Kenyan brands turn to current affairs for targeted marketing

UAP Old Mutual recently launched  a regional real estate portfolio which allows investors to receive rent in three currencies to shield them against volatility. This is part of an emerging trend among Kenyan brands to peg targeted marketing to current affairs.

The combined regional real estate portfolio worth more than Sh25 billion will give investors access to properties across East and Central Africa and enable them to receive rental returns in the US dollar or Kenya shilling.

“Investors will benefit from the expanded property portfolio through exposure to different markets that will in turn offer high returns that are in Kenya shillings and US dollars.

“Additionally, the investors stand to gain from combined investment experience and lower costs through shared services,” said Patricia Kiwanuka, UAP Old Mutual Group asset management managing director.

The move by the financial services group demonstrates the use of the political, economic, social-cultural, technological, legal, environmental and ethical (PESTLEE) analysis tool, to determine where the threats and opportunities lie in the current marketing environment.

The tool helps a brand evaluate external factors affecting a business thereby helping it to map out its marketing strategy.

Though most of these factors are uncontrollable, they can be employed to minimise impact and capitalise on strengths.

In the current economic environment, currency volatility has made UAP Old Mutual’s mixed currency exposure into a greater competitive strength than it was.

This creates a selling point out of a differentiation in a landscape where the offerings across asset management firms in Kenya are often invested in very similar offerings, such as the two 33-storey buildings in Upper Hill, Nairobi — the UAP Old Mutual Tower and the Britam Tower.

Against this backdrop, UAP Old Mutual Group is now drawing in changes in the macro environmental factors to set themselves apart.

“These are uncontrollable macro environmental factors that a company needs to consider when planning their marketing plan so that they can be able to minimise the impact and use it for their advantage,” said Joe Owako, chief trainer at Chartered Institute of Marketers Kenya.

He says brands need to take note of these factors as UAP Old Mutual Group has done with the economic factors.

Under the economic factor, brands look into inflation, interest rates, social economic status, GDP, (un)employment rate and currency.

Research Innovation Commercialisation Centre, a Canadian entrepreneurship hub, concurs that brands must be proactive so as to reap the best potential benefits from the macro environment.

“PEST (political, economic, social and technologica) analysis can be used for marketing and business development assessment and decision-making, and the PEST template encourages proactive thinking, rather than relying on habitual or instinctive reactions,” read a 2012 article penned by the organisation.

This proactiveness is the best way for a brand to take advantage of these macro environmental factors, explains Owako who cites APA insurance as a good example.

In January 2010, APA signed a $31 billion reinsurance deal with the Africa Trade Insurance Agency to enable APA to pay any claims stemming from political upheaval, terrorism or sabotage.

- African Laughter