GMR | June 2011

GULF MARKETING REVIEW

SECTOR ANALYSIS MIXED MENU: FOOD MARKET CATERS FOR DIFFERENT TASTES

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A MediaquestCorp Publication

JUNE 2011 - NO 199

FEBRUARY JUNE 2011 20– - NO0199 - NO 190

BAGS OF POTENTIAL

Shopper Marketing: On Path to Purchase NEWS LATEST DEVELOPMENTS ACROSS THE REGION

MEDIA TRACKING TEENS: THE NET BIG THING

CREATIVE VIEW AIRLINE BRANDS SET SIGHTS HIGH

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MEDIA: Is the internet about to overtake TV as the mostused medium among the 24 region’s teens?

www.GMR-Online.com June 2011 – Issue No. 199

NEWS

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World News

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Kellogg’s rolls out first glutenfree variant. Viacom unveils new global campaign to promote MTV’s MVNO. Secret extends support to Girls on the Run charity. RollsRoyce Phantom app launched.

Ricky Ghai joins Eros Digital as it expands its digital strategy. Fans are becoming more receptive to brand involvement in music, study says. Former Y&R Rediffusion staff form new agency. Land Down Under on top at Asian Marketing Effectiveness Awards. WPP and IMG join forces in world partnership.

Creative view

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Unilever’s Lipton targets women with new fruit tea and exapnds Jafa facility to meeting rising tea demand. OMG MENA partners with July Systems for mobile media offering. Impact BBDO Dubai and Anchor provide a different point of moo. Nivea celebrates 100 years of skincare. Twenty-one-yearold Fine tissues launches rebrand.

Audi Middle East appoints artist Sacha Jafri as brand ambassador.

Yemen rain project wins Philips prize.

Saudi’s AKMC opens first hotel in Madina. Dunia Finance unveils new brand promise. Nestlé moves further in to Saudi Arabia. CNN launches IconicAbuDhabi.com for Abu Dhabi Tourism Authority. Peter Sagheghyi, founder and director of Sentiomedia, wins Absolut’s Articulation Art Competition.

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Qatar Airways and Etihad are under the spotlight in this month’s creative critique. How did their adverts fare?

Cover story

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With selling and buying becoming much more conversational and engaging, shopper marketing is taking an increasingly bigger chunk of media spend. GMR investigates.

Sector Analysis FOOD

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Rising food prices, along with other factors, such as a shortage of water and weakening of the dollar, are forcing consumers to change their buying habits. Price cap on ‘staples’ hopes to stem inflation pain.

Exercise is not top of the to-do list in Egypt. Are food consumers behaving differently amid the ‘food crises’? Indian restaurants are spicing up SEO in the UAE. Food investments continue to surge in line with efforts to attain selfsufficiency, report says. Civil turmoil takes large chunk from projected ad spend in food sector. Ice cream consumption up, but frequency of purchase falls.

July/aUGUST Issue Don’t miss GMR’s special summer edition.

Once again we link up with Brand Finance Middle East to reveal. The Top Corporate GCC Brands 2011. We present the new rankings, compare with last year and reveal quite a few surprises among the GCC’s corporate movers and groovers.

We’ll take a sneak preview at what the major media players are planning for the Holy Month of Ramadan and Sector Analysis reviews the latest trends and issues affecting the highly competitive household cleaning and laundry categories.

June 2011 Gulf Marketing Review 3

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40 Sector analysis: Food MediaquestCorp.

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NEWS

21-year-old Fine tissues rebrands Dubai Regional tissues brand Fine, which is 21 years old this year, has launched a rebrand across all of its paper products. Peter Janho, chief area officer for the Arabian Peninsula and Iran, tells GMR the change is “the result of many formal and informal studies and much introspection and brainstorming.”

“The new look,” he adds, “is part of a bigger initiative to include the community in our efforts toward a ‘carefree world’.” Fine is dedicated to developing enriching and innovative products such as sterilised tissues and printed sheets, says Janho. Quality is “the central bulwark of all our

Nivea celebrates century of skincare Beiersdorf brand invests $1.4bn in global marketing drive

Aging gracefully: Nivea’s latest look is a long way from the tins of creme it launched back in 1911

Hamburg Beiersdorf skincare brand Nivea launched its “100 Years Skincare for Life” global marketing campaign last month to celebrate its centennial year. The brand’s marketing budget will be “in the region of one billion euros ($1.4 billion),” according to a company statement.

“We know that people only feel comfortable in their skin if they are happy about the way they look,” says Markus Pinger, Beiersdorf’s board member responsible for brands.

“This knowledge was one of the main factors in our decision to make skin the focus of our campaign.”

Rhianna is another focus.

The American pop star’s song “California King Bed” will accompany the campaign internationally.

GMR travelled to Hamburg for Nivea’s birthday celebrations. Read more about this in next month’s magazine.

Audi signs up painter Sacha Jafri Paper push: The new-look logo

promotion, distribution and marketing efforts.”

The redesign was carried out by Ascend brand consultants, and will be accompanied by a “substantial” media campaign planned in above-the-line and below-the-line media.

Bookings will be through Mindshare, and the duallanguage campaign will include press, radio, outdoor and online executions.

“The campaign will be complemented by an in-store activation program, which will include displays, on-shelf activity and brand ambassadors,” says Janho.

Dubai Car maker Audi Middle East has appointed painter Sacha Jafri as its brand ambassador. Both Audi and Jafri support START, a nonprofit providing art education for refugee, orphaned and special-needs children in the Middle East.

Audi’s first project with Jafri was the transformation of a TT Roadster into a piece of art. The proceeds from the project will go to START. “Working with the company on this project has given me a real insight into what goes into perfecting not only the mechanics, but also the aesthetics of a car,” says Jafri in a statement from Audi.

“I believe it’s an artist’s duty

Easel does it: Jafri works on transforming an Audi in his artist’s studio

to give back to the community, something that will last well beyond the legacy of the work itself.”

Jafri studied at Eton, Oxford, and the Ruskin School of Fine

Art in the UK. His paintings have sold for as much as $1 million.

“He will now be driving an Audi A7,” adds the release.

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News

Yemen rain project wins Philips prize Sana’a Royal Philips Electronics has announced the winners of the Philips Livable Cities Award, a global initiative designed to generate innovative, meaningful and achievable ideas to improve the health and well-being of citydwellers across the world.

The overall winner is Sabrina Faber based in Sana’a, Yemen, for her idea “Rainwater Aggregation in Sana’a”.

The idea was praised by the supervisory panel for its unique approach to modifying existing structures in Sana’a to capture, filter and store rooftop rainwater. Faber hopes to help solve the water shortages experienced in the city during dry spells, while providing clean drinking water.

One to watch

Dubai. Emirati film maker Ali F. Mostafa has joined hands with Ahmed Seddiqi & Sons and Hublot to become their brand representative in the UAE. The signing ceremony took place last month at the Ahmed Seddiqi & Sons boutique in The Dubai Mall between Mostafa and Mohammed Abdulmagied Seddiqi, vice-president of sales & retail, Ahmed Seddiqi & Sons. “Mostafa embodies the essence of the brand,” says a statement.

AKMC’s Madinah hotel reflects growth Religious tourism is focus of 495-room Al Faisaliah Madina Saudi property development, investment and management company, Al Khozama Management Company (AKMC), has announced it will manage the Al Faisaliah Hotel Madinah. The property was developed by Al Aqeeq real estate company.

AKMC already operates the five-star AKMC-Al Shohada Hotel in Mecca, along with other hospitality, retail and commercial properties in Riyadh.

In a statement, AKMC says its activities and investments in the kingdom reflect the continued growth of the tourism industry. Religious tourism accounts for 47 percent of all trips to the country, and

Suite dreams: As well as rooms like these, the new property has a wellness studio

last year almost one million Ramadan visas for foreign pilgrims were issued by the Ministry of Haj, an increase of 16 percent on 2009.

“One of the key aspects of AKMC’s business and development strategy is to expand its hospitality portfolio into the significant religious and

business vicinity in the kingdom,” says Masaed Al Said, CEO of AKMC. Located close to the Mosque of Prophet Mohammed (PBUH), the 495-room Al Faisaliah boasts the first spa and wellness studio in Madina. It is due to be joined by a sister hotel by the end of 2011.

Dunia Finance unveils different slogan Abu Dhabi Dunia Finance, the Abu Dhabi-based financial services company, has unveiled its new brand promise, “We’re different. Guaranteed”, aimed at connecting with customers and conveying the company’s uncompromising commitment to keeping its promises of world-class services and customer-centricity, says the company in a release.

The new brand commitment is designed to showcase Dunia’s attentiveness to individual needs and novel approach to financial services, which places people first and consistently delivers the promises it makes.

On a promise: The new slogan

The brand was first launched in 2008.

Rajeev Kakar, executive director and CEO of Dunia Finance, says: “The events that transpired over the Past few years have left us with a financial environment severely lacking in trust and filled with cynicism and ap-

prehension. We want to rebuild these burnt bridges with customers; we want to show them that a financial institution can in fact be trusted and can deliver its promises for the genuine needs of customers.”

Mariam El Samny, head of marketing and corporate affairs at Dunia Finance, adds: “‘We’re different’ is not a change of direction for Dunia. It builds on the existing strengths of the brand.

The new platform, developed by Memac Ogilvy was designed to help reinforce stakeholders’ understanding of the core values of Dunia.

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News

OMG MENA joins with July Systems MENA OMG MENA and July Systems have formed a partnership to enable print, broadcast and digital media owners, as well as advertisers, to create, reach and engage with consumers they say..

Monthly regional mobile ad impressions are projected to reach one billion in 2011 with mobile growth rates set to outstrip those seen in the overall digital market in the next five years.

Upwardly mobile: Elie Khouri

Marketing and media investments are expected to follow suit says OMG. The new was announced at 4Mobility in Dubai recently where delegats learned that mobile marketing is no longer about ‘whether’ but ‘how’ brands will deploy it.

“We always felt that the mobile opportunity was just waiting to happen. We therefore decided to act and create the platform through which content, brands and consumers can mobilize in the mobile space,” said Elie Khouri, CEO of OMG MENA. It is estimated that the region’s mobile investments will be worth $35 million by 2015.

Lipton targets women’s downtime Factory expansion to meet rising demand for non-black teas GCC Unilever Gulf is targeting women with its newest Lipton variant, Pyramid Fruit Teas.

Produced in a pyramid shaped teabag it offers women“indulgent experience to enhance their personal down-time”says a company press release.

“We are introducing this product at a time when there is a growing understanding of the importance of managing our stress triggers by incorporating activities which aid relaxation to stimulate our senses,” says Naveed Asghar, marketing director of F&B, Unilever Gulf.

Made from a blend of longer tea leaves and real fruit pieces, the bags are 50 per cent larger than regular tea bags.

The range includes three tailor-made varieties specially; Lemon Mint Tea, Lemon Ginger Tea, and Cinnamon Tea, while international fa-

Different point of moo

Peak sales: The Pyramid Fruit Teas from Lipton

vorites include Forest Fruit Tea, Peach Mango Tea and Tropical Fruit Tea. The range is available at all major retail stores and supermarkets across the Gulf.

The news co-incides with the expansion of the Lipton tea facility in Dubai’s Jafza to meet the rising demand for tea in the region largely fuelled by the increasing popularity of non-black teas.

