Lsm february 2010

SAARF Segmentation Tools

• Module 1 - General Overview of SAARF & all products

• Module 2 - All Media & Products Survey (AMPS®)

• Module 3 - Television Audience Measurement Survey (TAMS®) and Radio Audience Measurement Survey (RAMS®)

• Module 4 - All segmentation tools including LSM®

SAARF Training

• Trend Booklet – Shows trended AMPS® data over a period of 5 years. Provides basic penetration data and has a section with all data by SU-LSM®

• Main AMPS® CD* – All AMPS® data by detailed media within each SU-LSM® (SU-LSM 1-4 grouped)

• Branded AMPS® CD* – All AMPS® products by community size, province, literacy, household purchaser, life stage, metropolitan areas, gender, age, home language, population group, employment status, occupation, level of education achieved, household income, SU-LSM®s & the product itself

* Available on www.saarf.co.za

What information is available?

• Segmentation CD - Explains the various segmentation tools in detail and provides some interesting cross tabulations

• www.saarf.co.za - History, FAQ, presentations, press releases, technical reports (has section on SU-LSM® that indicates variables and their weight and the corresponding question in the questionnaire), basic information on print and radio penetration etc

• Computer Bureaus - Specialised runs available at a cost from software companies (AGBNMR, Eighty20, IMS, Infosense, Softcopy & Telmar)

• AMPS Online

What information is available? …

• It’s the task of breaking the total market (which is typically too large to serve) into segments that share common properties

• A market segment is a gross slice of the market such as high-income car buyers

• A market niche is a smaller, specially formed segment, such as high-income car buyers who want high-performance sports cars

What is Market Segmentation?

• Demographic

• Life Stage

• Behaviour

• Usage

• Socio-economic

Types of Market Segmentation

• Geographic

• Psychographic

• Perceptions

• Wants / Needs

• Multi-attribute

Filter Sample Size ‘000 Population

Adults 20 961 31 524

Adult Women 10 528 15 808

Adult Women, aged 25-34 2 266 3 622

Adult Women, aged 25-34, LSM 10 182 162

Adult Women, aged 25-34, LSM 10, with children 104 84

Adult Women, aged 25-34, LSM 10, with children, divorced/widowed/separated

0 0****

Over Segmentation on AMPS®

** Highly unstable data** Highly unstable data

SOURCE: SAARF AMPS 2009A

Need for & Need for & Development of Development of

LSMLSM®®

• The SAARF LSM is not the only type of segmentation tool

• It is based on access to services and durables, and geographic indicators as determinants of standard of living

• LSM is a very stable and dependable differentiator and the AMPS variables are particularly suited to this

What is SAARF Living Standards Measure (LSM®) ?

• The SAARF Universal LSM® is a Target Marketing Tool that is also used for the selection of appropriate media, therefore, no media related variables are used in its construction

• No personal attributes (except in 1995 and 2000 LSMs) are used

• Income never used

What is SAARF Living Standards Measure (LSM®)?...

• Some people tend to behave in a different fashion from others

• Some people tend to behave in similar fashion

Thus

• Try to group similar people together• Try to distinguish between different people

Rationale For Segmentation

• Identify the target market / audience as accurately as possible

• Aim is to reach 100% of target market, i.e. Maximise reach

• With 0% (minimum) wastage

For Advertising/Marketing Purposes

• Single variables, usually demographics (profiles)

Shortcoming ?

• Useful, but often not strong differentiators on their own

• LSM index developed to find the best combination of variables from AMPS®

Traditional Approach

• Urban vs. Rural debate

• Community size classification

• Lever Brothers’ experience

• Realisation internationally (UK & US) that demographics are not a strong differentiator of behaviour when used on their own

Process of Development

It’s Not Just About Demographics

Source: Admap December 1990Source: Admap December 1990

• It must have broad application across the total market

• Must be simple to use, easy to link to other surveys

• Must be stable over time, but sensitive enough to register changes

Requirements Of LSM®

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1994 2000 2009A

SAARF LSM® – National

1993 LSMs1993 LSMs1993 LSMs1993 LSMs

SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 20 961(’09A)POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 524 000 (’09A)

