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Crafting eye-catching ads for female clients

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A controversial condom billboard in Nairobi. FILE PHOTO | NMG 

Women in Africa spend more time online reading romantic novels compared to men, according to research. Thus, marketers that include romantic messaging in their advertising can stand to increase purchase intentions from female consumers.

Romance is a powerful driver among female consumers and they tend to pay more attention to products that contain imagery or wordings of a romantic nature.

A report titled Reading in the Mobile Era released this month by Worldreader, a global nonprofit whose mission is to help the world read, shows that women readers spend 11.5 minutes reading while male readers spend 6.5 minutes per session making the former more frequent readers.

“Although the study did not specifically track genre preferences by gender, the overall usage monitoring data most likely reflects the reading preferences of females because they are far more active readers than males,” reported Worldreader.

“The strong fondness for romantic fiction supports this theory. Market research conducted in the USA indicates that 91 per cent of romance book buyers are female, and it is reasonable to assume this ratio holds true in other countries as well.”

The most read books were; Broken Promises, Forever my Love, The Girl with the Magic Hands, Le Roman de la Momie and First Love Thinking of Him.

The findings of the research can be applied in marketing by brands seeking to increase their sales in a competitive market or simply to make their advertisement stand out from the rest.

According to 2010 research conducted on what makes an effective advertising for a man or a woman by Alexander Ngozi Ifezue of the University of Botswana, advertisements that contain romances are most noticeable to female consumers compared to male.

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In regards to genders, it was found that it differed when they were exposed to advertisements that featured a male model with a low level of sex appeal. Men were found to have little interest in advertisements that contained male models with a low level of sex appeal and suggestive romance. However, women were found to be attracted to advertisements that contained male models with a low level of sex appeal and suggestive romance.

“The finding suggests that international advertisers must not only take into account whether their advertisements are intended to attract male or female targets, they should also be concerned with the target country’s outlook to the use of sex appeal approach in advertising,” reported Ifezue.

An example of a brand that successfully used romanticised marketing is maize meal flour, Soko Ugali. In 2011, it released an advertisement that featured a man who, after seeing the plate of Ugali on the table, stands up and serenades the meal to a rendition of the famous Kiswahili love song Nakupenda Malaika. His family is in awe to his love of the maize flour brand and clap cheerfully.

The advertisement was played across different television channels usually between 7pm and 8pm when most families are eating supper while watching television, making it popular among consumers.

A research released the following year by Kenyan research company, Consumer Insights, showed that it had overtaken Jogoo to become the leading maize flour brand with 24 per cent market share to its competitor’s 21 per cent.

This was attributed to its marketing campaign on traditional media. While the report did not mention the gender of consumers that bought the maize flour, it did highlight that in Kenya the highest number of shoppers then were female consumers aged between 25 and 29 at 35 per cent, followed by women aged 30-40 at 29 per cent.

On the other hand, men aged between 20 and 24 represented 19 per cent of the shoppers, those 40 years and above were 12 per cent and 15-19 years old male shoppers were five per cent.



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Kenya listed among Sub-Saharan Africa countries with high potential for Islamic Banking

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NAIROBI, Kenya, May 8 – Kenya has been listed as one of the countries with a high potential for Sharia Finance, an Islamic banking model with several restrictions and principles that do not exist in conventional banking like interest fees.

Middle East, Africa, India, and Jersey Finance Director Faizal Bhana said Sub-Saharan Africa’s share of global Sukuk issuances is only a mere 2 percent, despite an Islamic population of more than 200 million people.

Sukuk are financial products whose terms and structures comply with Islamic law, with the intention of creating returns like those of conventional fixed-income instruments like bonds.

“When you are coming to Africa, the story is very different. Africa is home to 250 million Muslims in Sub-Saharan Africa. At the moment, the penetration for Sharia compliance finance across the continent is 21 countries providing Islamic Finance services,” he said.

Speaking to Capital Business, he revealed that the Islamic Finance industry has a compound annual growth of 11 percent since 2006, with assets worth multi-trillion shillings.

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“We need to look to all forms of financing. And Sharia compliance financing is one form and because of its links like sustainability and ethical, for government, it is an easy win,” he said.

