GMR | May 2011 by MediaquestCorp.

18 MAY 2011 – NO 198

SECTOR ANALYSIS Tourism & hospitality: sECTOR STILL BUOYANT DESPITE UNREST A MediaquestCorp Publication

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PROFILE: The sky’s the limit: Injaz’s Mohammed Itani discusses his plans for Saudi’s real estate sector. 40

www.GMR-Online.com MAY 2011 – Issue No. 198

NEWS

World News

Android is set to be the most popular operating system worldwide by the end of 2011. The global advertising industry is no longer in recession, posting a 10.6 per cent year-onyear increase to $503 billion. New lifestyle magazine Hella London launches in the UK capital. Hindustan Unilever opens its first café in Mumbai. Kotex launches range for tweens. Abbott is named company of the year. Nestlé eyes 60 per cent stake in Yinlu. Aston Martin opens its first dealership in India.

News Plus

Group-buying site Cobone.com launches in Saudi Arabia. Carat MENA wins over toy car maker. Saudi Arabia SMS generates highest percentage of leads among media in Saudi Arabia for the least media budget, says study. Branding consultancy launches in Dubai. HTC announces six-strong product line-up. Qtel releases findings of study into growth of SMEs in Qatar. Cardwell joins the Brand Union. Study finds SMS outperforms online ads for lead generation. MasterCard Worldwide’s ZSL sponsorship kicks off. Paragon announces Oman office opening. User Vison opens in Dubai. Tonic chiefs team up to form company. Majid magazine is on the ball with Manchester City FC tie-up. Alokozay sets up $60m Pepsi bottling plant in Kabul. Pharmacy chain Al Image updates its look.

Cover story HEALTHCARE

Welcome to the world of social healthcare, a world where doctors can interact with patients in person and online via email, video chat, Twitter and Facebook. A cure or a curse? GMR investigates.

Sector Analysis Travel and Tourism

Social unrest in the region harms the hospitality sector in what was predicted to be a growth year. Egypt’s tourism authority hopes promotions and deals will lure holidaymakers back to its shores. The UAE announces initiatives to put the capital on the tourist map. Saudi promotes summer staycations as the SCTA invest $89 million to encourage residents to holiday in the kingdom. As Qatar prepares to take position on the global stage, it announces a five-point plan to boost its awareness and appeal. Acquisitions and development in the hospitality sector need careful marketing. Low-cost carriers continue to enjoy the high with flydubai pursuing aggressive expansion plans. Engaging with consumers is pivotal if airline brands are to ensure plane sailing. As the unrest sees tourists reroute from North Africa to the UAE, a battle for PR coverage begins. The UAE’s disparate population produces a unique set of traveller, GMR analyses the facts and figures.

GMR reports from The 2011 Dubai Lynx Awards and catches up with key industry figures to find out what they thought.

June: cover story Shopper marketing

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48 Sector analysis: Travel and Tourism 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 by Rashid Printers, Ajman

GROUP MANAGING EDITOR Siobhรกn Adams siobhan@mediaquestcorp.com SENIOR SUB EDITOR Elizabeth McGlynn e.mcglynn@mediaquestcorp.com ART DIRECTORS Sheela Jeevan, Alvin Cha, Aya Farhat CONTRIBUTORS Alex Malouf

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News

Group-buying site launches in Saudi Saudi Arabia Group-buying site Cobone.com has launched in Saudi Arabia. Majority owned by e-commerce ventures company Jabbar Internet Group, Cobone. com offers significant savings across a range of services and products.

Carat MENA wins over toy maker Contract win coincides with new service launches for Carat

Expanding reach: Thamer Bamieh

The web-based business model uses group purchasing to offer discounts of 50 to 90 per cent on a range of goods and services. The Cobone UAE site has more than 200,000 members, says the company “With one of the region’s highest internet penetrations and users, Saudi Arabia is ideally placed to benefit from the unique deals offered by Cobone.com,” said Thamer Bamieh, country manager. “We want to support local businesses by increasing their exposure through this innovative way to shop. Cobone.com has been so successful in surrounding countries.” T he site w i l l be du a l language. Cobone is now available in six cities in the Middle East, with more expected to join the network this month.

Winning business: Duncan James of Aegis Media, owner of Carat MENA (inset) wins Matchbox cars contract

MENA The world’s number one toy maker, Mattel Inc, has selected Carat MENA for its regional media planning. Mattel – its brands include Barbie, Fisher-Price and Matchbox cars – is one of the largest global buyers of TV space. Aegis-owned Carat MENA fought off competition from four agencies, the terms of which were not disclosed. Regional media was previously booked direct through a distributor. In 2007, Mattel awarded the European media planning and majority of its media buying to Carat. The account was reputedly worth $500 million. Regional value was not disclosed. Immediate plans include all kids’ TV channels in Arabic and English.

In a separate pitch Mattel has named Carat as its media agency in South Africa. The MENA win crowns a busy year for the agency under Michael Nederlof, CEO Aegis Media MENA, who took over in March 2010. Since his arrival Aegis has launched Isobar which, it claims, is the world’s largest digital agency network. Aegis is also rolling out its global proprietary Aegis Media study, CCS (Consumer Connection Study). “CCS will bring transparent, insight-driven business growth communication planning to MENA, says Duncan James, formerly executive consulting director, The Brand Union, and recently-appointed chief development officer, Aegis Media MEA.

Speaking to GMR, James says: “The investment into bringing CCS to MENA is further proof of our commitment to the region and our intention to bring increased transparency through datadriven thinking to clients’ businesses rather than relying on outdated models of communication.” Nederlof added: “Carat is growing fast, winning business and has a focus on servicing international brands across MENA. “Aegis is ready for the next step in development and has the ambition to be a top-three player in the MENA region as we are in many other regions in the world.” Aegis clients include Philips, Johnson & Johnson a nd Kellogg’s.

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News

Specialist brand agency debuts UAE A branding consultancy specialising in healthcare, hospitality, finance and SMEs has launched in Dubai. Called Ranson, the agency is a partnership between Matthew Ranson, former brand director Omnia Middle East and his wife Helen, former managing director at HSBC.

