What is StreetWise?

2. What is StreetWise? It is a unique research product that aims toidentify, understand, analyse and segment theyouth market (14-24 years of age) in order to giveour clients on-the-pulse insights that will inform marketing and communication strategies for branddevelopment.

3. StreetWise is brought to you byImpact-in-Perspective Impact-in-Perspective offers clients products whichare innovative (Observision; Commap; Adtrack; CAGI) Multi-disciplined expertise (Team of researchers with a wealthof experience and mutual focus on innovation)

4. Impact-in-Perspective The Team Erik du Plessis Jacqui Williamson Christine Malone Hendrik van Vuuren Alana Muir Bondo Ntuli

5. Why do we need StreetWise? Social interaction is changing. Marketing to the youth hasbecome a real challenge. Eroded family life, technologicaladvantage and global citizenship has changed the face of theStreetWise youth. The American Dream, Apple Pie andtraditional values go nowhere towards explaining the drivingforces of our current youth market.

6. Why do we need StreetWise? • Globally • Higher stress levels and time constraints.Increase in use of technology; computer ownership, Internetusage and cell phone ownership to name a few haveincreasedconnectivity between the youth and their world.Indications are that with the increasing use oftechnology we will see a move towards more anti-social behaviour. • In many instances they are being taught to be"conveniencejunkies" because of their parents/environment and traditionalfamily values are being eroded. • Reversal of roles (Internet and software are being led byyouth, while adults are still battling to grasp the basics andthis is likely to have far more influence on determining theway things are done). • The youth also have more money.

7. Why do we need StreetWise? • South Africa specifically • Rate of change is much greater than it was 5 years ago.(This is especially true in the case in South Africa - the number of dynamics affecting exposure to the rest of theworld has and will continue to impact on the youth and their values).Affirmative action and multiracial society which is trying tocorrect the wrongs of the past.Relaxation of legal restrictions on society has led to theinflux of drugs, pornography and a resistance to lawfulness. Exposure to Internet has opened up the Global communityto South African youth, with as yet unmeasured impact onsocial structures.

8. Why Do We Need StreetWise? This has resulted in added pressure on individuals, especiallyyouth. Now more than at any other time, the youth are shaping thefuture. What effect does this have on the youth; and to what extentdoes it impact on how one communicates to them and howweposition brands?

9. Why Do We Need To Understand ThisMarket? • We need to deepen our understanding of how the youth think and whatis important to them in order to: • Enhance the relevance and effectiveness of marketingcommunication • Identify marketing opportunities in the form of unmet needs

10. Why Do We Need To Understand ThisMarket? Strategic marketing and branding demands insights into: Values/attitudes/psychographics (set the tone forcommunication) Hobbies and interests (make it relevant so they become involved) Media exposure (how to reach them) Advertising evaluation (what kind of adverts appealandwhy, and which set the trends) Power of brands (what are the drivers behind specific brands and why do they work) Purchase power (what is your share of wallet) Product usage (category spec.) Role of trends/trend setting (helps your brand keep pacein a rapidly changing market)

11. Why Do We Need To Understand ThisMarket? • “This market is continually evolving and requires ongoing monitoring.”

12. The Youth • Some examples of the diversity of the youth market are depicted below. • Generation X • - some extracts from Ken Baugh on the varioussub-cultures of Generation X. • “The Scene” • - a photo gallery which portrays a range of    different interests and activities of some of the youth. • “The Logs” • -illustrate the internet culture andlanguage used. More specifically it highlights the "openness" that this vehicleallows.

13. Generation X:The sub-cultures • Not all X'ers are alike, and within the generation, there is extremediversity. • Understanding Generations X sub-cultures is important tothose who wish to understand this group. • Extreme X'ersUnderground X'ers Digital X'ersSlacker X'ersSuper X'ersUrban X'ers • Source: A guide to understanding Generation X subcultures, by Ken Baugh.

