NIELSEN EMERGING MARKET INSIGHTS • COUNTRY SNAPSHOT MADAGASCAR Anja, 35, is part of a large joint family in Antananarivo (Tana), the capital city of Madagascar. She owns a kiosk in one of the many lively markets in the city. Like other kiosk owners, she sells a wide range of products, such as alcoholic drinks, milk products, spices and others. While her customers show a strong interest to try new products, she finds it challenging to convert her brand-loyal customers. Anja is considered a Balanced Senior – one of Nielsen’s seven defined consumer segments. Balanced Seniors comprise the largest segment (26%) and are among the highest spenders on consumer packaged goods categories in Madagascar, second to the affluent segment, Trendy Aspirants.
TRENDY ASPIRANTS AND BALANCED SENIORS ACCOINT FOR Balanced Seniors and Evolving Juniors account NEARLY HALF OF TOTAL CPG CATEGORY SPENDING for almost half of respondents in Nielsen’s Madagascar survey. Balanced Seniors (26%) are TRENDY middle aged householders who rank brand loyalty ASPIRANTS as the most important purchase driver. They 158 purchase more personal and home care products (shaving blades, deodorants, diapers and fabric BALANCED PROGRESSIVE care) than average. Evolving Juniors (20%) are SENIORS 126 AFFLUENTS 116 typically teenage students who always have time FEMALE STRUGGLING for fun and friends. They prefer concentrates/ CONSERVATIVES TRADITIONALS 84 60 cordials, powdered soft drinks, candies and chocolates. To appeal to this group, marketers should focus on affordability. WANNABE CPG CATEGORY SPENDING INDEX SPENDING CATEGORY CPG BACHELORS EVOLVING 88 JUNIORS 81
WIDTH OF COLUMM REPRESENTS RELATIVE SEGMENT SIZE
54% OF MADAGASCAR POPULATION IS BELOW 20 COUNTRY PROFILE YEARS OLD3 • Madagascar’s 21 million strong population1 is primarily rural 2 (70%) . Additionally, 54% of the population is below 20 years 50+ MALE FEMALE old3 • Diverse groups of Malayo-Indonesians, Arabs, French, Indians, 40-49 and Creole inhabit the island. French and Malagasy are both 30-39 official languages4 20-29
• Since 2009, political crisis and a global financial meltdown GROUP AGE have adversely affected Madagascar’s growth4. The GDP per 10-19 5 capita is one-fourth that of Africa’s 0.9
40.0 30.0 20.0 10.0 0.0 10.0 20.0 30.0 40.0
Like Anja, most Malagasy respondents are very family oriented and almost everyone surveyed lives in a joint family. In Madagascar, a woman’s opinion is very important in household matters. Communication that weaves in affiliation themes like family bonding and a woman’s role in the family will strike a chord in this market. NIELSEN EMERGING MARKET INSIGHTS • COUNTRY SNAPSHOT MADAGASCAR Nielsen identified seven consumer segments based on a face to face survey of 5,000 respondents across Nigeria, Ethiopia, Uganda, Kenya, Tanzania, Zambia and DRC. Variables used were: attitudes, age, socio-economic class, education level, and mobile and media usage. The family theme reverberates strongly across all groups, as does affordability and trusting the same brand. However, segments vary in terms of other purchase drivers and media consumption.
Balanced 20-45 years, married with children, Studied secondary school and above. Traditional, family-oriented and religious. Buy based on 26% Seniors across all SEC affordability and recommendation. Evolving 15-19 years, middle to lower SEC, Mostly students. Social and want to enjoy time with friends. Traditional and family-oriented. 20% Juniors peri-urban Value affordability. Average consumption of TV, radio and mobiles.
Female 15-29 years, married, lower SEC, peri- Studied up to secondary level. Traditions and family values are important. Not brand conscious. 15% Conservatives urban Keen to keep up with fashion and try new products.
Struggling 30-45 years, married with children, Low levels of education - secondary school and below. Rooted in family, traditions and religion. 13% Traditionals lower SEC, peri-urban Prime concerns are affordability and availability. Not brand conscious. Wannabe 20-34 years, male, middle to low SEC, Educated up to secondary school. Mix of blue collar and supervisor level jobs. Influenced by 12% Bachelors single, peri-urban good packaging and advertising.