Called to Ranson: Matthew and Helen Ranson form own agency

They are supported by a network of independent specialist consultants across a variety of disciplines, Matt hew Ra n son told GM R, adding that social media is a core element of its offering. Ranson has also developed a specific package for startups and SMEs. Called Small Business Branding, it allows smaller, registered companies, with secured capital, to benefit from a strategic branding process, long been denied due to budgetary constraints, says Ranson. Among Ranson’s SME clients is new healthcare portal Silla, founded by UAE-based entrepreneur Pam Wilson.

Region-wide campaign for HTC launch New product line-up includes company’s first tablet MENA HTC Corporation has picked creative shop Equity ME for the regional ATL adaptation of the global campaign for its six-strong new product line-up. The original campaign was developed by McCann Erickson EMEA. The new line-up comprises five new smartphones, including the industry’s first phones built around social networking, says HTC. It also features three new versions of its smartphones – including the new Desire S – and its first tablet, HTC Flyer. The dual-language, Pan Arab, integrated campaign will cover OOH, print, online and TV. “The creative concept revolves around the customer centricity approach of HTC and stems from the premise that HTC products are intelligent, intuitive innovations inspired by you – the customer,” says Vladimir Malugin, executive director, MEA . “The focus is just not on

ENTERPRISING

Highly Desire-able: HTC’s new models

the functionalities – but a metamorphosis of how customers find new uses for our devices as an extension of themselves. “This, today, is what defines us as a corporation, which is extended to our products and services. So today, be it a HTC’s Desire or the Flyer, these creations are innovations that have been inspired by our customers.” Total regional marketing spend was not disclosed beyond being a ‘seven-digit figure. It

is handled by Mediacom. According to recent studies, a significant number of users access the internet via mobile devices with more than 71 per cent ranking email as their biggest mobile internet activity, says Informa Intelligence Centre. Estimated smartphone sales penetration in the Middle East, meanwhile, is set to hit 28.8 per cent by 2015, according to Effective Measure. All this implies that social networking and smartphones will play an increasing role in youth marketing and media trends, says HTC. “We are progressing down a path, as an industry, when people will no longer be in a single device paradigm, but will use a variety of wireless devices ideal for all their different needs and HTC will be supplying the best options available for all,” said Florian Seiche, president HTC EMEA. According to internal audits, brand awareness across the UAE, Egypt and Kuwait is 40 per cent.

Qtel has produced new research into the growth of SMEs in Qatar, which, says the telco, comprises 98 per cent of companies in the country. The study shows that while concerns over the economic crisis hampered spending and expansion plans in 2010, the market is poised to pick up this year. The two key areas for growth in 2011 will be video – specifically video conferencing – and mobile data, the study found. Enterprise Qatar (EQ) is a QAR2bn initiative for SMEs, which will work with other agencies to enhance public-private partnerships within the framework of the sustainable development strategy for Qatar.

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News

Reda Raad is new TBWA\RAAD COO MENA TBWA\RAAD Middle East has appointed Reda Raad to its newly created position of COO. He was previously group managing director. Raad was one of the original eight founding members of TBWA\RAAD back in 2000. In 2003 he established TBWA\

Promotion: Reda Raad

RAAD\Saudi Arabia before returning to Dubai in 2005 to run the hub agency operation. He was named as an ‘Agency Innovators of 2010, by The Internationalist and is on the board of the IAA UAE Chapter.

Cardwell joins The Brand Union UAE Paul Cardwell has joined WPP-owned The Brand Union as executive creative director for the Middle East. An agency veteran, Cardwell started his career at Y&R and Leo Burnett and for more than a decade was creative Partner at Doner Cardwell Hawkins.

SMS sends strong signals to Saudi media Study finds SMS outperformed online ads for lead generation Saudi Arabia Saudi Arabia SMS generates the highest percentage of leads among media in Saudi Arabia for the least media budget, according to a recent study by Acxiom MENA. Acxiom found SMS outperformed online ads, OOH and print ads for lead generation and overall campaign results. The study compared print ads, OOH, online ads, SMS and email. SMS led the way generating 35 per cent of the total leads, compared to 28 per cent by print, which came second, and OOH, which came third with 22 per cent.

Yousef Hamidaddin Acxiom MENA’s CEO

Medium Print ad Outdoor Online ad SMS Email Grand total

% of total ad spend 48 32.4 15.6 2.9 1.1 100

“Everyone who works in marketing knows that insight is one of the most important things in our industry,” says Yousef Hamidaddin – Acxiom MENA’s CEO.

% of total leads 28.2 22 1.8 35.2 12.8 100

He added that the findings were part of a client case study, which revealed SMS as the most effective marketing communication for that client in terms of generating leads.

MasterCard’s ZSL sponsorship kicks off Saudi Arabia MasterCard Worldwide has launched another element of its Zain Saudi League’s sponsorship; a football penalty shoot out across Jeddah and Riyadh. The challenge gives Saudi fans an opportunity to enhance their football skills and talent. The follows the recent launch of MasterCard’s uniting football song ‘Everyone Can Play’. Every football fan in the kingdom is invited to register for the challenge online, which takes place this month at Red Sea Mall in Jeddah and Granada Mall in Riyadh. A computer will select 320 winners (160 Riyadh, 160 Jeddah), who will be divided into five-member teams

Playtime: Teams will compete in Riyadh and Jeddah

to shoot penalties. The grand prize consists of SAR100,000 for the first team and SAR20,000 for the runner-up. A MasterCard red and yellow football team will pro-

mote the challenge across universities and malls where branded footballs will be distributed. This will be supported by a nationwide marketing campaign.

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News

Kuwait’s Paragon announces Oman office opening Move follows three-year feasability study highlighting the Sultanate’s rapid growth Oman Kuwait agency Paragon Marketing Communications is opening an office in Muscat. According to Paragon managing partner and chief creative officer Louai Alasfahani, the move followed a three-year feasibility study which highlighted the Sultanate’s impressive rapid growth rate outpacing most GCC countries, some-of-which have almost reached a saturation point, he said. “One can easily be misled by Oman’s unfavourable media market ranking in comparison to neighbouring GCC countries as a direct result of the ranking being based on sheer size alone.”

Late news

The 43rd IAA World Congress scheduled for Manama next March will instead be held in Vienna. Sources indicate the decision was due to the short lead time. Shopper marketing specialist, Dallas-based Tracy Locke, is opening an office in Dubai. The new office is owned by DDB FLZCC and will be headed by Paul Joseph. Initial focus is on the UAE and Saudi Arabian markets. The service is also available to non-DDB clients.