According to Tim Drury, VP Supply Chain, Unilever

North Africa, Middle East and Central Africa, “The number of tea cups consumed annually in this part of the world is approximately 13.4 billion”; making the region one of the highest tea per capita consumption regions in the world.

Between 2004 and 2007, tea was growing at a modest 5 per cent but is growing with a constant double-digit growth.

The rapid growth of non-black tea helped drive Unilever’s expansion plans.

Dubai Impact BBDO Dubai has produced a tongue-incheek portrait of life on a modern Anchor dairy farm from a cow’s perspective, to demonstrate the freshness of Fonterra’s Milk products.

“The campaign aims to demonstrate that the naturalness of New Zealand helps make Fonterra’s products the best, while the cows enjoy a pampered lifestyle,” says Impact in a statement. The brief was to promote Anchor Milk and Cheese and New Zealand heritage.

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News

Nestlé moves in to Saudi Arabia Saudi Arabia Jeddah Nestlé Middle East has announced the start of direct sales and distribution operations in Saudi Arabia.

The move makes Nestlé one of the first FMCG multinationals to have a direct operational presence in the kingdom.

The move follows the re-

CNN launches Abu Dhabi microsite IconicAbuDhabi.com looks to raise profile of the emirate

Bird’s eye view: “Share-able” brand solutions help reach new audiences says CNN’s Rani R Raad

New HQ: Saudi Arabia

cent decision by the Saudi Government to further open up the national economy allowing international companies to set up and manage their sales and distribution operations, says Nestlé .

“We see the commencement of direct sales and distribution operations as the beginning of a new and exciting chapter in Nestlé’s long operational history in Saudi Arabia,” says Yves Manghardt, chairman and CEO of Nestlé Middle East.

“Saudi Arabia, with its 28 million inhabitants and its sizeable youth population, presents tremendous growth opportunities for Nestlé.”

Nestlé Saudi Arabia will have its HQ in Jeddah, with offices in Riyadh and Khobar. and employ 225 people.

Abu Dhabi CNN has launched IconicAbuDhabi.com for Abu Dhabi Tourism Authority to raise the profile of emirate as a tourism destination, says CNN. With user engagement at tis core. It includes a competition designed to to mobilise a community of ‘ambassadors’ to share their photos

brush with success

of Abu Dhabi and win a luxury holiday there.

“It’s exciting to add such a compelling digital extension to our suite of advertising opportunities for ADTA,” says Rani R Raad, senior VP and managing director, CNN International Advertising Sales & Business Development.

“We recognise that shareable and social brand solutions are key interaction drivers for advertisers looking to reach new audiences.”

Brand conceptialisation, and site design was developed inhouse by CNN Ad Sales’ production unit Turner Commercial Productions.

Dubai Peter Sagheghyi, founder and director of Dubai-based digital brand experience agency Sentiomedia, has won Pernod Ricard brand Absolut’s Articulation Art Competition, based on the original advertising brief presented to Andy Warhol in 1985.

Sagheyagi’s installation blend’s people’s reflections with shape of the signature Absolut bottle. Sagheyagi says: “The idea was to create an art piece and subtly showcase the brand. Instead of a direct representation of the bottle, I used interactive technologies to blend together the signature symbol with social activity.” Segheyaghi wins a trip for two to Stockholm.

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World News

MTV tunes into new campaign Global Viacom has unveiled a new global integrated campaign to promote MTV’s MVNO. Created by French digital agency Buzzman the campaign features GIF (Graphics Interchange Format) characters in a series of three ads designed to “capture the sentiment of MTV’s mobile audience,” say recent press reports.

Capturing spirit: Gif God

Each ad portrays an unlucky u s e r b e i n g t r a n s fo r m e d by the ‘Gif God’, whose appearance was chosen from f ive desig ns by M T V Facebook fans.

Michel Dupont, a senior VP at Viacom, said: “We wanted to run a campaign that would capture the spirit of the brand and zeitgeist, in order to generate consistent brand awareness of MTV Mobile and to promote the MTV branded price plans.”

He added: “Mobile is an area where we are seeing growth. Having a presence in the mobile space allows us to build on our 360° vision around our linear shows, and enables us to reach our audience and keep them engaged with the brand.”

Kellogg’s wakes up to gluten free potential Rice Krispies unveils its new whole grain brown rice cereal USA This month sees the national roll out of Kellogg’s first gluten free variant.

Rice Krispies Gluten Free is produced for those with celiac disease and gluten sensitivity.

“We heard the strong desire from people within the glutenfree community, especially parents, for more affordable foods that they can serve their families, and we are helping to fill that need,” said Doug VanDeVelde, senior VP marketing and innovation.

The new cereal is made with whole grain brown rice and is fortified with vitamins and minerals. The suggested retail

Snap, crackle, pop: The family favourite is now available gluten free

price is the same as original Rice Krispies.

Kellogg’s added that the new line will be produced in a separate facility that has been making gluten-free products for nearly a decade.

According to the National Institutes of Health, Celiac disease affects approximately one in 133 people in the US. There is no cure, but the condition can be managed by avoiding gluten.

Secret keeps track with Girls on the Run USA P&G’s deo brand Secret has extended its support of the Girls on the Run charity.

Secret, which has supported the group since 2008, is donating $200,000 as part of P&G’s Live, Learn and Thrive initiative. The donation will help nearly 2,000 young girls on the youth development programme, which promotes self-esteem and healthy living among preteen girls.

“Secret gives girls the confidence that they’ll smell great all day – it’s a perfect partnership,” said Kevin Hochman, marketing director, North America.

A Facebook contest supports the project. Girls can log on to the charity’s curriculum – self, relationships or com-

Tracking studies: P&G’s donation will support 2000 young girls

munity – and accept one of the challenges, write about their experiences and Secret will donate $1 for every story.

Participants will also be entered to win prizes that help

girls achieve their next “fearless feat.”

In separate news, P&G has named Eva Mendes and Naomi Watts as celebrity brand ambassadors for Pantene.

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Phantom Rolls out new app UK The Rolls-Royce Phantom App is now available from the App Store.

The app, for iPad, iPhone and iPod touch, allows clients and fans to create bespoke virtual models, including the ability to apply unique colour and interior trim combinations.

It also features an image gallery of bespoke features such as seat piping, veneer

Nice touch: Rolls-Royce Phantom APP

inserts, humidors and champagne seats. Rolls-Royce offers a palette of 44,000 colours for Phantom models and the app lets users create the exterior finishes.

The Bespoke Colour Match feature also allows limitless and single and two-tone paint designs. Using an iPad, iPhone or iPod touch camera, users could capture – for example – the colour of a favourite lipstick or luggage then apply it to the exterior of their virtual Phantom.

Nearly all Phantom buyers demand some bespoke elements for their cars and the app showcases many popular options, says the company.

The app follows last year’s launch of the Rolls-Royce Ghost App.

ADMC’s Ghai named CEO of Eros Digital Ghai joins Eros Digital as it expands its digital strategy India Eros International plc, the integrated Indian film studio, has named Ricky Ghai, 50, as CEO of its new media arm, Eros Digital, effective next month.

He will be based in Eros’ operating offices primarily in India, as well as the UAE, the UK and the US. Ghai joins from the Abu Dhabi Media Company – ADM – where he led the Digital Group since its inception in 2007.

Previous roles included 10 years at the BBC in content acquisition and business de-

New role: Ricky Ghai

velopment roles followed by senior programming positions at TV3 Sweden, MBC Group and Orbit (now OSN). More recently, he worked with BT

Vision launching its VOD service in the UK. Ghai joins Eros as it expands its digital strategy including the digitization of its 2,100-strong film library, to assist in monetizing its IP. Digitization also enables Eros to access the Indian diaspora across the world, as well as domestically.

According to the Federation of Indian Chambers of Commerce & Industry/KPMG April 2011 , the digital sector of the India’s Media & Entertainment industry has grown by 30 per cent.

Fans in tune with brand participation UK Music fans are becoming more receptive to brand involvement in music says new research from Bauer Media.

In its latest tranche of music consumer research – Phoenix IV – Bauer found that as execution and creativity of brand involvement improves, so it becomes more accepted.

The last Phoenix study in 2008 found that while consumers understood the need for brand’s investment in the genre they viewed it as “a necessary evil”.

Other key findings revealed that albums are still popular among consumers and are often bought following the initial digital download.

The report also identified a need to control artist access in order to prolong fan appeal.

“In this social media age,

Music to their ears: Fans are becoming more receptive to brand involvement in music

it’s all too easy to follow your musical icons on a minuteby-minute basis. There’s a consensus within the industry that this ease of access is leading to artists losing appeal more quickly” said the report.

Fans are also motivated by brand heritage and the story behind the song is often trigger to purchase, while live

music is most likely to drive consumer engagement and word-of-mouth within social networks.

Com ment ing on t he findings, Bauer’s publishing director Rimi Atwal said that brands were now perceived as value-adding rather than as an interruption to an experience.

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World News

New agency formed for “age of entrepreneurship” Salt Brand Soloutions to ‘break traditional moulds, old ways of working and thinking’ India Mahesh Chauhan, former CEO, and Minakshi Achan, former CCO, Y&R Rediffusion, have formed a new agency, called Salt Brand Solutions.

The agency is described as: “a society of people who create the purest possible solutions for brands by breaking traditional moulds, old ways of working and thinking; through the culture of collaboration – with artists, anthropologists, musicians, students, environmentalists, mystics… Whoever can help

co-create and contribute to the success of the brand.”

“India is today at the age of Entrepreneurship,” Chauhan says: Achan added: “It’s a great time to be an independent agency. There’s a creative revolution out there – with consumers themselves generating interesting content.

“As brand creators, if we can manage, orchestrate and choreograph this revolution, then we can ride the change for our brands.”

Land Down Under comes out on top

WPP and IMG in licensing partnership

China/Australia Melbournebased Clemenger BBDO & Proximity emerged as the top agency in the 2011 Asian Marketing Effectiveness Awards in Shanghai recently.

The agency landed the Platinum Award for its work for Yellow Pages Australia, ‘How Hiding a Restaurant Proved that Yellow Pages Worked Better than Ever – The Hidden Pizza Restaurant’.

Led by Bob O’Leary, head of global marketing for Citi, the jury selected Clemenger BBDO & Proximity from among all the gold winners. There were 858 entries from which there were 54 winners including 15 gold, 20 silver and 18 bronze trophies. Australia garnered the most awards (13), followed by India (10), Hong Kong (7) and China and Vietnam (6 awards each).

UK WPP and global sports and media company IMG Worldwide have teamed up in a world partnership to offer consumer products licensing and merchandising services.

As part of the multi-year agreement, WPP and IMG will establish a joint team and share resources to offer and provide licensing services to clients from WPP’s portfolio of agencies.

“More than ever, licensing is emerging as one of the new creative ways of developing brands and sales.

“It is a capability we see as increasingly important to our clients.

“We wanted to offer this important discipline in a global execution and with the market leader – that is IMG.” said Martin Sorrell, WPP CEO.

New team: Chauhan and Achan

According to a press release, the Salt team sees itself as ‘Brand Donors’ aiming to seed

the brand in commonplace culture, and in line with that, has defined its work process in three stages.