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SAARF LSM® – Gauteng



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1994 2000 2009A 1993 LSMs

SAARF LSM® – KZN


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SAARF LSM® – Western Cape



LSM® may not be useful in all instances

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Femina Cosmopolitan Bona Caravan & Outdoor Life

LSM® – Monthly Magazines



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16-24 25-34 35-49 50+


Age – Monthly Magazines


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Gender - Monthly Magazines


LSM 1

LSM 2

LSM 3

LSM 4

LSM 5

LSM 6

LSM 7L

LSM 7H

LSM 8L

LSM 8H

LSM 9L

LSM 9H

LSM 10L

LSM 10H

Cell Phones 30.6 44.8 53.3 59.7 68.6 73.9 77.5 81.6 82.6 86.2 87.6 90.4 92.8 96.0

30.6

44.8

53.359.7

68.673.9

77.581.6 82.6

86.2 87.6 90.4 92.896.0

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Cell Phone penetration x LSM®

% Listenership: SU- LSM® 1-5

23.7

19.6

11.9

11.1

9.9

8.

5.4

3.6

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Ukhozi FM

Umhlobo Wenene FM

THOBELA FM

Lesedi FM

Motsweding FM

METRO FM

IKwekwezi FM

Munghana Lonene

SU-LSM 1-5


% Listenership: SU-LSM® 6-10

22.1

12.6

12.5

10

9.4

9

9

8

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METRO FM

Ukhozi FM

5FM - Past 7 days

RSG

Jacaranda FM

Lesedi FM

94.7 Highveld Stereo

East Coast Radio

SU-LSM 6-10


• Approximately 100 AMPS® variables selected on logical grounds

• Analysed multi-dimensionally by applying:

• principle component analysis• stepwise regression analysis

LSM® Input Variables

1. Fridge/Freezer

2. No Water or Electricity

3. Polisher/Vacuum Cleaner

4. Non-Supermarket Shopper

5. No Car in HH

6. TV Set

7. Microwave Oven

8. Rural dweller

9. Hi-fi/Music Centre

10.No Domestic

Worker

11. Washing Machine

12.Sewing Machine

13.Metropolitan

Dweller

1993 SAARF LSM® Variables

• Non-Household Supermarket Shopper became Household Supermarket Shopper

• No Water or Electricity was dropped• The following variables were added:

• Non-Supermarket Shopper (Personal)• Flush Toilet• Hot Running Water• No Financial Services Used (Personal)• No Insurance Policy (Personal)• No Credit Facility (Personal)• Hut Dweller • Home Telephone

1995 LSM®s

• Non-Supermarket Shopper (Personal) became Supermarket Shopper (Personal)

• No Credit Facility (Personal) became Credit/Credit Facility including Retail Card (Personal)

• The following variables were dropped:• Rural Dweller• Metropolitan Dweller• Household Supermarket Shopper• The following variables were added:• Built-in Kitchen Sink• Electric Stove/Hotplate• VCR• Sedan car

2000 LSM®s

New SAARF LSM®

• Several unforeseen difficulties, challenges and biases were experienced through the initial development phases of the LSM’s

Some of these are:

• Each time variables changed the LSM changed

• The personal variables introduced in 1995 created gender and age biases

• These personal variables also created difficulties with TAMS (entire household interviewed vs. AMPS individuals)

• LSM’s did not differentiate sufficiently at the top end (8 groups to 10)

Early LSM®s

• Of the 20 variables that formed the 2000 LSM®’s, only 15 were retained in the SU-LSM®’s

• All the personal variables that created biases were removed:• Supermarket Shopper• No Financial Services• No Insurance Policy• Credit Facility including Retail Card

• No car in household was also dropped as it was no longer a good differentiator

• 14 new variables were added

LSM® Variables

Old Variables Retained:1. Electric Stove/Hotplate2. Microwave Oven3. Flush Toilet4. No Domestic Worker5. VCR6. Vacuum Cleaner/Floor Polisher7. Traditional Hut8. 1/more Sedan Car9. Washing Machine10. TV Set11. Home Telephone12. Hi-Fi/Music Centre13. Built-in Kitchen Sink14. Hot Running Water15. Fridge/Freezer