Other contributory factors included: political stability, strong currency, favourable foreign investment laws, developing infrastructure, oil prices, influx of tourists and increasing levels of internet penetration, a positive indication for the digital division of Paragon, he said. The Muscat office will initially comprise a team of 12, including Omani nationals, ranging from graduates to seasoned professionals, and will be headed by Diana Dimitrova, Paragon Oman operation manager. “I will be dedicated to further improving the Paragon network offices effective

Eye on Oman: Louai Alasfahani

creative output for the benefit of our clients.” Asked about start-up clients, he said:” First we build the team, then we go after the business, not the other way round.

“So, here we are, ready for business in Oman. Although many of the business families in Oman own an agency (similar to Kuwait), there is still an abundant number of clients for us to approach, starting with the clients currently importing their marketing, media and creativity solutions from Dubai; for example those who value improved speed and reduced costs.” Paragon has three offices: Paragon Kuwait, Paragon Bulgaria – as an SBU and creative hub for the network with competencies in digital, production, 3D animation plus corporate ID, branding, event management, PR – and Oman.

User Vision eyes up regional business MENA User Vision, an independent company in crossplatform user experience research, usability testing, interaction design and web accessibility, has opened in Dubai. The company tests and improves the user experience across a range of platforms including websites, interactive TV, software, mobile phones, keyboards, and consumer products. It launched in 2000 with organisations including Emirates Airline, Jumeirah and the Government of Abu Dhabi. “While User Vision has worked with leading brands and agencies in this region for six years, there’s a market need

Foresight: Simon Duke

which has compelled us to invest in the UAE and in the region,” said Chris Rourke, User Vision’s MD. “Effective human interaction with a website or product is a critical commercial success factor, particularly in this

region, given its diverse nationalities, languages and technical skills.” User Vision’s capabilities, such as eye tracking, can, for example, identify areas of ‘banner blindness’ as well as spot the areas on a site which actively engage the user and measure the dwell time. This, added Rourke, identifies and measures the emotional activation of online advertising which can, in turn, inform better site design and business processes. He added that many sites are not designed with accessibility in mind, especially in the Middle East. Simon Duke will head the MENA operation.

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News

Tonic chiefs join forces to form marketing triumvirate Triple licence deal to deliver marketing innovation and enhanced ROI, says Verchère MENA Tonic International CEO Arnaud Verchère has partnered with former global planning director Ogilvy Action and the CMO of Global Insights Group, Rafe Ring, to form a new company. Called RealROI, it debuts this month to bring innovations that deliver real ROI to brands according to Verchère w h o i s C M O, w i t h R i n g as CEO. Ring is also a partner in Tonic Asia. “Since 2009, marketing professionals have been plagued by the financial crisis, the credit crunch, and the rise to power of procurement departments,” Verchère tells GMR.

“RealROI brings research and retail innovations to the marketers who want bigger and faster ROI, and regain their legitimate role in making their brands great.” The company has been granted exclusive MEA licenses from eYeka, Tribe and Wildfire. First to roll out across the region is eYaka which is described as a global co-creation and co-innovation community that delivers innovations, insights and ideas. It is powered by 150,000 creative consumers in 91 countries. Wildfire comprises a base of hand-picked influencers that spread these ideas cost

Real life: Arnaud Verchère

effectively, amplifying the innovations through person to person and word of mouth to help brands drive sales. The third partner is Tribe, which creates trade engagement programmes to train and incentivise staff as part

of the overall shopper marketing strategy. “RealROI brings these innovations on an exclusive basis to the entire Middle East, including Iran, and Africa, so Arabic, Farsi and English are a given,” Verchère says. “Specific African languages will be tackled from our South African office.” Asked about costs to clients, he says eYaka averaged between $50,000 to $100,000 for co-creation or co-innovation. The Trade Engagement Programme from Tribe would cost between $25 to $50 per month, per salesperson, he adds.

Majid magazine teams up with Manchester City FC UAE Kid’s magazine Majid will host more than 300 school children from UAE schools this month in the Majid Junior Football Tournament. The six-a-side tournament, involving more than 30 schools from across the Emirates, hopes to encourage children to adopt healthier lives and take up regular sports. Majid is also running a writing competition in cooperation with Etihad Airways, in which readers share a story on what they imagine a trip to Manchester City’s home ground would be like. The winner will visit Manchester City FC for a VIP trip to the Premier League final.

Field of dreams: Majid’s writing competition

The winner will also meet their heroes and walk onto the pitch with the players

before the start of the game. “Sport is an essential part of Majid’s lifestyle and should

be an important part of every young Arab’s lifestyle too,” said Fatima Saif, editor in chief of ADMC-owned Majid. The teams will compete in two age groups. The young footballers will be cheered on by their families and friends in a community day sponsored by Etihad Airways, Abu Dhabi Islamic Bank, Al Ain Water, Zayed Sports City, Shangri-La hotel, and the UAE Football Association. Majid, a weekly, is the ol de s t A r a b ic l a n g u a g e magazine. It launched in 1979 and has a circulation of 14,6000.

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News

Alokozay sets up $60m Pepsi bottling plant in Kabul Pepsico awards ABCo franchise for production, bottling and distribution of range UAE/Afghanistan PepsiCo, hassigned an Exclusive Bottling Appointment (EBA) with the Alokozay Group of Companies to manufacture and distribute PepsiCo beverages in Afghanistan. The products will be produced at ABCO (Alokozay Beverages Company), its bottling plant, which will be set up in Kabul with an initial investment of $60 million. Alokozay, a consumer goods distribution and marketing company headquartered in Dubai, already has a strong presence in Afghanistan in the FMCG category. As part of the EBA, the plant will distribute Pepsi Cola, Diet Pepsi, 7-UP, Mir-

Thirst-quenching: Production is expected to meet demand for aerated drinks

inda and Mountain Dew. It will also enter the categories of energy drinks and bottled water by introducing PepsiCo brands such as Sting and Aquafina. The plant will come into operation in March 2012 and will create direct and indirect

employment for 3,000 people, including 800 direct jobs. “The beverage industry in Afghanistan has grown tremendously and industry estimates point to more than 30 per cent growth year on year. We are delighted to take the PepsiCo franchise into

Kabul as this will enable us to service the growing requirement for beverages in the country, with one of the most internationally renowned brands” said Jalil Alokozay, CEO ABCo. “We look forward to a longterm, successful and mutually beneficial partnership between PepsiCo and the Alokozay Group of Companies, which are known across the world for their uncompromising blend of quality and value.” said Saad Abdul-Latif, CEO PepsiCo Asia AMEA. “We are confident that this partnership will allow us to offer consumers in Afghanistan diverse and appealing world class beverages.”

