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ZAMBIA a Typical Zambian Teenager, Paul Mulenga, Sits Down for Dinner with His Parents and Three Siblings

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ZAMBIA a Typical Zambian Teenager, Paul Mulenga, Sits Down for Dinner with His Parents and Three Siblings NIELSEN EMERGING MARKET INSIGHTS • COUNTRY SNAPSHOT ZAMBIA A typical Zambian teenager, Paul Mulenga, sits down for dinner with his parents and three siblings. The meal is usually home cooked nshima—a thick porridge made from maize—served with fish and vegetables. His family almost always prays and eats together. Strong family bonds, traditional values and religion are powerful themes in Zambia. This is balanced with individualism – Zambians value the freedom to make their own decisions. Zambia’s strong economic performance and steady GDP ZAMBIA GDP PER CAPITA, PPP (CURRENT INTERNATIONAL $) growth is fueling optimism among residents. More than three- quarters (78%) of Zambians say they are confident about the future. $1,400 $1,200 Despite recent growth, Zambia is still a relatively primitive $1,000 marketplace with a lower percentage of residents owning $800 modern household durables compared to the African average. $600 While 71 percent of Zambians say they own a mobile phone, only about 45 percent have TV and radio, possibly due to low $400 levels of electricity supply. Affordability and familiarity are $200 the top two purchase drivers for Zambians as they shop for 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 consumer packaged goods. Source: The World Bank: Africa Development Indicators: World Bank, International Nielsen’s research revealed that Struggling Traditionals, Comparison Program database. Evolving Juniors, Female Conservatives and Wannabe Bachelors FOUR SEGMENTS UNDER INDEXON CPG SPEND account for 73 percent of the population, but only make up 55 percent of CPG spend. Affordability, driven by lower income, is their key concern. Struggling Traditionals (20%) • Evolving Juniors like Paul represent 22 percent of Zambia and consist mainly of students who are price sensitive. Numbers in % represent segment size in Zambia. Evolving Juniors (22%) CPG Index represents each segment’s • Struggling Traditionals (20 percent) believe in proportional spend on CPG products compared conventional ideas like family and respect for elders. They Female to their segment size. are focused on affordability and stick to brands they have Conservatives (17%) used before. Wannabe Bachelors (14%) Trendy • Female Conservatives (17 percent) and Wannabe Bachelors Aspirants (%8) (14 percent) are price conscious and trust the same brand. Balanced Seniors (15%) Progressive CPG Affluents (4%) INDEX 0 50 100 150 200 250 300 Source: Emerging Market Insights Consumer Suervey, 2011 NIELSEN EMERGING MARKET INSIGHTS • COUNTRY SNAPSHOT ZAMBIA Nielsen identified seven consumer segments based on a face to face survey of 5000 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. Evolving 15-19, rural , middle to lower Mostly students. Social and want to enjoy time with friends. Traditional and familyoriented. Value 22% Juniors SEC affordability. Average consumption of TV, radio and mobiles. Struggling 30-45 yrs, married with Low levels of education - secondary school and below. Rooted in family, traditions and religion. Prime 20% Traditionals children, lower SEC, rural concern is affordability and availability. Not brand conscious. Female 15-29 years, married, lower Studied up to secondary level. Traditions and family values are important. Not brand conscious. Keen to 17% Conservatives SEC, rural keep up with fashion and try new products. Balanced 20-45 years, married with Studied secondary school and above. Traditional, family-oriented and religious. Buy based on 15% Seniors children, across all SEC affordability and recommendation. Wannabe 20-34,male, middle to low SEC, Educated up to secondary school. Mix of blue collar and supervisor level jobs. Influenced by good 14% Bachelors single, rural packaging and advertising.. Trendy 15-29, single, largely male, Educated secondary school and above. Modern in terms of fashion, technology, and willingness to try 8% Aspirants middle SEC, urban new products. Progressive 30-45 years, married with Well educated, and employed in managerial jobs. Willing to try new things and pay for quality. Family is 4% Affluents children, higher SEC, urban important but also tends to be very individualistic. High on media use. BUY WATCH OPPORTUNITY Food, beverages and personal care are In Zambia, traditional mass media rules as Zambia has shown consistent economic popular categories, driven by essentials 83 percent of respondents listen to the radio growth, but income disparities exist. like vegetable oil, carbonated soft drinks, and 67 percent watch TV. Zambians consume Affordability and a trust of familiar brands tea and basic oral care. Zambians express media not only at home, but also at a friend/ are key purchase drivers. To succeed in more interest to try various CPG categories relative’s place or at work. Penetration Zambia, companies must cater to consumer’s than respondents in other African countries across all media is lower in Zambia than emotional needs first. Products must talk interviewed. Zambian respondents are most the African average, with the most notable about “family well-being” and balance it with interested to try beverages, primarily driven differences in internet, magazines and TV elements of modern, individualistic behavior. by energy drinks. usage. Newspapers (44 percent) dominate Creating a ‘familiarity’ factor and ensuring print media and only 10 percent of Zambians good word-of-mouth will be beneficial. More than 75 percent of respondents visit access the internet, driven by Progressive From a functional perspective, affordability grocery stores and small shacks called Affluents and Trendy Aspirants. At 71 percent is essential. To unlock Zambia’s potential; ntembas. Supermarkets are popular with penetration, mobile phones are the new mass companies must focus on engaging with only 16 percent of respondents, especially media. Text messaging is the most popular consumers and addressing their income Progressive Affluents and Trendy Aspirants. mobile phone service. challenges. The right price points along with a “trust” factor will help attract and retain Sticking to the same brand and affordability Due to Zambia’s low media consumption, potential consumers. are the top two purchase drivers. Companies reaching consumers can be a challenge. wishing to launch new products must ensure Using radio and direct marketing through reasonable prices. Zambia is more open mobile phones are likely the best options. to different pack sizes versus the African average. Companies can leverage this to ensure that products are available at the right price points. Evolving Juniors are open to buying new brands, but it must be affordable. All numbers quoted are from the Emerging Markets Insight Survey, 2011 conducted in Zambia (Lusaka, Kitwe, Ndola, Chipata, Livingstone, Mazambuka). The African average comprises of scores across Nigeria, Ethiopia, Uganda, Kenya, Tanzania, Zambia, 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.
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