Trendy 15-29 years, single, largely male, Educated up to secondary school and above. Modern in terms of fashion, technology, and 8% Aspirants middle SEC, urban willingness to try new products. Progressive 30-45 years, married with children, Well educated, and employed in managerial jobs. Willing to try new things and pay for quality. 6% Affluents higher SEC, urban Family is important but also tends to be very individualistic. High on media use.
BUY WATCH OPPORTUNITY Among those surveyed, three out of four shop TV and radio are the most popular sources of Madagascar’s 21 million people1 are diverse, at kiosks, which is more than any other retail information and entertainment, accessed by with Malayo-Indonesians, Arabs, French, channel. Consumer packaged goods (CPG) almost nine out of ten Malagasy respondents. Indians, and Creole inhabiting the island4. companies must focus on kiosks to drive State-owned TVM (Television Malagasy) is the Additionally, 54 percent of the population is distribution, which can be challenging. Food most popular channel and news is the most younger than 20 years old3. This young market and grocery purchases account for almost 40 popular content. Respondents tune into state- offers vast opportunity for growth. percent of monthly household spending. owned radio, Malagasy National Radio (RNM), What makes Madagascar stand out from and listen to drama and music content. While penetration levels for CPG categories other Sub-Saharan countries is the difference Reading magazines and surfing the Internet are similar to those across other Sub- in the buying behavior among the various are not prevalent activities. A media campaign Saharan countries surveyed, Malagasy survey segments. The mid-income Balanced Seniors that focuses on TV and radio will achieve respondents report more interest to try new are the biggest segment and among the critical exposure. While 72 percent of those categories. Brand loyalty is the most important highest spenders on consumer goods, unlike surveyed own a mobile phone, it is mainly purchase driver and loyalty levels are much other Sub-Saharan countries where more used for text messaging, limiting its utility as higher in Madagascar than other Sub-Saharan affluent consumers are the highest spenders. an advertising platform. countries surveyed. Affordability is the second Emphasizing affordability, driving distribution most important purchase driver while low High income Progressive Affluents and Trendy through a challenging retail environment, and prices or deal incentives may encourage trial. Aspirants are more media savvy, whereas the using familial themes in communication via other segments are largely exposed to just TV TV and radio will be most successful in this and radio. market.
Sources: 2. The World Bank: Africa Development Indicators: World Bank Staff estimates based on 1. The World Bank: Africa Development Indicators: (1) United Nations Population Division. United Nations, World Urbanization Prospects. 2009. World Population Prospects: The 2008 Revision. New York, United Nations, 3. The World Bank: Africa Development Indicators: World Bank staff estimates from various Department of Economic and Social Affairs (advanced Excel tables). Available at http://esa. sources including census reports, the United Nations Population Division’s World un.org/unpd/wpp2008/index.htm. (2) Census reports and other statistical publications Population Prospects, national statistical offices, household surveys conducted by national from national statistical offices, (3) Eurostat: Demographic Statistics, (4) Secretariat of agencies, and Macro International. the Pacific Community: Statistics and Demography Programme, (5) U.S. Census Bureau: 4. CIA – The World Factbook, Central Intelligence Agency, https://www.cia.gov/library/ International Database, and (6) World bank estimates based on the data from the sources publications/the-world-factbook/geos/ma.html above, household surveys conducted by national agencies, Macro International, the U.S. 5. The World Bank: Africa Development Indicators: World Bank national accounts data, and Centers for Disease Control and Prevention, and refugees statistics from the United OECD National Accounts data files Nations High Commissioner for Refugees.
All other numbers quoted are from the Emerging Markets Insight Survey, 2012 conducted in urban settlements in Madagascar (Antananarivo, Mahajanga, Toamasina, Toliara). Other Sub-Saharan countries surveyed are Nigeria, Ethiopia, Uganda, Kenya, Tanzania, Zambia, and DRC. Copyright © 2014 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 14/7814