14. "The Scene" Teens having fun

15.   <Zero-Phobia> im too sexy for my shirt....thats y i dont wear one ;p~~~~~~~~~~~~~` ;p~ = Pulling tounge. The greater the length of tongue, the cheekier. IRC Logs   <FlaVour> OMG how cute is Candy_girl? *drooool*<FlaVour> and she has a nice set of .... teeth too * = Any words between stars indicates an action.   <cyberphreak> Serenity, hey, while you're at your dictionary, look up the spelling for the word "miss-soj-a-nistic" The speed of getting your response out is more important than spelling. If the word is spelt phonetically then mispellings are not corrected.   <Serenity> kewl beans Many phrases such as "kewl (cool) beans" and lat3r (later) originated on IRC.   <Crayola> what do u think of a farm superhero theme for a dress up ball? IRC is used as a sounding board for ideas.   <Angua> CyberWolf :))))))))))))))))))))))))))))))))))))))))))))))) :) = Smiling / Happy. The more ))) the happier.   <CGVega> the devil is female right? I mean, where else would seduction come from?!   <U_topi_A> im so stoned.....there seems to be like ....300 buttons on this keybord....aaargg!!! IRC is a mix of people. For an idea about this mix, see the porfolios section.   <sunset_angell> Dolby: bung some gum into the hole and go to a dentist on monday All kinds of advice, from love and romance to medical and dental is dispensed by IRC'ers.   Topic of channel regarding a regular who passed away: Memorial website for MorbidAngel --> www.icon.co.za/~eyal We love you Jen , Jen may the angels carry u away into Gods hands - Jen you will always have that place in our hearts -- Luv ya Jen ():) IRC is used a a communication medium, where friendships are formed. This friendship is tested at times of difficulty, such as death.

16. What is the purpose of this Study? OUR OBJECTIVE IS TO BRING THE YOUTH TO THE BOARDROOM We need to understand the youth market and what makes themtick.

17. What is the purpose of this Study? More specifically, the study is designed to provide a broad overview of the youth market and answers to frequently asked questions by marketers andcommunicating strategists, such as:-  • What is the profile of this market? • Which brands do they use? • What is the demographic andpsychographic profile ofthis market? • What is their buying logic and the effect on share of walletacross the various categories? • What are their needs? • What are the value systems in this market and how do theyimpact on attitudes and behaviour? • Who sets the trends? • What’ s in and what’s not? • What drives these consumers? • How can they be reached?

18. What is StreetWise? StreetWise is a process which utilisesintegrated resources. It is segmentation based. It is syndicated.

19. Process Flow Chart

20. Focus Groups & In-depth Interviews Qualitative - exploratory, explores dynamics, uncovers the underlying drivers of attitudes and behaviour. Consideration has been given to sample criteria- gender role defence and impression management. Semi-urban areas (albeit limited) Population groups that are different enoughfrom one another to allow for widest possible range of responses e.g.: -Private schools, Northern suburbs, Farmingcommunities, Arcaders, Afrikaans etc.

21. Focus Groups & In-depth Interviews • - CAGI • - Information Gatherers • - Internet Chatrooms • - Techniques used will include: • Disposable camera • Bring-along-a-thing • Collage • Shopping bag • Role playing • Observision • Coffee shop groups

22. Youth Network Focus Groups & In-depth Interviews A youth panel to be recruited who are early adopters and trend setters. This vehicle will be used to develop products/ideas.

23. Youth Network Focus Groups & In-depth Interviews Adtack Adtrack Adtrack will be used to identify communication which is both liked/disliked by the youth. Further research will be conducted (qualitative in nature) to understand the dynamics driving responses to communication.

24. Youth Network Focus Groups & In-depth Interviews Adtrack • Data Collection Tool • - Brand aesthetics • - Fashion forecasts Impact Theatre Impact Theatre

25. Youth Network Focus Groups & In-depth Interviews Internet Research - Online discussion groups - Unstructured chatroom observation - Moderated emails to explore questions raised in discussion groups - Easily reconvened groups - Quantitative research/tracking tool - Exposure to the global market, no frontiers Adtrack Impact Theatre

26. Focus Groups & In-depth Interviews Youth Network Internet Research Adtrack Adtrack Teen/Adult Amps Impact Theatre Impact Theatre

27. Focus Groups & In-depth Interviews Youth Network Quantitative Study Internet Research Adtrack Adtrack See next slide Teen/Adult Amps Impact Theatre Impact Theatre

28. This will be used to evaluate the extent to which attitudes and behavioural types are common to different age groups. • In other words, this study will tell us:- • How market is divided up • How large each of these segments are • What motivates this market and how theycan effectively be reached.

