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The Back2School Ongoing working

relationship with

ShoppingTrax Report - 2007


Exploring the Kenyan Youth Shopping Habits
Official affiliation
A Syndicated Track Study with

by Youth Dynamix Kenya

September 2007
A WPP Company

©©Property
Property of YouthDynamix
of Youth Dynamix
Report Format
01 Background

02 Study Objectives

03 Research Design

04 Money & spending

05 The Back2School Products

06 Conclusion & Recommendation

07 About us

© Property of Youth Dynamix 2


01
Background

© Property of Youth
© Property Dynamix
of Youth Dynamix
01 Background
The Youth Population

Male % In Millions Female % In Millions Total % In Millions


13-14 yrs 8.5% 2.98 9.00% 3.15 8.75% 6.13
15-19 yrs 10.7% 3.75 10.40% 3.64 10.55% 7.39
20-24 yrs 7.4% 2.59 8.60% 3.01 8.00% 5.60
13.3% 9.31 14% 9.8 27.3% 19.11
Estimates: Youth Dynamix, 2007

• The Kenyan youth aged 13-24 have an enormous influencer and purchasing potential
and capacity. This market is predominant segmented into 3 key categories:
a) high-school going age (13-18/19 years),
b) College / university age (19-24 ) and
c) Job entry level

• Thus, their needs are fairly different from the average household shopping requirements.
It is thus imperative that this youthful consumer base be understood and insights into the
drives and influencer for product and brand choices be clearly understood.

© Property of Youth Dynamix 4


01 Background
The Research
•We applied both Qualitative and Quantitative research in the study. We held 12 focus
group discussions amongst this group of youth, and 1,560 face-to-face interviews.

•We applied multi-stage random sampling in the Quantitative phase of the study.

•We also adopted purposive sampling for specific product and brand categories.

•Quality control, was maintained through standard Youth Dynamix procedures, 30%
accompaniment, 30% back-checks and 100% data form checks.

•We also visited supermarkets, shops and shopping malls during the last week of the
holidays, and specifically the final 3 days. During this stage, we randomly selected
students as they did their shopping, and asked them to assist us in the study.

•We also sought views of the guardians and parents during the exercise.

© Property of Youth Dynamix 5


01 Background
Sample confidence level 95% Confidence intervals (% margin of error) for a percentage

Observed percentage of sample

Sample size 5% or 10% or 90% 20% or 30% or 40% or 50%


95% 80% 70% 60%
50 6 8 11 13 14 14
75 5 7 9 10 11 11
100 4 6 8 9 10 10
200 3 5 6 7 7 7
300 3 4 5 6 6 6
400 2 3 4 5 5 5
500 2 3 4 4 4 4

1000 1 2 3 3 3 3

Youth Dynamix strives to ensure that all data is as accurate as possible, with standard error
margin permissible.This table illustrates the recommended allowance for sampling error
(plus or minus) at 95% confidence level

© Property of Youth Dynamix 6


02
The Global Youth

©©Property
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of Youth Dynamix
02 Global Youth
The Global Youth

Globalization has had its major impact felt in the developing countries, as
the youth become more cosmopolitan in their tastes and buying
behaviours. This is possible through diffusion of technology, enabled
through diverse media channels.

Brands have become an integral part of their lifestyle - they give youth an
identity, acceptance into the group, social status and indicate wealth and
esteem.

Thus, Shopping malls and supermarkets have attained new meaning, seen
as an avenue that fashion is exhibited, where to link up with buddies, and
where to learn and keep abreast with what’s new.

© Property of Youth Dynamix 8


02 Global Youth
The Global Youth

Status symbolism is perceived to be very important, with youth seeing


this as a measure of what sets them apart from peers, or gives them
acceptance into a particular group.

Friends and peers very crucial in life, rivaling the family unit. Friends are
key in recommending various brands and services to their peers.

Pester power is fast being replaced with specific wants and needs, with
KEY product and brand identities and attributes being clearly identified
from as young as 7 years.

