KLA reveals the brands creating the most excitement in the marketplace

KLA, the exclusive partner for YouGov in Sub-Saharan Africa, has released the sixth edition of The Quarterly Buzz, tracking the brands with the most buzz in the market. 

The Quarterly Buzz leverages the YouGov BrandIndex tool, a dynamic platform that consistently evaluates public sentiment towards more than 200 brands in SA across eight categories. Through the BrandIndex tool, the top-performing 10 brands across various sectors are highlighted, with the top five brands in each category named.

Using a comprehensive framework of 16 metrics that span the marketing funnel, the BrandIndex tools’ Buzz metric takes the spotlight. This metric evaluates consumer perception, gauging whether individuals have encountered positive or negative information about a brand in the preceding two weeks. Operating on a scale of +100 to -100, a net score is derived, offering a view of a brand’s performance relative to its competitors. These scores are accumulated over a three-month period, forming the basis for The Quarterly Buzz results, with the latest results being measured from April 1 to June 30 2024. 

The top-performing brands across all sectors in Q2 of 2024 are:

Since the launch of The Quarterly Buzz, the food, groceries, and consumables sector has maintained a strong presence in the top-performing 10 brands. The Q2 results reinforce this trend, with five of the top 10 brands from this sector. After experiencing notable declines in Q4 2023, and a period of market stabilisation in the previous quarter, the market has shown growth over the most recent period. Two of the top 10 brands, Checkers (ranking fourth in the previous quarter) and Spar (ranking 20th in the previous quarter), have demonstrated marked improvement in Buzz performance.

For the first time since the launch of The Quarterly Buzz, Checkers has overtaken Woolworths Food, FNB and Takealot (automotive sector) — a marked achievement for the brand, which has surpassed those that dominated the top rankings over the last year.

Checkers has made notable progress in Buzz, as well as quarter-on-quarter growth across all 16 metrics in the past quarter. Woolworths Food has maintained a strong presence, securing second place despite softening on five of the 16 metrics. Takealot and Woolworths clothing have marginally softened, resulting in a drop in rank to fourth and ninth place respectively. Conversely, with marginal gains in Buzz and the lost ground experienced by other brands, Mr Price Home and Clicks have risen to fifth and sixth place respectively, with the former gaining four rank positions from the previous quarter. This period also marks the entry of three new brands in the top 10: KFC and Shoprite, returning after two quarters, and Spar making its appearance after nine months.

Advertising: driving growth and supporting brand relevance

Advertising plays an undeniable role in creating brand awareness, communicating positioning, creating connection, and driving engagement, among other critical needs. Understanding the channels to be used, and even more so, creating a balance that is effective in optimising the mix forms the foundation of a successful marketing strategy. With increased market clutter and declining consumer mental availability, KLA spoke to a nationally representative sample of SA to understand which channels are the most recalled and which remain top of mind.

TV and digital advertising (online ads and social media) are the most-recalled channels across all sectors. However, there are notable differences in how these channels drive brand awareness within specific sectors. TV remains a dominant channel overall, but it is particularly influential in banking and insurance, alongside YouTube advertising.

In the fast food sector, apps are particularly important, ranking fourth-highest among all sectors. In-store advertising and brand representatives enhance recall in the clothing and footwear sector, while magazines rank fourth in the home décor area. Billboards are a prominent channel in the telecommunications and fuel/car parts sector, while newspapers maintain a crucial role in the food and groceries zone. 

In driving recommendations, word of mouth plays an important role in recall in the banking, insurance, fast food and automotive sectors. Overall, effective brand recall is supported through a mix of channels that showcase consistent messaging across them.

In the latest report, specific brands’ performances reflect dynamic trends in the South African market.

Shoprite Holdings: customer-centricity through diversification

Shoprite Holdings brands Checkers and Shoprite have performed well this quarter, ranking in first and eighth place respectively. Checkers improved across all 16 metrics from the previous quarter, while Shoprite significantly improved on recommendation, realising growth in 12 of the 16 metrics.

Despite the challenging economic climate and resultant rise in the cost of living, Shoprite maintains a strong presence in the market, leveraging perceived price leadership and brand expansion into other categories. These strategic shifts have driven diversification and been focused on customer needs.

Checkers saw marked gains in Buzz driven by several factors. Beyond driving store footprint (for both Checkers and Uniq clothing by Checkers), the brand has driven CSI initiatives and grown its Sixty60 children’s range that encourages immersive play. The retailer also launched a Beta app, offering a wider product range of more than 10,000 larger products from Checkers Hyper stores, maintaining its 60-minute delivery promise, rivalling brands such as Takealot and Amazon.

Additionally, Checkers successfully launched Foodie, a new private label brand, complementing its existing labels Forage and Feast, Simple Truth and Oh My Goodness. This expansion aims to offer high-quality, convenient meals, competing with Woolworths Food, which has historically dominated this market.

Checkers has strategically focused on offering variety and leveraging technology and AI to meet diverse needs in ways that are seamless, convenient and affordable, entrenching its positioning as customer-centric. BrandIndex reinforces market perception, with both Checkers and Shoprite trending up on value-for-money perceptions over this period.

FNB: proving its positioning 

FNB has remained relatively stable over time, ranking third over the last two quarters, leveraging its strategic shift towards positioning itself as advisory-focused rather than product-orientated. This ranking fits with the brand’s accolade as the Strongest Brand in SA by Brand Finance and Africa’s Best International Private Bank in Botswana and Namibia, supporting customers across income bands to make informed decisions to achieve their aspirations. The brand was also identified as having the cheapest value offering account for basic banking, through the FNB Fusion Aspire product offering, driving the relevance of the brand across the population. FNB has also expanded its exchange-trade note (ETN) offering, adding eight new ETNs, bringing its total to 50.

The rise of e-commerce

In driving brand engagement and growth, brands must capitalise on e-commerce trends and AI technology to be top of mind when it matters most. As consumer lifestyles become busier and more demanding, increased online shopping is expected. AI has aided in driving personalisation and optimisation, allowing brands to package products and services in ways that are relevant and meet the evolving customer need. This integration enhances user experience and expands reach, making AI essential for modern marketing strategies.

Despite the rise of digital, traditional media continues to be a driving force in SA. Successful brands use omnichannel approaches to boost customer acquisition and retention. While digital platforms offer a cost-efficient solution, this strategy requires continuous effective measurement and optimisation. Case studies of successful brands that have leveraged AI and e-commerce drive an ecosystem that is seamless, convenient and affordable, placing customers at the heart of the brand.

Sector-specific results for Q2 of 2024:

Sector-specific results for Q2 of 2024 highlight a relatively stable top five within each sector, with a few new entrants across the eight sectors tracked — notably, BP, Mr Price, Mr Price Home, Spar, Nando’s, Discovery, and 1st for Women in their respective categories.

For more information about The Quarterly Buzz, visit kla.co.za or contact enquiries@kla.co.za.

This article was sponsored by KLA.