First is Chatter, described as “keeping an ear to the ground. Listening to potential customers and anyone who has a POV on society, people, arts, trends and, of course, brands.”

The second is Handshake, to start conversations followed

by Brand Tattoo, “Ideas that leave an indelible impression on consumers.”

Shared goals: WPP’s Martin Sorrell

George Pyne, president of IMG’s Sports and Entertainment Group, added: “WPP’s agencies have an impressive roster of clients coupled with the brand knowledge and consumer insights that come from years of experience working with them.”

Executives from the WPPIMG partnership will be meeting with advertisers

interested in developing brand licensing programmes or who have the potential to do so, said WPP in a company release.

The new WPP venture is an additive unit to IMG Licensing’s existing operations and the latter will continue to serve existing and new clients without change.

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CRITIQUE

Client: Qatar Airways Agency: QR Marketing Communications and Batey Singapore

CREATIVE VIEW

Qatar Airways and ADCB Etihad Guest credit card launch Phil Lynagh Managing partner, LightBlue, Dubai Qatar Airways: I’ve never been a fan of destination advertising that talks solely about where you can fly to. These ads should convey the journey, the experience of flying with Qatar Airways but, unfortunately, they don’t.

I understand the attempted subtleties such as Aleppo being the home of hard soap and Stuttgart being synonymous with car manufacturing, but is Qatar Airways the only airline to fly to these destinations? I wish they’d sell the brand instead, eg, I want to know the level of comfort I’ll travel in will be superior. I want to know that the in-flight food will offer me a sensation of the destination.

The press ads have the look and feel of a four-star hotel chain promising me local insights and experiences upon

arrival, something I would be expecting anyway. The art direction is formulaic and poor; to be fair it’s all a bit dull.

The radio scripts feel forced and old and have me switching channels the second time around.

My Qatar Airways experience starts when I head off to the airport and finishes when I exit the airport, a fact these ads fail to realise and deliver on.

Missed opportunity.

ADCB Etihad Guest credit card launch: Co-branded cards are difficult beasts to advertise. There are two sets of equities to protect and often a bunch of ‘me too’ promises such as lounge access, priority check-in etc. These ads for the ADCB/Etihad Above card are well put together, but I can’t help but ask myself where I’ve seen them. The print ads are stale and perhaps the money would have been better spent on a decent direct piece to existing customers or physi-

cal experiences that would have more time to tell the whole ‘benefits’ story.

Above looks like a decent product, but both of these powerful brands should have produced a far more powerful and relevant campaign. Nice enough art direction, but headlines like “Everyone’s got a place in this world and yours is not standing in line” is a tad strangulated and no doubt over promises. Not bad, but they didn’t make me want to rise above.

Munah Zahr Creative director, Leo Burnett, Dubai Creating an ad is like cooking. You have your ingredients (idea, copy, crafting), but the possibilities are endless. And the final objective is to satisfy everyone’s hunger. At the end of the day, what you like eating and what you don’t is very subjective. It’s the same when you see and judge an ad. So, what’s on today’s menu?

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Client: ADCB Etihad Guest credit card Agency: Fallon Minneapolis ADCB Etihad Guest credit card launch: Although we live in an Arab country, I often feel that Arabic doesn’t get enough recognition and is treated like a second language. I was delighted to see the use of Arabic, not just in copy, but also as a graphic element in this campaign. This gives a unique touch to the design of the cards, and using it as a template also adds a lot of spice to the whole thing.

But it stops there. The rest is back to ad land. The copy doesn’t bring anything new. It’s another premium credit card big promise. Visually it ticks the box for being classy and distinctive, but there is a lost opportunity here.

The best visual representation is the man on the escalator because the architectural graphic environment is visually close to the graphic treatment of the Arabic calligraphy in the background. It would have been great to explore a better integration for these two elements instead of just fading to black. The other two visuals (beach and boat) are just nice blackand-white photos.

There’s something good simmering here, but the pot has probably been

taken off the stove before the meal has really been “cooked”.

and forced when compared to the simplicity and purity in the Aleppo visual.

Qatar Airways: What I like most about Qatar Airways’ previous communication (mainly TV) is this: it differentiates itself by being the world’s five-star airline, one which pays extra attention to the finest detail and makes your trip as enjoyable as the destination itself. This is where Qatar Airways has made its mark. It is a self-centric approach, but why not?

Brussels radio: I love the copy and the “I am” approach. But the delivery just kills it. Why? The guy sounds like he’s in a rush: “Let’s just record this ad quickly because I have a plane to catch!”. This is the extra salt you’ve added – and it’s ruined the whole meal.

■

PHIL LYNAGH Aleppo & Stuttgart print ads: In these ads the hero is the destination by focusing on something that characterizes the city. It’s good, but conceptually it’s been done a lot by other airlines.

Yes, I learned a new and interesting thing about Aleppo, but where is the world’s five-star airline? (I must admit though, I do like the “details” in the soap image.)

Playing on the stallion as Stuttgart’s coat of arms and recomposing it out of cars is an unfair representation of the city. The tiled background also doesn’t help. The whole thing looks composed

ADCB/Etihad Qatar Airways

MUNAH ZAHR

ADCB/Etihad Qatar Airways

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© Getty/Gallo Images

Media

Screen grabbers

GMR exclusive: The region’s teens are glued to their screens, the question is which one? Laptop or TV?

“Internet will soon draw level with TV to fight it out for the status of most-used medium among the region’s teens.

This is the key finding from the AMRB and TRU study: 2011 teen edition which, for the second year, has included feedback from teenagers in Egypt, Saudi Arabia and the UAE. The study reveals that MENA teens spend an equal amount of time on the internet and TV in the UAE and Saudi Arabia – approximately two hours.

In Egypt, however, where internet penetration is much lower, teens spend almost 2.5 times more hours watching TV – four hours – than they spend on the internet – 1.5 hours.

Girls in Egypt spend more time watching TV than boys – close to 4.6 hours a day.

There are indications that TV triumphs as the most used mass medium among

MENA teens. They are glued to the TV, particularly when they see appealing commercials, making it still the most effective vehicle for brands.

In Saudi Arabia and Egypt, TV is also the most trustworthy medium and is, therefore, the chief source of news and information for teens in both countries.

In Egypt, TV stands above all other mass media. Each household owns a TV set, while internet penetration remains low.

TV, therefore, has the monopoly. Apart from their favourite MBC and Rotana channels, news channels such as ADTV and Al Jazeera are also very popular.

The internet, however, is rapidly closing the gap and is a strong second to TV. We expect it to compete head-to-head with TV in the next few years. In fact, in the UAE, the internet is as trusted a medium as TV.

The study also suggests that ‘going online’ is one of the top five everyday activities for a MENA teen. In Saudi Arabia girls spend more time online than boys.

The study indicated that most of the MENA teens prefer to get news and information about current events through TV and internet, although TV remains the preferred source of getting marketing information about products and services.

Where MENA teens differ from their global counterparts is when it comes to information on current events, with word of mouth being the to be a more efficient source of current events than newspapers.

The internet’s popularity continues to rise among this tech-savvy generation.

Web access is increasing dramatically in spite of the differences between developed

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measuring leisure time How many hours a day do you spend on each of the following activities?

UAE Teens Base Watching TV Going online

Total (401) 2.0 1.9

Males (204) 2.0 2.0

Females (197) 2.1 1.9

KSA Teens Base Watching TV Going online

Total (800) 2.3 1.9

Males (403) 2.1 1.7

Females (397) 2.5 2.1

Egypt Teens Base Watching TV Going online

Total (814) 4.1 1.6

Males (404) 3.6 2.0

Females (410) 4.6 1.1

BASE: All respondents. All figures are averages in hours

What are the best ways for a company to let you know about important information (discounts, sales, new products, etc.)?

100

UAE

90

KSA

91

Egypt

89

84

70 60 50 40

17

TV

In school

E-mail

Magazine

Radio

4

14 7 Text/SMS

18 5

Call on cellphone

Billboard

TV

3

Social networking

6 Text/SMS

6

In school

10

17

12

E-mail

11

Magazine

11

Radio

Billboard

TV

Text/SMS

In school

E-mail

10

Magazine

Call on cellphone

Radio

7

1 Billboard

0

5 Social networking

10

21

11

Call on cellphone

17

20

33

27

22

Social networking

30

BASE: All respondents Global (35721), UAE (401), KSA (800), Egypt (814). All Figures are in %

What are the top two ways you most like to get news and information about current events?

100

UAE

95

KSA

87

90

95

Egypt

80 70 58

60 50

42

40

40 30 12 3

5 Radio

10

22

19

20

Magazine

12

13 3

6

9

14

14

15

4 TV

Internet

Word of mouth

Newspaper

Radio

Call on mobile

TV

Internet

Word of mouth

Newspaper

Text/SMS

Magazine

Radio

TV

Internet

Word of mouth

Newspaper

0 Text/SMS

Š Getty/Gallo Images

80

BASE: All respondents Global (35721), UAE (401), KSA (800), Egypt (814). All Figures are in %

June 2011 Gulf Marketing Review 25

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MedIa thinking about the various media, which best describes the following characteristic: most attention-grabbing ads? (select one answer) Most attention grabbing ads 5 10 6 21

16 12 3

thinking about the various forms of media, which best describes the following characteristics: most used, most entertaining, most trusted, most informative?

Most used 8

8 8 3 19

7 4 5

37

Most entertaining 2

2

6

21

18

41

4 1

3 8

2

35 50

55

57

77

76

51

54

66 53

62

UAE

KSA

Internet

8

63

57

Television Newspaper

3

37

18

17

Global

3

Radio

Egypt Magazine

Base: All respondents Global (35721), UAE (401), KSA (800), Egypt (814) - All Figures are in %

44

32

Global

UAE

KSA

Television

Internet

Other media

Egypt

Global Television

Most trusted

UAE Internet

KSA

Magazine

6 9

5 7 5

Most informative

16

4 4

5

20

8 4 12

6 12 21

12

12 6 10

6 17

8

6

38

35

45

46 55

60

Global

UAE Internet

61 34

36

Television Newspaper

18

15

21 22

Egypt

Radio

KSA Radio

Egypt Magazine

Global Television Newspaper

65

25 UAE Internet

KSA Radio

Egypt Magazine

Base: All respondents Global (35721), UAE (401), KSA (800), Egypt (814). All Figures are in %

ABOUT THE STUDY This research, which was carried out

by AMRB and TRU, aims to understand teens as consumers, their associations with, and perceptions of brands, their lifestyles, attitudes and opinions about a variety of topics. It also highlights the differences between MENA teens and global teens across 40 countries. The Arab field work was conducted among local Arab male and female teens aged 12 to 19 across all socio-economic classes. Face-to-face interviews were conducted with 2,000 teenagers (UAE, 400; Saudi Arabia, 800; and Egypt, 800).

The interviews took place in Dubai, Abu Dhabi, Cairo, Alexandria, Jeddah, Riyadh and Dammam.

and developing nations. And, even though it has yet to fully penetrate this region – particularly in Egypt – it is becoming more accessible to households.

Facebook, Google and Yahoo! are the most-visited sites among Arab teens, followed by Youtube and Hotmail in the UAE and Saudi Arabia and MyEgy in Egypt.

The latter – which is a comprehensive entertainment website – is the only local site that enters the “favourites” list.

