GMR | Dec 2010 by MediaquestCorp.

GULF MARKETING REVIEW

SECTOR ANALYSIS Quenching the regionâ&#x20AC;&#x2122;s insatiable thirst Is still a challenge A MediaquestCorp Publication

December 2010 - NO 193

february 2010 december 2010--NO NO190 193

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BRANDS

IN KSA Special Feature Celebrating the GEMAS Effies 2010

marketing Strategy first then execution

Brand Analysis Pastures new For Local hero

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High flyer: GEMAS Marketer of the Year 2010, Emirates’ Boutros Boutros 68

www.GMR-Online.com DECEMBER 2010 – Issue No. 193

NEWS

World News

Saudi’s ‘coolest’ radio debuts for nationwide launch. Saudi women tie up with social media for Pink Ribbon cancer awareness campaign. Al Rajhi’s artful campaign banks on female talent. Oman prepares for switch to HD TV. Hesabi app triumphs at World Summit Award Mobile 2010. MBC Group inks content and licensing deal with Nickelodeon and launches new drama channel as part of its 20th anniversary. The Brand Union selected for Kizad new freezone.

MEC joins Amazing Race Asia Caltex Online Challenge. LambieNairn expands in Latin American. Johannesburg’s Maverick totally bowls over ICC Cricket World Cup. Research finds print is most effective for UK FMCGs and Telcos. BBC Wordwide exits Discovery JV. Online retailers without a mobile-specific website are missing out, says US study. Smartphones connectivity to overtake PCs. Burberry profits surge. Text4baby targets one million US mothers. Ovi launches in Nigeria. P&G’s Always Me app for women debuts.

MARKETING

Venturing into new markets is doomed to failure if it is not supported by a capability-driven strategy, experts warn.

Cover story: Saudi’s top 20 brands 24

Ipsos counted ad spend and impact, Sekari SEO gauged brand sentiment – we crunched all the numbers and came up with the

most comprehensive, meaningful and surprising list yet.

Special feature: GEMAS Effie Mena Awards 2010 32 Relive the most spectacular night in the region’s marketing calendar, the GEMAS Effie Mena Awards 2010 Gala Presentation. This extensive review includes topline details of the winning entries, (please note that client confidentiality determines editorial content), judges’ biographies plus a photo gallery.

Retail View: Haus proud

It’s two years since it opened so we revisit Nivea Haus in Dubai Mall to see if the core brand values were sustainable as a spa offering too.

Brand Analysis: Fresh fields

Almarai has completely refreshed its brand identity in line with its evolution from a dairy into one of the region’s largest food and drink conglomerates.

Sector Analysis Beverages

Designer water bottles make a splash in restaurants and select outlets. Are consumers in the Middle East less adventurous when it comes to new, more exotic flavours? Wider environmental concerns dominate the bottled water sector, especially in the UAE. The region’s deeply ingrained coffee culture keeps hot drinks bubbling along in Saudi Arabia and the UAE, while tea finds a wider audience, especially among expatriates.

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88 Sector analysis: BEVERAGES MediaquestCorp. Dubai Media City Al Thuraya Tower 2, 24th Floor United Arab Emirates Tel: +(971) 4 391 0760 Fax: +(971) 4 390 8737 www.mediaquestcorp.com

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Reproduction in whole or part of any matter appearing in GMR is prohibited by law without the prior written approval of the publishers. Opinions expressed in GMR do not necessarily represent the views of the publishers and editorial staff of the magazine. The publishers do not hold out any guarantee as to its accuracy, neither do they indemnify any loss arising through use of the information. All dollar prices ($) are US dollars, unless otherwise specified. All marketing data is subject to confirmation. Printed in the UAE by Atlas Printing Press

MANAGING EDITOR Siobhán Adams siobhan@mediaquestcorp.com DEPUTY MANAGING EDITOR Precious Jasper de Leon precious@mediaquestcorp.com SENIOR SUB EDITOR Elizabeth McGlynn e.mcglynn@mediaquestcorp.com SUB EDITOR Salil Kumar s.kumar@mediaquestcorp.com ART DIRECTORS Sheela Jeevan, Alvin Cha, Aya Farhat CONTRIBUTORS Alex Malouf ADVERTISING: MEDIALEADER United Arab Emirates sales@mediaquestcorp.com Tel: +(971) 4 391 0760

Saudi Arabia: Ghassan A. Rbeiz ghassan@mediaquestcorp.com Europe: S.C.C Arabies 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62 Lebanon: Beirut, Lebanon Tel: +(961) 1 202 369 Fax: +(961) 1 202 369

PUBLISHED BY: Medialeader FZ/MediaquestCorp FZ Europe: S.C.C Arabies, 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62

CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman Haydar General Manager Simon O’Herlihy Creative Director Aziz Kamel Distribution & Subscription Director JP Nair, jp@mediaquestcorp.com Marketing Manager Joumana Haddad, joumana@mediaquestcorp.com KSA GM Tarek Abu Hamzy, tarekah@mediaquestcorp.com, Tel: +966 1 4194061 Lebanon GM Nathalie Bontems, Nathalie@mediaquestcorp.com, Tel: +961 1 492801 North Africa GM Adil Abdel, Wahab, adel@medialeader.biz, Tel: +213 661 562 660 France Sales Director Manuel Dias, dias@arabies.com, Tel: +33 1 4766 46 00

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News

Social media tie-up breaks pink ribbon world record More than 4,000 women attend the Jeddah Pink Ribbon Awareness raising event Saudi Arabia A tie-up with social media helped a coalition of breast cancer awareness campaigners break the record for the largest human pink ribbon in the world at the Jeddah Pink Ribbon Event. Social media was central to both spreading awareness of the event as well as mobilising supporters, said the organisers. “After the record was made, we were able to announce this through social media and saw the instant effects as people announced our success through their personal FB status, tweets, and shared photos,” says campaigner Princess Reema Bint Bandar bin Sultan Al-Saud. BlackBerry Messenger and email was also used. “People could send us questions and comments any time of the day and either we would

Spreading the message: Social media communicated the event’s record success

reply or other members of the social network would reply. “Traditional media channels such as MBC, Sayidati, and Al-Watan also played a role, however the dialogue and engagement provided by social media has proved incredibly useful,” Princess Reema adds. “This created a great sense of community among the people who used these portals.

Enthusiasm and anticipation for the event was also shared through the social media portals and seeing this feedback helped us, the organisers, keep motivated and believe that the Saudi community was just as engaged in this process as we are.” Nearly 4,000 women and girls tied the pink knot in Jeddah’s Ministry of Education

Stadium and broke the Guinness World Record “Through Facebook the team was able to create a specific event page where we would share information on the event, photos and updates,” Princess Reema adds. The campaign was under the patronage of Sultan Bin Abdulaziz Foundation and undertaken by HRH Reema Bint Bandar Bin Sultan Al Saud and Al Bidayah Center (Breastfeeding Resource and Women’s Health Awareness Center) for the Zahra Breast Cancer Association. Despite its relatively low incidence in Saudi Arabia, breast cancer has been the most common cancer among Saudis for the past 12 consecutive years, according to Annals of Saudi Medicine 2010.

Al Rajhi draws on local female talent for campaign Saudi Arabia A recent initiative by Al Rajhi Bank to consolidate its franchise among Saudi Arabia’s female population attracted more than 1,100 entries. The Al Rajhi Art Competition saw women from across the kingdom submit paintings to selected Al Rajhi branches to be judged by a panel of art experts. The competition culminated in a two-day event in Riyadh where 200 paintings were put on d isplay at a

gallery open to the public. “The judges were all pleasantly surprised at the range of paintings, the standard and level of commitment and energy that had gone into the submissions,” Al Rajhi Bank’s head of marketing and PR, Yusuf Jehangir, says. The paintings could be viewed on the Al Rajhi Bank website with a different painting being highlighted every day, with visitors being able to vote for their favourite piece.

Picture perfect: the winning entry at the Al Rajhi Art Competition

A commemorative special edition book, Al Rajhi Bank Ladies Painting Competition 2010 – A Collection of Fine Works, showcasing a selection of paintings, was published. With more than 12 million Saudi females, the women’s market is increasingly important for the kingdom’s banking sector. According to Jehangir, Al Rajhi Bank has more than 100 dedicated female banking centres serving one million women across the kingdom.

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News

Healthy response for DHCC app debut UAE Dubai Healthcare City (DHCC)’s Find-a-Doctor iPhone app has enjoyed immediate success with the emirate’s iPhones users. DHCC, a member of TECOM Investments’ Sciences Cluster, has registered nearly 700 downloads since last month. The free app is a directory tool to locate healthcare providers based in the emirate’s free zone and allows advanced filtering by specialties as well as by doctors, clinics, hospitals, pharmacies and insurance providers.

Oman is first in GCC to switch to HD Service scheduled to go live by November 2011 Oman Oman will be the first GCC country to offer HD TV. The service is scheduled to air from November next year. Sony Professional Solutions MEA (PSMEA) has secured a $69 million deal with the Sultanate of Oman’s Ministry of Information to build state-ofthe-art HD studios at the Oman TV Complex in Muscat and the refurbishment of the TV broadcast facility in Salalah. This project will see Sony PSMEA providing a future-proof 3G infrastructure that will position Oman TV as the technology leader within the region’s broadcast industry, a Sony press release reports.

Sharper images: The Sultanate’s Ministry of Information seals the deal with PSMEA

The contract includes the delivery of fully equipped HD studios, tapeless networked production, Media Asset Management – news, transmission, radio and other facilities to provide a truly tapeless broadcast production environment. Mohammad AL Marhouby, chairman of the project com-

mittee and director general of Engineering at the MOI, says: “We recognise that our engineers need the necessary skills to manage the migration from traditional broadcasting to HD technology and are expecting Sony Professional’s training offering to help us achieve our goals.”

MBC 3 switches on to Nickelodeon Doctor who?: DHCC’s Find-a-doctor app

It also provides DHCC news via RSS feeds, a location map and information request form for other facilities. “By helping the public locate experts, we hope to make it easier for them to seek medical advice and support when they need it – therefore improving the overall healthcare delivery process and patient experience,” says Dr Ayesha Abdullah, MD of TECOM Investments’ Sciences Cluster and executive director of DHCC. The app can be downloaded on iTunes and linked to the DHCC website.

UAE MTV Networks International, a division of Viacom Inc. and MBC Group, have agreed an exclusive multi-platform deal spanning TV, digital media and consumer product rights to Nickelodeon’s portfolio of content in the Middle East. Kid’s edutainment channel MBC 3 now carries ‘Nickelodeon on 3’, a dedicated branded block showcasing live-action and animated content. The branded block will a ir ever y weekday in t he af ter noon and will include Spon geBob Squ arePants, Fanboy and Chum Chum, and My Life as a Teenage

Funtime: MBC and Nickelodeon

Robot at launch, localised in Arabic. An additional branded block dedicated to Nickelodeon’s preschool programmes will also launch on MBC 3 next month. As part of the agreement MBC Group has t he exclusive r ig hts to develop consumer product prog ra m mes a round Nickelodeon properties such as

Dora the Explorer and SpongeBob SquarePants in the Middle East. Key categories include home furnishing, stationery, apparel, toys, publishing, personal care and fashion accessories. Roll out is expected from early 2011. In related news MBC has also launched a new drama channel, MBC Drama. The channel will air a variety of different dramas, irst and exclusive news, in addition to Turkish, Mexican and Indian dramas dubbed into Arabic along with Egyptian, Syrian, Bedouin, and Gulf dramas, said a spokesperson

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News

Horizon Group dawns in Abu Dhabi UAE IPG-owned Horizon Holdings has opened a new office in Abu Dhabi. It will be headed by Seri N. Musallam, deputy managing director. The group’s companies comprise DraftFCB, BrandConnection, GolinHarris PR and Netiks brands.

Open: Rafic Saadeh and Gregory Tikhanoff, president & COO, Horizon Group

“For us, Abu Dhabi is not just another market; this new office is the first to introduce, under one roof, the holistic marketing communications philosophy from one single platform that results from the synergy comprising the diverse skills and experiences of select Horizon Holdings senior executives,” says Rafic S. Saadeh, CEO. The Abu Dhabi office joins outfits in Dubai, Jeddah, Riyadh, Kuwait, Cairo, and Beirut. it’s a wrap

National pride: CH Carolina Herrera Accessories has launched a special limited edition bracelet in honour of the 39th UAE National Day. The bracelet is available at CH Carolina Herrera store, Mall of The Emirates, and Mirdiff City Center, until stocks last.

Youth-targeted ‘cool’ radio station hits the airways in Saudi Arabia Saudi Arabia A national radio station has launched in Saudi Arabia. Targeted at the kingdom’s large youth population, primarily 15 to 35 year olds, Mix FM is owned and managed by Jeddah-based Creative Edge International (CEI). “We have positioned Mix FM as the ‘first cool radio station in Saudi’” , CEI head of marketing, Wesam Kattan, tells GMR. “It is 100 per cent Saudi operated and is a strong platform for launching young Saudi broadcast talent.” Presenters include former ART sports anchor Walid Al Farjah and Saudi’s first female

A new blend: Mix FM

sports presenter, known as Captain Reema. Sports, music and lifestyle programming will dominate, with a strong appeal to both genders. News is confined to just one minute every hour and delivered against a techno music background to reinforce its youth credentials, Kattan adds. Various advertising formats to complement the tradition-

al 10- and 20-second spots are being explored. “We can create shows around brands,” Kattan says, adding that different time strands would determine listenership segmentation. Professionals, in both the public and private sector, will dominate morning drive time, but after 10am content will become more housewife-orientated,” he says. Social media and digital will play a major role in the station’s development. As GMR went to press, seven days before launch, the station already had 1,000 Facebook fans. Panda Hypermarket is its first advertiser.

ADPC opts for The Brand Union for new industrial zone corporate ID UAE The Brand Union Middle East has beaten more than four agencies to develop the brand for Abu Dhabi Ports Company’s (ADPC) new industrial zone, Kizad. ADPC declined to name the competing agencies. The Brand Union partnered with the ADPC executive and marketing team to develop the brand strategy, identity, visual language and corporate collaterals for Kizad, as well as brand-led environments such as a visitor experience centre, a press release states. ‘As a project, Kizad is a pioneer, quite unique in scale and ambition,” says Kevin

Right note: Tourism Austral

Storey, VP – Marketing Industrial Zones, ADPC. “We have created a strong B2B brand with a purpose and strength that can also engage with the broader Abu Dhabi community. This is key as

Kizad is set to become an important contributor to the delivery of the Abu Dhabi Economic Vision 2030.” The key communication plank is “Let’s talk about tomorrow,” Storey added.