Egyptian pharmacy updates ‘Image’ through Portland Egypt Egyptian pharmacy chain Al Image Pharmacy has commissioned UK-based Portland to develop a brand and retail strategy for its new generation of chemist outlets. As the smallest of the top four retailers in the sector with 16 outlets, Al’s point of differentiation is its pharmaceutical positioning, Portland says. “In terms of market positioning, it was clear that the new generation of pharmacies had to provide a more holistic experience for customers – a one-stop shop visit that would offer a professional con su lt at ive ser v ice a s well as a wide range of mer-

Makeover: Egypt’s Al Image Pharmacy rebrands

chandise,” said Portland’s director of environments, Lewis Allen. The result, he adds, is a re-branded and radically replanned store environment

anchored on a strong ethical platform: to give the best advice, provide “first-tomarket” products, emphasis on own brand products and consultation areas.

The new design concept features a flexible, scaleable set of components developed to create an integrated and holistic environment where “guest” brands do not dominate. The visual language, identity and clarification will be carefully controlled with use of an on-line standards reference. Multi-channel opportunities, including home delivery, online promotion, online consultation and call centre protocols have all been integrated into the new brand. Al Image first opened in 1979. Today its annual average revenue is $15 million.

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World News

Global smartphone sales set to dou Global Worldwide smartphone sales will reach 468 million units this year, a 57.7 per cent increase from 2010, according to Gartner Inc. By the end of 2011, Android will be the most popular operating system (OS) worldwide, accounting for 49 per cent of the smartphone market by 2012. Sales of open OS devices will account for 26 per cent of all handset sales in 2011, and could surpass the

Sales boost: Smartphone

one billion mark by 2015, when they’ll account for 47 per cent of the total mobile market. “By 2015, 67 per cent of all open OS devices will have an average selling price of $300 or below, proving that smartphones have been finally truly democratised,” says Roberta Cozza, principal analyst, Gartner. “As vendors delivering Android-based devices continue to fight for market share, prices will decrease to further benefit consumers”, Cozza adds. “Android’s position at the high end of the market will remain strong, but its greatest volume opportunity will be in the mid- to low-cost smartphones.”

Television dominates global ad spend Ad industry no longer in recession, posting year-on-year growth Global The global ad industry is no longer in recession, having posted a 10.6 per cent year-on-year increase to $503 billion, according to The Nielsen Company. Strong performance in Asia Pacific, growth from emerging markets, particularly MEA and Latin America, rebounds from the auto and financial sectors, and World Cup spending hauled the industry back into the black. “2010 was the year of recovery for the ad industry,” says Randall Beard, global head of Advertiser Solutions, The Nielsen Company. “All global regions and every traditional medium recorded a positive turnaround, with highest percentage ad spend increases from MEA and Latin America, which rose by 26.7 per cent and 21.2 per cent respectively.” Overall, 23 out of 37 global markets posted double-digit growth. Auto and finance bounced back, increasing ad spend by 20.3 per cent and 17.9 percent respectively, with six auto companies being among the top-20 global advertisers. Spend for FMCG rose by 14.6 per cent in 2010, and the sector’s share of ad spend also increased from 23.9 per cent to 24.9 per cent. FMCG spend in MEA jumped by 34.3 per cent, Latin America by 23.9 per cent and Asia Pacific by 16 per cent. “FMCGs and emerging markets will continue to lead

Media – year-on-year % change 13.1

Television 8.5

Radio 7

Newspapers Magazines

4.9 0

Source: The Nielsen Company

global advertising trends,” says Beard. “One in every four ad dollars spent last year was on FMCG, and the focus remains firmly on key developing regions.” All traditional media posted increases, particularly TV, which rebounded by 13.1 per cent and increased to 62 per cent of all ad spend share – the highest on record and up from 60.6 per cent the previous year. Radio advertising rose by 8.5 per cent, followed by newspapers (+7%). Magazines recorded the slowest increase at 4.9 per cent globally, and only posted double-digit growth of 14.9 per cent in Latin America. Emerging markets, with their younger populations, attracted advertisers to new booming markets in Egypt

(+40.8%), Pan-Arab (+43%) and Argentina (+38.9%), which recorded the highest percentage advertising increases. The US, the world’s largest advertising market, had one of the slowest growth rates of 5.6 per cent year-on-year, but is back in positive territory after expenditure fell by nine percent in 2009. The only market to experience a decline was the UAE (-4.4%), while advertising remained flat in Japan (+1.3%) and Spain (+0.4%). “The 2010 FIFA World Cup brought the attention of hundreds of millions of soccer fans and, not surprisingly, advertisers followed with significant spending,” adds Beard. “It presented an excellent opportunity for advertisers to jump back into the market, revitalising ad spend.”

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World News

London says Hella to new magazine UK A new lifestyle magazine has launched in London targeting the city’s Arab community. Hella London is a 64-page bi-monthly glossy that will be distributed to more than 25,000 Arab residents in their homes and businesses, said publisher MediaReach UK. The editorial covers fashion, health, property, invest-

Nestlé to strengthen China business Proposed partnership to ‘further develop local brands’ Switzerland/China Nestlé is eyeing a 60 per cent stake in Chinese food company Yinlu Foods Group (Yinlu). Yinlu’s chairman, Chen Qingyuan, will continue to lead the company in the new partnership. The transaction is subject to regulatory approval in China. Other details are not being disclosed. Family-owned Yinlu is a well-established household brand in China and a significant marketer for RTD peanut milk and RTD canned rice porridge, said a Nestlé press release. The agreement builds on an existing partnership be-

Long-term investment: Paul Bulcke

tween the two companies, as Yinlu is a co-manufacturer for RTD Nescaé in China. Yinlu’s 2010 sales totalled US$846 million.