The majority of MENA teens claim that close friends and school friends are their primary connections in social networking sites. Somewhat surprisingly, however, is the significant number which have “anonymous” friends, people they do not know personally, but which form part of their “friends” list.

This is most prevalent among teen girls in Saudi Arabia, where social network-

ing sites have become a new ‘venue’ for meeting and socialization. This group is also the most active on Facebook, which has become a platform for self expression and sharing points of view on many issues considered contentious in Saudi society.

Those brands targeting youth should direct their ads towards TV – but they also need to engage the teen on the internet too. Engaging through social networking websites, innovative competitions, and games is an important consideration too.

■

deepali Bamane Project director aMRb Dubai

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©Corbis

COVER STORY

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Buy me, buy me…

©Corbis

Rob Morris paves the way to purchase as shopper marketing takes an increasingly bigger chunk of media spend.

Richard Nicoll knew selling a sensual brand of chocolate in Saudi Arabia was a tough task. Charged with creating a promotional campaign for Cadbury Flake, the shopper marketing expert had to develop a strategy that helped sell the chocolate without compromising local sensitivities.

The global campaign for Cadbury Flake, featuring an attractive female, is fine for Europe and the US, but obviously not suitable in Saudi Arabia.

Instead, the managing director of shopper marketing agency Saatchi and Saatchi X in Dubai created a campaign showing just a pair of female eyes surrounded by crumbly chocolate. The concept retained Cadbury Flake’s sensual branding without offending potential Saudi customers.

“Seductive images are used to fire up the shopper’s imagination in the chocolate aisle and convince them to make that impulse purchase,” Nicoll says. “We couldn’t do that in Saudi, so we came up with the concept of having just a pair of eyes, which appeared on theatre stands, posters, shelf dressings and counter tops.”

It’s clear then that shopper marketing in the Middle East isn’t just about raising the volume of brands above the typical

3,000 marketing messages that consumers are bombarded with daily.

Nor is it just about fighting for attention among the 50,000 SKUs displayed in most supermarkets – up from an average of 15,000 in 1980.

And it isn’t just about instore displays either, although these are probably the most visible expression of the total strategy.

It’s also about understanding consumers from the get go. According to Unilever’s famed definition, it’s an insight-based process with the “focus on the process that takes place between that first thought the consumer has about purchasing an item, all the way through to the selection of that item.” purchasing power

Pyschological: Saatchi and Saatchi X’s Richard Nicoll

Digital: Ogilvy Action’s Claus Adams

As Claus Adams, regional director MENA, Ogilvy Action, points out: “Selling and buying, once a one-way interaction between a brand, retailer and buyer, has become conversational and more engaging.

“Since then, it has seen rapid growth over the past years fuelled by the need to shift spending further down the purchase funnel, get beyond price, inject more equity into in-store marketing, and develop greater retail intimacy that leads to sales lift.”

Brands in the Gulf are increasingly evident on this pathway to purchase.

A recent study highlighting this trend showed 83 percent of food, beverage and consumer product manufacturers in the US planned to spend more on shopper marketing in the next three years.

The Shopper Marketing 4.0Building Scalable Playbooks That Drive Resultsreport, carried out by the Grocery Manufacturers Association and Booz and Co late last year, also revealed shopper marketing to be the number one investment for 55 per cent of respondents. In addition, many of the international manufacturers, retailers and shopper marketing agencies involved in the study said they would increase their spend by five percent.

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COVER STORY

Not for all eyes: The global ad campaign for Flake showing an attractive female was changed for Saudi to avoid compromising local sensitivities. The above ad was rolled out instead

Every act of communication offers a new sensation for people – excitement, satisfaction, surprise or peace of mind...

When it comes to the Middle East, industry pundits, such as Nicoll agree that the benefits of shopper marketing are well understood.

“Companies have always invested in brand activation, but shopper marketing has in recent years become a high-profile element of marketers’ activities.”

The shopper marketing concept sounds simple enough; shoppers go out with the intent to buy something specific as opposed to consumers that may purchase a product while browsing. If a shopper wants to buy milk, for example, they will encounter several brands selling the same product. In an attempt to secure the sale, one particular brand will use various instore techniques and displays to engage with the consumer and influence their purchasing decision.

“It’s marketing to shoppers, so when is a consumer a shopper? It’s when you have a mission-critical need to buy something

whether that be a motor car, TV or tube of toothpaste,” Nicoll explains. “That’s when you become a shopper and shopper marketing is everything that influences your decision when in shopper mode or during the path to purchase.”

Before encouraging a shopper to buy their product, a brand must first understand what the potential shopper is looking for.

Says Adams: “We have seen a significant increase in the number of brands Strategic techniques

Continuum: Interger’s Insightful: Leo Burnett Arc’s Raja Sowan Nassim Nasr

investing in research into this area to enable them to identify new understanding of behaviour, and create actions against specific insights.”

Omnicom-owned The Integer Group, whose local agency partner is TBWA\ RAAD, achieves this by applying its ‘shopper continuum’ planning tool to the shopper experience.

The methodology involves assessing what people do when preparing to shop, such as researching the product online, and the promotional tools brands use to secure their custom.

Dubai-based Nassim Nasr, Integer’s general manager, says retailers have a range of strategies at their disposal to secure a sale, including in-store advertising, offers, marketing, on- and off-shelf displays, and samplings.

Other techniques include coupons, direct mail and newsletters highlighting a particular product or offer, price comparisons and barcode scanners where customers can immediately receive information about an item direct to their smartphones.

“The most popular platforms are the ones that are offer-driven where we use things like on-shelf displays,” Nasr says. “But we find the most successful vehicles are

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Success doesn’t need a desk The Nokia E7.

With powerful mobile office tools.

Imagine being able to do business anywhere, anytime. The Nokia E7 truly is your mobile office, with Microsoft Office solutions on a 4” touchscreen with a slide-out QWERTY keyboard. It allows you to edit Word, Excel and PowerPoint files with embedded QuickOffice solutions. Also stay in the office loop while you’re out by picking up work emails with Mail for Exchange.

Now stop imagining.

Success is what you make it.

© 2011 Nokia.

nokia.com.sa/e7

GMR Ad 21.5X28.indd 1

27/04/2011 17:58

© Getty/Gallo Images

COVER STORY

Open to feedback: Qtel regularly ask customers visiting its stores to provide feedback on the brand

“Every act of communication offers a new sensation for people” in-store displays, promotions and product packaging, which continue to be viewed as the most effective means of reinforcing a message and influencing purchases.”

Leo Burnett has a similar outlook when it comes to shopper marketing. Raja Sowan, regional director of the retail engagement practice at Leo Burnett Arc agrees that promotions and in-store advertising are effective tools.

In his mind, the best campaigns develop from solid research into shopper marketing.

“Popular belief has it that shopper marketing is just marketing in store, but we see it differently,” he says. “For us, it’s based on insights into people as shoppers – it’s as simple as that. We work with our clients to build a brand so they can reach shoppers and close the sale.”

Saatchi and Saatchi X’s approach to gathering information involves working with psychologists to understand what people in ‘shopper mode’ think.

“The cool thing about shopper mar-

keting is it deals in simple human truths and behaviours,” Nicoll says. “It’s about understanding why people buy and what the barriers to purchase are, such as price, relevance to their needs, colour and so on.

“When working with a particular brand, our planning team spends days, weeks or months with shoppers in that product category to understand the purchase motivations and barriers.”

Two factors in particular deter people from buying products, according to Ron Askew, chairman of US brand and communications agency Tracy Locke, which recently opened a Dubai office which is owned by DDB Dubai.

“Navigation, where you know about a brand but have a hard time finding it in the store, is an issue,” he says.

“The second reason is an item’s colour palette and packaging design, which can get lost on a shelf among several other brands. We speak with retailers about how to maximise sales per shelf by resetting

the shelves and changing the layouts.”

In Qatar, teleco Qtel gathers shopper marketing data by regularly asking customers visiting its stores, logging onto the website or phoning its call centres to provide feedback on the brand. The information is then applied to advertising and marketing campaigns using imagery that appears in the company’s stores to establish familiarity with the customers.

This approach was taken when the company launched its ‘Fuel Your Senses’ promotion in 2009, with Qtel placing massage chairs in its stores to create a “sense of peace” and organising waterbased activities at the beach to provide a “sense of adventure”.

“The campaign was designed to be inspirational, exciting, warm and enriching, and used our Qtel Shops as a major platform to reach out to the community,” explains Steven Mak, Qtel’s manager of corporate branding.

“Every act of communication offers a new sensation for people – excitement, satisfaction, surprise or peace of mind – and we positioned our brand to reflect that. ‘Fuel Your Senses’ helps to remind people of the important role that a and

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COVER STORY

Attention to detail: Paris Gallery’s staff is expert in knowing the customers and brands they have previously bought

our services play in people’s daily lives.”

In Paris Gallery’s case, engaging with customers by making them aware of product launches or selling new items up to 10 days before their competitors is a successful strategy. The luxury retailer recently launched a new Dior fragrance at its outlet in Abu Dhabi Marina Mall, with staff contacting people listed in the store’s customer database that were most likely to buy the product.

“We have an extensive database and our floor staff is expert in knowing the customers and brands they have previously bought,” says Paris Gallery’s Shana Clucas, Paris Gallery’s commercial marketing manager.

The Abu Dhabi store sold 65 units after informing customers about the Dior product launch – more than double that of a rival retailer when they began selling the same fragrance, she added.

“It comes down to knowing your customer and being able to phone them and say ‘this is what we have’,” she says of Paris Gallery’s shopper marketing strategy.

“The results are far greater than taking out a newspaper advert.”

As part of the company’s annual $5.4

million shopper marketing spend, all Paris Gallery stores in the UAE, Saudi Arabia, Oman and Qatar focus heavily on customer relations to boost sales. What the company does not do, however, is try to force shoppers with a particular brand or item in mind to buy a different product.

Instead, the retailer’s strategy is to encourage buyers to purchase another item in addition to the one they already want.

“We don’t talk you out of buying the brand you want as it comes back and bites you,” she warns. “The key is if you walk in to buy a Tom Ford product, we want to sell you that and something else. You get salespeople that are good at talking you out of something you want and getting Right message

Inspirational: Qtel’s Steven Mak

Navigation: Tracy Locke’s Ron Askew

you to buy something else, but that leads to people bringing those items back.”

Aside from a deep dive into the minds of consumers, robust shopper marketing can also evaluate the success of an advertising promotion. Real ROI, a retail research tools provider that recently launched in the Gulf, has developed a web-based system for analysing product marketing campaigns.

For instance, a car maker that launches a new model can use the system to instantly see in which country the vehicle was sold, and the number of total sales by nation or region. The system can also show whether a reward or loyalty programme for regular customers helped secure more sales.

“This tool helps the marketing guys in Riyadh or Dubai to manage entire regions just at the click of a button; it’s as simple as using an excel spreadsheet,” says Arnaud Verchere, Real ROI’s founding partner and CMO. “If you want to look at a reward programme and how successful it is you can log onto the website, filter it through different parameters and see various charts. It also shows a company such as Panasonic, for example, how one of its cameras is selling in Carrefour compared to Sharaf DG.” While in-store advertising, promotions and customer engagement remain effective marketing tools, fierce competition is forcing brands and retailers to adopt more sophisticated sales methods. It is a growing trend that Nicoll from Saatchi and Saatchi X has noticed since relocating to the UAE more than two years ago. The Brit says brands such as Oasis Water, and P&G’s Pampers have stolen a march on their respective rivals by incorporating CSR within the shopper marketing initiative.