He said there is a need for regulators to provide enabling legislation for Sharia finance services and more so for sovereign and corporate issuance of Sukuk.

The common practices of Islamic finance and banking came into existence along with the foundation of Islam.

However, the establishment of formal Islamic finance occurred only in the 20th century.

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Currently, the Islamic finance sector grows at 15-25 percent per year, while Islamic financial institutions oversee over $2 trillion.

Islamic finance strictly complies with Sharia law. Contemporary Islamic finance is based on a number of prohibitions that are not always illegal in the countries where Islamic financial institutions are operating like paying or charging interest, investing in businesses involved in prohibited activities like gambling.

Due to the number of prohibitions set by Sharia, many conventional investment vehicles such as bonds, options, and derivatives are forbidden in Islamic finance.

The two major investment vehicles in Islamic finance are equities and fixed income instruments.

 

 

 

 

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CMA okays Crown Paints’ rights issue to fund expansion

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Crown Paints head of sales Bhavesh Gandhi and CEO Rakesh Rao during the company’s launch of all-weather paints at the Trademark Hotel, March 1, 2020. [David Gichuru, Standard]

The Capital Markets Authority (CMA) has given the nod to Crown Paints Kenya Plc to raise Sh711.80 million from shareholders via purchase of additional shares.

The regulator, in a statement yesterday, said it had approved the firm’s bid to issue and list 71,181,000 new ordinary shares on the Nairobi Security Exchange (NSE).

“The rights will be issued on the basis of one new ordinary share for every one existing share,” noted CMA.

The additional funds raised will boost the company’s financial flexibility to navigate through a tough business environment brought about by the Covid-19 pandemic.

It would also boost the firm’s growth strategy according to the information memorandum.

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“The group’s management plans to use the rights issue funds to facilitate the development of new products, retiring of current facilities and funding regional expansion,” CMA said in a statement.

Wyckliffe Shamiah, the CMA chief executive observed that the disclosures made on the rights issue comply with the capital markets regulations and will enable investors to make an informed decision.

Mr Shamiah noted that the regulator had reviewed the application for exemptions from complying with Regulation 4 of the Capital Markets (Take Over and Mergers) Regulations, 2002 concerning the intention of the company’s major shareholders, who have undertaken to take up their full rights entitlements.

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“They are also willing to take more than their initial entitlements subject to availability during the rights issue,” said Shamiah.

Crown Paints is expected to make bi-annual updates to CMA on the use of the proceeds of the rights issue.

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Branch buys local micro finance bank

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The deal gives Century Microfinance Bank a much-needed lifeline. [Courtesy]

Branch International Ltd has acquired microfinance lender Century Microfinance Bank in a move that gives the financial technology (fintech) firm a stronger presence in the country’s financial sector.

According to regulatory filings published by the Competition Authority of Kenya (CAK), Branch has acquired 84.89 per cent of the issued share capital in the microfinance bank.

The deal has been approved by the market regulator.

“The Competition Authority has authorised the proposed transaction as set out herein on condition that the acquirer and the target will each maintain the terms agreed with the borrowers in respect of all loans existing in their loan books at the time of the acquisition,” explained CAK in a notice in the Kenya Gazette.

The deal will further give Century Microfinance Bank a much-needed lifeline, coming in the wake of depressed earnings due to disruption from digital lenders and recently, the Covid-19 pandemic.

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According to Central Bank of Kenya (CBK) data, the micro-lender recorded Sh348 million in assets as of the end of December 2019, a 19 per cent drop from Sh431 million in 2018.

The firm also recorded Sh326 million in liabilities for the year ended December 2019 with customer deposits sitting at Sh256 million during the period under review. The lender made Sh82 million in total income in 2019, the majority of it from interest on loans, fees and commissions.

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Brach International, one of the leading fintech players in the Kenyan market has over the years increased its user base across the region to more than three million.

The firm says it has disbursed more than Sh35 billion in loans, the majority of which it lent to users in its African markets in Kenya, Nigeria and Tanzania. In 2019, Branch secured Sh17 billion in the new financing and a partnership with Visa to issue virtual pre-paid debit cards to its users.

The acquisition of Century Microfinance Bank will allow the fintech firm to deploy more solutions to grow its digital and physical foothold in the Kenyan market.

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