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W orl d N e w s

Print most efficient medium for FMCG Radio is best for travel and retail; online for personal finance UK Print, followed by outdoor, are the most efficient media for FMCG advertisers, according to Clear Channel Outdoor and OMG’s research division, Brand Science. Print generates $2.30 incremental sales revenue for each $1.60 of media and production costs for FMCG advertisers, reports Mediaweek UK. OOH generates $1.75, radio $1.42, TV $1.27 and online $1.05. For FMCG the ROI for outdoor increases as its share rises. If outdoor takes an above median share of spend it generates incremental sales of $2.12, compared with just $0.47 for a below median share. Print is also the most efficient for telcos, delivering incremental sales of $18.05 for each $1.60 of media and production cost. OOH follows with $10.42 ROI. Outdoor, however, is the most efficient for print media, delivering $2.05 of incremen-

High fashion

Read all about it: OOH is most effective for print media

tal sales revenue for each $1.60 of media and production cost. TV is the second most efficient with $1.22 of incremental sales revenue for each $1.60 of media and production cost. Print and radio generate $0.79 and online $0.62. Radio is the most efficient for retail and travel advertisers, with revenues of $9.73 and $12.50 for each $1.60 of media and production cost, respectively. The most efficient medium for personal finance brands

is online. It delivers $4 incremental sales revenue for each $1.60 of media and production cost, followed by print with a return of $3.85. Brand Science reported that FMCG advertisers should increase the share of spend on OOH from 15 per cent in 2009/10 to 22 per cent to achieve the most efficient media split. The “best” mix is 41 per cent on TV, 26 per cent on print, seven per cent on radio and three per cent online.

Vogue launched digital outdoor campaigns, using Transvision screens owned by JCDecaux, in 12 rail stations in the UK to advertise its December issue being available as an app for the iPad. The campaign, planned and booked through M2M and Posterscope, focused on a one-day screening showing a one-minute-20-second ad, featuring clips from Mario Testino photos and video portraits of the most successful supermodels of the decade from the Vogue December iPad app content.

BBC exits Animal Planet and Liv Global BBC Worldwide is selling its 50 per cent interest in TV channels Animal Planet and Liv to its joint venture partner Discovery for $156 million. Following its exit, the commercial arm of the British broadcaster will focus on the expansion of its wholly-owned channels, including BBC America, BBC Entertainment, BBC Knowledge and CBeebies. The channels reach 170 million people in more than 100 countries, said a joint BBC/ Discovery press release. Commenting on the move, Mark Hollinger, president and CEO of Discovery Networks International, said: “Acquiring BBC Worldwide’s rights to the Animal Planet and Liv channel brands provides Discovery a strategic opportunity to create additional revenue and growth opportunities for our global business.” Animal Planet reaches nearly 250 million cumulative subscribers in more than 170 markets in Europe, Asia and Latin America, says the release, adding that Liv is a general entertainment channel reaching 24 million cumulative subscribers in 33 Latin American markets. In related news, the BBC and Discovery Communications have extended their long-term North American co-production partnership until 2014. The partnership has produced global programming such as Life, Planet Earth and Blue Planet.

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World News

Maverick wins ICC account South Africa Johannesburgbased activation and event management agency Maverick Experience Exhilarator has beaten four Indian agencies to win the Sportainment Activations account for the International Cricket Council (ICC) World Cup 2011.

MEC chases greater digital activation Asia Media agency MEC and conglomerate Caltex have created an integrated online contest for the Amazing Race Asia Caltex Online Challenge. To be eligible for the $4,000 prize, two-person teams must complete games to receive clues enabling them to build a puzzle containing the final question. MEC has also integrated the race content into Facebook and the Admax Network. More than 1,000 teams have registered since September, MEC says, adding that the campaign is based on insights around the target

Out ahead: More than 1,000 teams have joined the race

audience’s digital prowess and entertainment needs. “It demonstrates how a TV show can cross media and

become an engaging, branded digital activation among show loyalists and beyond,” says an MEC spokesperson.

Lambie-Nairn expands in Latin America Stand and deliver: Maverick’s on form

The tournament will be held across 13 stadia in India, Sri Lanka and Bangladesh next year. This is the first time the ICC has opted for a single supplier to integrate the stadium environment into the entertainment arena, as well as all sponsorship and other activations, says the agency. “Over the past 11 years, we have deliberately built our business around sustainable growth, and this appointment is testament to the fact that there is a place on the global stage for a real, addedvalue service that builds brands effectively and efficiently,” says Andrew Ross, joint MD of Maverick.

Latin America Branding specialist Lambie-Nairn has opened three new offices in Latin America. The operations – in Bogotá, Buenos Aires and Mexico City – will enable the agency to work more closely with Telefónica, its key client in the region. Lambie-Nairn simultaneously unveiled a brand positioning for Atento, one of the world’s largest contact centre and business outsourcing companies. The positioning will help the organisation focus internal behaviours, align future initiatives and differentiate itself within the sector, said a Lambie-Nairn press release. Atento’s new brand is being rolled out across 17 countries in Africa, Latin Amer-

New look: The revamped Atento brand will be rolled out across 17 countries

ica and Europe (Spain). It is the third company within the Telefónica SA Group to work with the agency on brand development, alongside O2 and Telefónica/Movistar. In 2009 Telefónica announced a rebranding programme to define the strategic roles of each brand in the portfolio. In Spain and

Latin America the company will operate it under the brand Movistar, and O2 in the rest of Europe. Lambie-Nairn’s global executive director and global head of the Telefónica account, Nicky Nicolls, and Tim Simmons, creative director in Madrid, are responsible for the new operations.

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Nokia launches Ovi in Nigeria Nigeria Nokia launched its Ovi Life Tools in Nigeria last month. The initiative follows launches in Indonesia, India and China during the past 12 months. Ovi Life Tools has more than 6.3 million users around the world. It offers services covering healthcare, agriculture, education and entertainment, which address the needs of consumers, and helps improve their economic prosperity and quality of life, Nokia says. The launch is part of the company’s strategy to connect the next billion people by providing access to locally relevant services on affordable mobile devices. “We have made sure the service is locally relevant,” says Dieter May, Nokia’s head of mobile phone services. “The agriculture service provides prices of 25 different commodities including cocoa, beniseed [sesame] and fish, to name a few, and covers all 36 states in Nigeria. “But people also want to have fun. So in football-crazed Nigeria we have made sure the news and entertainment service includes the latest results from the European leagues and the national team,” May adds. Affordability is critical, hesays, with 30 per cent of Nigeria’s population being below the poverty line. Nokia Ovi Life Tools will be available countrywide in three languages – English, Pidgin English and Hausa.

J&J backs one million mums drive February launch sees 100,000 subscribers sign up for service US The National Healthy Mothers, Healthy Babies Coalition is expanding its text4baby programme, a free mobile information service offering advice on improved maternal and infant health. Backed by founding sponsor Johnson & Johnson, the programme provides new and low-income mothers access to the necessary information to help take care of their own health and that of their children. Members receive free text messages each week, timed to their due date or their baby’s date of birth. The texts provide reminders and information about immunisations, nutrition and child development, as well as toll-free numbers for health services.

On hand: text4baby is a free mobile information service for young mothers

The programme aims to serve one million mothers by 2012. The government is strengthening outreach efforts through Medicaid, Women, Infant and Children, and federallysupported health clinics and Healthy Start sites. “Text4baby is making great strides in seeing that every woman has the information

she needs to have a healthy pregnancy and get her baby off to a great start,” says Brian Perkins, VP corporate affairs, Johnson & Johnson. The service is the largest free national mobile health initiative yet, boasting more than 100,000 subscribers since its launch in February. MTV Networks is a media sponsor.

BRIC states help build Burberry profits UK Luxury fashion house Burberry has reported a 50 per cent profit surge for the first half of its financial year. Focus on sales of nonapparel items – such as handbags, jewellery, and shoes – helped push revenues in the category up 26 per cent. The company’s recently relaunched menswear business saw sales lift 17 per cent, while pre-tax profits rose to $188 million in the first half, from $125 million last year. Revenues were up 21 per cent at $1.02 billion.

In the bag: Earnings up 50 per cent

Sales in emerging markets – including China, India and Brazil – increased 46 per cent and now account for 13 per cent of total sales, up from 11 per cent last year.

The company bought out its franchise partner in China for $111.5 million earlier this year. The group said it has a remaining seven stores out of 50 left to transfer to its ownership and management, and expects the move to add $31.8 million to operating profits by 2011/2012. Its retail division saw sales rise by 20 per cent worldwide and contributed 57 per cent of total revenues. The company operates from 164 stores, 171 concessions and 45 outlets in 28 countries.

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COVER STORY

T P 20

BRANDS

IN KSA 24 Gulf Marketing Review December 2010

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Local heroes Saudi brands are beginning to close in on the global big boys in the race to win the Kingdom’s hearts and minds. It’s official. Saudi Arabia is more than capable of creating indigenous, relevant and sustainable brands that engage and resonate with consumers. The view from marketers that Saudi businesses perceive a brand as little more than a logo is becoming redundant. Local heroes such as Almarai and Al Rabie are leading the retreat from volume-driven trading and short-term promotional tactics to genuine, valuedriven brand building. The number of home-grown brands in GMR’s inaugural Top 20 Brands In Saudi Arabia, in fact, paints an interesting tableau of the history of branding in the kingdom. Global monoliths – especially FMCG – continue to straddle first the baqalas, then the supermarkets, much as they have for the past 30 years. Indigenous names, however, are increasingly commanding more shelf and, indeed, media space. The ranking is also clear demonstration that brand-building, even with the support of the home crowd, is not something that happens overnight. It takes a lot of time and money. To prove the point Pepsi, top scorer with 90 per cent, has been in the kingdom for more than 50 years. This year it spent $1.2 million in advertising (monitored rate card spend: IPSOS) to September. Thirty-four-year-old Almarai spent $12 million to claim second place at 60 per

cent. Slightly behind with 56 per cent is 11-year-old STC, which spent a whopping $42.6 million during the same period. It is, of course, simplistic to suggest a direct correlation between the age of a brand and spend, but it does prove the value in continual brand investment. And, yes, Pepsi did have a huge first foot advantage, entering when there was little competition – arch rival Coca-Cola was barred until 1988. But a head start is never enough. The beverage titan has invested in brand saliency ever since. (Keep in mind a key element of our study is sentiment monitoring, not just mechanical sales and ad spend data.) Almarai is a prime example. It is in the process of rolling out its multi-million dollar, insight-driven, new brand ID (see pages 82 and 83). It is not resting on its homegrown credentials so much as building on them to retain its distinctive Saudi DNA and infuse it with the global potential… so said the Financial Times in 2009. STC’s colossal investment for 2010 is probably due, in part, to the amplification of football activity capitalising on the FIFA World Cup. Nonetheless, assiduous brand building has been its hallmark since inception and the dividends in terms of brand affinity and loyalty are clear. Of course, criteria selection coupled with selective statistics can always produce a slightly skewed portrayal, so overlaying

our findings with sentiment monitoring, we hope, adds a more meaningful dimension to the brands’ ranking. But whichever way ours or anyone else’s data is cut, we are pretty confident it would still show that Saudi’s brand building has matured significantly…leaving the logo some way behind. n About the study Top of Mind (ToM) recall, marketing budget, years of operation and market reach were factors considered for this list. Each had a particular weight aspect, with ToM given the most. Sekari ran a separate sentiment monitoring based on the initial ToM. It looked at English and Arabic-language mentions online in November (see page 28). The ToM list was collated through an Omnibus by IPSOS in collaboration with GMR in Jeddah, Riyadh, Dammam and Khobar, carried out in October. The sample population comprised 500 residents of equal gender in the 15-40year age bracket. The study used results for unaided ToM awareness per specified category. In this case, we used the starting point of 14 sectors, ranging from clothing, telecos and automotives to soft drinks, dairy and banking.

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top 20 brands in saudi arabia Rank

Brand

ToM (%)

Budget: $, KSA, Jan-Sep ‘10

Years of operation

Market reach

Total

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

Pepsi Almarai Dairy STC Lipton Toyota Nokia McDonald’s Nissan Mobily Al Rabie Fruit Juice Al Rajhi Bank Almarai Fruit Juices Zain Saudi Arabia Barbican Ford SABB Red Bull Holsten Danao Nadec Riyadh Bank Moussy iPhone (via Mobily) Bison Rabea Coffee KFC Hardees Nido Nike Adidas Coca-Cola Abuljadayel Ceasar Burger King Sadafco Tropicana Puma Lacoste Fayrouz Power Horse Al Baik Al Bilad

90 60 56 69 48 72 43 9 35 44 29 26 8 47 7 7 36 7 5 4 20 32 14 37 29 16 6 10 30 30 9 7 6 5 6 19 13 8 17 11 5

1,256,348 12,129,785 42,646,888 1,731,367 5,208,837 1,782,753 4,781,023 14,178,546 28,690,516 1,624,840 5,223,912 6,071,966 16,072,278 25,498 6,003,862 5,463,108 4,915,402 3,752,010 4,620,596 4,108,395 4,585,868 1,069,822 4,424,911 264,313 436,525 2,471,145 1,168,960 2,475,867 163,588 468,285 507,048 224,281 554,069 175,841 177,356 93,804 304,613 2,066,155 8,886 285,795 2,782,901

More than 50 1976 (34) 1998 (12) 1933 (77) 1955 (55) 2003 (7) 1993 (17) 1994 (16) 2004 (6) 1980 (30) 1957 (53) 1976 (34) 2008 (2) 1982 (28) More than 60 1978 (32) 2002 (8) Early 1990s 2000 (10) 1981 (29) 1957 (53) More than 25 2009 (1) 1994 (16) 1980 (30) 1970 (40) 1980 (30) Nearly 70 More than 10 1998 (12) 1988 (22),1993 (17) 1994 (16) 1992 (18) 1976 (34) Brought back in 1998 (12) 1995 (15) More than 10 2006 (4) 1997 (13) 1974 (16) 2004 (6)

Global GCC, Egypt Saudi Arabia Global Global Global Global Global Saudi Arabia Outside GCC Global GCC, Egypt Global Outside GCC Global Saudi Arabia Global Global Global GCC Saudi Arabia Global Global Outside GCC Middle East Global Global Global Global Global Global Global Global Global Global Global Global Global Global Saudi Arabia Saudi Arabia

75 75 69 65 65 60 60 55 52 50 50 50 48 45 45 42 40 40 40 38 37 35 33 30 30 30 30 30 30 27 25 25 25 25 25 25 25 23 22 22 22

Source: IPSOS, GMR, October 2010

Volume of Social Sentiment per brand - Saudi Arabia 120

POSITIVE SENTIMENT

NEGATIVE SENTIMENT

100

SENTIMENT

80 60 40

Powerhorse

Ford

Nissan

Fairouz

Al Bilad

Burger King

Nadik

Red Bull

Al Baik

Al Marai

Toyota

Hardees

Adidas

KFC

Al Rajhi

Pepsi

STC

Nokia

Mobily

iPhone

McDonalds

20 BRAND

Source: Sekari SEO, November 2010

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COVER STORY

Emotional filters English commentary far outweighs Arabic for online brand sentiments. Sekari SEO researched the volume of social media mentions available on the internet to gauge sentiment – from very positive to very negative – attributed to the GMR Top Saudi Brands Index and ranked them against each other. The study was conducted in English and Arabic. What was particularly surprising was there were more mentions in English (1,935) than Arabic (415) that were relevant to the brands. The comments were filtered only for those from Saudi Arabia, using either personal profile information of the authors where the location of the profile is visible and location information of the domain/site of the blog, forum or website. Furthermore, data from sites that are restricted by user logins and passwords