In partnership with UNICEF, Pampers introduced the ‘one pack’ promotion to combat tetanus – a disease that claims the lives of 140,000 newborn babies in developing countries each year. For every specially-marked pack of nappies and wipes, Pampers promised to donate the cost of a tetanus vaccine to UNICEF. When establishing the six-week ‘Water For Africa 2010’ campaign, Oasis

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COVER STORY

Attention-grabbing: Lurpak’s Ramadan poster campaign, where the letter I was substituted for a tub of Lurpak butter

The cool thing about shopper marketing is it deals in simple human truths and behaviours Water pledged to help provide the continent with safer drinking water by building wells in villages across Kenya, Botswana and Tanzania. The company also said it would encourage people in the UAE to buy specially-branded ‘Oasis Water For Africa’ bottles, with proceeds going towards building the wells.

Away from charitable causes, Nicoll cites Saatchi and Saatchi X’s work with Lurpak as another example of marketers employing more sophisticated methods.

The agency created a poster campaign for Ramadan, highlighting several words – such as cooking, sharing, eating and giving – to sum up what the Holy Month means. The letter ‘I’ in each word was substituted for a tub of Lurpak butter to create a strong association between the product and the occasion.

“The best campaigns are the ones that, for example, connect with mum and anticipate what she thinks she needs to buy to celebrate Ramadan,” Nicoll says.

Creating a campaign that resonates with its intended audience is achievable, providing the company in question invests inshopper marketing research, according to Tracy Locke’s Askew. He recommends companies spend at least 20 per cent of their marketing budget on shopper marketing to understand what consumers want.

“The good thing about shopper marketing is you know whether an in-store campaign worked or not as you can assess the sales figures before and after that engaging

Knowledge: Paris Gal- Web-based: RealROI’s Arnaud Verchere lery’s Shana Clucas

period,” he says. “But with advertising, the ROI is not always clear.”

Nicoll agrees, claiming the typical five per cent that Gulf companies spend on shopper marketing isn’t enough.

“There are some businesses that don’t spend any money on shopper marketing, while others only invest a small amount,” he says. “But companies really should invest more if they want to boost sales.”

But to where exactly should that investment be directed? Surely digital will continue to claim a greater part of the strategy as it does with most other marketing communications initiatives?

For Ogilvy Action’s Adams, there is no doubt.

Retailing, he says, will change more radically during the next five years than it has in the past 20. The predominant feature of all this, he adds, is information overload.

“Digital has forever changed the purchase path,” he says, adding that with its overwhelming youthful population Digital Shopper Marketing will gather huge momentum across the MENA region.

“Today’s marketing challenge is to deliver value at all stages of the chain, while at the same time being at the epicenter of digital convergence. In the era of Google, Twitter, Facebook, Groupon or TripAdvisor, consumers are as much in control over the flow of information as brands.”

But before allocating budget, brands must have a very clear understanding of space.

“To find meaningful shopper insights, to understand the shopper behaviour of a specific retail channel within the context of both the specific retailer proposition and the brand is essential.

“Customising the solutions, implementing new strategies, ideas and technology that engage consumers and ultimately enhance the shopper’s experience. That’s where brands and retailers can help shoppers sort out what information is valuable – no matter at what stage of the shopper journey the consumer is at.” n

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coverstory

Point of sale

Do activation agencies only think about hypermarkets for their shopper solutions at retail?

Customer relations: Grocery channels understand shoppers’ behaviour

Mushkil Naheen, karey ga (No worries, will do…) is the common expression you hear from people from the subcontinent.

In fact, this is probably one of the most repeated phrases in this part of the world.

Recently I overheard my wife calling a local baqala [small store]. “Can I have one dozen eggs, one litre of milk, one bottle of mango juice and one family pack of vanilla ice cream?”

She paused to get confirmation, but before ending the conversation she asked for the items to be delivered as quickly as possible. She then hung up. I am sure the guy on the other end of the phone used the ‘mushkil naheen” phrase.

But what really caught my attention was the crushing realisation that all of my rhetoric and lectures on ‘brands’ had seemingly fallen on deaf ears. Here was my wife ordering a raft of products without mentioning one brand name.

I am generally amazed with the trust we have with the grocers. Exactly 10 minutes later, the delivery boy was at the door.

My wife didn’t even check the shopping bag. She gave him the money, a tip and off he went. The transaction was done.

Sceptical about the accuracy of the order, I checked the vanilla ice cream. It was the one the family loves. My wife then explains how the grocers keep a tab on the brands delivered to our house – so there was nothing to worry about.

One thing that did emerge from this conversation, however, was the role of grocery channels in the GCC. When devising activation programmes, we hardly think about this important channel.

We have made ourselves believe people only purchase from convenience stores and hypermarkets. But this is not the case.

Most FMCGs will confirm that grocery channels contribute nearly 50 per cent of their sales volume. Yet even activation agencies only think about hypermarkets for their shopper solutions.

The situation is no different in a household of local Arabs, Pakistanis or Indians.

I am sure people living in the GCC can

relate to this phenomenon of purchase.

All of us have become used to this purchase pattern and are quite comfortable.

My wife doesn’t know what the nearby baqala looks like inside, and yet she orders from it on a daily basis.

It shows that grocery channels really understand the shopper behaviour. They realise they are going to lose customers if they are not offering efficient delivery.

This whole customer and shopper relationship of trust leads to questions on brand marketers and their activation agencies. What are we doing with the money? Are we investing in the right areas?

That beautiful PoS and the lovely dangler we have created, do we really need it in the grocery channel? Whom do we expect to see it? Who is noticing it? It seems quite clear that grocers can exert a lot of influence over the purchase patterns to the ever-demanding customers. He can upsize, make us try different brands and build loyalty for a particular brand. Conversely he can damage the brand through his behaviour and service as well.

We need to revisit our brand and trade programs. Can we think about the retailer, the shopkeeper and the delivery boy? Can we put incentive schemes above the usual margins that they get?

The whole phenomenon of ‘delivery’ is here to stay for a long time yet, and we better start looking at this challenge for the brand with an attitude of “mushkil naheen” to really influence purchase behaviour. n

Vaquas Alvi Area director BAT Ogilvy Action, Dubai

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S E c t o r A n A LY S i S

Food we get a taste of the changing behaviour of food consumers in the region.

Prices rising Expensive tastes Healthy choices Kantar data Sekari search data Mediastow data PArc analysis PArc data

40 44 46 48 52 54 58 62

ŠGetty/Gallo Images

nEXt MontH HoUSEHoLd cLEAning

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Bulking up

©Getty/Gallo Images

Rising food prices are forcing consumers to change their buying habits.

According to Euromonitor International, March 2011, on the impact of food prices on consumers and businesses, rising oil prices, along with other factors such as a shortage of water, adverse weather and the weakening of the dollar have contributed to the rise of food prices and lower income Food prices are at an all-time high.

“The price of flour will continue its upwards trend, with 2011 being penned as the year in which flour reaches a record high…coffee prices rose to an all-time high of $411 [per coffee bag in an auction]” says Neil Turnbridge, head of retail services of Dubai-based consultancy, GRMC. According to the World Bank, more than 44 million people have sunk below the “extreme poverty line,” which means they are living on $1.25 a day.

Waqas Moosa, marketing director of Saudi food company Goody, says: “In general, the trend on food pricing has been upward over the past few years… and during the past few months, the trend is again upward, with prices on some food products almost reaching the highs of 2008.”

Due to this increase in prices and decrease in income, Egypt saw a sharp increase in its trade deficit to US$27.8 billion from $21.9 billion in 2009 (source: up, up and away

Sights high: Waqas Moosa Saudi food company Goody

Euromonitor, March 2011).

In the GCC, a lot of food is imported, and the rising cost of transportation has a knock-on effect on the frequency of food-purchase.

“The rise in oil prices has affected food purchase because of the related increase in logistics/transport costs,” adds Waqas.

“A lot of the food products consumed in Saudi Arabia and other GCC markets are produced in various parts of the world and then transported to the market.

For example, we bring our coffee from Brazil, the chili for our hot sauce comes from South America, Goody Pineapples are grown in Indonesia.

“In some cases, this does also translate to an increase in consumer prices and hence a reduced consumption rate.”

According to the Malaysia External

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©Corbis

S E CTOR A N A L Y S I S

Fields of gold: UAE company Al Ghurair Foods recently opened its 6,000-square-metre new oats plant to supply freshly-milled oats in the GCC

Russia – one of the world’s largest wheat exporters – suffered a drought that resulted in a one-year ban on all grain exports Trade Development Corporation, these spikes in prices are changing the way consumers behave. Bulk purchases from hyper stores have become a strong trait with purchasing becoming more of a once-a-week affair, rather than frequent visits to the neighbourhood outlet.

Euromonitor also revealed that since consumers have to spend more of what they earn on food, they will spend less on discretionary items and durable goods which, in turn, directly hampers the profit of these sectors.

Higher prices have a global effect due to import/export activities. Russia – one of the world’s largest wheat exporters – suffered a drought that caused the Russian government to impose a one-year ban on all their grain exports.

The rise in prices also sees a rise in import tax, which is a problem for some Middle-Eastern countries such as Egypt, a net-food importer.

According to Turnbridge the impact of the continual rise in food costs lifted inflation in Dubai in Q4 2010 as consumer price forecasts indicated further increases throughout 2011 in the Gulf.

Similarly, inflation in Abu Dhabi also edged upwards although the country’s Pastures new UAE company Al Ghurair Foods recently opened its 6,000-square-metre oats plant to supply freshly-milled oats in the GCC. With an annual manufacturing capacity of 33,000 tons, the company hopes to meet rising regional demand for locally produced oats. The new plant complements the company’s daily 5,000-ton capacity flour mill.

Commenting on the new oats plant, Essa Al Ghurair, chairman of Al Ghurair Foods, said: “This new facility not only serves the UAE as a key international trading hub and the world’s third largest re-exporter of agricultural products, but also the wider GCC region, which has long been one of the biggest food import regions in the world, bringing almost 90 per cent of food products in from other markets.”

overall rate of inflation advanced at a slower rate.

That said inflation is expected to continue to rise “moderately.”

The Middle East, especially the GCC, relies on vehicular transportation, and with the rise of oil prices, food prices are bound to change as well.

Since consumers and countries buy and sell from each other import/exportin turn having a global impact on one another when things change; it’s important to study the global consumer.

According to a study by Harris Interactive, commissioned by Coupons. com, American consumers with a higher income are doing more bulk and discount buying than those with a lower income.

The study indicated that 57 per cent of consumers will resort to bulk-buying and seven per cent will use coupons.

With adverse weather, shortage of water, fluctuation of currencyvalue, rise of oil and food prices; consumers and countries alike seem to be changing their behaviour to protect themselves and others from an ongoing struggle. n

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effie teaser 2011 GMR ter.indd 1

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© Getty/Gallo Images

S E CTOR A N A L Y S I S

expensive tastes

The fall out from events in the Middle East and Japan continue to cast a cloud over food prices.