29. Focus Groups & In-depth Interviews Youth Network Quantitative Study Internet Research Adtrack Adtrack Teen/Adult Amps Impact Theatre Ongoing Tracking Impact Theatre Qualitative and Quantitative research Specific parameters to be defined: benchmark and dipstick

30. Focus Groups & In-depth Interviews Youth Network Internet Research Adtrack Quantitative Study Adtrack Teen/Adult Amps Impact Theatre Impact Theatre Ongoing Tracking

31. The Research is Going To: Understand Measure Monitor / Track Predict

32. Sample Size and Structure Sample Structure 14 - 24 years of age LSM 6, 7 & 8 (irrespective of race) National

33. Groups Total 32 40 First Quarter 20 25 Second Quarter 4 5 Third Quarter 4 5 Fourth Quarter 4 5 Sample Size and Structure Qualitative There are a number of dynamics that we need toconsider in ensuring a representative sample. Forthis reason we have included a significant number ofgroup discussions and a large number of in-depths inour sample structure. Taking all the dynamics into account a total of 32group discussions and +-40 in-depth interviews willbe conducted in the major metropolitan andsurrounding areas during the course of the year,structured as follows: Indepths

34. Sample Size and Structure The youth network / Information gatherers: Theserepresentatives will be used to collect data fromwithin their peer group in order to help us 'seethings‘ through the eyes of their generation. It is envisaged that 20 candidates beselected (5 per age category). These candidates willbe rotated throughout the year in order to protectagainst factors such as fatigue, attrition andfamiliarisation. The qualitative research will be used as a vehicle forgenerating inputs for the quantitative research.

35. Sample Size and Structure • Internet Research • Chatrooms; group discussions; and quantitative   adhoc studies. The following is a broad outline of the    proposed structure • 10 hours of chatroom observation permonth. 4 internet groups at the outset, followed by an additional 4  during the year.Questionnaires: one per quarter at asample size of 100 each.

36. Sample Size and Structure • Quantitative: Sample size and structure • Size 2400 • Category specific information will be collected on asample of 1200 respondents • Face-to-face interviews allowing for 4 age groups(600 per cell) • - 14/15 years- 16/17 years- 18/20 years- 21/24 years • The sample structure of the main quantitative studywill be based on the combined information obtainedfrom AMPS and Teen AMPS. Quota sampling procedure will be used.Nationally representative of LSM 6-8, across allraces.Quotas would be imposed on age and race in orderto ensure large enough sample bases for analysis.Data will then be post-weighted to restore correctpopulation proportions.Sample selection using a standard random walkmethod.

37. Outputs • The study is not just about information - information is only powerful when it can be turned into a strategic advantage to capture the market. The information must be actionable and should have a strong strategic focus. • Specific outputs include: • Quarterly reports • Access to security controlled website – updatedregularly • Multimedia presentation annually • Clip-on segmentation tool • Workshops • Strategic analysis (optional)

38. Outputs StreetWise is syndicated and is available in 3 modules: Module 1 Core report. Module 2 Module 1 and is category specific. (Putting your brand on the map). Module 3 Modules 1 and 2 and includes a strategic analysisspecific to your category.

39. Analysis • Quantitative: Market classification / segmentation • We prefer not to prescribe a black box methodology upfrontbut rather to determine the best approach on closerexamination of the data, once the key drivers in this markethave been identified. Our approach may include: • Cluster analysis to identify specificsegments in the youth marketing based oncommon needs, attitudes, buying logic,psychographics, preferences etc. • Factor analysis to determine the extent towhich similarities and/or differences existwithin this market by examining thecontinuums that exist within the youthmarket. • For example the continuum ofBrand Consciousness ranges from notaware of brands/labels to very aware ofbrands / labels • The strength on whichindividuals load ontothese differentunderlying continuumsare then used to grouprespondents withsimilar needs together. • Groups of respondentswith similar needs arethen further analysedto determinedifferences inbehaviour, allowingus to streamline ourmarketing andcommunication efforts.

