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.
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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:[email protected]• Relationship:Managingmember• Address1AshleyRoadEastLondon•
Reference 2
• Name:JaneyNixon• Contact:0214618089• Email:[email protected]• 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