According to Neil Turnbridge, head of retail services at Dubai-based consultancy GRMC, the UAE government tried to “protect the lower income groups of the population from suffering too much inflation pain, by placing price caps on ‘staples’ and monitoring food prices by making sure they don’t increase at unreasonable rates”.

Turnbridge adds: “That said, there may well be some further changes to all of these situations given the current problems that Japan is facing.”

Recent disasters have, of course, had a profound impact on the global food business.

“The tragedy in Japan alone is certainly significant enough to rattle the markets, there are also risks facing investors, including the escalating violence in Libya and Bahrain, as well as renewed

European debt problems,” says Thomas M. Rush, wealth adviser, Yuma Investment Group. It seems that events in the Middle East and Japan are affecting the global economy.

GMR’s stablemate, Kippreport.com, recently reported how: “Price control measures typically tend to have temporary success… At some point firms will pass on higher costs to consumers.”

This could be because the UAE announced in March how it was subsidising rice and bread costs until the end of the year. While things take time to blow over, the consumers might change their preference.

A new report by Global Industry Analysts GIA said the functional foods and drinks market is expected to pick up once it recovers from the recession.

Going forward, the developing regions are expected to be the prime growth engines, with the Middle East, AsiaPacific, Latin America and East Europe forecast to take a share from the US and other developed markets.

It seems that consumers aren’t only changing their purchasing behaviour, they are also changing their purchasing preferences.

Since food prices are high, the consumer has become more aware of other factors that may change his/her life as well. For example, the GIA tells us “increasing health and wellness concerns have moved functional foods and drinks from a niche segment to a mainstream product.”

Once food prices go back to normal, they might find themselves being sold to a changed consumer. n

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S E C T O R A N A L Y SIS

healthy choices

© Getty/Gallo Images

Regular exercise and general wellness are way down the menu for most of the Middle East’s consumers.

Exercise came last when respondents in Egypt were asked to list activities enjoyed in leisure time, says the Journal of American Science.

The journal adds that several studies have shown a possible correlation between skipping breakfast and malnutrition. Nutrition education, it concludes, is necessary.

The Middle East is in need of added health care services and the private sector is showing increased interest in investing in the region’s health care sector.

To further address this, governments are promoting the “wellness concept” through increased awareness campaigns and advertisements.

(Source: me-nann.com).

In partnership with aid agencies, such as the Global Alliance for Improved Nutrition, Dubai Cares is launching projects to supply nutrition supplements and is starting campaigns to help raise awareness about health and nutrition.

“The Goody Company will be very interested… to participate in the development of such a code [healthy food advertising for children] based on global standards,” says Waqas Moosa, marketing director of Saudi food company Goody.

So far, however, most awarenessraising campaigns have been initiated by governments and NGOs. Another crucial factor is the influence of TV over children. Data from the National Health and Nutrition Examination Survey and the Centers for Disease Control and Prevention show that at least one in four children watches TV and/or plays computer games for four hours or more a day. n

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s e c t o r a n a ly s i s

Buying into the argument

Are food consumers behaving differently amid the ‘food crises’?

Chart 1- How spend on food increased in Saudi Total foods category year-on-year change (ending Feb 28, 2011)

Shopping frequency 0.0%

Average spends per shopping occasion +1.1%

Number of buyers +2.9%

With a similar four per cent increase in food prices, shoppers in the UK traded down and began to frequent more ‘no-frills’, discount stores such as Aldi and Lidl, which specialise value-based price propositions. In Saudi Arabia it is the burgeoning modern trade – hypermarkets and supermarkets – which dominate consumers’ food purchases, possibly due to the price advantage vis-à-vis mini markets and baq alas.

Chart 3 – Trended data showing proportion of spends by outlet Total foods category – (quarter year ending) 40 35 30 25 20 15 10 5

Baqala

Mini Market

Hypermarket

Feb 28, 2011

Jan 31, 2011

Dec 31, 2010

Nov 30, 2010

Oct 31, 2010

Sep 30, 2010

Aug 31, 2010

July 31, 2010

Jun 30, 2010

May 31, 2010

Apr 30, 2010

0

Supermarkets

Deanne Poduval Group account director Kantar World Panel Dubai

Annual average weight of purchase* +1.1%

Total spend on foods* +4%

Feb 28, 2010

* On an annualised basis, Feb 2010 vs.

Feb 2011, based on food and non-food categories tracked by Kantar Worldpanel – TNS Middle East and Africa. ** Based on 29 food categories tracked

Shoppers’ changing trends

Mar 31, 2010

“What do you think is the next big thing that could hit the business world?”

Neal Henriques, head of client services at TNS MEA, was quick to respond in 2009 with: “I am not sure at present, but the food crises is a meteorite that could threaten the global economy.”

In 2009, to buffer against rising global prices for basic commodities, Saudi Arabia invested $800 million (SAR3 billion) in leasing and buying farmlands in developing nations.To quote Saad Al-Kharif, head of the food security committee at the Riyadh Chamber of Commerce and Industry: “Strategic storages are needed to secure food supplies and fight price fluctuations” Against this backdrop are Saudi consumers behaving differently?

With inflation rates in Saudi Arabia at 4.9 per cent (February 2011 source: TradingEconomics.com and the Saudi Monetary Agency), household purchase panel data from Kantar Worldpanel, TNS Middle East & Africa, shows FMCG spend grew in line at 4.8 per cent*.

Spending on food grew at 4 per cent**, which was driven by a high number of consumers buying and increased volumes b ein g p u rch ased (see ch art 1). n

Wholesale

So, has the global food crises, inflation and inherent need to seek lower prices in foods impacted the quality of purchasing? We know that the outlay or amount of money spent on each purchase occasion has not changed, are Saudi Arabians then rationalising the mix of product categories they buy? Apparently not.

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Chart 4 – Category classification matrix derived through Kantar Worldpanel home purchase data year-on-year change (ending Feb 28, 2011) 100 90

Laban Zabadi Plain

Cheese Biscuits Potato chips Other chocolates Cooking cream processed

Essential categories

Bouillon Gifting chocolate Portion cheese Natural cheese/Traditional C Processed firm cheese Triangular portions Family breakfast cereals Corn/tortilla Can cheese Bulk feta Extruded snacks

80 70

Penetration %

Edible oil

Full cream/Adult milk powder

60

Soups

50 40

Cooking cream fresh

Ready dessert

Non-essential categories

Olive oil

Shredded/Mozarilla Ghee

30

Slices/singles cheese Brick feta

Laban Zabadi flavoured

Block cheese Kids Breakfast cereals Nuts & seeds

20 Tubs cheese

10

GUMP Adult Breakfast cereals

0

50

100

Purchase frequency Kantar-Worldpanel data indicates that chocolates, biscuits and potato chips have the same coveted position as other typical essentials such as cheese, laban, zabadi and full cream milk. This is reflected not only in the expanse of Saudi consumers who buy it (penetration in chart 4), but is also borne out through the high periodicity (purchase frequency in chart 4) of these ‘non-essential’ purchases.

Chart 5 - Profile of more-indulgent consumers indexed by contribution to spends Location

SEC

149

Age of housewife

Household size

136 124

113

104 102

101 92

93

98

93

108 111

104

101

97

89

88

Wholesale

Baqala

Mini markets

Supermarkets

Hypermarkets

6+ members

4-5 members

upto 3

40+ years

30-39 years

upto 29 yars

DE

C2

C1

AB

Expat asian

Expat arabs

local arabs

Non-urban

Dammam

Jeddah

73

Riyadh

81 64

Interestingly, the more-indulgent Saudi consumers (who buy both essential and non-essential items) are in Jeddah and prevalent among middle income, mid-sized family households. The strongest differentiator, however, is that they shop mainly at supermarkets and hypermarkets, which they perceive as offering the best deals.

Changing trends: For most of 2010, Saudi consumers were happy campers. But as food prices gradually increase, there appears to be a perceivable change in purchase behaviour manifested through consumers’ upsizing volumes on each purchase occasion.

Source: Kantar Worldpanel, TNS Middle East & Africa

122

Nationality

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s e c t o r a n a ly s i s

Food For thoUght chart 6: increased average volume per purchase occasion indicative of consumer upsizing super categories with increase year-on-year change (one year ending Feb 28, 2011) 9 8 7 6 5 4 3 2 1 0

Salty snacks

Breakfast cereals

cheese

Labab Zabadi (Yoghurt)

Bouillon

cooking cream

total foods

total FMcg

ready dessert

edible oil & ghee

Biscuits

chart 2 - Spend share based on categories tracked by Kantar Worldpanel MAT Feb 2011 Hypermarkets Supermarkets Mini market Baqala Wholesale

Consumer spend % 7.4 35.3 20.7 29.6 4.7

Growth % 26.6 1.1 6.7 0.9 2.0

, specifically, supermarkets rule the roost in terms of importance to the food business, More but there is an increasing trend in consumers using more hypermarkets than before. this growth is fuelled through more frequent shopping trips and a marginal increase in spend per shopping trip.

Source: Kantar Worldpanel, TNS Middle East & Africa

this was seen in 23 of the 29 food categories tracked from KWp home panel data. the current trend is diametrically opposite to the 2008 recessionary trends when consumers downsized, made more shopping trips with smaller outlays and shopped more frequently at baqalas.

With predictions forcasting a hike in commodity prices, the close monitoring of how modern trade responds to Saudi’s spending behaviour on foods is definitely worth continual tracking.

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s e c t o r a n a ly s i s

Social Curry-ency

Indian restaurants spice up SEO in the UAE. Indian Food is the most searched for cuisine in the UAE, but it’s not the most talked about.

In the social cooking pot of the UAE there is a plethora of cuisine on offer; one would imagine that just about any dish is available. The question for marketers and restaurateurs alike is: which are the most popular?

By identifying the number of searches taking place for various cuisine types and capturing the volume of comments and sentiment, we can give an indication of most commonly looked for cuisine. Not only can we find out which cuisine the hungry masses of Dubai are talking about, but what they feel about it too.

The answers were not as consistent as expected.

Indian restaurants are by far what people are looking for the most in the UAE, as

they searched for Indian restaurants in their local area.

When the UAE is hungry it searches for Chinese and Italian restaurants. Surprisingly, not as many search for takeaways as they do restaurants. Maybe that’s due to the vibrant eating out culture.

When people want to relax at home, they generally search for a Chinese takeaway.

When it came to the buzz around different cuisines, the most talked about were Arabic and Chinese foods and restaurants.

The sentiment expressed about Arabic and Chinese cuisine was pretty neutral, on average, as was Indian Food. Italian cuisine was the most positively talked about. Continental could be discounted, as there was such little volume available.

On average, there was very little negative sentiment expressed online about any of the cuisine types, a reflection

perhaps of how consumers tend to express positive comments about their favourite dining experiences.

For marketers the opportunities are endless, whether you are a restaurant incentivising good reviews online or a supermarket getting involved in the conversation and creating a buzz around particular specialist recipes and diverting attention to the ingredients in your store.

