Project Pinch

8/7/2019 Project Pinch

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UnderstandingYoungSAConsumersintoday’s…



With the current economic situation looming large in everyone'sminds, Instant Grass has recently completed Project Pinch: adeep and wide-ranging investigation of how different tribes of

consumers are responding to the current financial circumstances

from a lifestyle and purchasing perspective.

More specifically, the presentation looks at what productcategories and brands consumers are sacrificing or trading down

on, what are they refusing to compromise on; what money-saving

tactics are they employing; has their media consumption changed;are they responding differently to advertising/promotional activity.

Most importantly, the presentation looks at the strategic and

tactical marketing opportunities for brands in this environment.

Project Pinch



The presentation format is designed as rich audio visual

workshop that includes 20 minutes of video interviews.

We'd like to share the full presentation with you and your team.

It lasts about an hour and a half - if you're interested, pleaselet us know a date and time in the near future that would suit

you.

Contact [email protected]: 0214257355

mailto:[email protected]





Methodology

How:24/7communicaonwithnaonalnetworkofgrasses.

Who:Students,professionals,youngmums,townshipyouth.Result:Observaon&Insightextraconfromgrassfeedback.



We briefed our Grass

Network and 3 things wecan take out of this



Observation

"The general consensus amongst mypeers is that we actually haven'treally felt it that hard just yet. We

see the news telling us that we arein for it, we see ads saying its timeto knuckle down, we get remindedevery 30 minutes that the US and

UK are panicking with the creditcrunch etc etc etc but to be honest- thanks to Trevor Manuel - we're

not in too much trouble. We mightbe preparing for a big blow, but it

hasnʼt quite hit us just yet.”

“WE HEAR MORE ABOUT THE RECESSION, THAN WE SEE”



Insight 1

Young South AfricanConsumers arenʼt feeling the

recession…

theyʼre preparing for

it



Observation valuetoconsumersisnotbasedonpricealone,itsoenbasedonstrengthofbrand

“There are some things I will notcompromise!!! One of my productsthat I WILL stick to, no matter howtight the money is, is 2 ply toilet

paper! 1 ply just isn't right. Anotheris coffee, I always buy Nescafe, I'm

not a fan of ricoffee or frisco.

Chutney is also a biggy. The bestbrand has to be Mrs Balls, noquestion. That would be an

important brand to buy no matterwhat…even in the biggest

In a recession…



Insight2

• Recessionornorecession…

• thereareproducts/servicesthat

youngconsumersrefuseto

downgradeon…



Observation The fear of recession is driving category exploration

“Instead of buying sunlight liquid (on awhim like I usually do) I started looking

for options. I checked out MX19dishwasher which could give me double

the quantity, but at the same price assunlight. I think my thinking was to

stretch the money as far as possible butstill buy the same quantity. Iʼm definitelybecoming less brand loyal in that Iʼm

investigating other options. Many of mybuddies who use to shop at PnP and

Woollies for example, were comparingprices at Shoprite over the festive



Insight 3

Young consumers were doing

more shopping and less buying.



In other words

Consumers are becoming more“street wise” in fear of recession.



We looked to see if this was relevant in the

most prominent areas of youth life:

1.Managingcash

2.Sociallife

4.Cellphoneuse

5.Groceries

7.Cosmecs

3.Clothing

6.Transport

8.Adversing



5 key insights running through eachcategory

The result

…along with examples of how each insight is manifesting

itself (examples given in workshop format only)



Insight 1

Short term benefits are in;long term commitment is out



Insight 2

Every purchasing decision isʻhigh

involvementʼ



Insight 3

Trust is with a few anchor brands,

accessorised by ʻmeʼ brands



Insight 4

Itʼs not about information, itʼs about

verification (the source)



Insight 5

Consumer influence is resting on the

power of word of mouth



Final thought

Young consumers arenʼt (necessarily)spending less, but they are changing how

and where they spend.



For a 2 hour workshop that details the

relevance of the recession within the

categories below

Please contact Brad [email protected]

1.Managingcash

2.Sociallife

4.Cellphoneuse

5.Groceries

7.Cosmecs

3.Clothing

6.Transport

8.Adversing







The Youth Collaboration &

Advocate MarketingAgency

For a full Project Pinch workshop

Contact [email protected]

tel: 0214257355



Documents

Project Pinch