1. Presentation to Magz By Alphabet Soup 27 September 2002

2. An overview of the Sandton and Randburg Areas which are closest to the Broadacres Store Some perspectives from ROOTS/ Caxton Research based on papers which go to those areas. A presentation prepared for the Sandton Chronicle and Randburg Sun Clients

3. In this presentation… Research methodology Research methodology  Who and How? Readership Readership  South African Media Scene.  Trend of Sandton Chronicle and Randburg Sun readership.  The Sandton Chronicle and Randburg Sun vs. competitors. Research Results Research Results  Who lives in these areas  Demographics, psychographics and activities.  Shopping  Shopping behaviour in various categories  Motoring and DIY.

4. ROOTS : who did it? Field work and data capture: Field work and data capture:  Contracted out to an independent research company called im!g. Sampling and weighting: Sampling and weighting:  Contracted out to the HSRC (Human Sciences Research Council). Data base: Data base:  Loaded on to computer driven analysis packages (Telmar and Espri).

5. ROOTS : How was it done? Sampling: Sampling:  Footprint map.  100 sampling points (random stratified probability sample).  3 households at each sampling point.  300 interviews per newspaper area. Fieldwork: Fieldwork:  Head of Household.  Actual address. Weighting: Weighting:  HSRC database.  Weighted by demographics in each E.A.

6. Highly competitive environment. Highly competitive environment.  Choices, choices, choices. Audience fragmentation. Audience fragmentation. Time pressured audiences. Time pressured audiences. High levels of illiteracy. High levels of illiteracy. Decline in daily and weekend newspaper audiences. Decline in daily and weekend newspaper audiences. The South African media industry

7. Competitive environment ± 300 consumer magazines ± 300 consumer magazines ± 280 sold and free newspapers ± 280 sold and free newspapers ± 35 billboard companies ± 35 billboard companies ± 100 radio stations ± 100 radio stations 6+ TV channels 6+ TV channels Already +140 listed internet sites with advertising rates Already +140 listed internet sites with advertising rates Cinema and so on… Cinema and so on…

8. Daily circulation vs population growth (Source: AMPS, ABC)

9. Declining readership trends (white adults aged 16+) Measured in % (Source: AMPS)

10. Gauteng/PWV - Whites Only% (Source: AMPS/White)

11. Johannesburg Whites only% (Source: AMPS/White)

12. In contrast, freesheets are booming… (Source: ROOTS 2000)(Base: 1 332 840 Decision makers) % Reach Gauteng

13. The Sandton Chronicle and Randburg Sun…papers to be proud of. % Readership (Source: ARRRT and ROOTS)

14. Competitive Analysis % Reach : Sandton Chronicle vs. competitors (Base: Total decision makers = 77 464) (Source: ROOTS)

15. Competitive Analysis % Reach : Randburg Sun vs. competitors (Base: Total decision makers = 58 939)(Source: ROOTS)

16. Sandton Chronicle gives TMC in Sandton. Adds 11% Adds 2% Adds 3% Adds 1% Leading Dailies and Weekend Press Add Little Reach to Sandton Chronicles High Reach (Source: ROOTS)

17. Randburg Sun Adds 5% Adds 1% Adds 3% Adds 1% Leading Dailies and Weekend Press also Add Little Or No Reach to Randburg Sun’s High Reach (Source: ROOTS) Adds 0%

18. Why the success? Focused relevant local editorial. Focused relevant local editorial. Provide TMC. Provide TMC.  Geographically Niched Capital investment. Capital investment.  New efficient printing presses.  Digital data transport. Cost/ Quality ratio. Cost/ Quality ratio.  Contained costs without compromising quality. Kept our local advertisers. Kept our local advertisers.  Local businesses account for 70% of our total ad revenue

19. Cost Control – Media Inflation Watch Media % increase Dailies195% Weeklies173% Locals114% CIW Radio 397% CPI104% Source: MIW – June 2001

21. (Base: Total decision makers; Sandton = 77 464; Randburg = 58 939) Demographics: Decision makers in Sandton and Randburg (Source: ROOTS) Decision makers in Sandton tend to be older and more affluent than those residing in Randburg.

22. Our research has shown that area by area, people differ… Not only in terms of their demographics but in respect of their psychographics and behaviour too.