Global Arabic search English search

Volume 415 1,935

Source: Sekari SEO, November 2010

are excluded. Also note that data from Facebook wasn’t included because the networking site is located outside of Saudi Arabia and the profile data is restricted by user logins. One reason for this difference in languages would be that many sites that young Saudi’s communicate through are from other parts of the Middle East. They are hosted in countries such as Lebanon, the UAE or Jordan, where internet entrepreneurialism is more prevalent. A lot of them are also hosted

in the US because of the high cost and low reliability of regional hosting providers. The commentary does not filter through as being from Saudi Arabia. An expanded study is needed to determine an accurate account of Arabic commentary. The resulting graphs rank the top brands against each other and show the number of brand mentions in October as a sample. One, of course, needs to consider that there may be many anomalies that skew the results for this particular month because some issues or brands that may have been particularly topical during the period. Louis Vuitton in Dubai, for example, may rank highly in the emirate because of the recent Louis Vuitton Cup. So there

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social Media reputation matrix - Global iPhone (982 mentions with 0.9 sentiment)

350

300

250

200

150

100

-2

Mobily STC Almarai Coca-Cola

-1.5

Nokia Zain McDonald’s Pepsi

-1

Al Rajhi Red Bull KFC Toyota

may have been many people blogging and communicating online regarding the event. The brands studied were the top 30 provided by Ipsos, enabling us to compare and rank each one. Overall the brand with the most mentions was iPhone – way ahead of the others. This is possibly because iPhone fans are more likely to be technically savvy and post comments online. Some commentary can also be attributed to people looking for answers to technical questions. Microsoft had a large number of comments. However, as the company was not in our original list of top 30 brands

-0.5

Burger King Nike Nissan Al Baik

0.5

1.1

Ford Fairouz

Overall the brand with the most mentions was iPhone – way ahead of the others. in terms of ad spend and mind share, it could not be included. An accurate comparison would pit brands together depending on their sector or a particular topic – technical brands such as iPhone, Microsoft and BlackBerry, for example. Perhaps there is a need to look at mentions within particular topics – say commentary on mobile phones to find out which brands are discussed the

most and which have positive sentiments around them, or perhaps baby products, to identify mothers-to-be – and follow brands that are foremost in their minds. n

Lee Mancini head of Sekari SEO Dubai

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Pure GOLD 2010 will shine out as the year when brands in the Middle East finally swapped monologue for dialogue and reached new levels of consumer engagement. Siobhán Adams reviews this year’s GEMAS Effies. Maybe the economic crisis was the tipping point. Maybe it was the eventual surrender to the power of social media, or the realisation that insight-driven strategy will always take a brand that much further into the hearts and minds of consumers. And maybe it wasn’t just one issue. Whatever it was, it certainly pushed marketing in the Middle East to much higher levels. Something that was again very apparent at this year’s GEMAS Effie Mena Awards held in Dubai last month and was attended by some 900 marketing professionals from across the region. The awards signified a turning point for marketing in the Middle East and, hopefully, said the chairman of the judging panel, there is no way back from here. “Brands have

finally stopped the monologue with consumers and started a real dialogue,” declared Hubert Boulos, MD of Doha-based MAC DDB. “What in the past was an exception has now become standard. Indeed almost every single GEMAS Effie relied on engaging consumers in a genuine and sometimes very entertaining way,” he said. That was the general consensus among the 15-strong panel comprising regional and international experts who represented a broad range of marketing disciplines, both agency and client side – see pages 38-42. “We saw a huge paradigm shift in consumer engagement,” said Tom Roychoudhury, chief innovations officer and head of corporate communications, MCN. “Clever local

insight combined with 360-degree engagement – with an emphasis and nod to digital – that’s what 2010 has been about.” Tasked with working through 153 shortlisted submissions from the original nearly 300 entries, the panel took two days, interspersed with often intense debate, to ensure a fair hearing for everyone. “Had it been a wine, the GEMAS Effies 2010 would be a great year,” said Boulos. “In my last GMR article about the trends in the region (please see October’s GMR) I was wondering if MENA’s marketers were ready to finally take risks and buy into creative ideas and social creativity to build their business – versus using bland, so-called ideas to tag along with the automatic and me-

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When we say our insights and ideas are designed to deliver results, don’t just take our word for it. The judges at the 2010 Gemas Effie MENA Awards presented six trophies to our clients, including three Gold, two Silver and one Bronze. Speaking of effectiveness, that’s a 20% improvement on last year’s result and the leading performance once again.

OMD UAE - Middle East HQ Dubai Media City, Bldg 1, No. 409, PO Box 34404, Dubai, United Arab Emirates Tel: +971 4 390 4321 . Fax: +971 4 391 8066 info@omd-mena.com . www.omd.com

Global Media Agency of the Year (Adweek, 2008 and 2009) Most Creative Media Agency (Gunn Report for Media, 2004-2009) Media Agency of the Year (MENA Cristal Festival, 2010) Most Awarded Media Agency (Gemas Effie MENA, 2009 and 2010)

S p e c i a l f e at u r e

chanical growth fuelled by the region’s economic growth. “I was also wondering if their agencies were able to deliver such work.” The answer to both is a resounding yes, he said, adding that the economic crisis could have helped bring about the sea change. “It seems the crisis has changed brands’ behaviour. We finally have real ideas that build business. “In the past, there was a true dichotomy between work for creative awards and work for effectiveness awards. “This year, I believe most GEMAS Effies winners and many finalists were probably entered in creative awards as well,” Boulos said. The economic downturn has forced marketers to finally buy into real creativity and agencies have responded, he added. “Today, if a brand does not have a strong creative and distinctive idea, there is no way it can be successful when it comes to effectiveness. “I only hope no one will revert to the old habits once the economic crisis is behind us,” Boulos continued. Social media, a key element in the shift to brand dialogue, often stole the limelight this year. Judge Chayne Brand, marketing director, Audi Middle East, noted that social media in the marketing mix is clearly accelerating. The key learnings for the marketer, he said, is “to understand that this needs to be ‘handled with care’ and the message delivered with sincerity”. Co-panelist Kenneth Lingan, marketing director, Home & Personal Care, Unilever Gulf, praised the pioneering and clutter-breaking approach by some of the winning entries, which he said was demonstrated in the creativity of the materials and the way they used media. The entries – particularly the CSR Gold for Batelco’s Notepad campaign – also proved that effective marketing is not dependent on the size budget.

panel beaters The Gulf Effectiveness in Marketing Awards (GEMAS) were first staged in 2004 to promote excellence in marketing effectiveness and best marketing practice across all disciplines and categories among companies operating in the Middle East. In 2009 GEMAS and GMR linked up with the International Effie in New York to bring the world-renowned marketing awards to the Middle East. Launched in 1968, the Effies are a global symbol of great marketing ideas that achieve real results – ideas that work. Today, they celebrate marketing effectiveness worldwide with the Global Effie, Euro Effie, Effie Asia Pacific and more than 35 national Effie programmes, of which the GEMAS Effie Mena Awards are the latest. The initiative has brought a broader international dimension to the GEMAS while launching the Effies into one of the most exciting and dynamic emerging markets in the world. Proceedings and voting were fully compliant with Effies’ global rules. Independent auditor KPMG was present throughout to verify the tabulated results and guarantee absolute integrity and transparency. (See effie.org for full procedures.) GMR is very grateful to the members of 2010 judging panel for their expertise, time and commitment.

“It’s all about making smart choices and sweating out every dime of investment,” he said. Despite its genuine enthusiasm, the panel was, nonetheless, very tough. Not every category landed an award. The judges were, for example, surprised and, it must be said, disappointed that neither Travel, Transport & Tourism nor Media produced any winners, although Emirates’ SVP for corporate communications, Boutros Boutros, was named

GEMAS Marketer of the Year. Other categories such as Cosmetics & Fragrances produced only one winner. Beiersdorf Middle East landed a silver trophy for its campaign, ‘How Nivea Angelstar Wowed Teens in the Middle East’. Similarly, the Automotive and Best New Product Launch categories both took two bronzes and one silver, but no gold. Ultimate triumph, however, often depended upon insight coupled

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Bonus points: Standard Chartered and TBWA\Raad scooped gold in the Banking & Finance category with the added bonus of the Grand Prix

…there is no more the excuse to argue that our markets are not ready to creatively engage consumers… with the creative use of social media. Standard Chartered’s uaefoodexplorer.com, which scooped the gold in the Banking & Finance category and the Grand Prix, as the entry with highest aggregate score, is a prime example. It was evident, too, that local insights also boosted business. Saudi dairy Almarai’s The Perfect… Perfected campaign, which changed consumer behaviour to expand the consumption occasions beyond Ramandan for its fresh cream, won a silver in the F&B FMCG category. Similarly, Henkel Arabia, which developed a special variant of Persil to suit local needs with its Abaya liquid detergent campaign, Arwa3 Abaya, took gold in the non-food FMCG category.

As Roychoudhury pointed out: “The successful and awarded entries were clearly the ones that had relevant insights, especially local insights – something special that the brand and the agencies picked up and worked with – and reaped the results in the market place. “Today’s informed consumer recognises a good product and resonates to a good campaign built around solid consumer insight. The winning entries reflected this.” This year was also one in which social creativity became the norm. The best examples of this, said Boulos, were Standard Chartered’s food site, Batelco’s CSR initiative, Note Pad and Saudi Snack Co’s The Mixers

vs The Jammers, the launch platform for Doritos’ new two-flavours-in-onepack variant. Sheer audacity and unrestrained risk-taking also produced great business-building ideas, as well as displaying some superb, out-of-the-box thinking and creativity, according to the judges. “I was particularly impressed with the campaigns that have taken the bold path of pursuing something different from the rest of the competition,” said Lingan. Leading the way was Beiruti florist Exotica, which used a Sex and the City-style blog, plus OOH and radio to subvert the Valentine flower-giving tradition by urging single women to take matters into their own hands. The Make a Move campaign captured the hearts of the panel and won a gold in the FMCG category. Lebanon again took the credit with Alfa Mobile’s bold ‘hijacking’ of six radio stations to amplify its competitor advantage with its new Ehkineh (“please call me back”) service.

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Corroborative evidence: Marketing collaterals complemented the online entries

I was wondering if MENA’s marketers were ready to finally take risks and buy into creative ideas and social creativity… Another breakthrough initiative came from the Ahram Beverage Co, which wanted to refresh sales of its malt beverage Birell and recruit younger consumers to the brand. By tapping into the culture of masculinity among Egyptian males it made Birell the drink of choice among ‘real men’. All three were applauded for their insight-based strategies and creativity. “My advice to future aspirants is to take more risks, be more courageous and you’ll have a better chance to stand out from the clutter and wow consumers,” said Lingan. There was, however, some constructive criticism. “Some of the categories had very strong, results-driven entries, which harnessed solid strategy unfolded via creative executions. “On the other hand some categories were hugely disappointing – and

we were reluctant to honour the entries in those,” said Roychoudhury. The lack of corroborative, quantifiable results that proved the effectiveness was obviously a key factor. As Sevil Ermin, a fellow judge and managing director, Nielsen UAE, said: “Brands that submitted research findings or healthy industry data [from well accepted authorities of the sector] to support their results did a much better job then those that did not. “For successful brand communication and effective marketing, it is a must to get a healthy measurement of consumers’ reactions continuously to track the improvement areas and focus on those aspects.” Attempts to harness CSR to increased profitability failed to impress the judges, while Boulos was particularly irked by media agencies entering ad agencies’

work as their own, “and clients allowing that to happen”. And he was disappointed to not see work from outside the Gulf and Lebanon regions. “Egypt was underrepresented considering the talent of its professionals and the size of its market. I also wish North Africa was more present for the same reasons,” he said. The final word remains with Boulos who, having also sat on the 2009 panel, emphasised that the quality of the entries reminded us that the Effies stand for ideas that build business, not only effectiveness. This year’s winners were on a par with global standards, he said. “There is no more excuse to argue that our markets are not ready to creatively engage consumers, as is the case in the most sophisticated markets. “Clients are ready to buy into it and agencies proved that they can deliver.” Many congratulations to everyone who took part. It’s you who are making this happen. n GMR is grateful for the support of its sponsors the Choueiri Group, Almarai, Kassab, Anayou and Philips, and its strategic partner Cadillac.

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GEMAS EFFIE MENA AWARDS 2010: JUDGES Hubert Boulos Managing Director, MAC DDB, Qatar Hubert Boulos is the regional managing director of MAC DDB headquartered in Qatar, one of the fastest-growing agencies in the region. Launched in 2008, the agency boasts a list of blue-chip regional and global clients such as Qatari Diar, QNB and Moov (Etisalat in West Africa). Before joining MAC DDB Hubert was the head of planning and research at Impact BBDO. Before coming to the Middle East, Hubert held key positions, including managing director at major global networks in France (Saatchi & Saatchi, Lintas, now Lowe, McCann, Publicis) and worked with major clients (Reckitt Benckiser, P&G, Unilever, Nestlé, Johnson & Johnson, MasterCard and Renault). No stranger to the International Effies, Hubert helped two brands achieve Effie success – Johnson & Johnson France in 1998 and MasterCard Europe in 2000. A frequent contributor to business titles, Boulos is well known for his thought leadership and publications, which most recently included turning the point of sale into an image and sales accelerator at ESOMAR’s automotive conference in Lausanne, Switzerland.

Tom Roychoudhury Chief Innovations Officer and Head of Corporate Communications Network, MCN Tom Roychoudhury has 20-plus years’ experience in advertising and is the chief innovations officer at Middle East Communications Network (MCN) in Dubai, part of the Interpublic Group of companies. At MCN he is also the head of the leading edge, digital and new ideas company called Innovations. His remit includes corporate communications for the entire group of agencies, which include Fortune Promoseven, Universal Media, Lowe and Magna. Before moving to Dubai, Tom worked for multinational agencies in Canada, the UK, the Middle East and India. His experience includes teaching advertising strategy and permission marketing at the University of Toronto. His brand portfolio includes multinational accounts such as Coca-Cola, Standard Chartered, American Express, Jaguar and Land Rover, Rolls-Royce, Master Foods (Mars), AT&T, Le Meridien Hotels, ACDelco, Sony, PowerGen UK, BMW, Retail Council of Canada, Nestlé, BankMuscat, Sitel UK, KFC, Taco Bell, Pizza Hut and UPS. Tom says he rallies every day for the seamless integration of rock-solid creative strategy and execution into today’s leading-edge media options. His current challenge is to synergise global trends and ideas into the rapidly developing world of digital communications in the Middle East, making them relevant to regional demands.

