International Marketing Council & Media Development and Diversity Agency: 2007 Strategic Plan briefings

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Communications and Digital Technologies

30 March 2007
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COMMUNICATIONS PORTFOLIO COMMITTEE
30 March 2007
INTERNATIONAL MARKETING COUNCIL & MEDIA DEVELOPMENT AND DIVERSITY AGENCY: 2007 STRATEGIC PLAN BRIEFINGS

Acting Chairperson:
Mr G Oliphant (ANC)

Documents handed out:
International Marketing Council Strategic Plan presentation
The International Marketing Council Strategic Plan
Media Development and Diversity Agency presentation
Media Development and Diversity Agency Strategic Plan and Budget presentation
Media Development and Diversity Agency Strategic Focus and Business Plan
The South African Story [Booklet]

SUMMARY
The International Marketing Council of South Africa briefed the Committee on its strategic plans. The Council stated that its aim was to transform the South African brand into one of the top ten nation brands in the world. It also planned on going into partnership with various organisations in order to create a media information hub that would cater for journalists during the FIFA 2010 world cup. Members were generally satisfied with the work done. Members’ questions related to how the Council would plan on changing the negative perception of expatriates about South Africa, various issues regarding the World Cup, corporate partnerships, advertising in Africa, and the R10 million rebates.

The Media Development and Diversity Agency was mandated to create an enabling environment for media development and diversity. It aimed to spend R45 million on 135 media projects by March 2007, and had made provision for bursaries to 41 different radio and print managers. The challenges included limited funding, the unsustainable market of print media, limited broadcast frequency, and lack of capacity. Its strategy for 2007 to 2010 included the upliftment of underprivileged communities and the improvement of skills with respect to marketing, and financial and production management.
Questions by members included the focus on the electronic community, whether there would be growth in print media, the regulatory framework and staff complement. Further enquiries looked to the role in advertising and isolated communities, avoiding duplication of functions and funding, and the role of government in advertising, and the sustainability of the Board.

MINUTES
International Marketing Council (IMC) Strategic Plan Briefing
The IMC was represented by Ms Yvonne Johnston (Chief Executive Officer) and Mr Moeletsi Mabuku (Chief Financial Officer). Ms Johnston in her presentation stated that the strategic intent of the IMC was to turn South Africa into a strong differentiated and competitive brand. The IMC planned to intensify its presence in hubs where there was awareness of the South African brand, in order to turn the South African brand into one of the top ten nation brands in the world. In the build up to the FIFA 2010 Soccer World Cup, the media would play a bigger role in influencing the perceptions of South Africa in the eyes of the outside world. The IMC had therefore gone into partnership with the Communications Resource Center (CRC) in creating a media information hub which would cater for the large number of journalists whose interests in the country would grow over the next few years.

Discussion
Mr Pieterse (ANC) commended the IMC for its work and asked whether the same work done by the IMC could extend into improving the service received by parliamentary staff. He also asked the IMC to state how it would measure its success.

Ms Johnston responded that much work had been done in trying to improve the quality of service provided by parliamentary staff. The IMC was currently performing an audit in which the parliamentary image will be re-branded. The IMC could not take all the credit to the success of its campaigns. It was important to note that a lot of work was done behind the scenes in order to make sure that the message reached the right people; therefore the success of the IMC was attributed to all those who had helped create an awareness of brand SA.

Mr M Mohlalonga (ANC) stated that he had great confidence with the work that was being done by the IMC. He asked it to state why R1 million was allocated to the global programmes, and also comment on the perception expatriates carried about South Africa.

Ms Johnston replied that the reason why R1 million was allocated there was due to the fact that advertising was not necessary for global South Africans, and the campaign would largely take place through one-on-one engagement.

Mr Mohlalonga asked, in regard to the 2009 succession, whether IMC had experienced any anxieties.

Ms Johnston said that in regard to the succession debate, the IMC did not have anxiety and had made a conscious decision not get involved in political matters. The succession debate would only be decided by the people of South Africa.

Mr Mohlalonga asked IMC to comment on the recent BBC documentary on the rising crime levels in South Africa.

Ms Johnston replied that it was important to note that there were more people who held positive perceptions about South Africa than those with negative perceptions. Regrettably, however, it was those negative perceptions that received more press coverage. The BBC documentary on South Africa was not all negative; but it was taken out of context by various government leaders. It was the reaction that became the story, and what should have been done was to engage with the makers of the documentary in order to find solutions to various problems.

Mr K Khumalo (ANC) asked the IMC to provide clarity on whether there were plans to market local municipalities.

Ms Johnston responded that there were currently are no plans, as the IMC had insufficient capacity.

The Acting Chairperson asked the IMC to comment on the issue of branding of provinces, the FIFA 2010 World Cup, corporate partnerships, advertising in Africa, the operation of a separate bank account and the R10 million rebates.