Not paying attention to social media will only be a recipe for disaster and a missed opportunity to target your potentially most vocal and loyal clients. n

Lee Mancini head of Sekari SEO Dubai

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Search & Social Food/Cuisine Type Analysis Top 20 Keywords Food/Cuisines

Š Getty/Gallo Images

# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Top Food/Cuisine Types by Volume of Social Media Sentimen

Keyword (UAE) indian restaurant indian restaurants chinese restaurant italian restaurant lebanese restaurant chinese restaurants italian restaurants thai restaurants chinese restaurant chinese takeaways chinese takeaway takeaway chinese american restaurant takeaway indian indian takeaway german restaurant indian restaurant names american restaurants italian restaurant menus italian restaurant menu

Search volume 2,400 1,900 1,600 1,000 720 590 480 170 91 91 73 73 58 46 46 46 46 46 28 28

Search Engine Results Pages (SERPS) research conducted on Google.ae.

Top 20 keywords with the most amount of searches last month based on local results from Google.ae

Brand American Arabic Asian British Cantonese Chinese Continental English European French German Indian Indoneasian Italian Jordanian Lebanese Malaysian Mediterranean Mexican Russian Thai Turkish

Sentiment 0.05 0.14 0.20 0.08 0.00 0.09 0.88 -0.02 0.11 0.33 0.16 0.12 0.00 0.52 -0.29 0.45 0.13 0.27 -0.02 0.14 0.49 0.39

Volume 76 251 79 91 2 216 8 83 62 58 25 132 6 84 7 42 8 22 57 14 75 31

Number of mentions in social media in March 2011.

Source: Sekari SEO 2011

Social media – Volume vs sentiment graph: UAE 300

250

HIGH VOLUME NEGATIVE SENTIMENT

HIGH VOLUME POSITIVE SENTIMENT

Arabic Chinese

Number of mentions

200

150 Indian

100 English American

LOW VOLUME NEGATIVE SENTIMENT

Mexican

50

0

Jordanian -1.00

-0.80

Source: Sekari SEO 2011

-0.60

-0.40

British Asian European

German Russian Indoneasian Malaysian Cantonese -0.20 0 0.20 Range of sentiment

French

Italian Thai

Lebanese Turkish Mediterranean 0.40

0.60

Continental 0.80

1.00

June 2011 Gulf Marketing Review 53

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SECTOR ANALYSIS

food glorious food

Issues-led coverage dominates media for Unilever and Nestlé.

The food sector is poised as a catalyst for growth in the GCC job market as food investments continue to surge in line with efforts to attain self-sufficiency, according to a report published in Halalfocus.net, August 2010.

The GCC currently imports up to 90 per cent of its food, with UAE expenditure alone reaching $6.78 billion in 2009.

Figures from the Dubai World Trade Centre show there are at least 150 food processing plants in the UAE, This is indicative of the country’s want to promote food investments, with the government leading the way by committing $1.4 billion. The influx of international fastfood chains, which are moving away from recession-hit markets into highgrowth destinations, such as the GCC, has strengthened the food sector.

The halal food market is another key growth area for specialised manpower services. With increasing demand from 1.8 billion Muslims worldwide, UAE companies are positioning themselves as major suppliers of the halal food industry, estimated to generate $632 billion to $2.1 trillion a year.

The food sector is undoubtedly one of the fastest-growing industries in the GCC. It is also one of the most HR-intensive sectors due the rapid expansion by food companies.

In terms of the print/web media in the GCC, food safety, obesity, inflation and various food festivals were the popular topics. The most prominent, however, was food safety.

Clippings on Clean Middle East; training on food safety; HCT’s Master course in

Food Safety; ban on food from Japan; restaurant food poisoning causing fatalities; the initiatives of the Abu Dhabi Food Control Authority and the tougher steps to combat illegal street vendors were strongly evident in the UAE media during April 2011.

Facets of coverage The two biggest nutrition/food companies in the world; Nestlé and Unilever were monitored in the GCC markets throughout April 2011.

Industry issues provide the backset of the coverage of those two big food giants.

Nestlé and Unilever’s volume of coverage was comparable, with Nestlé only leading by five clippings in April.

Nestlé was able to reach 10.3 million

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readers through 5,309 newspaper column centimetres and 9.52 magazine pages.

Unilever reached 8.9 million through 4,577 newspaper centimetres and 19.08 pages.

These measurements reflect a slight lead for Nestlé, but both companies’ coverage is comparable.

Penetration The vast majority of Nestlé and Unilever’s coverage is English, with Arabic only making 5.4 per cent of Nestlé’s coverage and 4.3 per cent of Unilever’s.

In terms of market penetration, the UAE led for both companies, followed by Oman, and Kuwait. Interestingly, while Unilever did not achieve any coverage in Saudi Arabia it achieved a higher volume of coverage in the UAE relative to Nestlé.

Nestlé displayed high publication genre diversification, relative to Unilever’s.

‘News & Politics’ was the favourite genre, followed by ‘Business’ and ‘Advertising & Marketing’.

‘News’ was the most popular clipping type for both companies followed by ‘press release’ and ‘feature story’. Nestlé displayed greater diversification once more in terms of clipping types.

Finally, in terms of media type penetration, newspapers took the lead for both Nestlé and Unilever in April 2011, with 63 newspapers and 11 magazines for Nestlé, and 56 newspapers and 13 magazines for Unilever.

Nestlé

Unilever

LANGUAGE English Arabic

70 4

66 3

Market UAE Kuwait Saudi Arabia Qatar Oman Bahrain Pan Arab

46 3 4 3 10 5 3

53 4 0 2 8 1 1

GENRE News & politics Business Advertising & marketing Lifestyle & general interest Computers & IT Sports Medical & health Industrial Celebrity & society

48 16 4 2 1 1 2 0 0

44 15 8 0 0 0 0 1 1

clipping type News Interview Feature story Press release Financial report Financial analysis Editorial Letter to editor Review

46 2 9 10 2 1 1 0 3

41 0 10 15 1 0 0 1 1

MEDIA TYPE Newspaper Magazine

63 11

56 13

Source: Mediastow, April 2011

s

Messages Nestlé perpetrated many positive messages in the GCC media, many centering on the launch of a new website; sponsorship of various events; appointments; launch of new products; deals; investments in India; inauguration of a factory in India; first profit sales growth; raising $1 billion in mid-term notes; CSR; expansion plans in China and Sudan.

It should be noted that not all of Nestlé’s messages were positive. Clippings on the shortage of raw materials that the company is suffering from in addition to Source: Mediastow March 2011

Penetrations – April 2011

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SeCToR ANALYSIS

FaCets oF CoVeraGe – aPrIl 2011 Company

Volume of coverage

Nestlé Unilever

74 69

OtS (Opportunities to see) 10,263,368 8,902,547

NestlÉ Message Launched website Sponsorship/hosting Appointments Launch new product Deals Invested in new Indian plants Inaugurated factory in India Posted first quarter growth Expansion – China Expansion – Sudan to raise $1bn in MtN CSr – students Shortage of raw materials raised food prices

NCS (Newspaper coverage size) 5,309 4,577

Prominence 0.38 0.23

UNIleVer Frequency 2 11 2 8 13 6 7 9 6 4 4 2 2 5

Message Good review Postpones price increase Launched campaign Posted first profit growth Fined $456 by EU Destroyed rainforest areas

Frequency 1 12 7 9 7 8

Source: Mediastow, April 2011

the food sector in the GCC and the UAE is booming, but a time when there are concerns clippings on it raising food prices, led to highly negative coverage, particularly when considering that food inflation is a global concern, and one of the most prominent issues in the media today.

It must be noted, however, that food inflation coverage was primarily on its effect on India, Bangladesh, Singapore and China.

Unilever’s messages were not as diversified, but the company also managed to display a variety of powerful messages concerning its food division. It received good reviews, as well as messages on the company postponing raising prices – unlike Nestlé – launching campaigns and posting Q1 profit growth.

The company took advantage of the

MCS (Magazine Coverage Size) 9.52 19.08

food inflation attention with its messages on postponing the raising of its prices, an opportunity not taken by Nestlé.

Like Nestlé, Unilever received negative coverage, such as its fine of $456 by the EU regulators, plus the company destroying areas of the rainforest to palm oil palm trees for their personal care division. These negative messages might be more powerful than Nestle’s as the public may be more sympathetic towards price increases in relation to issues such as raw material shortage.

Conclusion The food sector in the GCC and the UAE in particular is booming, but it’s booming at a time when there

are many concerns, such as inflation, obesity, competition and health and safety.

While both Unilever and Nestlé reflect resilience and growth, it would benefit to address the sector’s concerns, not only in terms of product lines, safety measures and prices, but in their media coverage on their initiatives concerning these aspects.

Overall Nestlé displayed better performance relative to Unilever’s, but only marginally so. In this competitive landscape it would also benefit to boost PR coverage to stand clear from the noise.

■

hisham elzubeir, research director, Mediastow

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Slim pickings

Civil turmoil in the region has taken a large chunk from projected ad spend in the food sector, but TV still retains the lion’s share.

Advertising spend in the food and beverages sector grew by eight per cent to $317 million in Q1 2011, amid broader declines.

Pan Arab Media, focused on reaching multi-markets, consolidated its position, as spending grew by 14 per cent during this period.

Lebanon’s measured spend also surged by around 51 per cent, compared to the same period last year. All other regional markets are in the red, however, with the exception of Pan Arab and Lebanon.

Ad spend across the region took a direct hit from the turmoil wrought of the Arab Spring. Egypt’s monitored spend dropped by 34 per cent during that period.

Saudi Arabia’s spend on the sector plummeted by 40 per cent, while spend in Bahrain plunged by 75 per cent during Q1.

Other market variations during Q1 of the year are: Kuwait [-7 per cent], UAE [-3 per cent], Jordan [-71 per cent] and Qatar [-21 per cent].

Carbonated soft drink spend, however, rose by nine per cent, while the snacks category jumped by 37 per cent in measured spend during the period.

Tea witnessed a 15 per cent increase in spend. Chocolates were down by 11 per cent, while cheese fell by six per cent.

The top three brands in the region from the sector are Pepsi, Coca-Cola and Lipton.

The sector heavily relies on TV, which now accounts for the lion’s share of 95 per cent, while the rest is shared by other monitored media vehicles. The medium further consolidated its share with increased spending of 17 per cent, while other monitored media are in the red.

The short- to medium-term outlook has undoubtedly been marred by the unrest in Egypt and other MENA countries.

The sector had started on a good note with a 63 per cent surge in spend in January, but it hit a wall for the next two consecutive months. Nonetheless, the sector is likely to post robust double-digit growth in 2011, with stability returning to Egypt, one of the key advertising markets.

The ad spend is calculated on the media rate cards and does not account for incentives and discounts that advertisers m ay avail from m edia ow ners. n

Shaharyar Umar Marketing Director Pan Arab Research Centre, Dubai, UAE

58 Gulf Marketing Review June 2011

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performance Cooling

Ice cream consumption up, but frequency of purchase falls.

47.77%

Ice cream users

50 40 33.89% 30 20

15.44%

14.24%

10

10.13% 1.25%

0 Consumed more than once a week

Consumed once a week

Consumed 2-3 times a month

Lower consuming frequency, higher above normal weight

Consumed once a month

Consumed less than once a month

Consumed not stated

Higher consuming frequency, higher above normal weight

45+

Heavy radio listening

35-44 Above normal weight

Level 1 (Top 10%) upper class

100

Heavy TV viewers Junk food is part of my lifestyle

Level 4 (Next 40%) lower class Heavy internet usage Level 2 (next 20%) upper middle class

I always look for the light diet versions of food & drink

I am prepared to pay more for foods that don’t contain artificial additives

I always think of the calories I have a sweet tooth

Heavy print readers

25-34 Level 3 (Next 30%) middle class

Consuming frequency 100 Lower consuming frequency, lower above normal weight Higher consuming frequency, lower above normal weight Source: TGI Survey KSA 2011, Pan Arab Research Center April 2011

Ice cream is consumed by around 70 per cent of the adult population in Saudi Arabia, according to the latest Target Group Index Survey, conducted by Parc, April 2011.

