6. MARKET ANALYSIS
6.1 Target market description
6.1.1. Readers
Predominantly males aged 28-60 across all race groups and in all parts of South Africa. They are in the higher LSMs, well educated, and interested in motoring, the motoring lifestyle, touring and off-roading. They will not necessarily be dyed-in-the-wool petrol-heads, although this market will be attracted to some extent (as they are to all motoring publications). Younger males (28-40) will be in the majority, although only marginally so.
Wheels Alive! is not targeted at the aftermarket performance tuning or ‘performance’ audio sectors (‘The Bling Brigade’). Neither is it aimed at the drag racing/spinning/drifting markets. All these sectors have their own niche publications catering to their needs.
6.1 .2 Advertisers
The key target marketer here is Corporate and Product advertising from motor manufacturers and importers. Secondary targets are Dealers/Retail Groups, Auction Houses, certain Aftermarket Suppliers and Tyre Manufacturers/Dealers.
A key strategy in the medium-to-long term is to leverage the strong ‘lifestyle/travel/adventure’ and ‘moto-tainment’ editorial approach and attract non-traditional motoring advertisers such as male grooming and clothing, adventure travel operators, male gadgets, computer games, and the like.
6.2 Market research
6.2 .1 Consumers
There is one dominant publication in the ‘general motoring’ category, which has a relatively staid and traditional offering. It is well known and enjoys strong brand recognition, but is regarded by many consumers as arrogant, out of touch with modern-day readers, too technical in its approach, and lacking in excitement. It has a basic website which needs improvement, does not use social media, and has no other brand extensions.
The rest of the market comprises niche players, most of which lack credibility with readers because they are regarded as motor industry sycophants – more interested in protecting their advertising revenue than providing impartial road tests and credible information/commentary. As a result, the standard of content is generally poor. Several of these titles are tech-savvy and utilise websites, social media and online editions.
6.2.2 Auto industry/Advertising industry
The dominant player is regarded by both the motor industry and its advertising agencies (which make many of the ad placement decisions) as expensive, arrogant, bureaucratic and inflexible in its dealings – particularly when it comes to promotions and other forms of marketing.
The small/niche publications are seen as having a small reader footprint, being unreliable in their dealings and, in some cases, having a ‘fly-by-night’ mentality.
Advertising support is, in some cases, only given to these publications because the motor industry does not want to ‘put all its eggs in one basket’ (ie: the dominant player).
6.3 Market trends
Despite a tight consumer market, there is continued demand for (and interest in) cars, 4x4s and lifestyle vehicles in South Africa – as is evident from the monthly sales figures reported by the National Association of Automobile Manufacturers of SA. These figures are predicted by rise by an average of 10% in 2012, although they will still be some way off the growth experienced up until 2008.
The emerging market, in particular, is showing a willingness to spend, and is hungry for credible and impartial motoring information which is not overly complex and technical. In general, though, the tight market means that buyers want as much good information as possible before they make their buying decisions.
In line with international trends, South Africans are also exhibiting a determination to ‘enjoy life’ and to ‘get involved’. This, in turn, is driving a demand for ‘lifestyle’ vehicles and related activities – hence more focus on minivans (family activities), 4x4s (experiencing Africa) and travel/adventure activities involving vehicles (as a means to reach out-of-the-way places).