23. Top Shopping Centres Sandton (Base: Total decision makers = 77 464) (Source: ROOTS) Sandton City is by a large percentage Sandton resident’s favourite and most frequently visited shopping centre. No 1.

24. Top Shopping Centres Randburg (Base: Total decision makers = 58 939) (Source: ROOTS) Cresta shopping centre is the most popular shopping centre among Randburg decision makers. No 1.

25. The changing “shopscape” Increased competition. Increased competition.  Many new developments.  Rise of “New” chain stores  Family Stores, 711’s,Foodies, IGA, Garage forecourt stores etc.  Pressure on margins and economic pressures. Drive to convenience as catchment areas shrink. Drive to convenience as catchment areas shrink. Shoppers becoming less passive and more demanding. Shoppers becoming less passive and more demanding. Continued budgetary pressure on shoppers. Continued budgetary pressure on shoppers. Shopping patterns and behaviour have changed tremendously over the past 10 years

26. Budgetary pressure is causing shoppers to be more selective… (Source: ROOTS)

27. Consumers are demanding more for their money. (Source: ROOTS)

28. Food & Grocery retailers. Sandton (Base: Responsible for all/most of household purchases = 49 936) (Source: ROOTS) Spar has the highest feet through the door patronage. However the Pick ‘n Pays’ have the highest loyalty conversion rate

29. (Base: Responsible for all/most of household purchases = 35 307) (Source: ROOTS) Food & Grocery retailers. Randburg Pick ’n Pay Hypermarket and Spar(any)have the highest no. of visitors followed by Shoprite Checkers.

30. Preferred Day for Shopping (Base: Responsible for all/most of household purchases) The weekend is still the preferred time for food and grocery shopping although there seems to be some movement towards the middle of the week. Decision makers in Randburg suburbs really love shopping on Saturday whereas, Sandton decision makers are not quite so “fussy” with a very high percentage (26%) having no preference. (Source: ROOTS)

31. Technology: possessions have. (Base: Total) (Source: ROOTS) Interestingly, Randburg decision makers tend to have slightly more appliances than those living in Sandton.

32. Cell phone ownership and purchasing. (Source: ROOTS) (Base: Total)

33. No. of motor vehicles in household (Source: ROOTS) (Base: Total) Households in Randburg suburbs tend to have one motor vehicle whereas a large percentage of Sandton households have 3 or more.

34. New car purchases Past 6 months (Source: ROOTS) (Base: Total) New car purchases in Sandton are above the ROOTS Average, however in Randburg they are below average. It is interesting to note that contrary to popular belief, women buy cars too!

35. Hardware/D.I.Y purchases Past 6 months (Source: ROOTS) (Base: Total) Far more Sandton residents purchased Hardware/D.I.Y in the past 6 months than did Randburg residents. Interestingly, there isn’t a huge difference between male and female purchasing

36. Restaurants (Source: ROOTS) (Base: Total) Decision makers in both Sandton and Randburg enjoy eating out.

37. Analgesic usage Female (Source: ROOTS) (Base: Female)

38. Analgesic usage Male (Source: ROOTS) (Base: Male)

39. What Sandton and Randburg women think of themselves… (Source: ROOTS) (Base: Female)

40. Female attitudes towards fashion and cosmetics… (Source: ROOTS) (Base: Female)

41. Female attitudes towards food and cooking… (Source: ROOTS) (Base: Female)

42. Male Attitudes towards Shopping… (Source: ROOTS) (Base: Male)

43. What Sandton and Randburg males think of themselves and fashion… (Source: ROOTS) (Base: Male)

44. Favourite Radio Stations (Source: ROOTS) (Base: Total)

45. Favourite TV channels (Source: ROOTS) (Base: Total)

46. All in all two different areas with different shopping habits, attitudes, buying power and lifestyles. Their media choices differ but not significantly, but one things for sure… They all reading their local newspaper! Thanks for your time and support!

47. Adspend Overview August 2001 – July 2002

48. All Categories Annual Adspend August 2001 – July 2002 Total Spend R10,6b

49. Prime Competitors – Share of Voice August 2001 – July 2002 Total Spend R20m

50. Adspend of Model Group by Media Type Medium Total Spend C N A R15,756ExclusiveBooksR1,471 Other Bookshops R597 C U M BookshopR367 Print4,841512595341 Radio3,4016342 TV7,48526 Cinema30325