New Variables:1. Deep Freezer2. Water in Home/On Plot3. MNET/DStv Subscription4. Dishwasher5. Electricity6. Sewing Machine7. Gauteng8. Western Cape9. No Cellphone in Household10. PC in Home11. Tumble Dryer12. Less than two Radio Set in

Household13. Non-Urban outside GP/WC14. Home Security Service

LSM® Variables (2001)

• As these new improved LSMs are now universally applicable to all respondents and to all current and future SAARF surveys they were renamed the SAARF Universal LSM (SU-LSM®)

PLEASE NOTE:• If you need to trend further back than 2001 you

need to use the 1993 LSM®’s

Naming The New SAARF LSM®

• Can be updated and remain trendable

• The proven stability of the measure will thus be complemented with a sensitivity to the changing landscape

Benefits of New SAARF Universal LSM®

Variables Dropped (4)• Traditional Hut• Electricity• Gauteng• Western Cape

New Variables (4)• House/cluster House, Town House• Metropolitan Dweller• DVD Player• One Cell Phone in Household

LSM® Update 2004

Variables Dropped (3)• Sewing machine• No cell phone in household• 1 cell phone in household

New Variables (3)• Home theatre system• 2 cell phones in household• 3+ cell phones in household

SAARF LSM® Extension:• LSM 7-10 have been split to show high and low

groups for finer segmentation

SAARF LSM® Update 2008A

LSM® Extensions

• A number of requests have recently been made for an extension of the LSM® groups

• To provide greater discrimination, and a finer identification of target markets at the top end

• In response to this, SAARF commissioned some exploratory work

• The results were encouraging and a decision was taken to provide an additional option on AMPS 2008A so that users are now able to access from LSM® 7 Low-High up to LSM® 10 Low-High

Why LSM® Extensions?

• The higher LSM®s were divided into two approximately equal sub-sections based on their principal component scores

What did we actually do?

LSM 7

LSM 8

LSM 9

LSM 10

LSM 6

LSM 5

LSM 4

LSM 3

LSM 2

LSM 1

LowLow

LowLow

LowLow

LowLow

HighHigh

HighHigh

HighHigh

HighHigh

• The LSM Extensions now enables marketers to segment more finely at the upper end of the LSM® scale

• SAARF has named the new LSM® subgroups LSM® 7 Low-High up to LSM® 10 Low-High, to avoid confusion

• Thus, LSM® data is still trendable with previous years• Those products that target the mass market or the lower to middle

LSM®s will not necessarily use the LSM® 7 – 10 sub-groups as it may not provide them with any additional insight into their market

• Care needs to be taken that stakeholders are talking about the same thing as some people are using LSM 7 Low and High etc. and some are talking about 14 LSM® groups. – For example, when talking about LSM® 8, is the person referring

to LSM® 7 High or the original LSM® 8?

LSM® Extensions ≠ 14 LSMs

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Total 1 2 3 4 5 6 7 8 9 10

Total SABC 1 Total SABC 2 Total SABC 3 Total e.tv Total DStv

LSM® & TV Viewing Yesterday


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Total 1 2 3 4 5 6 7L 7H 8L 8H 9L 9H 10L 10H

Total SABC 1 Total SABC 2 Total SABC 3 Total e.tv Total DStv


LSM® & TV Viewing Yesterday

Current SAARF LSM® Variables

How to calculate LSM®

• Determine the variables with which the respondent complies• Sum the weights for the 29 variables for each respondent• Add a constant -0.442690• Allocate the respondent to an LSM® as follows:

Penetration Ave HH Income2007B 2008A 2009A 2007B 2008A 2009A

SU-LSM 1 4.1 3.4 3.5 R 1,028.15 R 1,080.45 1269

SU-LSM 2 9.8 8.7 7.3 R 1,275.25 R 1,401.29 1475

SU-LSM 3 10.8 9.4 7.8 R 1,638.06 R 1,794.81 2267

SU-LSM 4 13.8 14.6 14.2 R 2,140.55 R 2,535.68 2424

SU-LSM 5 14.5 15.5 15.2 R 2,952.07 R 3,122.33 3462

SU-LSM 6 17.3 17.9 19.5 R 5,096.28 R 5,386.00 5755

SU-LSM 7 9.3 9.4 10.2 R 8,320.26 R 8,667.33 9638

SU-LSM 8 6.7 6.9 7.6 R 11,227.27 R 12,336.69 13002

SU-LSM 9 7.6 8.1 8.5 R 14,740.73 R 16,296.05 17648

SU-LSM 10 6.1 6.1 6.3 R 20,902.03 R 23,053.57 15179

SAARF LSM® Groups

Significant increase on 2008A

Significant decrease on 2008A

Population Respondents % PopSU-LSM 1 1,092,000 149 3.5

SU-LSM 2 2,314,000 370 7.3

SU-LSM 3 2,466,000 500 7.8

SU-LSM 4 4,476,000 1368 14.2

SU-LSM 5 4,782,000 2335 15.2

SU-LSM 6 6,140,000 4507 19.5

SU-LSM 7L 1,628,000 1559 5.2

SU-LSM 7H 1,586,000 1558 5

SU-LSM 8L 1,243,000 1358 3.9SU-LSM 8H 1,143,000 1264 3.6

SU-LSM 9L 1,337,000 1582 4.2SU-LSM 9H 1,330,000 1671 4.2

SU-LSM 10L 1,016,000 1368 3.2

SU-LSM 10H 969,000 1372 3.1

Number of Adults in LSM®


Mpumalanga

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Northern Cape

North West

Western Cape

Limpopo

31 to 60 %

% of Province that is Rural

More than 60 %

11 to 30 %up to 10 %

LSM® By Province

Lsm 1- 4Lsm 5Lsm 6Lsm 7Lsm 8Lsm 9Lsm 10


PLEASE NOTE:

The descriptions of the 10 SU-LSM® groups in some of the following slides show those descriptors that are above national average for each SU-LSM® group.

So for example, African Language Stations are above national average for LSM® 1-6. This however, does not mean that LSM® 7-10 do not listen to ALS.

57.5 57.8

71.6

81.679.4 78.8

62.9

41.739.0

31.0

24.5 26.1

15.0

7.5 6.3

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Total 1 2 3 4 5 6 7L 7H 8L 8H 9L 9H 10L 10HPast 7 Days

ALS by LSM®


LSM 1 (3.5%) DEMOGRAPHICSFemale50+Some Primary Level AchievedRuralTraditional Hut

R1 269 ave hh income per month

MEDIARadio a major channel of media communication - Commercial radio; mainly African Language Services (ALS)- Umhlobo Wenene FM, Ukhozi FM, Community RadioGENERALMinimal access to servicesMinimal ownership of durables, except radio setsActivities: minimal participation in activities, mostly cooking for pleasure and gardening

LSM 2 (7.3%) DEMOGRAPHICSFemale16 – 24, 50+Some High SchoolRuralTraditional Hut


MEDIARadio: Commercial, mainly ALS-Ukhozi FM, Umhlobo Wenene FM, Community Radio

GENERALWater on plotMinimal ownership of durables,except radio sets and stovesActivities: minimal participation in activities

Summary Of New LSM® Groups (AMPS® 2009A)

LSM 3 (7.8%) DEMOGRAPHICSMale16 – 24, 35-49Up to some high RuralHouse/Cluster House/Town HouseR2 267 ave hh income per month

MEDIARadio: commercial mainly ALS stations, Ukhozi FM, Umhlobo Wenene FM TV: SABC 1Outdoor

GENERALElectricity, water on plotMinimal ownership of durables, except radio sets and stovesActivities – look for pleasure, watch videos/DVDs, knitting

LSM 4 (14.2%)DEMOGRAPHICSFemale16 - 34Schooling up to some highRuralR2 424 ave hh income per month

