Friday, 12 June 2020

That commando energy drink Ad!


Almost every serious organisation is now grounded into digital marketing. Many organisations are now on the lookout for what is trending and leverage such issues with messages about their organisations. It’s an easy way to get people talking about an organisation or a product. As people are engaged in conversations and social media posts about a trending topic, they most likely engage with a brand that has also jumped on the bandwagon of what is trending. This is good for the visibility of the brand.

 

However, because of the fact that trending topics online have a short lifespan to trend, it becomes more difficulty for brands to choose which topics to go with. A trending story can change overnight and having invested time and resources, it can become frustrating when a trending topic suddenly changes, and all the time and effort yields no visibility and becomes a waste of time. As a result of this, most organisations tend to relax rules on digital marketing to try and get enough and creative messages quick enough.

 

This relaxation of rules and approval processes for online messages in most organisations, has led to another problem.  It’s very hard to regulate the messages for online and digital marketing. This is precisely where the Commando advert that made rounds recently, squarely falls in. There is more social media content going up every time, most of which has poor or no approval process. Focus is now more on just getting content out. The 80/20 Rule for social media, once the golden rule of effective social media marketing, which states that 80% of social media posts should inform, educate, and entertain the audience, while only 20% should directly promote the business does not apply anymore for most cases. 


 


Make no mistake on the importance of digital and social media marketing and its importance. The growth of the use of social media has made it such an important medium and a brand needs to maximise its visibility through this medium thus promoting the business tends to take precedent over informing, educating and entertaining.  It’s very hard to regulate the messages for online and social media digital marketing. Granted, there is an exponential growth in social media and related online marketing needing for more messages to be churned out quick enough, basics still need to be followed. The owners of the Commando Energy drink product and brand, for instance, should have done some due diligence and followed basic ethics.

 

The Commando energy drink advert was wrong on many fronts. First of all, they used the concept of a recent video that went viral, of a man called George who was filmed disciplining his children for failing exams. George is seen in the video slapping his elder son while his wife films the incident while begging for the man to stop ‘slapping’ the boy. I have recently done a piece on this in which I argued that George Bester was within his right to discipline his children. It didn’t look anything like child abuse but just a parent using the rod to avoid spoiling the child. However, the vast majority and social media comments proclaimed this as child abuse.

This was the concept the Commando energy drink advert decided to use. It is very important that brands respect the ‘court of public opinion’ and never go against that in their social media and digital marketing efforts.

 

Well, the Commando energy drink advert starts with a lady who announces herself as a single mother as she is scolding her sons for the ‘crime’ of failing an examination. She later warns them that failure to pass would mean Uncle George would be called in to make things right. At this point one of the boys, the older one, is seen visualising what would be, uncle George slapping him hard. With this warning, the boy is seen taking Commando energy drink and then engage in serious study. That is a poor way of motivating young ones. Not by instilling fear in them.

 

Of great concern though is the fact that ethically this is not correct for a brand to advertise an energy drink specifically to children. Legally and to some extent scientifically there is nothing wrong with it. This advert, however, is clearly targeted at children, school going children. The advert can easily be misconstrued to mean if you drink Commando energy drink one gets good grades in school. Energy drinks do contain high levels of caffeine and sugar as ingredients. It is common knowledge that there are long term health effects of perpetual consumption of high levels of caffeine and sugar. The combination of high levels of caffeine and sugar help fuel obesity, and sleep problems especially in young people.

 

In fact, energy drink adverts should be regulated in much the same way alcohol sales and advertising are regulated. Public health experts need to guide us on this soon enough and we could have regulations in place in no time. Of course, the argument against regulation on advertising, sale and consumption of energy drinks has always been that many fizzy drinks including colas have just as much sugar as the energy drinks. But the fact remains, two wrongs don’t make a right. If the regulation will have to touch the fizzy drinks, even better. We should value health more than we value profit. Other countries are discussing the possibility of regulation of energy drinks. That Commando energy drink advert maybe a stark reminder that Zambia too should look at possibilities of regulation. With regulation we will see less adverts targeted at children like the commando energy drink advert.