Nestlé CEO Paul Bulcke says: “We will submit this partnership proposal to the Chinese authorities shortly. It demonstrates our long-term investment in China and our commitment to further developing local brands.” Nestlé has been in China for more than 20 years, operating 23 factories, two R&D Centres and employs 14,000 people. Nestlé sales in the China region totalled US$3.1 billion in 2010. Main brands in China include Nescafé, Nan, Maggi and KitKat, as well as local brands such as Haoji and Totole.

Aston Martin drives expansion in India London calling: Hella magazine

ments, education, food and lifestyle. A strict advertising policy prohibits alcohol, tobacco and gambling brands from featuring. According to Media Reach, London’s unquantified Arab population has invested $100 billion in property and business in the city. In the summer, a further 100,000 Arabs visit London. Saudi Arabian tourists are the biggest spenders, averaging $3,270 per visit, Kuwaitis are the next biggest spenders, averaging $2,900.

India Aston Martin has opened its first dealership in India, bringing the British marquee’s luxury sports cars to Mumbai. The auto maker has launched a new dedicated facility in the city in partnership with Performance Car, a division of Infinity Cars Pvt. Ltd. The dealership offers customers a premium boutique environment where they can custom specify the cars to their needs. The showroom and after-sales facilities are specially designed to follow the international design elements that have identified the brand worldwide. Aston Martin Mumbai strengthens the company’s global dealership network to a total of 134 dealers in 42

En route: Aston Martin strengthens dealership network with Mumbai addition

countries. As part of its expansion plans, Aston Martin has recently entered into Brazil, Chile, Croatia, Czech Republic, Greece, Taiwan and Turkey, while seeking continued growth in new markets, as well as emerging markets including China and the Middle East.

Aston Martin’s chief commercial officer, Michael van der Sande, said: “Our decision to bring the Aston Martin brand to India is driven by a strong level of interest and enthusiasm from potential customers i n a n emerg i n g lu x u r y market.”

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World News

India Hindustan Unilever (HUL) has opened its first café in Mumbai – The Bru World Café. The initiative blends India’s coffee brands, and Unilever’s only coffee, Bru, with the growing café culture among young Indians who are spending more of their free time socialising out-of-home.

Right blend: First Bru World Café opens

Arun Srinivas, GM, Beverages, HUL, said: “Being the market leader, we are continuously experimenting with formats to deliver products to consumers in new and exciting ways.” In separate, but related news, Livemint.com has reported that HUL wants to cut advertising and marketing budgets by five to seven per cent, as part of its “efficiencies programme”. The Indian subsidiary of Unilever Plc spent Rs.2,391 crore, or close to 14 per cent of its Rs.17,500 crore sales in the fiscal year ending March 2010. Sales for the 2010 calendar year registered doubledigit volume growth for the first time in 40 consecutive quarters.

Kotex U helps tweens talk to mums Mother-daughter conversation is key to brand positioning US Kimberly Clark’s feminine hygiene brand Kotex has introduced a new range for tweens. U, by Kotex, is smaller to suit younger girls, and is presented in tween-inspired, glittery packages containing an information booklet. The brand has partnered with gynaecologist Dr Lissa Rankin and founder of online community Owning Pink, which encourages open communication between mums and their daughters. The conversation is especially important given the earlier onset of puberty than in previous years, says Ko-

Difficult period: There for U

tex, which is providing tools to help mums prepare for this time Tools, available at Kotex. com/Tween, include conver-

sation starters, an interactive calendar, information on first periods and related topics, as well as a place to connect with other mums. Kotex also worked with DisneyFamily.com to update the Story of Menstruation video featuring Dr Rankin and other parenting experts. “We developed U by Kotex after seeing a need for a product in the feminine care aisle that would support mums in approaching this challenging topic with their daughters,” said Melissa Sexton, integrated marketing director, Adult Feminine Care.

Halal body names Abbott Co of the Year US Abbott has been named Company of the Year by the Islamic Food and Nutrition Council of America (IFANCA). The healthcare company received the award recently at the 13th International Halal Food Conference in Schaumburg, Illinois. It is the first company in the food industry to obtain halal certification for all of its products that are able to be certified. The award is based on the company’s compliance of halal in its manufacturing practices and its work towards obtaining IFANCA certification globally. Abbott began the process to become Halal-certified in 2003 in Indonesia, Malaysia and

Bru joins India’s café culture

Fully certified: IFANCA recognises Abbott halal prudential

Singapore, and now implements it in all of its manufacturing plants. “This award recognition should reassure Muslims around the world that Abbott

Nutrition products are truly Halal,” added Muhammad Munir Chaudry, president of IFANCA. Abbott markets its products in more than 130 countries.

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YR GMR FP.ai

CMY

4/11/11

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News Plus

A spirited defence

Siobhán Adams revisits the 2011 Lynx to see if old ghosts have finally been laid to rest.

Not as sensational as the ‘Lynxgate’ scandal of 2009, but livelier than last year. The 2011 Dubai Lynx Awards presentation did not pass without incident... although the incidents were not the ones so feverishly anticipated in the run-up. Nor did they prove quite so dramatic. The Lynx has yet to fully exorcise the spectre of ghost ads, so the return of FP7 after a well-documented 12-month exile proved a catalyst for feverish speculation. Pre-event conversations – online and off – hummed with rumours over the alleged number of entries, particularly from FP7/BAH for its work on Batelco. A record number of entries – 2,068 vs 1,364 in 2010 – added fuel to the fire. On the night, however, a completely different drama occurred. One that temporarily deflected attention from the finalists and which steadily drained the 1,400-strong crowd of its customary, rowdy exuberance.

A late start, coupled with a sadly unfortunate AV malfunction, robbed the ceremony of momentum and dampened the atmosphere. But, as the presentation lumbered on, the prospect of a powerful FP7 resurgence began to recede. The ultimate star of the show was Y&R, whose Dubai office was named Agency of the Year. Y&R is also Network of the Year. Honourable mentions are also due to Elephant Cairo, Advantage Marketing & Advertising Cairo; Leo Burnett Beirut and Memac Ogilvy Tunisia. And FP7/BAH did indeed triumph with a Grand Prix, but not – shock horror – for its creative. It was named Media Agency of the Year, leaving regional behemoths such as Vivaki, OMG (whose OMD picked up a silver), Mediaedge and Mindshare standing, some might say quivering, in its wake.