MEDIARadio: commercial, Limpopo Combo, Umhlobo Wenene FM, Thobela FM-mainly ALSTV: SABC 1,2, ETVOutdoor

GENERALElectricity, water on plot, flush toiletTV sets, hi-fi/radio set, electric hotplates, fridgeActivities – read a newspaper with local news that’s for sale in town, cook for pleasure, watch videos/DVDs, attend church/synagogue



LSM 5 (15.5%)DEMOGRAPHICSMale16-34Up to MatricRural

R3 122ave hh income per month

MEDIARadio: commercial mainly ALS stations, Metro fm TV: SABC 1,2,3, e.tvDaily/Weekly Newspapers, MagazinesOutdoor

GENERALElectricity, water, flush toiletTV sets, hi-fi/radio set, stove, fridgeActivities: read a newspaper with local news that’s for sale in town, cook for pleasure, watch videos/DVDs, read a free newspaper delivered to home, read books, buy lottery tickets

LSM 6 (19.5%)DEMOGRAPHICSFemale25-49Matric and higherUrban


MEDIAWide range of commercial & community radioTV: SABC 1,2,3, e.tvDaily/Weekly Newspapers, MagazinesCinema & Outdoor

GENERALElectricity, hot running water, flush toilet Ownership of a number of durables plus cell phoneParticipated in a number of activities



LSM 7 LOW (5.2%)DEMOGRAPHICSMale16- 24 , 35-49, 50+Matric and higherUrbanR 9242 ave hh income per month

MEDIAWide range of commercial & community radioTV: SABC 1,2,3, e.tv, M-NetDaily/Weekly Newspapers, MagazinesAccessed internet 4 weeksCinema & Outdoor

GENERALFull access to servicesIncreased ownership of durables plus motor vehicleParticipation in all activities

LSM 7 HIGH (5%)DEMOGRAPHICSMale35-49Matric and higherUrbanR10 044 ave hh income per month

MEDIAWide range of commercial & community radioTV: SABC 1,2,3, e.tv, M-Net & DStvDaily/Weekly Newspapers, MagazinesAccessed internet 4 weeksCinema & Outdoor

GENERALFull access to servicesIncreased ownership of durables plus motor vehicleParticipation in all activities



LSM 8 HIGH (3.4%) DEMOGRAPHICSMale35+Matric and higher, Urban


MEDIAWide range of commercial & community radioTV: SABC 1,2,3, e.tv, M-Net, DStvDaily/Weekly Newspapers, MagazinesAccessed internet 4 weeksCinema & Outdoor

GENERALFull access to servicesFull ownership of durables, incl. DVD, PC and satellite dishIncreased participation in activities



LSM 8 LOW (3.5%) DEMOGRAPHICSMale35+Matric and higher, Urban


MEDIAWide range of commercial & community radioTV: SABC 1,2,3, e.tv, M-Net, DStvDaily/Weekly Newspapers, MagazinesAccessed internet 4 weeksCinema & Outdoor

GENERALFull access to servicesFull ownership of durables, incl. DVD, PC and satellite dishIncreased participation in activities

LSM 9 LOW (4.2%) DEMOGRAPHICSMale35+Matric and higher, UrbanR15 853 ave hh income per month

MEDIAWide range of commercial & community radioTV: SABC 2,3, e.tv, M-Net, DStvDaily/Weekly Newspapers, MagazinesAccessed internet 4 weeksCinema & Outdoor

GENERALFull access to servicesFull ownership of durables,Incl. PC, DVD and satellite dishIncreased participation in activities, excluding stokvel meetings



LSM 9 HIGH (4.2%) DEMOGRAPHICSMale35+Matric and higher, UrbanR19 453 ave hh income per month


GENERALFull access to servicesFull ownership of durables,Incl. PC, DVD and satellite dishIncreased participation in activities, excluding stokvel meetings

LSM 10 HIGH (3.1%) DEMOGRAPHICSMale35+ Matric and higher, UrbanR28 467 ave hh income per month


GENERALFull access to servicesFull ownership of durables,Incl. PC, DVD and satellite dishIncreased participation inactivities, excluding stokvelmeetings