© Property of Youth Dynamix 9


03
Study Objectives

©©Property
Property of YouthDynamix
of Youth Dynamix 10
03 Study Objectives
Primary Aims & Objective of research
• The syndicated study also targets capturing the Kenyan youth’s shopping basket for each term.
The objective of conducting the study at the start of every term, includes:

– To be able to monitor the changing patterns in purchase of products, services and brands every term
– Understand and record the key influence patterns, and the motivations behind these influencers /
influences
– Those key and minor aspects that help in decision-making process
– The various marketing dynamics that influence and impact on this target audience
– Determining various product, services, and brand requirements when they report to school each term
– Factors taken into consideration when deciding what product, service or brand to buy/use in school
– Key influencers – family, friends, price, availability, pack sizes, design, offers, etc
– Key product attributes looked for – Durability, fragrance, colour etc
– Overall adequacy of products and services across the various consumer segments
– Lifestyle attributes

• We believe that the findings should be useful in advising and informing marketers and our
clients in particular on the changing trends of the Kenyan youth and the factors that influence
their decision-making in respect to product, service and brands usage, purchase, consumption
etc.

© Property of Youth Dynamix 11


03 Study Objectives
Actionability of the research

• The outcome of the research remains to:

a) Formulate strategic insights that would help clients conduct appropriate back-to-school
promotions
b) Offer appropriate product and brand positioning strategies
c) Determining the various competitive attributes considered by youth
d) Evaluate gaps in the current products and services offered by clients vs the needs of the
youth
e) Evaluate prospective youth opportunities that clients can invest in
f) Recommend how to fill in the gaps with the new products and services
g) Recommend how clients can tap business from these segments and grow them

• The key demographic indicators captured includes Age, Gender, School – class, Urbanization,
Family set-up, School going age, LSM 1-10, Borders and day scholars etc

© Property of Youth Dynamix 12


04
Vital Statistics

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Property of YouthDynamix
of Youth Dynamix 13
04 Vital Statistics
Kenya Population
Province Districts % national Constituencies % national Pop By province % national
1 Nairobi 8 10.3 8 3.8 3,500,000 10
2 Central 7 9.0 29 13.8 4,550,000 13
3 North Eastern 4 5.1 13 6.2 3,034,665 9
4 Eastern 13 16.7 36 17.1 5,250,000 15
5 Nyanza 12 15.4 30 14.3 1,173,893 3
6 Rift Valley 19 24.4 49 23.3 5,358,837 15
7 Western 8 10.3 24 11.4 8,050,000 23
8 Coast 7 9.0 21 10.0 4,097,981 12
Total 78 100.0 210 100.0 35,015,376 100

Error margin at + 2%.

© Property of Youth Dynamix 14


04 Vital Statistics
How many schools are there in Kenya?

Province Districts % National Pri schools % National Sec schools % national


1 Nairobi 8 10 521 3 186 4
2 Central 7 9 2121 11 850 20
3 North Eastern 4 5 225 1 115 3
4 Eastern 13 17 4297 22 764 18
5 Nyanza 12 15 4201 21 862 20
6 Rift Valley 19 24 5150 26 934 22
7 Western 8 10 2141 11 501 12
8 Coast 7 9 1188 6 161 4
Total 78 100 19844 100 4373 100

Error margin at + 2%.

© Property of Youth Dynamix 15


04 Vital Statistics
How many primary school pupils are there in Kenya?
Male % of total Female % of total Total
Class 1 661,000 9 615,000 9 1,276,000
Class 2 524,000 7 495,000 7 1,019,000
Class 3 490,000 7 458,000 6 948,000
Class 4 480,000 7 457,000 6 937,000
Class 5 432,000 6 420,000 6 852,000
Class 6 420,000 6 403,000 6 823,000
Class 7 406,000 6 385,000 5 791,000
Class 8 352,782 5 313,669 4 666,451
Total 3,765,782 52 3,546,669 49 7,312,451

Error margin at + 2%.