So, in the end, FP7 emerged with a respectable clutch of gongs, including one for being the runner-up Agency of the Year. But it didn’t quite shed its mantle of controversy as many wondered how a small creative shop walked off with the top media award? (The question stands irrespective of FP7/BAH and is equally true of TBW\RAAD, which was third with the bronze in the same category.) The win – although not without precedent – has instigated a wider industry debate over the validity of the category and suitability of non media agencies’ eligibility for entry. IAA Kuwait Chapter president, Paragon Advertising’s Louai Alasfahani, who doggedly outed scams during ‘Lynxgate’, is not impressed. In characteristically forthright fashion, he tells GMR: “It was a surprise indeed that the top-ranking market in terms of

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media expenditure, which is renowned for its all-round creativity, has failed to produce a winner from Dubai’s plethora of media agencies. “Welcome to the Bahrain Lynx.” Mindshare MENA CEO Samir Ayoub believes that the process – not just the Lynx, but other regional awards including GMR’s Gemas Effies MENA Awards – should be revised. “There are many holes in the system and more validations and filtering are needed,” he said. “There should be complete separation between creative awards and media awards. Are we judging the use of creative in media, or the use of creative media?” Elie Khouri, CEO of Omnicom Media Group MENA, whose OMD Dubai was inserted between FP7/BAH and TBWA/ Dubai as runner-up, said: “Cannes has seen the same trend where creative agencies are entering work in the media awards and win in some cases. Media agencies can rarely return the favour, although we have had some success in this region with this approach, winning in the promo/ direct and cyber categories.” Vivaki declined to comment but speaking for the Lynx organisers, Amanda Ben-

It’s a game creative agencies have played for longer than media agencies and are clearly better at it. fell, PR and press manager, said: “As the communication process and expectations from both clients and consumers change, becoming more integrated, the agencies are also changing to provide a cross-media service.” But there is, of course, much more to the Lynx than the awards. There’s the conference and seminars. This also drew a mixed response from the 1,100 delegates. For UAE IAA Chapter board executive and Leo Burnett’s managing director, UAE, Kuwait & the Lower Gulf Kamal Dimachkie, the speakers were not as inspirational as last year with the exception of Paul Lavoie’s, presentation on doubt as a catalyst for positive change, Mike Cooper’s session on social media and Mark Tutssel and Michael Canning’s ‘Speaking Human – the Language of People’ session. Praise is also due to IAA UAE Chapter Lance de Masi for his efficient and highly focused moderating of the panel discus-

sion among four regional CEOs – JWT’s Roy Haddad, MCN’s Akram Mkinas, Leo Burnett’s Raja Trad, and M enacom’s Joseph Ghossoub – Creativity: What is Getting in our way? (Answer? Seems to be ‘the clients’.) Overall it was a hugely well-attended, well-organised, informative festival – despite the glitches – but probably one that DDB, Impact BBDO, Saatchi & Saatchi, JWT, Lowe Mena and Euro RSCG, all of whom rarely surfaced above silver, would rather forget. The last word, however, goes to Nadine Ghossoub, managing director Y&R. “I predict that the next three years are going to be very exciting for this region,” she said. “I can only hope we’ve set the bar even higher, not just for ourselves, but for other agencies as well.” Now that’s the sort of spirit that’s needed. For details of the winners, see www.dubailynx.com/winners/2011. n

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News Plus

So, how was it for you?

We asked key industry figures what they thought. What follows is edited extracts from their responses.

Louai Alasfahani

Nadine Ghossoub

Samir Ayoub

Elie Khouri

Lance de Masi

Samer Marzouq

Kamal Dimachkie

Ghassan Kassabji,

Nabil Moutran

Louai Alasfahani, MD, Paragon Advertising, IAA Kuwait Chapter president Were the awards a fair reflection of creativity in the region? The Dubai Lynx gave everyone a “fairer” reflection of creative talent in the region than any other “similar” festival. Were there any surprises? Yes. Many. I was surprised that an industry renowned for being highly opinionated and stuffed with free thinkers trailed the path of least resistance, silently chanting forgive and forget towards the same individuals and the organisation that (not so long ago) contributed towards the world’s largest advertising festival scandal. I was somewhat surprised that some excellent work entered in the newly Design Category was not even shortlisted, while lesser quality work was awarded. But, then again, that is a matter of opinion. Any lessons for next year? Lesson one: The criminal always returns to the scene of the crime. Lesson two: Attention spans are getting shorter and memory retention even more so. Lesson three: Some will do anything for a price or a prize. Lesson four: If you do not remove the root of the problem, new problems will blossom. Lesson five: The internet never forgets. Lesson six: Don’t get mad. Get evil =;-) No winners from Kuwait, why do you think that is? The total number of entries increased, however there were no winners from Kuwait this year, just one shortlisted entry from JWT Kuwait, which was a ghost ad and was dealt with in the appropriate manner. That there were more entries is a sign of economic recovery, of Dubai Lynx’s high level of awareness but, at the same time, the fact that most of the entered work (from Kuwait) was either poorly executed or spoof/ghost ads are still haunting us.

Samer Marzouq, chief blogging officer, Jazarah What did you think of this year’s event? It’s really great to see the festival becoming a beacon of creativity in the region, but the categories should be reconsidered. For example, nothing is created especially for outdoor, it is more or less an extension to print. Also, the interactive looks cluttered. It needs to restructured. Maybe split into two categories that tackle online presence – websites and social media – and online advertising. And new categories should be added, such as photography, which could encourage agencies to do photography for clients. And it would be a good idea to reward creatives through special awards such as creative director of the year, and the same for copywriters, art directors and so on. This will definitely play on the ego and push creatives to the max. Lance de Masi, IAA UAE Chapter – chairman How did the event compare with last year? There are always ups and downs. Some (both speakers and topics) are more leading edge than others. The fact is, though, I don’t think that there is a higher or equal quality of discourse at any conference focusing on communications issues anywhere in the region. Is it appropriate or desirable that a creative agency can win Media Agency of the Year? Creative and media agencies in the same group often fight about who gets to enter a specific piece of work. Which agency gets to submit it is really up to the group’s management. The fact is that ownership these days is very blurred. The purpose is really to award good work. That the agency that won the media award is not a “media agency” doesn’t bother us, although I’m sure the consensus on that is not 100 per cent within the IAA or outside. Perhaps a renaming of the category is what is called for. Nadine Ghossoub, managing director, Y&R Congratulations. How does it feel to be the ultimate winner? The double win didn’t happen by accident.

