mhighly

uncomfortablewith.

During my intervention I found how looking macular in terms of masculinity wasgenerallyseenbysocietyasgooda

thing,mainlybecauseofthecomplimentsI received from my fellow peers and peo-plearoundCapeTown,“MrCeo”“Look-ingGoodChief ”andmanybelievedIwascomfortableinsteadofuncomfortable.Which showed how people associated

the overall look with success and happi-ness.Womenweretheworstmanyofthegirls who weren’t usually friendly would smile at me and create random conversa-tion which showed me how women are

in a constant look out for the “Ideal Man “wholooksconfidentandmeetsmascu-linerequirements.Thisthenshowsyou

how women are in constant of man to take care and relates to John Butlers theory of how women see themselves through the eyesofaman.Thistypeofreactionfrommypeerscharacterizedmypersonality

andbehaviourattimes.I’dsometimesseemyselfwalking,speakingandgenerallyactingdifferentlytomeetmasculinere-

quirements that are were incline with my overalllook.

25

Inamedmyblogmythe‘DullTheUniform’torepresent how dull I think of masculine cloth-ing,thatiteffectsanindividual’sbehaviour,I

then did further research on representations of people or artists or even characters that re-

sembledmasculine.IcameacrossanEdwardPressmanfilmthe1987filmWallStreet.InthefilmisacharacternamedGordonGekkoadefinitionofmasculinity,whoconfident,greedyandabully.ThecharacterinthefilmisportrayedbyMichaelDouglas.Inthefilm

manyaspiretobelikeGordonit’salsolikethatinsocietywherepeopleattempttotryandbeotherpeoplebyactingandbehavinglikethem.

That people see Gordon Geckko’s character and try portray these masculine characteristics becausetheybelievethat,itwillmakethemhappier.It’sinthatprocessthatpeoplelosethemselvesandlimitthemselvesbycopying

otherpeopleandnotbeingtruetothemselves.

Beingyourselfisveryimportant,itshowsothershowuniqueyouare;BobMarleybe-

lieved that people should free themselves from mentalslaverythatnonebutourselvescouldfreeourminds.AftermyinterventionIcametotheconclusionofhowchangingyourbe-

haviourformasculinepurposeswasn’tallbad.Thatinsomecaseshavingamasculinebehav-iour was helpful and it helped manage chal-lengesinparticularsituations.WhereIsawitasbadwaswhenonebecomestheidealorisconstantly chasing this masculine image as a wayoffindingrefugeorasmeansoftryingtobecomesuccessfulquicklythatinsomecasesit’sgoodtohavemasculinecharacteristicsbutjust as long as those characteristics don’t have

you.

Myfinalpiecesaretwoimagesofme,oneinmy normal clothes and one in my masculine look,thesuitandtie.InthenormalpictureI’minmyregularclothingsymbolizinghownormalandbasicmycurrentlifeiswithout

masculinecharacteristics,thatIseemverydull

and plain and in the picture I’m seen lookingoutattheotherimage,whichisanimageofmeinthesuit.Thisim-agelooksveryattractiveandtempting;in the image I look like I’m happy and successfulthatbysimplyputtingonthesuit and adopting a masculine person-ality I seem happy and successful that

masculineculture,ideasandbehavioursarekeytohappiness.That’showitseenin today’s times the media links mascu-linity as a form of happiness and men around the world are constantly chas-ing these ideas trying to meet to these requirements and expectations so that theycanbeacceptedbypeoplearoundthem.Theychangetheirbehavioursandlose their sense of identities and many areuncomfortablebutstillstickitout,

it is then in that process that people lose themselves.

Creative Development Process Work

26

Curriculum

Vitae

Personal Details:

• Surname:Madala• Firstname:MusaSigcine• Gender:Male• IDnumber:9405215496086• FirstLanguage:Xhosa• SecondLanguage:English• Country:SouthAfrica• CellNumber:0720438099• EmailAddress:musamadala@rock-

etmail.com

Employment:

• Dates:VacationinDecemberandJanuaryfrom2013-2014

• CompanySimoSolutions(Pty)Ltd• Department:Logistics• Responsibilities:Driverandsales

andmarketing.Competencies/Skills/Knowledge:

School Education:• HighSchool:SelborneCollege• Datematriculated:2012• GradePassed:BachelorPass

Tertiary Education:

• VegaSchoolofBrandLeadership,-Cape Town

• Attribute:BachelorofBusinessAd-ministration in Brand Building & Manage-

ment(Expectedtocompleteend2015)

Awards and activities:

• PresidentAwardSilverLevel–2011• JSEBusinessChallengetop10–

2011

27

• ParticipatedintheannaulVegaBrandChallenge,workedonDailyMavericknewssource.Myideasinfluencedsomeoftheir

decsionsregardingtheirbrandingandmarket-ing.

Interests

• Currentaffairs• Business• Watchingdocumentariesandnewsarti-

cles on the weekend

References:

• Name:ZakheMadala• Contact:0437210060• Company:SimoSolutions(Pty)Ltd• Email:zmadala@simo.co.za• Relationship:Managingmember• Address1AshleyRoadEastLondon•

Reference 2

• Name:JaneyNixon• Contact:0214618089• Email:janey@vegaschool.com• Relationship:Vegarelationshipnaviga-

tor• Address130StrandStreet,DeWater-kant,CapeTown,8005(cornerofStrandand

Chiappini)

Acknowledments Flint&Iron

Veon Mathwes ClaireHowarth

Della NapoliAliBester

KathrynHemmesStorm Mudde

Saskia Sevenster

Finance

Gugulethu MdaAzolaMona

Butetsi Bugaari

Refrerences

Aaker,D.&Joachimsthaler,E.2000.BrandLeadership.UnitedKingdom:

Simon&SchusterLtd.ChatzConnect:AboutUs.2014.[On-line].Available:http://www.chatzcon-nect.co.za/about-us/[2015,September

3].ChatzCellularVodacomStoreRobbed.2010.[Online].Available:https://mru-lenasia.wordpress.com/2010/12/10/

chatz-cellular-vodacom-store-robbed/[2015,September2].

IntroducingCellucity.2015.[Online].Available:http://cellucity.co.za/about-us.

html[2015,September2].Kotler,P.T.,&Armstrong,G.2010.Prin-

ciplesofMarketing.PrenticeHall.MTNMaySellTowers:Report.2015.

[Online].Available:http://www.techcen-tral.co.za/mtn-towers-south-africa-ihs-

28