40. Analysis • The software that will be used for data analysis is SPSS. In addition to the above, data analysis techniques may include:- • Perceptual Mapping techniques, including Correspondenceanalysis Chi-Square significance testingMultiple regressionCHAID Discriminant AnalysisAny additional technique should they be required. (Neuralnetworking - predictive/forecast) • The output of this analysis will be interpreted in light of the findings of the qualitative research.

41. How can this study benefit Your Company? Optimising the positioning of brands for/in theyouthmarket Providing a framework for relevant andmeaningfulcommunication Providing insights for creative Highlighting opportunities How to realise the opportunities (how to reach theyouth and communicate to them)

42. .6 .4 .2 -.0 -.2 WIZ KIDS -.4 -.6 1 3 5 7 9 11 13 15 17 19 21 23 2 4 6 8 10 12 14 16 18 20 22 Specific Behaviour Drivers WIZ KIDSRelative Size 31% Relative Value R7.2Mil Gender: Predominantly male, but not to exclusively Music: Air Supply, Depeche Mode, REM Media Consumption: PC Pro, PC Online, Online publications, .co.za Value / Attitudes: Non-conformist, Family Values discarded, Cynical, Socially Isolated prone to depression Preferred Books / Favourite Authors: Eddings, Tolkien, Stevenson, Pratchett Technology Social Isolation Hobbies / Interests: Money, Technology, Entrepreneurial, Chat rooms, Select Clubs Education: Knowledgeable, Smart, but does not necessarily excel academically Formal education system does not address their needs Sport Performance Favourite Brands: Coke, Camel, Woolworths (Quality)

43. RAVERS STUDENTS DO “A” AND “E” AND THE REST OF THE ALPHABET EXPERIMENTAL ANDROGYNOUS DOOF-DOOF MUSIC OCCASION DRIVEN DRESS CODE PARTY ANIMALS

44. METALHEADS DRUG ABUSE HEAVY METAL MUSIC DEPRESSION IS FASHIONABLE ROLE PLAYING GAMES WEAR BLACK COLLECTIVE CONSCIOUS-NESS THERE IS NO GOD ANDROGYNOUS

45. JOCKS PRAGMATIC UNIMAGINATIVE PHYSICAL EGO DRIVEN SEXUALITY IS IMPORTANT CLEARLY DEFINED GENDER ROLES SPORT MACHO - DIE MANNE

46. GUYS AND DOLLS ENTITLED OPTIMISTIC BODY BEAUTIFUL MATERIALISTIC BRAND AWARE / CONSCIOUS TREND SETTERS / EARLY ADOPTERS

47. Quality Control Strict standard of fieldwork a laid down by SAMRA, RSSA andESOMAR. Impact-in-Perspective cognisant of the fact that multi-millionRand decisions are often made on the basis of research. Webelieve that quality fieldwork is essential as it is thefoundation of good research. We therefore follow strictstandards of fieldwork laid down by SAMRA (South AfricanMarket Research Association), RSSA (Research Suppliers ofSouth Africa) and ESOMAR (European Society for MarketResearch). The fieldwork will be conducted by Impact Information, whoabides by the SAMRA Code of Conduct, as well as by theadditional standards of the RSSA. Data quality will be ensured by the fieldwork supplier'sadherence to the  RSSA standards. Throughout the research the team of specialists involved willbe self-critical, scrutinise each other's work, challenge andfine-tune where necessary.

48. Finally ... • StreetWise is about: • Marketing to the youth • Bringing the youth to the boardroom • Understanding headspace in the youth • Positioning brands, tracking needs,creating markets • Fast paced delivery of marketingintelligence • Innovative, multifaceted ways ofresearching • StreetWise delves beyond the upper layerof thought…

49. Finally... The aim is to provide marketers with ongoinginsight into whothis market is and how they can be reached, thus assisting with thedevelopment of marketing andcommunication of brands.

50. Areyour brands