Jean-Pierre Le Calvez Vice-President Marketing, Europe, Middle East and Africa, Personal Systems Group, Hewlett-Packard Jean-Pierre Le Calvez is the VP of marketing for Personal Systems Group (PSG) in EMEA, responsible for the PSG Marketing Investment Envelope. His primary task is to support the region’s revenue and market share goals, drive growth by capitalising on opportunities and drive customer-focused strategic marketing programmes. Prior to joining PSG, Jean-Pierre was VP of marketing for EMEA for the Imaging and Printing Group (IPG). Before joining IPG he was at PSG as director of Worldwide Strategic Marketing. He was working with worldwide and regional teams at HP to drive brand preference and consideration through targeted programmes, relationships and events. Jean-Pierre has held a number of key marketing roles in major companies and start-up ventures, as well as philanthropic organisations. Prior to coming to HP, Jean-Pierre was VP of advocacy and communications at the GAVI Alliance, a Gates Foundation dedicated to saving lives through immunisation programmes. Previous positions included CMO for Philips’ Adelante Technologies and senior director, strategic marketing and analysis at Palm. He has also worked at Apple, where he was responsible for marketing, communications and PR, as well as government relations for the EMEA region. A French national, Jean-Pierre has taught marketing and advertising research at the University of Kansas (KU) and holds a master’s degree in journalism from KU, and a doctoral degree in information and communications from the University of Nice.

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GEMAS EFFIE MENA AWARDS 2010: JUDGES Reda Raad Group Managing Director, TBWA\RAAD Reda Raad is one of the key architects of TBWA\RAAD, which started in Dubai 10 years ago, now one of the leading communications groups in the MENA region. The agency has developed strong relationships with brands such as Nissan, Mars, Visa, Nivea, Axiom, Ferrari World, Standard Chartered and du. Reda has been a member of the communications industry for 15 years working on different brands across the region. He graduated with a double BS in advertising and marketing management from Syracuse University in New York. Raad was named an Agency Innovator of 2010 by the Internationalist Magazine.

Kenneth Lingan Marketing Director Home & Personal Care, Unilever Gulf Kenneth Lingan, who joined Unilever in 1998, has held his current role since 2009. Before moving to Dubai he was based in Singapore as regional brand director for Rexona Asia. In 2001 he was based in his native Manila, where he began work on Rexona as brand manager. He was initially responsible for Rexona Philippines, before becoming regional brand manager, where he developed Rexona Innovations across the various Rexona segments in Asia as part of the Global Innovations Team. He also led the Rexona launch team in China, which achieved market leadership in just three months. Lingan holds a bachelor of science degree in management engineering.

Sevil Ermin Managing Director, The Nielsen Company UAE Sevil Ermin has headed The Nielsen Company UAE since January 2009. Prior to this she led the retailer services unit across MENAP. She worked at Nielsen Turkey for 12 years, spending the past five as retail measurement services director, before moving to the UAE in 2007. Sevil also worked in Italy as international client service director with Nielsen BASES, a leader in simulated test markets, studying innovations and renovations. Sevil has spoken at various consumer insights and marketing seminars. She holds an MBA from Instanbul’s Bogazici University, and is married with one daughter. Sevil speaks Turkish, English and Italian fluently. She also speaks German and French.

Kelly Kaur Managing Marketing Communications, Qatar Airways A native of Singapore, Kelly Kaur has been a marketing communications professional, teacher, model and artist. In her current role, she oversees global advertising and marcoms for Qatar Airways. If there’s one thing she could change, it would be to add more hours to her day, she says. Between balancing the pragmatism of achieving strategic marketing objectives with the unconventionality that drives advertising ideas and pursuing her MBA studies, there is little room for anything else. But in her spare time she focuses on issues “close to her heart such as protecting the environment or giving creative expression to the artist within”.

Jacob Hrayki Regional Director MEA & Turkey, Dior Jewellery, Watches & Pens Canadian-Lebanese Jacob Hrayki leads commercial and marketing for Dior jewellery. Within his remit he is also creating a network for a more image-oriented and higher productivity per door/retail networks. Prior to Dior, he was Creation Alexandre Miya Paris’ regional director, managing 11 countries. Before this he spent two years at National Food Products Company, Trading Division, UAE, as sales manager for Arla. He has worked in the US and Lebanon, and is fluent in English, French and Arabic. Jacob holds an MBA from the University of Saint Thomas in Texas and a dual degree in international business and marketing.

Chayne Brand Marketing Director, Audi Middle East Chayne Brand has been working for Audi since early 2001, firstly in South Africa as the brand manager. He subsequently progressed to heading up marketing in South Africa. He then moved to Audi AG and was responsible for product and price marketing for India and Southeast Asia, prior to moving to the Middle East as marketing director. Before working for the Audi Group, Chayne worked in the advertising and fashion industries. He holds an honours degree in marketing communications from the University of Johannesburg.

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GEMAS EFFIE MENA AWARDS 2010: JUDGES Gabriele Wrede Senior Director Global Head of Brand Strategy and Communications, Philips International B.V. German-born Gabriele Wrede joined Philips Consumer Lifestyle in 2009 as global head of brand management, before moving to Philips International B.V. Prior to Philips, Gabriele worked for Montblanc in Hamburg as global head of marketing & PR, where her responsibilities included global strategic and operative lead of marketing, communication and PR, covering all product categories and distribution channels. Previous roles included global head of licences; head of marketing for Davidoff Cigarettes Europe, Middle East & Asia, plus the Carlsbert Brewing Group, where she held various positions.

Johannes Pattermann Area Managing Director, Johnson & Johnson Middle East Johannes Pattermann is the MD of Johnson & Johnson Middle East. He has been in this region for seven years, overlooking J&J’s Consumer Business in more than 35 countries in Africa, the Levant, the GCC and Asia (Pakistan). Johannes, an Austrian citizen, joined Johnson & Johnson in 1992 as sales director in his home country. He progressed through different assignments in sales, logistics, marketing and process management in different markets, such as Austria, Russia and the Middle East. Johannes previously worked for Procter & Gamble and is a graduate from the University of Business Administration, Vienna.

Kamran Siddiqi Group Country Manager Middle East, Visa Inc. Kamran Siddiqi is the group country manager for Visa International for the Middle East within the CEMEA region. Based in Dubai, he is responsible for the GCC, Yemen, Levant, Pakistan, Afghanistan and Iraq markets. Kamran is a 25-year veteran who joined Visa in 2003. Prior to this, he worked with ANZ Banking Group as the MD for emerging business in Melbourne. At ANZ he led the domestic cards and international consumer finance businesses, and was responsible for the bank’s broader retail agenda in Asia. Previously Kamran worked for Citibank across the Asia Pacific, including Singapore, Thailand and Pakistan. He holds an MBA from the Asian Institute of Management in the Philippines.

Memosh Khawaja General Manager, Henkel Arabia Memosh Khawaja is a Pakistan national whose long career in marketing began with Unilever Pakistan. He joined Henkel Arabia in 2000, heading the sales and marketing for laundry and home care business in the GCC. He opened the Henkel L&HC business in the Gulf, with a new facility in Jebel Ali, as GM in 2006. Since 2008 he has been GM for Henkel L&HC for Saudi Arabia and Export. Khawaja holds an MBA from Lahore University of Management Sciences in Pakistan and is married to a Montessori-trained professional. Memosh has two children, Senan aged seven years and Sultan, three years.

Ziyad Kassem Nour Head of Central Marketing Department, National Central Bank As head of the Central Marketing Department, Ziyad’s responsibilities include establishing and implementing NCB’s marketing strategies, operating plans and marketing budget. He is also responsible for managing retail marketing, corporate marketing, internal marketing and an in-house advertising agency. Ziyad began his career at P&G, where he worked for five years, becoming group manager for marketing services. Later he joined NCB as product marketing manager before becoming retail marketing manager, and then corporate marketing manager. He took on his current role last year. Ziyad holds an MS in computer engineering.

Hisham Abi Nassif Regional Executive Director – Group Development, OmnicomMediaGroup With a degree in advertising and marketing, Hisham began his career with Ipsos in Lebanon 13 years ago, before moving to Dubai, where he held various positions within the region’s media agencies, including: MindShare, MEC MENA and BrandConnection. For the past six years Hisham has worked at OmnicomMedia Group. His clients include Unilever, GSK, Ford, LG, Colgate/ Palmolive and Samsung. He was deputy general manager at OMD for almost three years before assuming his current role at OMG as regional executive director for group development and network expansion in the MENA region.

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gala night

Mediaquest’s Alexandre Hawari, Reda Raad, TBWA\RAAD, and guest

SMVG’s Mark Hamilton

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JWT’s Roy Haddad (left), MEMAC Ogilvy’s Edmond Moutran (right) with guest

TBWA\RAAD’s Ramzi Raad with Jennifer and Robert Taylor-Hughes, Bieiersdorf Middle East

Unilever’s Kenneth Lingan

La Voix Magique

Audi ME’s Chayne Brand with Raja Tradd and Kamal Dimachkie, Leo Burnett

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Gala Night

Mohammed Al-Tajer, Citibank, Hussam Abdul-Qader, Almarai (right)

Jamil Abu Wardeh, master of ceremony

Kassab’s MIchel Bort (far right) with guests

Sugar Sammy

MCN’s Tom Roy, Debi Sen with The Nielsen Company’s Sevil Ermin

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Arabian Outdoor’s Najib Trad, Ramsey Raad, TBWA\Raad, Elie Khouri, OMG, Robert Mitchell, The Tribe, and Mediaquest’s Simon O’Herlihy

Memac Ogilvy’s Nabil Moutran (right) and guest

NCB’s Ziyad Kassem Nour, Hubert Boulos, MAC DDB

Nearly 900 marketing and media professionals from across the region attended the event

Nick Mesquita, The Economist, Kelly Kaur, Qatar Airways

General Motors ME’s Fadi Ghosn, GMR’s Siobhan Adams

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CP S O EVCE IRA LS TFOERAT Y URE

best new product launch S ilver Client: Nestlé Middle East Brand: Maggi Excellence Title: Not just Richer, it’s 3 x Richer Agency: Publicis Graphics Country: The Middle East B ro n z e Client: Almarai Brand: Vetal Digest Title: How’s Your Digestion? Agency: TBWA\RAAD\Saudi Arabia Country: Saudi Arabia B ro n z e Client: The Coca-Cola Company, Egypt Brand: Fantaloupe Title: Save Meselhy Agency: Fortune Promoseven Egypt Country: Egypt

Nestlé and Publicis Graphics celebrate their richly deserved success

Almarai shares the plaudits with TBWA\RAAD\Saudi Arabia

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Saving Meselhy helped Coca-Cola and FP7 Egypt to a bronze trophy

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S P E C I A L F E AT U R E

Electronics/Computers S ilver Client: HP Middle East Brand: HP Title: Touch GITEX Now Agency: OMD Dubai Country: The Middle East

B ro n z e Client: Arab Business Machine Brand: Apple iPod Title: Love iPod Agency: LOWE MENA Country: UAE

Touchy feely: HP and OMD accept their award

LOWE MENA reaches new heights with its Love iPod campaign

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S P E C I A L F E AT U R E

Best Youth Marketing Campaign G old Client: Saudi Snack Foods Limited Brand: Doritos Collisions Title: The Mixers vs The Jammers Agency: Impact BBDO Jeddah and OMD Country: Saudi Arabia S ilver Client: Batelco Brand: Batelco Title: Sim Sim O-net Agency: FP7/Bahrain Country: Bahrain

Hitting a high note was OMD, Impact BBDO and Saudi Snack Foods

B ro n z e Client: Beiersdorf ME Brand: Nivea Title: How Nivea Angelstar wowed teens in the Middle East Agency: Horizon Draftfcb and OMD Country: The Middle East

Bahrainâ&#x20AC;&#x2122;s Batelco and FP7 teams made the connection

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Halo effect: Beiersdorf Middle East with Horizon Draftfcb and OMD won a bronze for Angelstar

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S P E C I A L F E AT U R E

Best USE of CSR G old Client: Batelco Brand: Batelco Title: The Notepad Agency: FP7/Bahrain Country: Bahrain S ilver Client: Ministry of Interior & Municipalities Brand: Ministry of Interior & Municipalities Title: 2009 Parliamentary Elections Agency: Impact BBDO Beirut Country: Lebanon

Batelco and FP7/Bahrain triumphed with their conservation CSR activity

S ilver Client: Procter & Gamble Brand: Tide Title: Loads of Hope Agency: Starcom Dubai Country: Saudi Arabia

The judges voted for Lebanon’s 2009 parliamentary election campaign

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P&G’s Tide help for Jeddah’s flood victims won a well earned silver trophy

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S P E C I A L F E AT U R E

Sports Marketing S ilver Client: Batelco Brand: Batelco Title: World Cup: Debate the Game Agency: FP7/Bahrain Country: Bahrain B ro n z e Client: The Coca-Cola Company Brand: Coca-Cola Title: FIFA World Cup Anthem Waving Flag Agency: UM Dubai Country: UAE

A high score for Batelco and FP7/Bahrain

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The flag waving campaign caught the eye of the judges

Cosmetics & Fragrances S ilver Client: Beiersdorf Middle East Brand: Nivea Title: How Nivea Angelstar wowed teens in the Middle East Agencies: Horizon Draftfcb and OMD Country: The Middle East

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Beiersdorf, Draftfcb and OMD wowed the judges to win the only award in this category

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TELECOMMUNICATION/MOBILES/INTERNET S ilver Client: Batelco Brand: Batelco Title: Flag Campaign Agency: FP7/Bahrain Country: Bahrain S ilver Client: Batelco Brand: Batelco Title: World Cup: Debate the Game Agency: FP7/Bahrain Country: Bahrain B ro n z e Client: Orascom Brand: Alfa Title: The Hijack Agency: H&C Leo Burnett Country: Lebanon

The judges saluted FP7/Bahrain and Batelco for their flag campaign

Cheering from the sidelines-Batelco and FP7/Bahrain pick up a second award in this category

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Surprise, surprise: Alfa’s fake radio raids captured the judges’ vote

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S P E C I A L F E AT U R E

Non-FMCG G old Client: Henkel Arabia Brand: Persil Abaya Title: Arwa3 Abaya Persil Agency: OMD Country: The Middle East G old Client: Exotica Brand: Exotica Title: Valentine’s Day-Make a Move Agency: Leo Burnett Beirut Country: Lebanon Strong local insight helped win a gold trophy for Henkel Arabia’s Persil Abaya, pictured here with OMD

Taking initiative won the hearts of the panel for Exotica’s Valentine’s Day campaign by Leo Burnett Lebanon

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S P E C I A L F E AT U R E

Automotive S ilver Client: General Motors Middle East Brand: Chevrolet Title: Confession of Corporate Spies Agency: Starcom Dubai and Leo Burnett Dubai Country: The Middle East B ro n z e Client: General Motors Egypt Brand: Chevrolet Title: Chevrolet Cruze Phases 1 & 2 Agency: Fortune Promoseven Egypt Country: Egypt

General Motors ME drove off with the top award in the category with some help from Leo Burnett and SMG

B ro n z e Client: Volvo ME Brand: Volvo Title: Safe and Style Agency: Memac Ogilvy & Mather, Dubai Country: The Middle East

General Motors Egypt and Fortune Promoseven Egypt took another award for Chevrolet

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Memac Ogilvy helped Volvo Middle East pick up a bronze for its Safe and Style promotion