There has been an increase in the percentage of consumers since 2009 where the consumption was 66.5 per cent. However, the increase in the number of new ice cream consumers seems to have been offset by a significantly lower frequency of purchase.

Among consumers, youngsters, perhaps not surprisingly, show higher positive affinity towards heavy consumption. After 39 years of age more consumers tend to become medium users and after 49 years usage is heavily tilted towards light.

Interestingly, not only the obese are light consumers of ice cream, but underweight consumers also display very low usage of consumption. Normal weight consumers are mainly medium users and over- weight-but-not-obese consumers fall under heavy consumers.

Around 34.2 per cent of the total adult population consumes family packs, whereas the consumption of ice cream bars and choc ices is around 65 per cent.

The top five brands of ice cream bars and choc ices are Galaxy, Baskin Robbins, Jumbo, Cone Zone and Kwality.

The top three most consumed brands of family packs are Baskin Robbins, Al Rabie and Saudia. Some 62 per cent of ‘heavy’ consumers agree they have a sweet tooth. It is highly likely that more new ranges of low sugar and possibly biotic fortified ice creams may be launched in the future. n

Shaharyar Umar Marketing Director Pan Arab Research Centre, Dubai, UAE

60 Gulf Marketing Review June 2011

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SE C T O R A N A L Y SIS

CATEGORY: FOOD AND BEVERAGES – ADVERTISING MARKETS 2011 Millions US$317

Markets Ranking & Media Split (000 US$) Television Rank Market Name & Abbreviation 2008 1 2 3 4 5 6 7 8 9 10 11

2009

%Var’n 2010 YTD

Pan Arab Media PAN 138,275 197,395 225,670 United Arab Emirates UAE 12,443 29,216 44,075 Kuwait KWT 18,684 31,205 20,729 Kingdom of Saudi Arabia KSA 19,243 13,490 8,084 Egypt EGY 5,017 8,225 7,647 Lebanon LEB 6,096 5,967 5,762 Qatar QTR 787 1,027 1,022 Jordan JOR 789 3,546 1,016 Oman OMN 370 448 352 Bahrain BAH 204 303 77 Other Markets** OTH 3,675 3,260 3,057 Total All Markets 172813 229338 250901

14 51 -34 -40 -7 -3 0 -71 -21 -75 -6 9

%Var’n YTD

2010 224,935 43,759 17,636 2,365 6,969 2,001 97 87 33 7 2,216 238201

15 63 -10 -12 -2 50 4 -80 560 -11 14

Newspapers %Var’n YTD

2010 0 23 389 2,403 455 532 869 899 267 45 448 4823

-47 -77 -32 -35 -47 1 -71 -17 -71 3 -29

Magazines %Var’n YTD

2010 735 293 195 384 181 1,088 56 30 29 25 339 2685

-23 9 -58 -42 -51 -13 -27 50 480 19 32 -23

Radio 2010 0 0 1,372 89 42 139 0 0 23 0 54 347

Outdoor

%Var’n YTD -100 -59 -71 -22 969

-32 -100 -33 -31

2010 0 0 1,137 2,843 0 600 0 0 0 0 0 3443

+8% Cinema

%Var’n YTD -100 -82 -55 -100 -18

-100 -100 -52

2010 0 0 0 0 0 1,402 0 0 0 0 0 1402

%Var’n YTD

-14

-100 -19

**Other markets: Combined - Syria, Yemen & Arasian

Ranking of markets and media split (000US$) 100%

Category split by market 2%

75%

2% 3% 7%

1%

71%

50%

Pan Arab Lebanon Egypt KSA Kuwait UAE Others

14%

25% 0%

Total GCC LEV PAN LEB EGY KSA KWT UAE OMN JOR 317491 250901 66590 225670 44075 20729 8084 7647 5762 1022 1016

Television

Newspapers

Magazines

Radio

QTR 352

Outdoor

BAH OTH 77 3057

Cinema

SPLIT BY PRODUCTS – 2011 All Markets 13% 13%

50%

Others Chocolate Cheese products

Pan Arab Media 8% 11% 8%

Carbonated soft drinks Snacks, chips & nuts Tea

18%

5%

42%

6%

GCC Markets 6% 5% 10% 17% 17%

45%

18% 11%

Others Chocolate Tea

Carbonated soft drinks Snacks, chips & nuts Cheese products

Others Chocolate Tea

Carbonated soft drinks Snacks, chips & nuts Cheese products

Levant Markets 53%

8%

8%

Others Carbonated soft drinks Snacks, chips & nuts

9% 13% 11%

Energy drinks Other alc. bev Milk products

TOP BRANDS – ALL MEDIA (000 US$) – 2011 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand Pepsi Coca-Cola Lipton Galaxy Al Marai Freez Marinas Turbo Nido 7-up Maggi Lay`s Al Safi Danone Twix Mirinda Snickers Cheetos Noor Doritos Goody Kinder Bueno

Pan Arab Media Value 20,052 15,058 12,396 12,041 10,218 9,640 8,371 8,249 7,945 7,347 7,167 6,604 4,315 4,122 4,075 3,750 3,520 3,457 3,450 3,292

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand Pepsi Coca-Cola Lipton Galaxy Al Marai Lay`s Nido 7-up Al Safi Danone Freez Snickers Twix Goody Mirinda Maltesers Kinder Bueno Cheetos Noor Doritos Al Bawadi

GCC Value 15,017 13,967 11,327 10,921 8,062 6,997 6,562 6,218 5,479 3,636 3,438 3,429 3,332 3,319 3,218 3,115 3,113 3,092 2,639 2,612

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Levant Brand Pepsi Coca-Cola Lipton Galaxy Al Marai Lay`s Nido Al Safi Danone 7-up Maggi Snickers Twix Freez Noor Goody Mirinda Kinder Bueno Maltesers Cheetos Doritos

Value 16,225 14,461 12,371 11,438 9,953 7,167 6,857 6,604 6,272 4,202 3,916 3,718 3,636 3,453 3,450 3,323 3,292 3,271 3,121 2,639

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand Marinas Turbo Freez Pepsi Maggi Johnie Walk.blck Zein Al Atat 7-up H2oh!

Xxl Nido Chipsy Juhayna Fiorella Candia Chipseco Sun Bites Nestle Cadbury Al Rashedi Asly Nescafé

Value 7,085 6,004 3,827 3,145 2,467 2,008 1,673 1,648 1,604 1,392 1,362 1,199 1,178 1,177 1,172 1,154 1,110 1,103 901 890

Source: PARC

All markets

62 Gulf Marketing Review June 2011

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SE C T O R A N A L Y SIS

CATEGORY: FOOD AND BEVERAGES – AGCC, LEVANT, PAN ARAB & ARASIAN MEDIA MARKET Advertising Expenditure for Top Products (000 US$) 2009 – 2011 (Jan - Mar) 2009 2010 31,133 46,690 30,633 52,281 11,685 22,609 14,825 15,895 12,164 12,637 105,143 143,970 205,583 294,082

Carbonated Soft Drink CSD Chocolate CHL Snacks-chips-nuts SCN Cheese Products CHP Tea Others OTH Total

2011 50,833 46,692 31,068 14,879 14,520 159,499 317,491

%Var’n Y11/10 9 -11 37 -6 15 11 8

Sh% 16 15 10 5 5 50 100

2011 Media Split %

CHL SCN CHP TEA OTH 92%

94%

96%

98%

NP 1 0 0 2 1 3 2

MG 0 0 0 1 1 2 1

RD 2 0 0 0 0 0 1

OD 1 0 1 0 0 2 1

Product Growth 2008 - 2010 (000 US$) 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 CSD CHL SCN CHP

CSD

90%

TV 94 99 98 97 98 92 95

100%

Newspapers Television Magazines Outdoor Radio Cinema

2010

2011

TEA

CN 3 0 0 0 0 0 0

OTH

2009

Overall Media Split Analysis (000 US$) Media

Value 168,205 6,656 4,735 2,607 21,618 1,762 205,583

Television Newspaper Magazine Radio Outdoor Cinema Total

2009

Sh% 82 3 2 1 11 1 100

Value 256,941 11,851 4,356 3,989 15,205 1,740 294,082

2010

Sh% 87 4 1 1 5 1 100

Value 300,105 6,330 3,355 1,719 4,580 1,402 317,491

2011

Sh%

95 2 1 1 1 0 100

Var'n % 2010/2011 17 -47 -23 -57 -70 -19 8

Monthly Spend Analysis (Millions US$) 2009 – 2011 160 140 120 100 80 60 40 20 0

Month Jan Feb Mar Total

Jan

Feb 2010

2010 80 82 132 294

Total Category – Media Split % 1% 1%

95%

2009

Var’n % Y11/10 63 -19 -8 8

2008

(000 US$ - Semi Logarithmic)

Television Radio

2011 130 67 121 317

Mar

2009

Overall Media Split 2009 – 2011 350000 300000 250000 200000 150000 100000 50000 0

2009 56 61 88 206

2010 Newspapers Outdoor

2011 Magazines

Television Radio

Newspapers Outdoor

Magazines

1% 2%

+8%

Top brands 2011 (000 US$) Television Top Spenders Rank Brand 1 Pepsi 2 Coca-Cola 3 Lipton 4 Galaxy 5 Al Marai 6 Freez 7 Marinas Turbo 8 Nido 9 7-up 10 Maggi

2011 18444 14033 12337 12000 9814 9640 8371 8216 7846 7330

Newspaper Top Spenders Rank Brand 1 Hana 2 Al Marai 3 Oman Oasis 4 Tropicana 5 Nova 6 Yaumi 7 Najdiyah 8 Pepsi 9 Abu Kass 10 Juhayna

2011 773 395 388 355 254 227 171 165 150 100

Magazine Top Spenders Rank Brand 1 Kellogg`s 2 Noor 3 Afia 4 Riri 5 Pino 6 Ballantine`s 7 Puck 8 Nova 9 Oreo 10 Progress

2011 276 129 74 71 69 67 54 50 50 47

Radio Top Spenders Rank Brand 1 Coca-Cola 2 Pepsi 3 Nescafe 4 Zego 5 Hayat 6 Basma 7 Nestlé 8 Kellogg’s 9 Red Bull 10 Chiquita Banana

2011 406 358 160 88 71 68 66 60 56 39

Outdoor Top Spenders Rank Brand 1 Tang 2 Afia 3 Cofique 4 Nestlé 5 Nadec 6 Snickers 7 Coca-Cola 8 Chipsy 9 Coffee Mate 10 Sea Force

2011 545 491 449 409 318 303 252 180 170 158

Source: PARC *Please note figures throughout this section are rounded up.

Product & Abbreviation

88%

Millions US$ 317

Media Split %

64 Gulf Marketing Review June 2011

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66 Gulf Marketing Review June 2011

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