This large population is the future key decision-making body for products,
brands & services.

© Property of Youth Dynamix 16


04 Vital Statistics
How many secondary school students are there in Kenya?

Male % Female % Total %

Form 1 202,500 16.4 192,500 15.6 395,000 32.0

Form 2 162,000 13.1 121,600 9.8 283,600 23.0

Form 3 160,000 13.0 121,500 9.8 281,500 22.8

Form 4 155,000 12.6 119,500 9.7 274,500 22.2

Total 679,500 55.0 555,100 45.0 1,234,600 100

% of total 55.0 45.0 100.0

Error margin at + 2%.

© Property of Youth Dynamix 17


05
Money

Property
©© PropertyofofYouth
Youth Dynamix
Dynamix 18
05 Sources of Money
What does Money mean

• Money is an enabler, helps you to achieve and get material goods and services you
wish to have

• Money sets you apart from your peers, enabling you to purchase fashionable attire,
technology gadgets etc

• Money enables you to initiate, keep, and further cement relationships.

• Money gives you an air of independence, whereby you don’t have to worry about what
to buy, where to go etc

• Money accords you status, makes you feel important, and earns you respect

© Property of Youth Dynamix 19


05 Sources of Money
Where get money from
Source of money LSM - 1-4 LSM - 5-7 LSM - 8-10 Total
Male Female Male Female Male Female male av fem av Mean
1 Parents 74 77 86 97 96 96 85 90 88
2 Immediate relatives 44 54 43 46 30 36 39 45 42
3 Siblings 27 36 21 30 18 22 22 29 26
4 Hustling 44 5 39 4 33 7 39 5 22
5 Friends 4 9 7 11 22 26 11 15 13
6 Vocational/temp jobs 12 4 19 6 20 7 17 6 11
7 Charity -NGOs, Church 14 11 9 5 2 2 8 6 7
8 Sugar dad/mum 2 19 3 8 4 7 3 11 7
9 Savings 0 0 3 2 14 20 5 7 6
10 Teachers 0 10 0 9 0 1 0 7 3
11 HELB 4 3 5 3 3 2 4 3 3
225 228 235 221 242 226 234 225 230

© Property of Youth Dynamix 20


05 Sources of Money
Where get money from

Parents 88

Immediate relatives 42
Siblings 26
Hustling 22

Friends 13
Vocational/temp jobs 11
Charity -NGOs, Church 7

Savings 6
Sugar dad/mum 5

HELB 3
Teachers 3

0 10 20 30 40 50 60 70 80 90 100

© Property of Youth Dynamix 21


05 Sources of Money
Amount – per month: 13-19 years
LSM 1-10 Count (100%) Total Amount / month
Source 1561 SHsh
1 Parents 1326 511549
2 Immediate relatives 710 122647
3 Siblings 431 269011
4 Hustling 354 587813
5 Friends 144 71048
6 Vocational/temp jobs 167 381250
7 Charity -NGOs, Church 140 97548
8 Sugar dad/mum 120 92578
9 Savings 42 87700
10 Teachers 68 6841
11 HELB 57 105174
12,260 2,333,156

The figures above are exclusive of school fees.

© Property of Youth Dynamix 22


05 Sources of Money
How much does it cost every term?
How much does it cost to send a child back to school with a shopping?
LSM 1-4 LSM 5-7 LSM 8-10

Male Female Male Female Male Female

Min in KShs 905 1050 1566 1800 4500 5700

Max in KShs 1100 1400 2200 3600 4800 14000

Mean Av % 1002.5 1225 1883 2700 4650 9850


LSM 1-4: Bargains, economy packs, promotions key. Price sensitivity tops, brand and product benefits loose.
Basic products matter. Family influence big.

LSM 5-7: Bargains, economy packs, promotions key. Price sensitive, but brand and product benefits matters.
Influence of peers, parents and ads substantial. Need to impress outweighed by budgetary constraints. Family
influence bigger.