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S P E C I A L F E AT U R E

FMCG G old Client: Saudi Snack Foods Ltd Brand: Doritos Collisions Title: The Mixers vs The Jammers Agency: Impact BBDO Jeddah and OMD Country: Saudi Arabia S ilver Client: Almarai Brand: Gishta Fresh Cream Title: The Perfect...Perfected! Agency: TBWA\RAAD\Saudi Arabia Country: Saudi Arabia

A carefully orchestrated campaign led to another gold for Doritos Collisions

B ro n z e Client: Ahram Beverages Company Brand: Birell Title: Be A Man Agency: Starcom Cairo Country: Egypt

Cream of the crop: TBWA\Raad\Saudi Arabia and Almarai

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Toasting the success are Starcom and the Ahram Beverages Company

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S P E C I A L F E AT U R E

Banking, Finance & Insurance G old & G ra n d P ri x W i n n er Client: Standard Chartered Bank Brand: Standard Chartered Bank Title: uaefoodexplorer.com Agency: TBWA\RAAD Country: UAE S ilver Client: Bahrain Economic Development Board Brand: Business Friendly Bahrain Title: Best Nation Agency: Zenith Media Country: Bahrain

A double bonus for Standard Chartered and TBWA\Raad

B ro n z e Client: Al Rajhi Bank Brand: Al Rajhi Bank Title: Voice of Society Agency: Starcom Riyadh & WOM Communications Country: Saudi Arabia

It’s smiles all around at Zenithmedia and BEDB for the award-winning Business-Friendly Bahrain campaign

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Saudi’s Al Rajhi Bank made itself heard with the Voice of Society campaign by SMG and WOM Communications

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Profile

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The GMR Interview

GEMAS Marketer of the Year 2010, Emirates Group’s Boutros Boutros, takes Precious de Leon through the highs and highs of his career. line Industry Awards, Skytrax Airline Excellence Awards and the Marketing Organisation. The newly minted GEMAS Marketer of the Year trophy, however, was nowhere in sight. fantasy cv Born Lebanon, January 1960 Spouse: Anne; Daughters: Maya, 19, Elise, 17, Marie, 14 Education: Commercial science, Centre Belge College in Lebanon Residence: Dubai for the past 20 years Hobbies: Cycling, walking, reading Career high: I’m proud of everything I do, but one of my career highs is being able to put together my current team Career low: I don’t regret anything that I’ve done, but if I had to say something it would be that you regret trusting that some people can deliver on their responsibilities Fantasy job: Corporate/finance lawyer

After a couple of minutes Sardar Khan, the recently appointed corporate communications manager, showed me to Boutros’ office. Khan was at the GEMAS Effie Mena Awards last month to accept the Marketer of the Year Award on behalf of Boutros, who was travelling with HH Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority, chairman of Dubai Airports and chairman and chief executive of The Emirates Group. As I enter the office Boutros extends a welcoming hand, apologises for the brief wait and motions to the roundtable inside. I get settled in and so does Khan, there to talk about some of the more detailed aspects of the group’s advertising. Throughout our conversation, Boutros praises Emirates’ management model and attributes his division’s success to his team – a group he handpicked when he took the DSVP role 18 months ago.

“Circumstances [out of your control], a lot of times, decide your future,” says Boutros Boutros, contemplating on his close to 20-year career with the Emirates Group. The divisional senior VP for corporate communications has been named 2010’s GEMAS Marketer of the Year. Sitting down with GMR, Boutros shares the story of how a young man from Lebanon found a passion in writing and married it to a purpose in corporate communication. The meeting was at Emirates HQ in Dubai. The building doesn’t look much from the outside, but what lies within is a thriving micro-city beneath a glass atrium, complete with shops and restaurants replete with some of its 50,000 employees bustling to and fro. While waiting for the 50-year-old, I spy the myriad of trophies that adorn the walls. They are mostly from teams and events the group sponsors, along with the more than 400 awards Emirates has received from various industry award bodies, including the OAG Air-

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Profile

Flying high: Emirates is now the largest operator of both the A380 Airbus superjumbo (above) and the Boeing 777

Boutros started with Emirates in 1991. Before that he worked as a journalist in London after graduating with a degree in commercial science from the French institution Centre Belge College in Lebanon.

company creds Since its launch in 1985, Emirates airline has seen rapid and consistent growth, above 20 per cent a year on average, and has been profitable for the past 22 consecutive years. Financially self-sustained, Emirates carried 27.5 million passengers in the 2009-10 financial year – almost 4.7 million more than the year before – and declared a net profit of $964 million. Group revenue remained stable at $12.4 billion for the same period, while the margin improved to 9.1 per cent from 2.6 per cent a year earlier. Besides the airline, the group also includes the companies Dnata, Mercator, Transguard and EmQuest.

As a side note, Boutros met his wife, Anne, in London. She is French. And although he and their three daughters also hold French passports, they are, he says, more connected to the UK. His eldest, 19-year-old Maya, is in her second year in a university in London while Elise, 17, and Marie, 14, are in Dubai, where the family has lived for the past two decades. Starting at Emirates Jumping from general journalism to PR and then to business journalism opened his eyes, Boutros says, to the state of PR in the Middle East. “At the time, the PR world in the region was so immature.” Press releases were badly written, he says – some would mention the client’s name more than 50 times. “The quality of PR was low and often only managed by advertising agencies that didn’t really specialise in PR strategy. I saw that there was a big need for a strong PR presence in the region.”

A brief history It was when moonlighting as an Arabic proofreader and writer while he was still at university that Boutros found his passion for writing. Upon graduating, his first job was – rather oddly in retrospect – as a sales rep for a fertiliser and pesticide company in Lebanon. This was the early 1980s during the war in Lebanon, which would soon force Boutros to follow his brother to London, where he decided to learn English. “This is what I mean by how circumstances, a lot of times, decide your future,” he says. At that time the Al Hawadeth magazine needed a sub editor. He applied for the job and started work there in 1984. Three years later, he became the

managing editor, where he remained for the next two years. In 1989 he moved to Dubai to work with Bain Communications, now part of Euro RSCG. While at Bain he worked on a variety of brands including Airbus, Winston and Emirates airline. Some 18 months later, however, circumstances forced him back to London. This time it was the invasion of Kuwait in 1990. Back in London, he became business editor for the daily Sawt al-Kuwait.

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Profile

Italian job: Emirates is the main sponsor for AC Milan’s shirt

…we are moving more into using audited media only. giving more attention and spend towards digital projects. At that point we are joined by Maurice Flanagan, executive vice chairman for Emirates Group. While sports sponsorship remains a primary mode of sponsorship for the airline, there is increasing investment in cultural and artistic initiatives. Sports, however, remains the focal point, while cultural activities are a secondary interest and often under CSR initiatives. These arts and culture sponsorships include the Dubai International Film Festival and the Emirates Airline Festival of Literature. Flanagan puts the total marketing budget at nearly four per cent of the expenditure of the company. Emirates Group works with 46 PR agencies, a number of companies under the Publicis Groupe Media (PGM) network, and more than 100 other ad agencies – a

“At the end of the day we need creditable intelligent facts and figures and we don’t have them. And if nobody provides them, I’m sure we have the means to do it ourselves – and that’s going to be our next step.” Galvanised by his refreshingly forthright response, devoid as it is of the usual media-trained, corporate diplomacy – all the more surprising given his background in PR – I press for details on the new creative strategy. Since the appointment of the agency StrawberryFrog in July, Emirates’ new-look ads have been the topic of intense industry speculation. The Keep Discovering tagline was a concept developed by St Lukes, a UKbased independent agency in 2002. “We are talking about 360-degree plans and this will take care of all these elements,” Boutros says. As for a breakdown, all Boutros will say is that the group is

network that is supported by EmPower, an extranet system that enables agencies and clients to share ideas, exchange information and receive briefs and feedback on campaigns from anywhere in the world in realtime. The Corporate Communications Unit has more than 150 staff around the world and eight report directly to Boutros. Probed more about the new strategy with StrawberryFrog, he says the agency’s take on “cultural movement” is not a policy as it is a market approach. He adds that any campaign that will be launched will continue to be consumer-focused. StrawberryFrog specialises in developing “cultural movement” strategies and communications, according to its website. The term was coined by agency founder Scott Goodson. “How do you get customers to be loyal to you? By culturally being close to them, being able to relate to them at that level,” Boutros says. The Group uses its Skywards database, which has been built over a decade. The company spends roughly AED2 million ($545,000) on con-

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Profile

Sporting chance: Sports sponsorship remains a key strategy for Emirates

...there are only very few agencies in the region you can rely on. sumer and market behaviour research every year. Boutros also highlights the inevitable importance of monitoring conversations in social media platforms and online review sites as a way to service potential and existing customers. “Companies can’t entirely dictate how they are perceived in the market. It’s people dictating what they perceive your brand to be and that’s why your service and offering has got to be consistent,” he says. “I believe this is the key to the future of communication: transparency, transparency, transparency.” In addition to leaning more towards digital, Boutros has plans to take in-flight entertainment to another level. “I’d like to see in-flight entertainment include integrated advertising onboard in the coming months,” he says. “I want to have some channels available to some advertisers where they can

use it to run interactive campaigns to a captive high net worth audience.” Boutros expects 30 million passengers this year. Inflight magazines Open Skies and Portfolio are planned to go online eventually, as well. Like most Emirates employees, Boutros’ day begins at 7am. He has a coffee with Flanagan and then his team; he averages five meetings a day. “I control about two hours of my day and the rest is reacting to a spectrum of problems,” he says. “But two hours is all I need because I have a good team. I’ve asked them to come to me with solutions, not problems. While I make sure our division is working well, one of the challenges I found in taking on a higher level position is that half of the time, you have to be an expert in HR, admin, procurement and the like.” So what next for Boutros and Emirates? “The sky’s the limit,” he says with a slight smile for the pun. “Ultimately, we’d

like to become a truly global brand, not just within our category but across all sectors, much in the way that Apple has transcended the electronics category and is often perceived as a lifestyle brand.” A grand feat. And they are arguably on their way. Much of it will be down to hard work and efforts of the group, but circumstances will play a small part. Since it started with a $10 million capital 25 years ago, Emirates airline has, reportedly, not received any more subsidies from the government. The carrier continues its rapid expansion plans and is now the largest operator of both the A380 Airbus superjumbo and the Boeing 777. Doing rough maths, I calculated that would be about 900 extra seats a month – a massive fleet that I’m sure the young man in Lebanon who worked for the fertiliser company wouldn’t have imagined he would one day be part of. As we end the interview, I had one final question. Where is the GEMAS Marketer of the Year trophy? Boutros points towards his desk. And there it was in pride of place… the only one on his desk. n

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Profile

Forerunner: Emirates sponsorship helped establish Dubai as a first regional sports hub

...there are certain groups that are formed on purpose so they don’t do anything. a certain part of the job he enjoys the most? “Historically I’ve worked on PR, events and sponsorships. These are the sexy parts of the business. But being involved in the details of advertising and digital, I enjoy working on these more because I find it challenging,” he says. “Like everybody else, I’m always looking for something new and I see this [DSVP] promotion to be both a big incentive and big responsibility, because when your senior management trusts you with a big budget, it’s a good feeling and a big challenge,” he adds. “You’ll have sleepless nights because making money is a challenge, but spending money, believe me, is more than a challenge. You have to justify why you are spending every penny and what you get out of it.”

Within six months Boutros was approached for the role of media relations manager at Emirates, which at the time was just starting to build its PR department. He began in 1991 and initially focused on the Middle East before expanding to Europe and North America. “Emirates kept growing, the PR department was growing and I grew with it.” He became Group Media Relations manager in 1996 rising to GM for Media Relations and Promotions by 1999. Boutros was also the VP for media relations and promotions and then SVP for media relations, sponsorships and events before he took on his most recent role as DSVP for the group’s corporate communications. Working on advertising, PR and corporate communications, is there

Issues on accountability It’s from there that we veer on to the topic of transparency in the media, and Boutros doesn’t mince his words. “In our industry, no matter how much research you have and how many justifications, it is still extremely difficult to prove that what you spend really got you want you want. “That’s why we are now moving more into using only audited media because we know that in our market there is no proper body to oversee the validity of results or to judge whether the brands being presented are the right information and intelligence. You end up relying on your agency. And, well, there are only very few agencies in the region you can rely on.” His own experience in publishing, he says, exposed him to some dubious practices, including the manipulation of circulation numbers and rate cards while still being able to produce seemingly legitimate research. “So you feel like the blind is leading the blind,” he says. Boutros then shares his hopes of initiating talks with brands similar to Emirates and within the same marketing spend bracket. He says the group of brands could form their own media and research agency. “This would allows us to make sure every penny we have is wisely spent and in the right place. So far the industry has widely let us down,” he says. Isn’t this what the Arabian Business Group (ABG) is for, I ask. In fact, at the time of writing, Emirates’ own manager for group advertising, Sara Sahely, is the ABG’s vice chairperson. “To me, this group so far hasn’t been effective,” he says. “Because sometimes there are certain groups that are formed on purpose so they don’t do anything. So we go back to the same mentality of certain agencies unfortunately dictating the advertising scene in the Middle East and dictating which are the good and bad publications.

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r e tai l v i e w

Nivea Haus, Dubai Mall

If Nivea was a person, would it decorate its Haus like this? When I heard about the Nivea Haus Spa, I was interested to see how it would translate this well-known brand into a new retail environment. When working with clients I use comparisons between brands and people. Both have their own personality, values, characteristics and a unique way of acting and talking. In workshops I ask clients to think about their brand. What would it read, what would it wear, where would it shop and in what kind of house would it live? And how would it design its interior? This is the question I asked myself on my way to Nivea Haus at Dubai Mall. I fully expected Nivea to open its

characteristic blue lid to allow me into its inspiring world. Nivea Haus Spa is already in Berlin and Hamburg. What would the company do in Dubai, a very different proposition from the German market? Would it look at doing something innovative? An everyday spa for everyone Nivea Haus is partly a retail outlet and partly a spa. The outlet, with its abundance of white and blue, feels like a very clean environment. The link with the main brand carrier – the blue round tin – is strong and clear. The shop does not oversell. It’s down-to-earth, like the personality of Nivea itself.

The interiors are as you would expect. Indeed, you can almost read the identity guidelines in it. The question that raises itself here is: Should something as rigid as a graphic identity not adapt itself to its location rather than remaining true to its brand identity? Does the classic and timeless Nivea blue graphic identity sit well within its location host, the glamorous Dubai Mall? It’s a challenge that many companies struggle with. How do you translate a 2D identity into a 3D environment without creating a direct graphic representation? Of course, the retail interior should breathe the brand identity, but wouldn’t

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this be more effective if this was an interpretation of the brand identity and promise in 3D, rather than a direct copy? Nivea doesn’t seem to think so. Nivea Haus is blue and white. That’s Nivea – there’s no interpretation. Indeed, it becomes hard to differentiate the product range from the interiors. And this, in my opinion, runs the risk of turning the consumer off. A retail interior should allow products to be distinguished from one another – not grouped together en masse. Maybe that’s because I prefer to be led visually. But with a dual-purpose product such as Nivea Haus, where customers are meant to have both a shopping and spa experience, it’s vital the retail offer invites, seduces and sells. In turn, the spa should embrace, revitalise and tickle our senses.