LSM 10 LOW (3.2%) DEMOGRAPHICSMale35+ Matric and higher, UrbanR22 043 ave hh income per month


GENERALFull access to servicesFull ownership of durables,Incl. PC, DVD and satellite dishIncreased participation inactivities, excluding stokvelmeetings

• Remember that there are many other powerful differentiators in AMPS that could be used in conjunction with the LSM®s, e.g. Lifestages, Education, Mothers with children, Household purchaser, Large item purchaser, Occupation, Gender, Language, Family size and Age

• NB! Do not over segment

Conclusion

SAARF® Lifestyles2009A Update

How were the SAARF Lifestyles determined?

• They are based on the attendance at and participation in 24 sports as well as the frequency of engaging in over 60 other activities

• Correlation and Factor Analysis were used

1. Cell Addicts (10.7%)

2. Sports (3.8%)

3. Good Living (10.9%)

4. Gamers (13.8%)

5. Outdoor (5.2%)

6. Studious (9.2%)

7. Traditionals (11.7%)

8. Homebodies (8.6%)

9. Bars & Betters (9.3%)

10.Showgoers (4.5%)

11.Gardeners (9.9%)

SAARF® Lifestyle Groups


LSM® 1-5 Lifestyles1. Sports (4.1%)2. Cell Addicts (12.3%)3. Studious (9.8%)4. Good Living (13.8%)5. Gamers (15.5%)6. Homebodies (13.9%)7. Gardeners

(Traditionals) (16.4%)8. Showgoers (4.9%) 9. Outdoor (7.6%)

LSM® 6-10 Lifestyles1. Sports (4.4%)2. Cell Addicts (12%)3. Studious (10.8%)4. Good Living (10.2%)5. Gamers (8.9%)6. Homebodies (9.8%)7. Gardeners (9.3%)8. Showgoers (4.4)9. Outdoor (7.2%)10.Traditionals (11.3%)11. Body Conscious (8.9%)

SAARF® Lifestyle Groups x LSM®


High correlation & factor scores for the following cell phone activities:•Take photos•Download/listen to music•Take video recordings•Download ringtone/logo•Send an MMS•Browse WAP or Web•Use instant messaging/chat services•Send SMS•Play games•Send/receive email•Enter competitions/make donations•Send a “Please call me”

Cell Addicts

High correlation & factor scores for the following activities:• Hockey• Adventure sports• Horse riding• Water sports• Martial arts• Hunting/shooting• Boxing/wrestling• Golf• Gymnastics• Cycling• Fishing

• Cricket• Athletics• Volleyball• Tennis• Rugby• Jogging/running• Walking/hiking• Aerobics• Basketball/netball• Dancing

Sports

High correlation & factor scores for the following activities:•Read a newspaper with local news that’s for sale in town•Read a free newspaper delivered to home/collected from shop/taxi rank•Eaten in a restaurant/steakhouse•Watch videos/DVDs•Shop for pleasure•Read books (excluding textbooks)•Cook for pleasure•Have a braai•Buy food from a fast food outlet•Visit a hair salon•Have/attend dinner parties at home/friends•Attend religious gathering

Good Living

High correlation & factor scores for the following activities:•Play computer/playstation games•Buy CDs•Play games via the internet•Use computer at work•Buy video/computer games•Buy DVDs•Use computer at home•Hire a video tape/DVD for home viewing•Personally ordered take away food•Go on a drive for pleasure•Play board games•Buy toys/other games

Gamers

High correlation & factor scores for the following activities:

• Caravanning• Visit a game reserve• Have a picnic• Camping• Attend a book club• Go on diet• Try to loose some weight buy

slimming

Outdoor

High correlation & factor scores for the following activities:•Attend lectures/studying part-time•Visit a library•Use newspaper educational sections•Soccer•Do cross-words/puzzles•Participate in card games•Participated in other exercise (not gym)

Studious

High correlation & factor scores for the following activities:•Attend a funeral•Attend traditional gatherings•Attend weddings•Attend burial society meeting•Attend stockvel/syndicate/society•Go to the doctor/dentist/clinic•Home decorating