LSM 8-10: Brands rule. Quality and product benefits key. Bargains & promotions matter, medium-larger packs
given higher consideration. Price sensitivity low. Influence of peers, parents and ads substantial. Need to
impress crucial. Family influence average.

© Property of Youth Dynamix 23


06
Back2School Basket

© Property
© Property of
ofYouth
YouthDynamix
Dynamix 24
06 The Basket Products
What constitutes a back2school basket?
• In segmenting our respondents, we sought to understand them from a holistic perspective.
• We eventually categorized the consumer products into the following key groupings, based on
the respective number of products in their basket.

Number of product categories Category


1 Between 1-4 A
2 Between 5-9 B
3 Between 10-19 C
4 Between 20-29 D
5 Between 30-39 E
6 Between 40-49 F
7 Between 50-59 G
8 Between 60-69 H
9 Between 70-79 I
10 80+ J

© Property of Youth Dynamix 25


06 The Basket Products
What constitutes a back2school basket?
• Female students have an average of 8 products more than their male counterparts, all socio-economic
groups taken into consideration. We however observe that across the genders, an LSM 5-7 male would have
9 more products than the LSM 1-4 male. An LSM 8-10 male would have 6 more products than the LSM 5-7,
and 14 more than LSM 1-4 – 110% in product access.
40
36
35

30 29
27
26
25 23
20
20 19
16
15
11
10

0
Male Female Male Female Male Female male av fem av Mean

LSM - 1-4 LSM - 5-7 LSM - 8-10 Mean av

© Property of Youth Dynamix 26


06 The Basket Products
What constitutes a back2school basket?

40
F: - 13 (LSM a-b) F: - 7 (LSM a-b) 36
35

30
29
25 26

20 20
15
16

10 11

5 M: - 9 (LSM a-b) M: - 6 (LSM b-c)


0
Male Female Male Female Male Female

LSM - 1-4 LSM - 5-7 LSM - 8-10

© Property of Youth Dynamix 27


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av Mean
1 Bar soap 67 70 77 79 84 89 76 79 78
2 Toothbrush 43 53 77 81 84 93 68 76 72
3 Toothpaste 35 43 77 87 79 87 64 72 68
4 Toilet soap 38 41 68 78 79 88 62 69 65
5 Shoe Polish 33 42 63 77 79 87 58 69 64
6 Tissue paper 24 29 66 78 79 96 56 68 62
7 Bread 36 32 59 51 76 71 57 51 54
8 Sugar 44 49 51 59 54 63 50 57 53
9 Drinking Chocolate 22 37 44 59 51 76 39 57 48
10 Exercise books 31 33 42 54 61 67 45 51 48
11 Jellies 12 36 33 57 61 87 35 60 48
12 Detergents 9 21 48 67 59 74 39 54 46
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 28


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av Mean
13 Margarine 17 21 48 56 62 73 42 50 46
14 Juices-Dilutables 11 23 32 51 68 77 37 50 44
15 Sanitary towels 0 65 0 98 0 99 0 87 44
16 Body Lotions 5 27 19 78 27 82 17 62 40
17 Hair lotion 1 29 22 69 38 77 20 58 39
18 Biscuits 3 15 36 62 41 74 27 50 39
19 Ruler 24 35 30 38 37 44 30 39 35
20 Other stationery - atlas, log bks 34 31 36 29 37 38 36 33 34
21 Foods - chapati etc 21 30 28 38 37 46 29 38 33
22 Junk-peanuts, popcorns etc 3 9 25 54 36 68 21 44 33
23 Coffee 2 9 32 49 42 58 25 39 32
24 Crisps 2 32 15 58 21 64 13 51 32
25 Deodorants/Perspirant 2 7 24 51 28 77 18 45 32
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 29