 

While some people may have found the Commando energy drink advert highly creative, I found it injurious on the personality of Mr George Bester. It is very distasteful for a brand to ignore all this and in an effort to capitalise on social media buzz run the risk of personal attacks on George. Highly trending topics are not the magic portion to boost social media presence for a brand overnight. Social media takes time. For most it takes a lot of brainstorming, testing, and consistent posting to create successful platforms. As a result of this, it becomes risky to always just jump on the bandwagon. As a general rule, it’s not worth it investing time and resources into all newest trends until it is clear its more than just a passing whim. Instead it’s better to develop long term strategies to define goals and build a brand in order to guarantee stronger social media results.

 

The International Code of Advertising states; “advertising should be legal, decent, honest, and truthful, prepared with a sense of social responsibility to the consumer and society and with proper respect for the rules of fair competition.” Commando energy drink manufacturers and suppliers should heed this – prepare their adverts with a sense of social responsibility to the consumer and society. Since I haven’t seen the Commando energy drink advert on the mainstream media, I will take it that it was just the works of a trigger-happy social media buzz excited employee.

Otherwise I hope they have learned never to spew such ‘fufu veve, in the weldi mbobo’, to the public again. Whatever that means, its just trending.





Friday, 5 June 2020

The high cost of energy


A parody ZESCO Twitter account called, ZESCO explains it, on 2nd June 2020 posted a message stating; “Accusing our meters of finishing your power quicker is like accusing the [petroleum] filling station of increasing your car’s fuel consumption.”

It’s rare for me to agree with a parody account but when I saw that tweet, I agreed with it. Those would have easily been my words. That would be my exact position, save my view is not satirical. I know I try satire every now and then, but I really suck at it. Then again, I am not a big fan of parody accounts because many people do not distinguish spoof from real posts by people or organisations being bluffed. However, the moment I saw that post I agreed with it. I believe that statement from the parody account, even though I am one of the many complainants who this past week signed petitions over the cost of ZESCO electricity prepaid units. 

My view… my thoughts…
I will have to put a disclaimer right from the onset, I am not an energy expert even though I now discuss what has been the most topical discussion of the week in Zambia - high cost of energy. Of course, this discussion was dwarfed by another important discussion regarding freedoms of expression and speech in Zambia, a discussion ignited by Lusaka province minister, Hon Bowman Lusambo’s reaction to musicians Kings Malembe and Bflow recorded and posted online, videos where they discussed aspects of governance that they thought had not been handled well. To avoid running the risk of digressing, I won’t dwell on that discussion because it is very clear to anyone who has seen the duo’s videos that all they did was responsibly use their fundamental rights to speech and right to expression to air their views on governance. 

That aside, this is not an expert analysis on the energy sector, but a consumer’s rant. A consumer’s diatribe discourse on what has clearly become an unbearable high cost of energy in Zambia. This discourse leaves me feeling short of being dejected and in deep Melancholy. I say this because clearly, we have no solution to the high energy costs because even when consumers complain, they don’t know what they should complain about. It’s so bad that even troll accounts are having to correct them.


Evolution of ZESCO tariffs, 2014-2020
(Energy Regulation Board of Zambia 2015, p. 50, 2017, p. 60, 2019b, p. 81, 2019a)
Adopted from: Haris, S & Ahmed, I (2020)



So, what should the complaints be about?

Well, toward the end of 2019, ZESCO announced an increase in electricity tariffs by an average of 113%. However, most domestic customers got over 200% increase. This is also coming off the backdrop of ZESCO increasing the tariffs twice in 2017. As a matter of fact, ZESCO has been increasing tariffs since 2014 in the quest to get to what they term “cost reflective tariffs”. A May 2019 report by the Policy Monitoring and Research Center (PMRC), highlighted that by 2015 ZESCO was paying between USc 7/KW/h and USc 13.23/KWh to Independent Power Producers who have invested in power generation with associated higher generation costs.

 

To cut the long story short, ZESCO costs are in US dollar (USD) including the power which they themselves generate, but they charge their [domestic] consumers in Zambian Kwacha (ZMW). On 31st December 2014, USD/ZMW was 6.40, on 31st December 2017, USD/ZMW was 9.97, on 31st December 2019, USD/ZMW was 14.03 and on 5th June 2020, USD/ZMW is 18.20. The experts can correct me, but I am certain therein lies the problem. As a result of what keeps happening to our currency all the gains achieved to get to cost reflective tariff, have all been eroded. We are back to where we started. ZESCO will need further increases. This is a corporation which ideally should make profit but has been facing serious financial problems regarding profitability, liquidity, solvency and efficiency for a long time now.