The interiors are as you would expect. Indeed, you can almost read the identity guidelines in it. Loosen up Nivea. Your brand is already trusted, so let’s see something more of your personality. Bringing a spa to the high street is an interesting direction for Nivea to take. It’s a chance for it to extend beyond the products that have become so familiar to consumers. Where other spas compete with one another on which can be the most luxurious or exclusive, Nivea has found its own domain – a spa for everyone – and this should be applauded. But they have played the execution far too safely. They say: “Beauty is in the eye of the beholder.” This is a challenge

that Nivea must work on to create the sense of beauty and aspiration that will have the consumer craving for its products. This feeling of beauty will only be strengthened by leaving the path of blue and white every now and then. n RATING Retail experience Brand definition Design effectiveness Dennis de Rond is strategy partner at .DAY Dubai

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B R A N D A N A LY S I S

pastures new A new brand identity for Saudi’s Almarai conveys its evolution from dairy to one of the region’s largest integrated food conglomerates. One of the Middle East’s most iconic companies, Almarai, begins roll-out of its first major rebrand in its 34-year history next month. The initiative reflects Almarai’s evolution from a dairy company set up by HH Prince Sultan bin Mohammed bin Saud Al Kabeer in 1976 into one of the largest integrated food conglomerates in the Middle East. Riyadh-headquartered Almarai has a portfolio which, in recent years, has rapidly expanded to include juices, bakery, poultry and latterly baby formula, along with its core dairy portfolio. Speaking exclusively to GMR about the multimillion dollar project, Hussam AbdulQader, GM Marketing, says: “We see this as

an evolution of the current logo in line with Almarai’s growth and achievement. With the growth of the brand it became necessary to rejuvenate the logo.” Abdul-Qader, who played a key role in the development of the new identity, worked with Paris-based Dragon Rouge on the three-year project. Almarai, which translates as pastures, is one of the most recognised names in the making history

New identity: Hussam Abdul-Qader, GM Marketing

Middle East. As such it lies at the heart of the brand’s DNA, Abdul-Qader explains. “That’s why it plays such a pivotal role in both the old and new logo.” The new typeface, inspired by humanity through calligraphy, reinforces the brand’s accessibility to both adults and children. The English typeface followed the Arabic model. Both were straightened to convey the brand’s stability and reliability. They were also enriched to convey quality, which lies at the core of the brand’s heritage. Abdul-Qader says: “The typeface progression is evolutionary not revolutionary. It conveys Almarai’s successful evolution over the years.” Pivotal to the project is the colour blue, which evokes the brand heritage and core business, focused on, of course, health, freshness and

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B R A N D A N A LY S I S

fields of gold OLD

Almarai has embarked on an aggressive diversification and acquisition programme during the past two years as it broadens its portfolio from its core dairy business into a broader food and beverage offering. Initiatives throughout 2009 included a joint venture with Pepsi Co to form International Dairy and Juice, which later bought Egyptian dairy and juice company Beyti, and Jordanian dairy company Teeba, an earlier acquisition for Almarai. Other Almarai acquisitions included Saudi Agricultural NEW company, Hail Agricultural Development Co, producing poultry, dates and olives. In March this year it created a joint venture with US baby formula company Mead Johnson Nutrition to produce, market and distribute infant nutrition products in the GCC region. Latest company results for Q3, ending September 30, saw a consolidated net profit of $113.2 million, up 16.8 per cent compared to the same period last year ($96.9 million) and an increase of 23.7 per cent compared to the Q2 2010 ($91.5 million). Total gross profit for Q3 reached $212.5 million, up 14.2 per cent compared to the same period last year ($186.1 million). The consolidated net profit for the first nine months, ending September 30, 2010, amounted to $267.3 million, an increase of 18.1 per cent compared to the same period last year ($226.2 million). Today the company provides 50 per cent of the GCC’s fresh milk, 41 per cent of its yoghurt, 32 per cent of its bottled juices and 52 per cent of the market for fresh laban. (Source, Nielsen retail audit MAT AS2010.)

nature, as well as the brand’s dynamism. The solid blue colours progress through a gradient of different shades to add a modern twist while striking a balance between strength and emotion and suggesting openness and fluidity. A more pronounced change is the altered logo shape from the more angular, tilted square to a curve devised to emphasise the inherent humanity and generosity of the brand. “It also evokes optimism, good health, smoothness, as well as good taste, which is key to young and old consumers alike” Abdul-Qader adds. The four carefully woven green rows symbolise the company’s vast, open meadows, while also representing its growth and new business units. Green and blue are also universal cues for food and beverages, the original premise of the company. The rows, therefore, also ‘reach out’ to consumers through a varied product range anchored in purity and freshness. The white outline acts as a protective frame around the logo, a reminder of Almarai’s positioning as protective and trustworthy, a brand infused with traditional family values, Abdul-Qader says. “This outline stands for purity, clarity and health, which draws from the brand’s dairy heritage.” No detail is random or left to chance. Even the upper right tip is designed as a powerful evocation of optimism, modernity and the progressive vision of the company. “The fact the logo is asymmetrical reinforces its uniqueness, sophistication and modernity,” says Abdul-Qader. “Overall the new logo is more human, emotional and confident. This conveys Almarai’s brand status and displays a proprietary shape that is ownable, likeable and memorable. “Visually and symbolically the new brand icon has various interpretations. It expands with the brand’s dimensions with more diversity and strength.” In 2009 Almarai was named one of the top five emerging market brands with the potential to become global, The Financial Times reports. n

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UAE

SAUDI ARABIA

KUWAIT

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MARKETING MANAGER

Telemarketer

MARKETING ANALYST

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Ben Khamies Group

ARABIAN BEVERAGE COMPANY LTD (ABC) CopyTech (Lebanon)

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CONSUMER MARKETING MGR

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ACCOUNT MANAGER

DELL Computers

Almarai Company

Pan Arab Research Center

Cube (Lebanon)

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MARKETING MANAGER

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Pragma Firma Management

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MARKETING COORDINATOR

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PRODUCT SUPERVISOR

BRAND MANAGER

Gallup

National Paper Company Ltd

XPRESS Group

Tree Group International (Qatar)

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REGIONAL SALES MANAGER

MARKETING MANAGER

Big Boys Toys

Wolters Kluwer

Al Thekair Trading & Contracting Co W.L.L

Salam International (Qatar)

Qualification: Degree in relevant discipline Experience: 5 - 10 years Experience Skills: Excellent communication skills Strong command of Arabic Proficient in MS-Office

Qualification: Masters in relevant discipline Experience: 5+ years Experience Skills: Excellent command of English & Arabic Strong sales skills Strong negotiation skills

Qualification: Degree in Marketing Management Experience: 2+ years Experience Skills: Proficient in MS-Office Excellent command of English & Arabic Excellent management skills

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S E C T O R A N A LY S I S

beverages We concentrate on the regionâ&#x20AC;&#x2122;s highly competitive bottled water segment and discover that regionâ&#x20AC;&#x2122;s consumers are none too adventurous when it comes to new tastes Liquid assets Exotic flavours Hot stuff in Saudi Arabia Heating up the UAE Online search PARC analysis PARC data

89 94 96 98 100 102 104

Next month financial products & services

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Saturation point

Eco-friendly strategies are crucial to the survival of the UAE’s bottled water sector, reports Adrian Murphy

Plastic not-so-fantastic: Criticism of the bottled water sector mainly centres on the bottles themselves

Bottled water is a $272 million industry in the UAE and the hundreds of millions of bottles consumed each year constitute more than a third of the soft drinks industry’s market share. According to the UAE-based Al Ain Mineral Water Company, this is set to continue as the country’s per capita bottled water consumption has reached 275 litres per year, the highest in the world. This also means a huge impact on the environment in terms of water usage and the plastic bottles used for packaging. However, with the UAE also being one of the most water-depressed countries in the world, campaigns such as the one last summer in Paris to urge residents to drink tap water would not be as carbonfriendly or beneficial health-wise. And bottled water companies in the Gulf, both those that package water from

natural sources and those that purify tap water, say although they are at a disadvantage compared to countries with higher rainfall, they have stringent sustainability policies that limit environmental damage. Bodies such as the International Bottled Water Society, and its regional counterpart, the Asia Middle East Bottle Water Association, are also keen to promote sustainable solutions

Innovative: Masafi’s Natascha Edelmann

Eye on development: Coca-Cola’s Antoine Tayyar

the bottle-water-over-tap-water debate in favour of the companies. “If you talk about tap water in the UAE, it is primarily desalinated water with a massive carbon footprint. It is developed through the processing of seawater into sweet water [using oil and gas],” says Natascha Edelmann, Masafi’s head of marketing. “In countries where tap water comes from natural groundwater reservoirs or mountain ranges, the carbon footprint is far less than either the tap water or bottled water in the UAE. “We ensure sustainability in our supply chain, product development and packaging disposal either in terms of ensuring less lead is being used in the design elements of our outer carton, or introducing oxo-biodegradable shrink wraps for packaging – both innovations in the UAE driven by Masafi,” she says.

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S E C T O R A N A LY S I S

Huge thirst: The UAE’s per capita bottled water consumption is 275 litres per year, the highest in the world

...per capita water use in the UAE is approximately four times that of Europe... According to the Environment Agency in the UAE, the per capita consumption of water is 550 litres per person, per day – two-to-three times the world average of 180-200 litres. Analysts say per capita water use in the UAE is approximately four times that of Europe. With temperatures rising to 50 degree Celsius in the summer it is not surprising when Business Monitor International (BMI) says the UAE’s bottle water industry is worth $272.3 million a year. “This accounts for 37 per cent of total soft drinks sales,” says a BMI spokesperson. “With soft drinks sales forecast to push up by 45.5 per cent through to 2013 and reach $1.1 billion, the value of the UAE’s bottled water industry could climb to around $420 million in the next three years.” Criticism of bottled water mainly centres on the bottles themselves with hundreds

of millions of them being consumed each year in the UAE alone and companies only able to recycle at best 25 per cent of these back into the system. Lighter bottles have been introduced over the years so as to use less plastic, and recycling drives have been implemented by many of the larger companies to offset the environmental impact. Masafi, established in 1976, is one of the oldest bottled water companies in the Gulf and claims to have 40 per cent share of the market. In the past 12 months it distributed approximately 363 million bottles across the GCC from its plant in Ras Al Khaimah emirate, where it owns several wells. “As the Masafi region is located in an area that enjoys seasonal rainfall, its underground reserves are regularly replenished and it takes years for rain water to reach the wells,” adds Edelmann. “Therefore, Masafi Company has

not caused irreparable damage to the local water table levels.” As part of its Carbon Action Plan, Masafi aims to increase the percentage of recycled material used in the packaging of its products, reduce the amount of carbon emissions from its manufacturing unit, and thereby become an environmentally friendly organisation. All Masafi bottles are made from PET (polyethylene terephthalate) to ensure they are 100 per cent recyclable. They are also packaged in Brown Carton Box, which significantly reduces the amount of corrugated carton used. “As well as this we have signed up more government and private organisations for our Corporate Recycling Service than ever before,” Edelmann says. International companies such as Evian, which sources its water from the French Alps, has also put in place strategies to make its global operations less carbon-intensive. “We are the most internationally recognised water [brand] in the world and there is a lot of competition, so we have to think about the environment,”

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S E C T O R A N A LY S I S

Eau couture Last month Evian launched its latest special-edition bottled water in collaboration with Japanese fashion designer Issey Miyake, continuing a trend by water companies to tap into the higher end of the market. From the US to Europe, Japan and New Zealand, there is a deluge of innovatively designed bottles of water on the market including artisan, spring, mineral and even purified tap water that can cost more than 10 times the amount of a standard bottle. And companies such as Evian are calling on some of the design industry’s most celebrated names to help their products not only stand out, but become collectors’ items and gifts. Evian began designing bottles of water for the 1992 Winter Olympic Games but it was not until 2008 that it began its current special range with Christian Lacroix. “For us it’s something we love to do,” says Enrique Hormigo, Evian’s marketing director, Middle East. “We sell them in restaurants and high-end stores. We started with Christian Lacroix and then Jean Paul Gaultier and in 2010, Paul Smith. It gives more excitement to the brand and people enjoy this.” Positioning itself to a more creative, middle-class consumer, Norwegian artisan water brand Voss has also seen the potential in this market, developing its bottles with former creative director for Calvin Klein, Neil Kraft. Newer brands such as Tap’dNY bottled purified New York tap water in snazzy glassware with the catch line ‘drink local’, a direct challenge to consumers who are fixated on exotic brands such as Fiji Water. Hormigo believes these designer bottles are not only exciting but a wise marketing move, as they create a great deal of publicity and can be sold outside of the traditional outlets. “In this particular case it’s very clear that it gives us new opportunities to go outside our normal scope,” he says. “We can now sell these bottles in decoration stores, restaurants and duty free shops, and we are now approached by these retailers who want the latest designs.”

says Enrique Hormigo, Evian marketing director, Middle East. “This involves everyone in the company and we are on track to reduce our carbon footprint by 25 per cent in the past year. “We have planted 29 million mangroves, one of the best trees for absorbing Co2, in Senegal.” Multinational companies such as Coca-Cola have their own regional water companies that purify tap water. In the Gulf Coke has operated under the name Arwa since 2001. Across the Middle East it sells more than 200 million bottles per year with the UAE its largest market. “As a company we have globally pledged to safely return to nature the amount of water equivalent to what we use in all of our beverages and their production,” says Antoine Tayyar, Coca-Cola’s public affairs and communications director in the Middle East. “Through this ideology, we engage in projects around the region to ensure that we can be as water-neutral as possible. “Coca-Cola Middle East has created entire irrigation systems in villages such as Wadi Araba in Jordan that preserve water and ensure it is not wasted through faulty piping or skills.” The company has also taken steps to rebrand the Arwa PET bottle so that it uses less ink and is distributed in 100 per cent recycled cartons. Although there are no official statistics on how many bottles of water are actually recycled in the UAE, it does appear that the companies that produce them are working towards improving the situation. But more needs to be done and initiatives such as Italian spring water Acqua Panna’s bottle refund scheme (promoted in Australia and Norway) would be welcomed if transferred to plastic bottles in the UAE. And with bottled water continuing to be the dominant force for quenching thirst in the UAE for many years to come, this will be an ongoing battle. n

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a question of taste

The Middle East has shown a distinct lack of adventure when it comes to launching more exotic drinks, reports Adrian Murphy. Snowflake- and chestnut-flavoured water is among the latest offerings from an international beverage company that aims to quench consumers’ insatiable thirst for exotic, energy and stress-relieving drinks. Mont Blanc, by PepsiCo’s design team in Japan, mixes Marron (pureed chestnut) and snow from Mont Blanc, and is the latest from a stable that also includes an ice cucumber flavour drink. There are no plans, however, to introduce these flavours to the Middle East, where drinks companies have taken a more cautious approach to launching exotic and niche soft drink brands. Research by PepsiCo Middle East resulted in its non-alcoholic, malt-based Bario beverage. “PepsiCo is always focused on our consumers’ needs and preferences,” says Ahmed El Azizi, PepsiCo’s VP for

marketing, the Middle East and Africa. “Delivering against local tastes across our beverage and food portfolios is a big part of our commitment to consumers, and the Middle East is no exception. “One of our most recent beverage innovations is Bario, which was launched in recipe for success