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av Mean
26 Pencils 32 22 36 25 42 28 37 25 31
27 Juices-ready to drink 12 25 28 43 31 44 24 37 31
28 Household Bleach 22 39 22 39 22 39 22 39 31
29 Calculators 6 3 43 38 49 43 33 28 30
30 Shoes - Sports 9 5 42 35 57 33 36 24 30
31 Games kits - hockey sticks 17 11 39 28 49 36 35 25 30
32 Antiseptics 1 23 36 40 32 43 23 35 29
33 Scissors/razor blades 18 8 38 29 42 32 33 23 28
34 Hair food 0 17 0 62 0 87 0 55 28
35 Chewing gum 9 18 14 41 24 59 16 39 28
36 Analgesics 3 5 18 35 27 72 16 37 27
37 Shampoo 7 45 7 45 7 45 7 45 26
38 Fruits 7 11 22 36 28 51 19 33 26
39 Artwork -paints, pencils etc 23 14 32 24 37 24 31 21 26
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 30


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av Mean
40 Text books 24 27 24 27 24 27 24 27 26
41 Body Creams 0 9 0 65 3 74 1 49 25
42 Cakes 2 14 21 39 32 42 18 32 25
43 Magazines 14 17 23 26 31 36 23 26 25
44 Powdered milk 1 5 14 42 28 54 14 34 24
45 Sweets 14 32 14 32 14 32 14 32 23
46 Perfume 2 7 18 32 22 54 14 31 23
47 Chips 9 36 9 36 9 36 9 36 23
48 Make-up-lip balm, lipstick 1 44 1 44 1 44 1 44 23
49 Cough Syrups/tabs 19 25 19 25 19 25 19 25 22
50 Jam 15 29 15 29 15 29 15 29 22
51 Hair relaxer 0 11 0 44 0 67 0 41 20
52 Additives 8 22 10 26 15 38 11 29 20
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 31


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av mean
53 Radio 10 6 26 15 37 17 24 13 19
54 Chocolate (sweets/bars) 5 12 11 21 19 37 12 23 18
55 Hair Gel 0 5 2 32 9 57 4 31 18
56 Ice Cream/tubs 6 27 6 27 6 27 6 27 17
57 Soft drinks 7 4 15 19 17 27 13 17 15
58 Fermented milk 2 4 7 15 18 23 9 14 12
59 Alcoholic beverages 19 4 19 4 19 4 19 4 12
60 Torch 14 9 14 9 14 9 14 9 12
61 Hair mosturizer 0 2 0 21 0 45 0 23 11
62 Candles/lighting 27 17 10 7 2 1 13 8 11
63 Sausages 0 0 4 14 19 27 8 14 11
64 Ink 7 11 9 10 13 10 10 10 10
65 Fresh milk 2 7 6 14 9 22 6 14 10
66 Cigarettes 11 5 9 8 15 9 12 7 10
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 32


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av mean
67 Potato chips 2 6 4 9 11 24 6 13 9
68 Dry cells 6 9 10 7 14 8 10 8 9
69 Juices - Del Monte, Ceres etc 1 2 11 9 18 13 10 8 9
70 Ointments 2 1 7 8 21 11 10 7 8
71 Hair -shampoo 0 5 0 12 0 27 0 15 7
72 Salt 4 7 6 9 8 9 6 8 7
73 Mobile phones 0 0 8 4 18 12 9 5 7
74 Breakfast cereals 0 1 2 6 19 14 7 7 7
75 Air time 0 0 3 2 19 17 7 6 7
76 Polish remover 0 5 0 15 0 21 0 14 7
77 Hair remover /shaving cream 0 0 1 5 4 27 2 11 6
78 Chicken 2 5 4 7 9 10 5 7 6
79 Ketchup 1 1 5 7 4 18 3 9 6
80 Nail polish 0 9 0 10 0 17 0 12 6
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 33