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It was a culmination of a lot of hard work, sweat and tears. And while the process itself was very satisfying, to be recognized for it by your peers is an extremely rewarding experience. We’ve been humbled by the recognition, applause and response we’ve received so far, be it from our clients, friends, partners or other agencies. This, by itself, gives us the momentum we need to push ourselves even harder. Kamal Dimachkie, managing director UAE, Kuwait & the Lower Gulf, Leo Burnett. How did the event compare with last year? It seems that the speaker line-up this year, while having a number of top international industry practitioners with interesting perspectives and stories to tell, seemed to be not as inspirational as the year before. Mind you, we were still treated to some excellent presentations ... On the other hand, the choice of regional topics this year, and personalities, were very good and covered wider ground than in 2010. I was particularly interested in the conversation with Dr Naif Al-Mutawa, creator of THE 99 and The Middle East Independent Agency Showcase. Of note was the IAA’s CEO panel that was very engaging and treated the industry to some unique views, rarely shared and less often in the direct manner we saw. This is one session that I would have liked to see go on for longer, allowing for greater indepth discussion and audience participation. What did you think of the awards ceremony? It is no secret that the awards ceremony was beset by two unfortunate matters. On the bright side, it was wonderful not be plagued by the usual scam accusations. While one cannot rule out the presence of initiative work within the limits of the rules, it is reassuring that we saw plenty of genuine work. Is it appropriate or desirable that a creative agency can win Media Agency of the Year?

A couple of thoughts here. The lines between creative and media continue to be blurred, especially when it comes to creativity and where it lies. Ultimately, in a creative industry and a creative awards show, the media expression will always be made on a creative foundation, independent of where the idea came from. At every Lynx a significant proportion of media agencies’ submissions were based on a creative idea that originated at the creative agency. This year’s development is clearly demonstrating that in many cases the idea will still come from the creative agency. Secondly, we need to be clear on what it is that is being rewarded. Is it creative ideas in any field independent of the originator? If so, the door must be open to creative agencies to submit entries in this area. Or, do we wish to reward specific discipline focus and reward practitioners in that area? If

GEMAS Effie in this? Campaigns are judged purely on the idea, irrespective if the campaign was a true one, approved and paid for by the client. Instead, the agency releases one ad in one medium to qualify for entry. Results are not audited by a third party. Many are exaggerated. And there is no proper consideration for local market culture and restrictions, Saudi Arabia, for example, and restrictions in Saudi media. It is much harder to come up with innovative and creative campaigns to execute locally than other markets in the GCC. There should be criterion given to “overcoming market restrictions in a creative way”. Plus, the jury should have the right balance between the local and international members. The head of the jury should never be from agencies and the majority of members should be from clients as agencies might abuse the

I’m really tired of international experts being condescending and trying to give us hope that one day we can win big at Cannes. yes, then one can argue that the award needs to go to the specialists independent, even if the ideas may not have originated from them, but were simply planned, booked and placed by them where media is concerned. Assuming there is clarity about this, then one can also easily argue that other areas of specialty need to be recognised, such as Digital, Direct, … etc. Samir Ayoub, CEO Mindshare MENA Are the Lynx elevating standards of creativity in the MENA region? The process in the Lynx and other awards needs to be revised. There are many holes in the system. More validation and filtering are needed. What sort of holes? Are you including the

voting. And yes, the GEMAS Effies are definitely among the ‘other awards’. We have reached a point where the awards are used to please the agencies rather than doing justice to creative and effective campaigns. Irrespective of who wins or loses, there’s increased frustration in the industry from the current awards practices. There’s a need to set a committee under the IAA to sit with each award organiser and revisit their processes. Is it appropriate or desirable that a creative agency can win Media Agency of the Year? There should be complete separation between creative awards and media awards: are we judging the use of creative in media, or the use of creative media?

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News Plus

So, how was it for you?

Elie Khouri, CEO, Omnicom Media Group MENA Is it appropriate or desirable that a creative agency can win Media Agency of the Year? The point of awards is to reward excellence, and in the case of the Lynx creativity primarily. Creative or brand agencies, who used to house media thinking in the past can, and do, come up with media ideas and are entering these awards. Should the media category of an award festival only be open to media agencies? The Cannes Festival has seen the same trend where creative agencies are entering in the media awards and, in some cases, win. Media agencies can rarely return the favour, although we have had some success in this region with this approach, winning in the promo/direct and cyber categories. Juries must make sure they reward an entry on the merit of its media thinking, the execution of its idea and the results it delivered, not just (if at all) the media placement of a strong creative idea. The point is subtle, but nonetheless critical. I would argue that since we don’t have the sole ownership of media creativity, all agencies should be allowed to enter their media work, as long as the media agency who executed it didn’t come up with it or played a significant part in devising it. This means that media agencies need to raise their game in two ways: first, improve their creative product further, in skills and process. But we also need to get better at presenting that work for awards. It’s a game creative agencies have played for longer than media agencies and are clearly better at it.

What did you think of the event generally? It is clear from the number of entries and scale of the event that there is a growing maturity and assertiveness in this industry. If we suffered from an inferiority complex in the past, then it is becoming a thing of the past. We have, in the Lynx, and other awards in the region, a proper system to benchmark our work with that of others here and further afield. That’s to be applauded. Ghassan Kassabji, managing director, TBWA\RAAD Saudi Arabia What did you think of this year’s event? Because of the technical problems and time delays, the event was disappointing. Coming from the organisation that represents the Cannes Lions International Festival, it just felt unprofessional. We expected more – much more – especially given the hefty prices we paid for tables and entry tickets. Also, I’m really tired of international experts being condescending and trying to give us hope that one day we can win big at Cannes. This region has some outstanding creative talent, and we are certainly capable of winning at Cannes. It’s the biggest GCC market, so why is Saudi so underrepresented? Saudi agencies produce great advertising, but we lack the capability to package our work properly for international/regional awards – especially as most of the output is in Arabic only. The creative spark gets lost in translation – linguistically or in a

cultural context. We have another drawback in that local clients do not yet fully appreciate the value of creative awards, although they certainly understand the significance of the Gemas Effies. Nabil Moutran business director, OgilvyOne Middle East How did this year’s event compare to last year’s? We are all hyped and excited about the Lynx, as we not only get a chance to see our peers, but also some of the great work that impressed the judges. It was therefore a bit disappointing not to have had the opportunity to fully appreciate the work due to the technical problems. The quality of work has shown even greater improvements and it was great to see more markets contribute some outstanding ideas and implementations. Is there any aspect that should be revised before next year? The categories are fine and we are seeing some great talent from around the world coming to judge our work. I would like to see more local judges get involved in the future though. Is it appropriate that a creative agency is also able to become Media Agency of the Year? It is absolutely appropriate. Media agencies are winning creative awards and even selling creative ideas to clients. The world of media and creative agencies are so morphed these days, a great media or creative idea can and should come from anywhere. n