Specialisation: Al Rabie’s Monther Al Harthi

Focused: PepsiCo’s Ahmed El Azizi

Saudi Arabia in late 2009 and is available in apple, pineapple, lemon and strawberry flavours. Bario has really resonated with our local consumers. This innovation was developed right here in the Middle East and is based on our consumers’ preferences and what they asked for, which is the fun, refreshment and taste of a malt-based beverage in flavours they like.” Since Red Bull’s emergence in 1987 (from a Thai-branded drink) there are now relaxing beverages, or “anti” Red Bulls, with ingredients such as chamomile, melatonin and valerian root. Names such as Slow Cow, Mary Jane’s Relaxing Soda and OmegaChill are now flooding the markets internationally, but are yet to capture the imagination of the Gulf. “These ‘anti-energy drinks’ have varied affects on the body. On the one hand,

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they contain ingredients that can benefit the body, while on the other, they could contain potentially harmful ingredients, especially if consumed in large quantities or very frequently,” says Monther Al Harthi, CEO, Al Rabie. “At Al Rabie we produce neither energy nor anti-energy beverages. Our focus and specialisation is on juices and healthier products.” Al Rabie has been operating in Saudi since 1980 and is the region’s largest fruit juice maker. It recently introduced flavours to its Ennaby line, including grapes with strawberry, grapes with berries, grapes with pear and grapes with peach. As far as flavours are concerned, Al Rabie says it is vigilant when introducing new trends as it wants to ensure the health benefits of its products remain top priority. “However, we do not dismiss the idea of introducing new exotic flavours in our juices,” Al Harthi says. “The Middle East market has witnessed the launch of several products and flavours over the years. Companies have constantly been apprehensive about the risk of introducing new products to the market and about their acceptance by consumers. “At Al Rabie, we have realised that the majority of new products achieve significant sales and market confidence. “And our success has been achieved because of our company’s continuous effort to find innovative and creative ways to satisfy market requirements.” International companies such as Mangajo in the UK have focused their efforts on a product range that directly taps into the antioxidant properties of berries such as aronia, yumberry, maqui berry and acai berry. Its goji berry and green tea drink, for example, promotes the goji berry as a ‘Himalayan super-berry for beta health’. But while regional firms like Aujun, also from Saudi, have some of the more recognised brands such as Vimto and Barbican, they are yet to tap into this antioxidant and exotic fruit-flavoured market.

New line-up: Masafi says it will come up with new products should there be a market requirement

...there are now slow beverages, or “anti” Red Bulls, with ingredients such as chamomile, melatonin and valerian root Natascha Edelmann, head of marketing at Masafi, says the new trends are interesting, but are not part of her company’s strategy. “Masafi was the first in the region to launch the flavoured water, and certainly we are open to new opportunities,” she says. “We are studying the market and will come up with a new product, should there be a market requirement. “The Middle East is a unique, dynamic market and we feel the new launches must have followed sector research on customer preferences and demands.” Another area that is seeing growth internationally and in the Gulf is the cold coffee drink segment. Starbucks and Costa Coffee have launched their own brands of ready-to-drink, chilled coffees for their strong customer base.

“Starbucks beverages such as bottled Frappuccino or canned Doubleshot espresso are available across the GCC in numerous retail chains,” says James Phillips, marketing and category manager for Starbucks Middle East. “Our chilled bottled beverages enjoy a great following and enable Starbucks customers to enjoy some of our classic beverages while on the move. “However, at this time we have no specific plans to announce future plans within this category.” So, as Japanese and European companies introduce new, unheard of flavours and antioxidant-rich, exotic berry drinks, the Gulf’s beverage companies, for the time being, are taking a more cautious approach, but one based on the desires of their consumers. n

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

Glass half full Egyptâ&#x20AC;&#x2122;s spurt in regional ad spend in the beverages sector, leaves Saudi Arabia and the UAE playing catch-up.

The beverages sector is facing troubled waters in Saudi Arabia and the UAE with ad spending down by seven per cent each during the first three quarters of 2010, compared to the same period last year. However, buoyed by a 62 per cent increase in spend in Egypt, along with growth in other markets, spend reached $471 million. This translates to overall growth of 25 per cent in the monitored period. Pan Arab Media remains the most favoured medium with advertisers and shares totalling 70 per cent of the regional spend. Carbonated Soft Drinks (CSD) share 44 per cent of the category in Pan Arab Media and sees a keen contest between Coca-Cola and Pepsi. Coca-Cola spent around $52.7 million and Pepsi $50.7 million in monitored media from January to September 2010, only in Pan Arab Media. Egypt, which is poised to become the leading market in 2010 across all categories, surged 62 per cent from January to September, compared to the same period last year, and tops the rank in the sector with 14 per cent market share.

CSDs contributed the largest share of 73 per cent. According to the TGI Survey only 1.5 per cent of the adult population in Egypt consumes mineral water, compared to 92 per cent which consume CSDs. Lebanon is the second top-spending market and gained 20 per cent in the first three quarters. Fruit juice is the top spending category with 29 per cent share. Coffee, with 27 per cent, follows closely. CSDs are third. According to TGI Lebanon, fruit juice is consumed by 87.5 per cent of the adult population. Consumption of coffee is at 86.3 per cent, while soft drinks stand at 92 per cent. Other markets, in descending order by the sector size, are: Jordan (+17 per cent), Kuwait (+7 per cent), Oman (+19 per cent), Bahrain (+102 per cent) and Qatar (+46 per cent). Bottled and Mineral water usage in the UAE is 98.2 per cent, says TGI, while CSD consumption is 86.4 per cent for the adult population, excluding unskilled workers.

TGI Saudi Arabia puts the usage of CSDs at 85.2 per cent. The top five brands are Pepsi, Coca-Cola, Lipton, Schweppes and 7Up. CSDs share 44 per cent of the total spend in the sector and gained 29 per cent during the same period. Spending on non-alcoholic drinks shot up by 117 per cent as it follows CSDs in the category at 12 per cent. Fruit juice and tea shares 11 per cent each. Low calorie soft drinks share another five per cent, while the rest is shared by others in the category. The sector heavily relies on TV, which now accounts for a lionâ&#x20AC;&#x2122;s share at 90 per cent, while the rest is shared by other monitored media vehicles. TV spend has increased by a significant 29 per cent during the first three quarters 2010. The sector is likely to post a robust double-digit growth across the region in 2010, although it is also likely that some categories may outperform others and different markets may behave differently for each category. Egypt, for example, is a heavyweight market for the sector, and as consumption increases for other categories besides CSDs, the sector will further consolidate and post further gains. The ad spend is calculated on the media rate cards and does not account for incentives and discounts that advertisers may avail from media owners. n

Shaharyar Umar product manager Pan Arab Research Centre, UAE

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S E C T O R A N AL Y S I S

heating up

The recession and smoking ban did little to cool sales of hot drinks in the UAE, report says.

Sales of hot drinks in the UAE posted a double-digit volume growth in 2009, according to Euromonitor International earlier this year. This was despite the economy falling into recession in Q4 2008. The report took into account factors such as premiumisation, multinational’s share, smoking bans and low consumer spending. It stated that an emerging coffee culture and traditional tea drinkers were key motivators for driving up retail and foodservice sales. “Surprisingly, growth was driven primarily through the on-trade channel, which continued to reap the dividends of the emerging coffee culture,” it said. “On the tea front, growth was supported by the population structure of the

UAE, with more than 50 per cent from the Indian subcontinent, where tea is a traditional drink.” Despite this, coffee remains the top selling hot drink with 2,159.9 tonnes sold in 2004 ($33.4 million in value) to 3,282.9 tonnes in 2009 ($53.2 million) – a 52 per cent rise in volume. This year it is forecast to reach 3,600.5 tonnes ($56.9 million in sales) and by 2014 to 5,139.7 tonnes ($71.6 million) – a 56.6 per cent rise in volume. Tea, however, is a close rival with 2,068.2 tonnes sold in 2004 ($21.7 million in value), rising to 2,953.0 in 2009 ($34.2 million) – a 42.8 per cent rise in volume growth. The forecast for tea is equally constant with a predicted rise to 3,175.9

tonnes this year – or $36.2 million in sales. By 2014 that will grow to 4,285.6 tonnes – $46.7 million in sales. Other combined hot drinks sales were a long way behind with retail sales of 182.4 tonnes in 2004 – $1.36 million in value – rising to 255.1 tonnes in 2009 ($2.04 million). The forecast for other hot drinks for 2010 is 270.8 tonnes ($2.12 million in sales), rising to 353.8 tonnes by 2014 – or $2.45 million. In terms of foodservice sales coffee accounted for 3,365.1 tonnes in 2009 and is forecast to rise to 3,900.8 tonnes in 2010. It is expected to nearly double to 6,837.4 tonnes in 2014. Tea foodservice sales reached 1,519.5 tonnes in 2009 and is forecast to rise to

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1,692.7 tonnes in 2010 and by 2014 to 2,665.9 tonnes. Other hot drinks’ forecast foodservice sales totalled 123.6 tonnes in 2009. This is expected to rise to 130.7 this year and 164.8 tonnes in 2014. Trends in sales for premium hot drinks were closely linked to a slowdown in the purchases of non-grocery products, but the report found consumers were still willing to treat themselves to something affordable such as premium coffee and specialised coffee products to create the café experience at home. The report also found that multinational manufacturers’ brands maintained their market lead, with Unilever Gulf and Nestlé SA together accounting for a quarter of total off-trade value sales – 14.6 per cent and 12.3 per cent, respectively. This was attributed to the concentrated nature of hot drinks in the UAE coupled with the high brand loyalty and limited competition. Most UAE consumers are used to buying their favourite brand and show little inclination to experiment, said the report. A smoking ban in the UAE, implemented during Q4 2008, impacted consumption in cafés, it said. The report said while hot drinks would not see a decline in sales because of the smoking ban, sales could have been higher for 2009 if smoking was still permitted indoors. “Since smoking and drinking coffee are strongly linked in the consumer’s mind, a proportion of consumers replaced one of their on-trade coffees with an alternative soft or other hot drink,” it said. Despite declining disposable incomes, the report said even if consumers reduced the amount they spent in other areas, they would most likely continue to spend on food and drink in some shape or form. This would be aided, the report said, by manufacturers increasing self-service machines across the country, including pod machines, offering healthy alternatives and increased promotion. n

drink up The UAE is the world’s fastest-growing market by volume for coffee, despite the recession and strong tea-drinking culture among Asians in the country. Total volume sales are predicted to grow by 80 per cent between 2009 and 2014, with a CAGR of 12 per cent during the same period. According to research from Euromonitor International, the UAE’s recent, pre-recession boom helped create several new points of entry for higher quality coffees. Growth, the report says, was driven primarily through the emerging, on-trade café culture. Spending in cafés rose 119 per cent between 2005 and 2008 to $454 million. This led to the emergence of local coffee chains such as Blends & Brews. However, the abundance of international chains impeded the development of domestic ones. The UAE hosts all the major international brands including Starbucks, Costa Coffee, Coffee Bean & Tea Leaf and Seattle’s Best Coffee. The increasing number of specialist outlets boosted on-trade volume sales by 17 per cent in 2009 versus nine per cent for off-trade. On-trade volume accounted for 51 per cent of total volume in 2009, up from 42 per cent in 2004. Premiumisation also pushed sales in 2009. The premium brands launched that year included Illy, Whole Earth Organic, Lavazza Dek and Twinings Coffee Blends. Consumers were also more exposed to the various ways of preparing coffee, especially with the expanding launch of coffee pods. In May 2009, Nestlé Nespresso opened its first UAE outlet in Dubai Mall. Euromonitor says this was instrumental in marketing its wide selection of coffee machines and coffee blends known as Grand Crus. There was some trading down in 2009 and 2010 – especially among middle-income earners – from standard instant brands such as Nescafé to economy brands such as Brooke Bond Bru, popular among the dominant Asian population. There was less trading down within fresh coffee. Although premiumisation is expected to slow through 2011, the trend is set to continue for the next five years.

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

Drip feeD

The drought in online Arabic content is being satiated by bloggers particularly in Saudi Arabia.

For hundreds of years nomadic Bedouin have wandered across the deserts of the Middle East in search of water. Had they simply ran a search on Google would they have found their ‘oasis’ sooner? The answer is not that easy. Our top 10 performing key phrases in the UAE, in English, mostly relating to water, were, as we’d expected, a blend of water-related keywords and a few brands that have become synonymous with bottled water. Our research in Arabic, however, centred on Google Saudi Arabia. The results included a higher number of key phrases centred on desalination and national water firms, which suggested a focus more towards B2B than that of consumers searching for products related to obtaining water and water brands.

In position two in Google.ae was the word ‘oasis’ and, of course, we cannot determine whether the intent is for information on Oasis Water, an oasis, or Oasis, the famous British band. Top position for the word ‘oasis’ is, in fact, taken up by the band, which isn’t surprising considering its global appeal and the number of articles and PR releases that have been linked to the website over the years. In fact it’s one of those rare occasions where one sees a site outrank Wikipedia. Oasiscome2life.com is the website for Oasis Water and, although compared to other bottled water brands, it generally does well by ranking seventh on average across all the key phrases, a quick review of the site shows there is still more that could be done to optimise

the site and rank even higher, delivering more traffic that will engage with the brand. Ensuring a brand is on the first page of search engine results – especially in top positions – is vital. Supporting research shows that, on average, 78 per cent of clicks on organic listings are on the first page, and there is a large drop-off in the number of clicks from the high placements through to the lower placements of search engine results. The top-ranking sites were for the UAE. Most were news websites, which are probably high-ranking due to a large number of articles regarding water projects in the region. In Saudi Arabia, where the higher propensity of keywords in the top 10

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Top 10 Keywords # 1 2 3 4 5 6 7 8 9 10

Keyword (UAE) Water Oasis Drinking water Water treatment Masafi Mineral water Hot water Fresh water Water company Oasis water

Keyword (Saudi Arabia) Water Drinking water Arwa Water company Water companies Desalination Drinking water desalination National water National water company Find water

Search Engine Results Pages (SERPS) Research conducted on Google.ae. Top 10 keywords with the most amount of searches last month based on local results from Google.ae and Google.com.sa. All of the Saudi Arabia keywords were originally recorded in Arabic and then translated.