Traditionals

High correlation & factor scores for the following activities:•Sewing/dressmaking•Needlework/tapestry•Knitting/crochet•Bake for pleasure•Have beauty treatments•Singing•Sunbathing

Homebodies

High correlation & factor scores for the following activities:•Bought lottery tickets•Bought scratch cards•Placed a bet on horse racing •Visit pubs/bars/shabeens/taverns•Gamble at a casino•Go to nightclubs/discos/raves•Billiards/Pool/Snooker

Bars & Betters

High correlation & factor scores for the following activities:•Opera•Pop/rock concerts•Other live concerts•Theatre•Classical music performances•Ballet•Other dance performances

Showgoers

High correlation & factor scores for the following activities:•Gardening – flowers/plants•Gardening – vegetables/crops•DIY activities

Gardeners

Bars & Better vs. Homebodies

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Bars & Betters - Lifestyle Total Groups Homebodies - Lifestyle Total Groups

Any Beer P7D


SAARF® Lifestages(2009A)

SAARF® Lifestages(2009A)

AnalysisAnalysis

All AMPS adults are placed into Lifestages based on:

– Age– Living with parents– Married/living together with a significant other– Dependent children in the household (own or

other children responsible for)

Based on the individual’s current situation

At-Home Singles (23%)At-Home Singles (23%)

• Up to 34, mostly 16-24 (75.3%)

• Live with parents

• Not married or living together

• No dependent children in the household

• More male (63.4%) than female (36.6%)

Young Independent Singles (10%)

Young Independent Singles (10%)

• Up to 34, mostly 25-34 (54.2%)

• Not living with parents


• No dependent children in household

• More male (69.7%) than female (30.3%)

Mature Singles (13.6%)Mature Singles (13.6%)

• 35+



• More female (51.2%) than male (48.8%)

Young Couples (5.8%)Young Couples (5.8%)

• Up to 49, mainly 35-49 (65.9%)

• Married or living together


Mature Couples (8%)Mature Couples (8%)

• 50+



Young Family (18%)Young Family (18%)


• At least 1 dependent child under 13 years in household

Single Parent Family (17.1%)Single Parent Family (17.1%)


• Dependent child(ren) in the household

• Predominantly female (87.1%)

Mature Family (4.4%)Mature Family (4.4%)


• No dependent children under 13 years in household

• At least 1 dependent child over 13 in household

Baby Food by Lifestage

05

10152025303540

At-home singles

Yng Ind singles

Mature single

Young Couples

Mature Couples

Young Family

Single parent family

Mature family

Baby Food P4W

Purchased for Household (HH Filter)SOURCE: SAARF AMPS 2009A

SAARFSAARF®® Attitudes Attitudes (2009A)(2009A)

SAARFSAARF®® Attitudes Attitudes (2009A)(2009A)

• They are based on 100+ attitudinal questions• Factor Analysis was used resulting in 5 attitude

groups• Each group is made up of several topics • Each topic is made up of several statements

Analysis

SAARF® attitudinal data is available in three formats :

– Individual Statements– High and Low Topic Groups– Attitude Groups

How can SAARF® Attitudes be used?

• “Advertising tells you about the benefits of products and services” – Strongly Disagree Strongly Agree

• “Being part of a community is important to me” – Not at all applicable Very applicable

• “People who believe that crime is having a negative effect on how people see SA” – Not at all similar Very similar

• “Both men and women have to go out to work to provide for their families” – Very Untrue Very True

Examples of Individual Statements

• Advertising• Branding• Community• Crime• Culture• Education• Emancipation / Women’s Issues• Employment• Entertainment• Environment• Family• Financial Indiscretion• Health Care• Information Interest

Attitudinal Topics

• Innovation Endorsement• Language• Loneliness• Materialism• Patriotism• Poverty Concern• Relationships• Religion• Shopping• Status & Fashion• Technology Endorsement• Tradition• Ubuntu

• “I am more likely to buy brands that seen or heard advertised” - Ap

• “Advertising is a useful source of information about where products can be bought” - Tr