06 The Basket Products
Product & Service categories
Product Category LSM - 1-4 LSM - 5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem Male av fem av Mean
81 Energy drinks 0 0 4 2 14 9 6 4 5
82 Yogurt 1 1 4 5 7 9 4 5 5
83 Eggs 3 4 4 4 5 7 4 5 5
84 Nail base coat 0 1 0 8 0 17 0 9 4
85 Butter 0 0 3 2 7 9 3 4 4
86 Tea bags 1 2 5 3 7 3 4 3 4
87 Spaghetti / Noodles 0 0 8 3 6 3 5 2 3
88 Banking /savings 0 0 3 5 5 7 3 4 3
89 Dishwasher detergent 0 1 3 5 4 7 2 4 3
90 Hair colourings 0 0 3 5 5 7 3 4 3
91 Vitamins 0 0 1 4 5 9 2 4 3
92 Quran 4 2 4 2 3 3 4 2 3
93 Rake 0 0 4 2 7 4 4 2 3
94 Cooking fat 2 9 2 4 0 0 1 4 3
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 34


06 The Basket Products
Product & Service categories

Product Category LSM - 1-4 LSM -5-7 LSM - 8-10 Total av.
Male Fem Male Fem Male Fem male av fem av Mean
95 Mineral water 0 0 3 2 7 4 3 2 3
96 Fabric softeners 0 0 1 2 3 9 1 4 3
97 Shower Gel 0 0 0 1 2 5 2 2 2
98 Facial scrub 0 1 0 3 0 9 0 4 2
99 Mouth wash 0 0 1 2 4 6 2 3 2
100 Tea leaves 2 1 3 1 1 1 2 1 2
101 Insecticides 0 1 0 2 1 2 0 2 1
102 Iron box 0 1 1 1 1 1 1 1 1
103 Toothpicks 0 0 0 1 2 1 1 1 1
104 Cotton Buds 0 0 1 1 1 1 1 1 1
105 Liquid laundry detergent 0 0 0 0 1 2 0 1 1
106 Hand wash liquid detergent 0 0 0 0 1 1 0 0 0
107 Water purifier 0 0 0 0 0 1 0 0 0
1180 1821 2286 3439 2996 4313 2156 3191 2673

© Property of Youth Dynamix 35


07
The Key Products

Property
©© PropertyofofYouth
Youth Dynamix
Dynamix 36
07 Key Products
Products in Basket: Category A: Top 27 products
Product Category Lowest cost Medium cost Higher cost Mean cost Pieces term cost % use
1 Bar soap 10 25 60 32 4 127 78
2 Pens 10 10 15 12 4 47 76
3 Toothbrush 10 20 50 27 1 27 72
4 Toothpaste 20 45 250 105 2 210 68
5 Shoes - leather 250 500 1500 750 1 750 67
6 Toilet soap 25 45 70 47 4 187 65
7 Shoe Polish 35 55 150 80 2 160 64
8 Tissue paper 15 25 25 22 8 173 62
9 Bread 30 30 30 30 90 2700 54
10 Sugar 20 60 150 77 6 460 53
11 Drinking Chocolate 10 50 250 103 3 310 48
12 Jellies 20 50 150 73 2 147 48

13 Detergents 5 50 220 92 3 275 48


987 2283 7145 3472 169 9912 1366

© Property of Youth Dynamix 37


07 Key Products
Products in Basket: Category A: Top 27 products
Product Category Lowest cost Medium cost Higher cost Mean cost Pieces term cost % use
14 Juices-Dilutables 50 120 250 140 2 280 44
15 Sanitary towels 20 68 135 74 3 223 77
16 Body Lotions 35 100 250 128 2 257 40
17 Hair lotion 45 90 150 95 2 190 39
18 Biscuits 1 50 250 100 2 201 39
19 Coffee 20 50 150 73 1 73 33
20 Scissors/razor blades 20 50 100 57 3 170 28
21 Body Creams 50 100 250 133 2 267 25
22 Cakes 10 50 100 53 2 107 25
23 Sweets 1 10 50 20 4 81 24
24 Hair relaxer 150 250 500 300 2 600 20
25 Additives 10 50 150 70 4 280 20
26 Chocolate (sweets/bars) 10 50 70 43 4 173 18
27 Hair Gel 50 100 150 100 1 100 17
987 2283 7145 3472 169 9912 1366

© Property of Youth Dynamix 38

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