The document provides an overview of SAARF segmentation tools and market research surveys in South Africa. It describes the SAARF Living Standards Measure (LSM) which segments the population into 10 groups based on ownership of goods and access to services. The LSM aims to create stable segments that differentiate consumer behavior better than demographics alone. It has been regularly updated over time to improve segmentation at the top end and account for changing variables.

1. SAARF Segmentation Tools

7. Over Segmentation on AMPS® ** Highly unstable data SOURCE: SAARF AMPS 2009A Filter Sample Size ‘ 000 Population Adults 20 961 31 524 Adult Women 10 528 15 808 Adult Women, aged 25-34 2 266 3 622 Adult Women, aged 25-34, LSM 10 182 162 Adult Women, aged 25-34, LSM 10, with children 104 84 Adult Women, aged 25-34, LSM 10, with children, divorced/widowed/separated 0 0 **

8. Need for & Development of LSM ®

15. It’s Not Just About Demographics Source: Admap December 1990

17. SAARF LSM ® – National 1993 LSMs SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 20 961(’09A) POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 524 000 (’09A)

18. SAARF LSM ® – Gauteng 1993 LSMs SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 20 961(’09A) POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 524 000 (’09A)

19. SAARF LSM ® – KZN SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 20 961(’09A) POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 524 000 (’09A)

20. SAARF LSM ® – Western Cape 1993 LSMs SAMPLE SIZE: 14 498 (’94), 35 069 (’00), 20 961(’09A) POPULATION, ALL SOUTH AFRICANS 16+: 24 539 000 (’94), 28 488 000 (’00), 31 524 000 (’09A)

21. LSM ® may not be useful in all instances

22. LSM ® – Monthly Magazines 2001 LSMs SOURCE: SAARF AMPS 2009A

23. Age – Monthly Magazines SOURCE: SAARF AMPS 2009A

24. Gender - Monthly Magazines SOURCE: SAARF AMPS 2009A

25. SOURCE: SAARF AMPS 2009A Cell Phone penetration x LSM ®

26. % Listenership: SU- LSM® 1-5 SOURCE: SAARF AMPS 2009A

27. % Listenership: SU-LSM ® 6-10 SOURCE: SAARF AMPS 2009A

32. New SAARF LSM ®

40. LSM ® Extensions

43. LSM 7 LSM 8 LSM 9 LSM 10 LSM 6 LSM 5 LSM 4 LSM 3 LSM 2 LSM 1 Low Low Low Low High High High High

45. LSM ® & TV Viewing Yesterday SOURCE: SAARF AMPS 2009A

46. LSM ® & TV Viewing Yesterday

47. Current SAARF LSM ® Variables

50. SAARF LSM ® Groups Significant increase on 2008A Significant decrease on 2008A Penetration Ave HH Income 2007B 2008A 2009A 2007B 2008A 2009A SU-LSM 1 4.1 3.4 3.5 R 1,028.15 R 1,080.45 1269 SU-LSM 2 9.8 8.7 7.3 R 1,275.25 R 1,401.29 1475 SU-LSM 3 10.8 9.4 7.8 R 1,638.06 R 1,794.81 2267 SU-LSM 4 13.8 14.6 14.2 R 2,140.55 R 2,535.68 2424 SU-LSM 5 14.5 15.5 15.2 R 2,952.07 R 3,122.33 3462 SU-LSM 6 17.3 17.9 19.5 R 5,096.28 R 5,386.00 5755 SU-LSM 7 9.3 9.4 10.2 R 8,320.26 R 8,667.33 9638 SU-LSM 8 6.7 6.9 7.6 R 11,227.27 R 12,336.69 13002 SU-LSM 9 7.6 8.1 8.5 R 14,740.73 R 16,296.05 17648 SU-LSM 10 6.1 6.1 6.3 R 20,902.03 R 23,053.57 15179

51. Number of Adults in LSM ® SOURCE: SAARF AMPS 2009A Population Respondents % Pop SU-LSM 1 1,092,000 149 3.5 SU-LSM 2 2,314,000 370 7.3 SU-LSM 3 2,466,000 500 7.8 SU-LSM 4 4,476,000 1368 14.2 SU-LSM 5 4,782,000 2335 15.2 SU-LSM 6 6,140,000 4507 19.5 SU-LSM 7L 1,628,000 1559 5.2 SU-LSM 7H 1,586,000 1558 5 SU-LSM 8L 1,243,000 1358 3.9 SU-LSM 8H 1,143,000 1264 3.6 SU-LSM 9L 1,337,000 1582 4.2 SU-LSM 9H 1,330,000 1671 4.2 SU-LSM 10L 1,016,000 1368 3.2 SU-LSM 10H 969,000 1372 3.1

52. Mpumalanga Eastern Cape Free State Gauteng KwaZulu-Natal Northern Cape North West Western Cape Limpopo LSM ® By Province SOURCE: SAARF AMPS 2009A 31 to 60 % % of Province that is Rural More than 60 % 11 to 30 % up to 10 % Lsm 1- 4 Lsm 5 Lsm 6 Lsm 7 Lsm 8 Lsm 9 Lsm 10

53. PLEASE NOTE: The descriptions of the 10 SU-LSM ® groups in some of the following slides show those descriptors that are above national average for each SU-LSM ® group. So for example, African Language Stations are above national average for LSM ® 1-6. This however, does not mean that LSM ® 7-10 do not listen to ALS.

54. ALS by LSM ® SOURCE: SAARF AMPS 2009A

63. SAARF ® Lifestyles 2009A Update

78. Bars & Better vs. Homebodies SOURCE: SAARF AMPS 2009A

79. SAARF ® Lifestages (2009A)

89. Baby Food by Lifestage Purchased for Household (HH Filter) SOURCE: SAARF AMPS 2009A

90. SAARF ® Attitudes (2009A)

96. Banks: Top 5 Attitude Topics SOURCE: SAARF AMPS 2009A ABSA FNB Nedbank Std Bank 1. Religion (51.2%) 1. Technology (54.3%) 1. Crime (55.3%) 1. Technology (53.9%) 2. Environment (50.7%) 2. Information-Interest (51.7%) 2. Technology (53.7%) 2. Relationships (52.6%) 3. Technology(50.5%) 3.Environment (51.3%) 3. Environment (52.9%) 3. Health (52.3%) 4. Crime (50.2%) 4. Education (50.2%) 4. Health(52.4%) 4. Environment (51.4%) 5. Relationships (49.6%) 5. Family (50.2%) 5. Family (49.5%) 5. Crime (51.2%)

97. Attitude Groups

107. Banks: Attitude Groups SOURCE: SAARF AMPS 2009A

108. Thank You!