• Advertising tells you about the benefits of products and services” - Ag

• People who try new brands they see or hear advertised” - Si

Advertising

Banks: Top 5 Attitude Topics

ABSA FNB Nedbank Std Bank

1. Religion (51.2%) 1. Technology (54.3%) 1. Crime (55.3%) 1. Technology (53.9%)

2. Environment (50.7%)

2. Information-Interest (51.7%)

2. Technology (53.7%) 2. Relationships (52.6%)

3. Technology(50.5%) 3.Environment (51.3%)

3. Environment (52.9%)

3. Health (52.3%)

4. Crime (50.2%) 4. Education (50.2%) 4. Health(52.4%) 4. Environment (51.4%)

5. Relationships (49.6%)

5. Family (50.2%) 5. Family (49.5%) 5. Crime (51.2%)


Attitude Groups

• The Now Generation are interested in owning overt symbols of material success.

• Status and fashion are of great interest to them and they see brands as means to reinforce their self-image.

• They enjoy shopping and advertising plays a major role in their decision-making.

• They are worried about having sufficient income for their material needs.

See CD for detailed explanations

Now Generation

• For them job security is more important than job satisfaction.

• Predominantly young, single and black, although there is a good representation of coloureds.

• More likely to be in lower LSMs, rural areas and mostly females.

• Home languages are Zulu, Xhosa, North Sotho and South Sotho.


Now Generation

• Nation Builders are essentially collectivists.

• They have positive attitudes to group structures and the values to be found in community, church and family.

• They are optimistic about South Africa and subscribe to the Ubuntu philosophy.

• They like to know what is happening in their country and other African countries.

• They are slightly more likely to be female than male and mostly aged 50 and over. Home Languages spoken are Zulu, Xhosa and Tswana.


Nation Builders

• Like the Now Generation, they are more likely to be in the lower LSMs

• Distants are marginalised and out of the mainstream of society.• They hold old fashioned attitudes concerning the roles of men and

women.• Religion and the Ubuntu philosophy are very important to them.• For them, the past held more promise than the future.• They are lonely and this can lead to a need for entertainment.


Distants

• Despite their concerns about employment and poverty, they are materialistic being both brand as well as status conscious.

• Advertsing has relevance to them and they enjoy shopping, which can be combined with financial indiscretion.

• They are more likely to be male than female and are predominantly black.

• They straddle all age groups and are in slightly higher LSMs than the Now Generation and Nation Builders.

• Home languages are Zulu and South Sotho.


Distants

• The rooted are concerned about social issues, such as poverty, crime, education, employment and gender roles.

• They are worried about their personal safety and take a harsh view of criminal activity.

• They are extremely cautious about spending money.• Like the Nation Builders, they are group oriented, rather than being

individualistic.• Language, family, relationships and patriotism are all of significance.


Rooted

• They care about their health and are concerned about the deterioration of the environment.

• The rooted have the highest number of older people. There is a mix of population groups but with under-reperesentation of blacks and more whites, coloureds and indians than the norm.

• Main home langaues are afrikaans, English, Xhosa and Zulu.• They are mainly in the higher LSMs, which is a reflection of the

large proportion who is working full-time.


Rooted

• Global Citizens are the forefront of change. They embrace technology and innovation. They are relaxed about using electronic equipment and they like to try new things.

• They take note of advertising and like to be well-informed and to know what is happening internationally.

• Having family life and the respect of friends are also important.

• Most are in the fortunate position of where their work is of interest and not just a way to earn money.


Global Citizens

• Global Citizens enjoy shopping, are status conscious and keen on entertainment.

• They are also the most optimistic about the future.

• Global Citizens are the youngest group with two in every three being single.

• Home languages are English, Zulu, and North Sotho.

• They are mainly in the upper LSMs.


Global Citizens

Banks: Attitude Groups


0

5

10

15

20

25

30

Now Generation

Nation Builders

Distants Rooted Global Citizens

Total

ABSA

FNB

Nedbank

Std Bank

Thank You!

Business

Lsm february 2010