 

Why don’t we as a people petition our government to manage the economy better so that our currency should not depreciate as it has done? They will say; it is global! Even the South African Rand (ZAR) has been losing value against the US dollar. As a matter of fact, all major currencies have been losing value against the US dollar! It’s climate change! Hogwash. As an example, in 2013 when Zambia rebased its currency, the value of the Rand was 0.4 to 1 Kwacha, but as at 5th June 2020, 1ZAR is equal to 0.929 ZMW. Clearly ZMW is headed the other direction.

 

At the time of the most recent ZESCO tariffs increment (over 200%), we were subjected to between 16-20hrs of load shedding, so no one noticed just how expensive electricity had become. We didn’t have power for more than two thirds of a day and when power was restored, we were all sleeping. The last two months power supply has been stable with load shedding only between 2-4 hours on three days of the week. Now we can all feel the high cost of energy. It’s not that ZESCO have miraculously adjusted our pre-paid meters to consume more power. We have missed the plot here fellow countrymen and women.

 

I will give a practical example of my electricity use for the month of May 2020, where I purchased 576.5kW. The most I have used in a month is 600kW, and that was costing me 300 Kwacha at most before the 2017 increases. For 576.5kW in May, I paid 900 Kwacha. In April, I parted away with before 1,100 Kwacha. So, over the two months my average is 1,000 Kwacha. On 4th May, 2020 I purchased 403.90kW worth of units at 500ZMW.  By 23rd May I got a warning from the pre-paid meter that I was running low, so I bought units for 400 ZMW which came to 172.60kW. This meant I had already spent a 900 kwacha on electricity, just over a period of 19 days.

 

On 1st June 2020 I had to purchase another 403.90kW units for 500 Kwacha. That means over a period of 27 days I have spent 1,400 Kwacha. Of course, my average consumption has gone up because of the use of a heater now since there is a new-born in the house. However, that is not the bone of contention. The cost of 600kW has moved from 300 Kwacha to 1,000 Kwacha. That is the sad reality which we should speak against. To think that all the increases done have already been eroded by the Kwacha depreciation just bring more grief to my soul.

 

By the way, I must hasten to mention that for my geyser I use a solar and for cooking I use a gas stove. This makes spending an amount of 1,000 Kwacha on 600kW units of power more ridiculous. To even think we have a body aptly named the Energy Regulation Board (ERB), with executives who are well remunerated makes us all the more laughable. I say so because my submission is that ERB should be a very strategic energy body advising government. Alas, the board exists mainly to just announce energy price increases be it fuel or electricity. This is all against the backdrop of huge expectation in planning the nation’s future energy requirements. For so many years now, we have been told that the process of Petroleum refinery used at Indeni is one of the most inefficient processes. I still dot know if the ERB has a road map to dump that process and move the country to more efficient and cost effective one. I wouldn’t be surprised if they are just there ‘dololo’. These are the professionals. But they dance to the whims of politicians so the same ‘excellence’ will continue.

 

With their current way of doing business, the ERB is not a necessary. Those announcements they do can easily be done by the minister of energy or even the Energy ministry permanent secretary, with the guidance of technocrats from the ministry. ERB is just a very unwelcome duplication in an otherwise sector already in a state of confusion. The state of confusion under the energy sector is so bad it wouldn’t even be enough for a PhD thesis to catalogue all the problems. This is the sector with ZESCO which alone has so many operational problems regarding profitability, poor service quality, load shedding etc.

 

ZESCO is the only Corporation I know that pays huge money for several adverts discouraging consumers from using its service. Added to that are the issues at Indeni and generally the high cost of fuel. Recently the cost of petroleum the world over has fallen with some states in the US getting to a point where they paid customers who got petroleum from them. The price of petroleum went to negative. In Zambia, the cost of petroleum is at an all-time high.

 

There are a lot of problems in the energy sector, a lot of problems at ZESCO. An even bigger issue now is that the consumers seem lost over the reasons why they are spending a lot on ZESCO units. They are attributing it to ZESCO pre-paid meter consuming more than before. Consumers need to check if they are now using more kW of power than they were using say a year ago. I have always used 600kW and I am still averaging the same, save for the extenuating circumstance now, mentioned above. However, I have moved from paying 100 Kwacha for 600kW to 300 Kwacha and now under the new normal, 1,000 Kwacha.  This is not normal; it is not sustainable. We need not lose perspective.