Top10 10Search SearchResults Results–Google.ae (Global) Top UAE

is more to do with water engineering projects, it was no surprise that the top websites were again mostly news sites and, something common in Saudi Arabia, were forums and various blogs within the news sites. It is quite common in the kingdom for search results to have a higher number of blogs and forums. Generally there is a dearth of quality Arabic content on the web, which is being filled by Saudi’s active bloggers and forum contributors, communicating with each other and the wider world. So, if the Bedouin do ever decide to conduct a Google search for ‘water’ they would be pleased to find results offering information on new water projects, but little information on brands that could help quench their thirst. n

Lee Mancini head of Sekari SEO Dubai

# 1 2 3 4 5 6 7 8 9 10

Coverage 100.00% 70.00% 60.00% 50.00% 50.00% 50.00% 40.00% 40.00% 40.00% 40.00%

Average rank 2.70 15.71 24.83 13.80 18.80 26.00 4.25 16.75 21.50 26.00

Domain en.wikipedia.org www.ameinfo.com www.gulfnews.com www.zawya.com www.imdb.com www.datadubai.com www.oasiscome2life.com www.africa-business.com www.khaleejtimes.com www.arabianbusiness.com

Performance data based on Google.ae. Results show the top 10 performing websites which, on average, have the highest rank and the most coverage in top 10 key phrases in natural search results on Google.ae.

Top 10 Search Results – Saudi Arabia # 1 2 3 4 5 6 7 8 9 10

Coverage 100.00% 90.00% 90.00% 80.00% 80.00% 70.00% 70.00% 60.00% 50.00% 50.00%

Average rank 11.50 20.22 21.33 18.75 21.75 20.29 28.29 15.00 1.40 17.20

Domain ar.wikipedia.org www.alriyadh.com www.al-madina.com www.almyah.net www.al-jazirah.com www.aawsat.com www.alwatan.com.sa www.aleqt.com www.nwc.com.sa www.hrm-group.com

Performance data based on Google.com.sa. Results show the top 10 performing websites which, on average, have the highest rank and most coverage across all 10 key phrases in natural search results in Google.com.sa.

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S E C T O R A N A LY S I S

Instant success

Coffee sales in Saudi Arabia are booming, but tea is going down well too.

In 2009 hot drinks registered healthy growth in volume and value terms in Saudi Arabia, according to a Euromonitor International study earlier this year. Hot drinks, it said, benefited from the continued popularity of coffee, which is consumed almost daily by Saudis. Growth in coffee was due to annual population rise and the increasing numbers of faith-based tourists who visit throughout the year. Another major factor was the expanding number of coffee shops in the kingdom that introduced variants such as fruit/herbal teas and vanilla-flavoured cappuccino. Retail sales in coffee rose from $220.4 million in 2004 to $293.3 million in 2009. The figure is expected to rise to $480 million by 2014. “The population of Saudi Arabia is undergoing a lifestyle change from traditional to western,” said the report, adding regional manufacturers lead in coffee sales, with El Farouki Coffee

Centre in the No 1 position followed by Al Najjar Co. Turning to the overall share of the hot drinks market, Lipton Tea Factory retains the top spot with 15.3 per cent, with El Farouki Coffee Centre in fourth with 7.3 per cent and Al Najjar Co in sixth with 5.8 per cent. Hot drinks, said the report, were unaffected by the decline in GDP in the kingdom in 2009. In fact they registered a value growth of seven per cent and volume growth of five per cent. The research said spending through the off-trade was encouraged by the further expansion of supermarkets and hypermarkets, which, in turn, created further competition and presented a wider product choice at more competitive prices. The on-trade also witnessed growing competition among operators, which further enhanced sales. Euromonitor forecasts hot drinks to grow over the forecast period, recording a value

CAGR of nine per cent and volume CAGR of six per cent. This will be boosted by the government’s diversification away from oil and new economic cities. Foreign direct investment is also expected to increase. A boost in the number of specialist coffee shops, the report stated, explained the volume growth of five per cent and value growth of eight per cent in 2009. Another aspect of overall growth in hot drinks was innovation in health and wellness trends, forcing a shift in consumer behaviour by stimulating noticeable demand for healthier drinks in the market, including instant decaffeinated coffee, green tea and fruit/herbal tea. Instant decaffeinated coffee registered six per cent of value and volume growth in 2009, while fruit/herbal tea registered five per cent volume and value growth and green tea registered six per cent value and five per cent volume growth in 2009. Sales of green tea and fruit/herbal tea are expected to reach $48.5 million and $5.86 million, respectively, by 2014, while instant decaf is expected to hit $5.33 million. This, however, is not expected to affect sales in other hot drink categories, as each particular line has its own specific customer base. For example, retail sales for tea grew from $155.6 million in 2004 to $201 million in 2009. This is forecast to rise to $293.3 million by 2014. Urbanisation is also driving sales, which is most obvious in the volume growth of five per cent and value growth of seven per cent registered in 2009. With the number of consumer foodservice outlets expected to reach 17,800 by 2013, on-trade will flourish. As a result all hot drink categories are to grow, according to the report. Coffee is predicted to register the most sales due to flavour innovation. n

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EGYPT

IRAN

Hijab-free zones spring up in Cairo

Wealth, family ties offer no protection

Running on Empty Gulf nations scramble to build a lucrative future from todayâ&#x20AC;&#x2122;s oil wealth

West Bank Battle

F M IC W NO PREVIE

This time the ďŹ ght is over mobile networks

Lots of Hot Air

Al Gore messes with industrial giants

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ECSOPECIAL

A MediaquestCorp Publication Registered in Dubai Media City

Canada ........................C$ 7.50 France ..........................â&#x201A;Ź 4.57 Germany ....................... â&#x201A;Ź 6.14

Egypt ..............................EÂŁ 10 Italy.............................. â&#x201A;Ź 5.17 Jordan ............................. JD 4

Kuwait ...........................KD 1.2 Lebanon .................... LÂŁ 5,000 Morocco.........................DH 22

Oman............................ OR 1.5 Qatar .............................QR 15 Saudi Arabia ...................SR 15

Switzerland ....................SFR 8 Syria............................ SÂŁ 100 Tunisia .......................... TD 2.5

UAE .............................AED 15 UK .....................................ÂŁ 2 USA ....................................$ 5

A MediaquestCorp publication

75(1'6 $' *05 'HSWK LQGG

SECTOR ANALYSIS

CATEGORY: Beverages Millions US$471

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 158,364 263,540 329,778 Kingdom of Saudi Arabia KSA 29,229 39,148 63,524 Egypt EGY 36,657 26,579 31,992 United Arab Emirates UAE 10,785 15,383 14,313 Kuwait KWT 11,323 12,993 12,051 Lebanon LEB 2,418 5,664 6,614 Qatar QTR 3,104 4,690 5,004 Oman OMN 1,513 1,640 1,956 Jordan JOR 651 515 1,040 Bahrain BAH 363 484 705 Other Markets** OTH 5,874 6,244 3,789 Total All Markets 260,281 376,880 470,766

25 62 20 -7 -7 17 7 19 102 46 -39 25

2010 329,208 53,184 30,450 1,435 2,320 1,030 3,874 257 503 60 2,746 425,067

%Var’n YTD 26 110 23 -43 -47 -24 16 -12 725 -43 29

Newspapers 2010 0 1,905 21 4,841 1,146 5,471 581 1,634 186 402 717 16,904

Magazines

%Var’n YTD -100 12 -68 56 8 29 -11 31 417 362 -25 29

%Var’n YTD

2010 570 472 68 551 1,089 113 421 65 32 39 236 3,656

-65 -12 39 14 -32 57 -10 -33 146 26 -20 -31

Radio 2010

Outdoor

%Var’n YTD

0 3,317 186 126 124 0 128 0 35 114 90 4,120

+25%

2010 0 4,646 1,267 7,360 1,931 0 0 0 5 90 0 15,299

36 -76 -83 63 -9 35 -19 -53 -9

Cinema

%Var’n YTD -49 41 -13 138 -100 -100 400 -60 -22

%Var’n YTD

2010 0 0 0 0 5,441 0 0 0 279 0 0 5,720

-26

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

Ranking of Markets & Media Split (000US$) 100%

Category split by market 3% 3% 1% 1%

70%

75% 50% 25% 0%

Pan Arab Egypt Lebanon KSA UAE Jordan Bahrain Others

14%

1% Total GCC LEV PAN EGY LEB KSA UAE JOR KWT OMN BAH QTR OTH 470766 366951 103815 329778 63524 31992 14313 12051 6614 5004 1956 1040 705 3789

Television

Newspapers

Magazines

Outdoor

Radio

Cinema

SPLIT BY PRODUCTS – 2010 All markets 44%

17%

Pan Arab Media 12% 11% 11%

14%

44%

10% 13%

42%

14%

Carbonated soft Fruit juice Soft drink

Non-alcoholic Tea Others

Carbonated soft Tea Soft drink

GCC Markets 5% 13% 13% 11%

Levant Markets 52%

16%

12% 10% 5%

16%

Non-alcoholic Fruit juice Others

Carbonated soft Tea Soft drink

Non-alcoholic Fruit juice Others

Carbonated soft Coffee Water bottled

Fruit juice Soft drink Others

TOP BRANDS – ALL MEDIA (000 US$) – 2010 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 Schweppes 7-up Mirinda Birell Sprite Nescafe Fanta Fayrouz H2oh! Tang Kassatly Chtaura Pepsi Max Nestle Vimto Juhayna Rani Moussy

Pan Arab Media Value 87,888 59,184 43,936 14,873 13,993 13,806 12,898 12,239 11,124 9,637 9,051 8,584 7,828 7,506 6,827 6,286 6,257 6,186 5,823 5,537

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

Brand Coca Cola Pepsi Lipton Schweppes Birell Sprite Fanta Fayrouz Nescafe Tang Mirinda 7-up Vimto Barbican Power Horse Pepsi Max Rani Moussy Hillsburg Juhayna

GCC Value 52,819 50,790 39,659 13,977 11,401 11,280 9,001 8,069 7,257 6,818 6,781 6,506 5,673 5,446 5,232 5,099 4,851 4,555 4,043 4,019

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 Schweppes Birell Sprite Fanta Fayrouz Tang Nescafe Mirinda 7-up Vimto Rani Moussy Barbican Power Horse Pepsi Max Nestle Al Marai

Value 56,797 55,494 43,485 13,977 11,401 11,284 9,026 8,069 7,589 7,444 6,781 6,506 6,257 5,823 5,534 5,446 5,415 5,133 4,703 4,439

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

Brand Pepsi 7-up Mirinda Kassatly Chtaura H2oh! Coca Cola Nescafe Diet Pepsi Jacobs Juhayna Mountain Dew Bario Xxl Pepsi Max Nestle Birell Super Brasil Tropicana Star Cafe Fayrouz

Value 31,091 7,487 7,025 6,411 5,558 3,690 3,680 2,647 2,487 2,167 2,124 2,106 1,813 1,694 1,583 1,497 1,331 1,277 1,066 982

Source: PARC

GCC & Levant

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DIARY

Middle East Business Aviation (MEBA) F&E Aerospace Date: December 7-9 Venue: Dubai Airport Expo T: +971 4 6033300 F: +971 4 2866166 W: meba.aero

Event of the month

First organized in 2005, the Media and Marketing Show (MMS) 2010 has become a staple on the industry calendar. The event is designed to bridge regional companies and talent with their international counterparts. It also acts as a platform for addressing industry issues, emerging trends and the future of media and marketing in the Middle East and around the world. More than 9,000 visitors are expected to attend the 6th edition of the show. Media & Marketing Show Domus Group Date: December 13-15 Venue: Dubai Intl Convention and Exh Ctr T: +971 4 3285666 F: +971 4 3285777 W: dubaimediashow.com

December Mother, Baby & Child Show The Main Event (TME) Date: December 2-4 Venue: Dubai Intl Exh & Convention Ctr T: +971 4 3405601 F: +971 4 3406388 W: motherbabyandchild.com

Riyadh Motor Show 2010 Riyadh Exhibitions Company (REC) Date: December 5-9 Venue: Riyadh Intl Convention & Exh Ctr (RICEC) T: +966 1 2295604 F: +966 1 2295612 W: recexpo.com

15th Oman International Motor Show Omanexpo Date: December 2-5 Venue: Oman Intl Exh Ctr T: +968 2 4660124 F: +968 2 4660125 W: omanexpo.com/ motorshow

MENOPE (Middle East Natural & Organic Product Expo) 2010 Global Links Date: December 6-8 Venue: Dubai Intl Exh & Convention Ctr T: +971 4 3322283/7274 W: naturalproductme.com

Abu Dhabi International Motor Show Reed Expo Date: December 7-11 Venue: Abu Dhabi Natl Exhi Ctr T: +971 2 4446113 F: +971 2 4443768 W: admotorshow.com Saudi International Boat Show Dubai World Trade Centre Date: December 8-11 Venue: Al Furusya Marina & Yacht Club, Jeddah T: +971 4 3086475 F: +971 4 3188607 W: saudiboat.com Cityscape Riyadh IIR ME Date: December 12-14 Venue: Four Seasons, Riyadh T: +971 4 4072550 F: +971 4 3351891 W: cityscaperiyadh.com Social Media Marketing Masterclass IIR ME Date: December 1-14 Venue: Media One Hotel, Dubai Media City T: +971 4 3352437 W: iirme.com/ socialmarketing Qatar Health 2009 QatarExpo Date: December 12-16 Location: Doha, Qatar

T: +974 4 4650211 F: +974 4 4674506 W: qatar-expo.com Dubai Drink Technology Expo INDEX Date: December 13-15 Venue: Dubai Intl Convention & Exh Ctr T: +971 4 3624717 W: drinkexpo.ae The National Exhibition for SME Al Hader Date: December 16-19 Venue: Abu Dhabi Exh Ctr T: +971 2 622 2733 F: +971 2 622 2754 W: sme.al-hader.com Autumn Consumer Festival KIF Date: December 23-January 2 Venue: Kuwait International Fair Ground T: +965 2 5387100 F: +965 2 5393872 W: kif.net January 2011 Future ICT Summit 2010 Turret Middle East Date: January 23-25 Venue: Abu Dhabi Natl Exh Ctr (ADNEC), UAE T: +971 2 4446011 F: +971 2 4443987 W: futureictsummit.com March Saudi Travel and Tourism 2010 Riyadh Exhibitions Company (REC) Date: March 28-April 1 Venue: Riyadh Intl Convention & Exh Ctr T: +966 1 2295604 F: +966 1 2295612 W: recexpo.com

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Invest AD_Cor_LOC_GMR_215x280_Eg_D.ai

11/11/10

2:28 PM

The all-new 2011 Infiniti M. Performance & innovation hand-stitched together. There are a number of automakers worthy of our respect. But none worth copying. The unrivaled power of the all-new Infiniti M56* is a combination of elegance, luxury, technology and performance. Our world’s-first Blind Spot Intervention TM** system alerts you to a vehicle in your blind-spot area and helps your vehicle avoid it if you try to change lanes. Forest Air TM***, an air conditioning system that you won’t find in any other luxury car, is designed to replicate the feeling of a forest breeze. A 4-Wheel Active Steer system**** designed to provide a more responsive yet natural feel. The 2011 Infiniti M is simply a sensory experience. This is inspired performance. This is the way of Infiniti.

Learn more at Infiniti-me.com * M56 with 402hp V8 engine. Also available M37 with 328hp V6 engine. **Available BSITM system is not a substitute for proper lane change procedures. Will not prevent contact with other vehicles or accidents due to careless or dangerous driving techniques or detect every vehicle or object around you.***Available feature. ****Available feature (SPORT grade). Always wear your seat belt. ©2010 Infiniti.

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