Ms Johnston replied that the IMC believed that provinces should be re-branded, and the IMC was trying to create an overall brand for the country. With regard to the FIFA 2010 World Cup, it was important to note that the World Cup would be a 43-day event, and the IMC will be involved in nation building campaigns before and long after the event. The IMC was also currently building relations with FIFA and the local organising committee in order to create a strong South African brand. The list of cooperating partners would be available soon; and there had been one signed contract so far. In terms of advertising in Africa, the IMC was working with major organisations that had branches throughout Africa. The rebates were used for various projects, and one of the projects was the 2010 alignment process.

Mr Mabuku added that the R10 million rebate resulted from extra income that was declared by the IMC. With regard to the separate bank account, the IMC wanted to align itself with the Public Finance Management Act (PFMA), and National Treasury was approached about the matter, after which they gave the go-ahead to open up a separate bank account.

The Acting Chairperson noted that with regard to capacity, the IMC was a small team with a massive task. The IMC was asked to comment on the role individuals played in the organisation, and whether there were any mentorship programmes in place.

Ms Johnston said that the IMC was operated by 33 staff members and 6 interns who were being trained for the year. The IMC was currently trying to build succession, but succession building seemed to be very difficult. The IMC had also employed a chief operating officer to help improve the success of the brand.

Media Development and Diversity Agency (MDDA) Strategic Plan Briefing
The MDDA was represented by Ms Khanyi Mkonza (Chairperson), Mr Lumko Mtimde (CEO), Mr Mazibuko Jara (Board Member), and Mr Chris Moerdyk (Board Member).

Ms Mkonza stated that the MDDA was mandated to create an enabling environment for media development and diversity. The MDDA aimed to spend R45 million on 135 media projects by March 2007, and had made provision of bursaries to 41 different radio and print managers. The MDDA faced many challenges that included limited funding, the unsustainable market of print media, limited broadcast frequency, and lack of capacity. Part of the MDDA’s strategy for 2007 to 2010 included the upliftment of underprivileged communities and the improvement of skills with respect to marketing, and financial and production management.

Discussion
Mr Pieterse asked the MDDA to state why there was a greater focus on the electronic community, and whether there would be any further growth with regards to print media, especially the community newspapers.

Mr Mtimde replied that there were many challenges in regard to the printing and distribution of resources. The MDDA was trying to determine the various interventions that could be made in order to uplift the community newspapers. There were plans underway to fund one community newspaper per district.

Mr Moerdyk added that the major problem with community newspapers was that they were unsustainable. There needed to be an establishment of some kind of hub, where there was cooperation across all media in terms of sourcing print advertising. Community newspapers needed to be persuaded to share their resources.

Ms D Smuts (DA) stated that the combination of resources was a very good idea, and asked the MDDA to elaborate on their regulatory framework, and the staff complement. The MDDA was also asked to state what would happen to advertising revenue when total revenue increases.

Mr Mtimde replied that there needed to be an increase in funding in order for the regulatory framework to be amended by 25%. With regard to the staff complement, MDDA was facing a challenge on the maintenance of skills, as remuneration remained an issue, and so the MDDA was looking at other ways in which loss of skills could be avoided. In terms of advertising, MDDA would be holding bilaterals with the various stakeholders in order to determine the way forward.

Mr Kholwane asked MDDA to state the role played in terms of advertising and the prioritisation of isolated communities.

Mr Mtimde replied that the issue of advertising was a major problem, and the MDDA planned to meet with various companies in the industry in order to discuss the challenges.

Ms Mkonza added that unsustainable communities should not be ignored, and funding needed to be provided to those communities, because there had needs that were not presently being fulfilled.

Mr Mohlalonga asked the MDDA to comment on the Lumka report, and the possible duplication in funding and operations of the organisations.

Mr Mtimde replied that the Lumka report was merely an analysis of the former Electronic Communications Authority’s (ECA) report, and its implication for the work of the MDDA. The report had assisted the MDDA to plan for the Medium Term Expenditure Framework period. The MDDA was engaging with the Universal Service and Access Agency (USAASA) in order to develop a memorandum of understanding that would avoid duplication.

Mr Mohlalonga enquired about communities with more than one radio station, and the role of Government when it comes to advertising.

Mr Mtimde responded that the MDDA was hoping to make sure that at least one radio station in each municipality was funded. In terms of the role of government, it was important to note that the government advertised a great deal in community media and also helped with the upliftment of community radio.

The Chairperson asked the MDDA to comment on the sustainability of the Board.

Mr Jara replied that the MDDA was lucky not to have fallen into the trap that many institutions had suffered, and would like to attribute the sustainability and the success of the Board to the Chairperson. It was important for any organization to have a strong Chairperson.

The meeting was adjourned

 

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