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COVER STORY

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“Take two aspirin and tweet me in the morning”

Today’s e-Patients expect a large dose of digital interaction from their healthcare practitioners. “Take Two aspirin and tweet me in the morning.” This is just one of the ways that Doctor Jay Parkinson and many other technosavvy physicians use social media. Brooklyn-based Parkinson, referred to as “The Doctor of the Future,” and one of the top 10 most creative people in healthcare, formed Hello Health – the paperless, concierge practice that deploys web-based secure social media network and electronic medical records enabling doctors to communicate, document, and transact with their patients in person and online via email, IM, video chat, Twitter and Facebook. Welcome to the world of social healthcare. The rise of e-Patients has created many opportunities for engagement for healthcare providers. (e-Patients are defined as those “who are equipped, enabled, empowered and engaged in their health and healthcare decisions). By integrating e-patients into the healthcare marketing mix, organisations can engage patients, develop their brands or build

healthcare communities and much more, a trend that is certain to grow. Social networking is empowering, engaging, and educating healthcare consumers and providers. While consumers use social networks such as personal blogging and other formats for emotional support, they also heavily rely on them to manage health conditions. Social networks represent a brave new world for healthcare. It offers a platform for individuals to communicate quickly, easily, broadly and inexpensively. But can you really shop for by-pass surgery the way you shop for a tie? Will the successful pharma-practise of direct-toconsumer marketing work in other forms of healthcare? How can healthcare delivery practitioners prepare for consumer-driven selection? Marketers, advertisers, and PR professionals across the spectrum of healthcare will be impacted by these questions as social media threats and opportunities pervade the healthcare sector. Social media has revolutionised healthcare. Patients turn to social networking groups to find others who are battling

the same diseases (for patients preparing for the same type of surgery, following the tweets helps demystify the process and ideally reduces anxiety about upcoming operations), share advice and recommend doctors, while clinicians connect to share information and learn from each other. Hospitals all over the world are using social media as a marketing and communications tool to educate, publicise, entertain and establish themselves as the go-to place for consumers in need. With a Facebook fan page, patients are updated on day-to-day developments, while YouTube is used to upload educational videos. Similarly Twitter can link to the latest press releases or blogs about specific ailments; scheduling appointments, reminders, practice updates, or public health notifications. Organisations also use social media to communicate their mission and vision, describe their services, offer advice on common diseases, how to cope and how to maximise the quality of life. Some use social media to promote wellness and sponsor online support forums

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COVER STORY

Making the point: Websites and email is the preferred method for medical communication, a Capstrat-Public Policy Polling survey found

...the biggest mistake hospitals make is confusing social media with one-way communication tools... where individuals with chronic conditions can find support from fellow sufferers. Others use social media to encourage philanthropy; for recruitment and training. Weaving social media into healthcare training can provide multiple benefits, including: Giving trainees a feedback forum; providing presenters with immediate feedback from trainees; complementing marketing by sharing slideshows, video or pictures from training sessions on sites such as YouTube or Flickr. In a recent survey from Capstrat-Public Policy Polling, however, 84 per cent of respondents said they would not use social media or IM channels for medical communication if it was offered by their doctor. They prefer, instead, email and websites when they need specific consultations. The results show that while social media has a strong and growing role in healthcare communications among peer communities, it is not the communication vehicle

of choice when patients want to discuss medical issues with their doctors. However, this doesn’t mean the use of all digital communication is out of the question. Respondents favoured email and online for appointments, medical record access, and nurse consultation. healthy start

Forward thinking: The 118-year-old Mayo Clinic claims to have used social media tactics right from its inception

As with all businesses, medical practices face stiff competition and budgetary constraints. They must differentiate themselves by portraying value and quality to their prospective clients. With the increasing cost of healthcare and increasing competition among hospitals, it’s essential for healthcare providers to include social media in the marketing mix. Beyond communicating with patients and potential patients, many doctors are using online to collaborate with colleagues, research diagnoses and to enhance their medical knowledge. Social media is a powerful and effective tool for hospitals and healthcare organisations to stay on top of patients’ minds and maintain contact with other medical professionals, patients, and the general public. The network effect of social media can cause word-of-mouth epidemics unlike anything that caregivers have seen before. Hospitals and healthcare units are realising that word-of-mouth is the most significant driver to influence patients and so social media offers an opportunity to humanise what can be a scary, complex situation. One of the most famous healthcare facilities globally, the 118-year-old Mayo

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YOU SAY YOU WANT TO REACH OUT...

WE SAY HOW FAR?

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COVER STORY

Greater connection: Word of mouth has proven critical to building Mayo Clinic’s brand

...for a hospital to be effective on Facebook and Twitter, someone needs to be there at all times ... Clinic, used social media tactics right from its inception. When Doctors Will and Charles Mayo built Mayo Clinic with the Sisters of St. Francis, it was unusual for patients to survive a hospital stay. Quite often they succumbed not to the illness, but to an infection resulting from surgery. The brothers and nuns pioneered aseptic surgical techniques, allowing more patients to live and tell their stories. And when they went home, they spread the word. According to Lee Aase, Mayo Clinic’s manager of syndication and social media, word-of-mouth has been a crucial part of building Mayo’s brand for more than 100 years. “We see social media as the 21st Century version of word of mouth. We’re talking to the whole world, potentially.” It is also important for the healthcare sector to have a sizable online presence

to ensure that consumers aren’t misled by faulty information. For Mayo it all started partly to keep others from “squatting” on the name and posing as the Mayo Clinic. According to Joe Natale, VP, new media, Johnson & Johnson: “J&J monitors the site for adverse events and people who give incorrect medical advice and the expense of monitoring for adverse events runs from $100,000 to $1 million, but aside from that, anyone can post whatever they want.” In the days of retail health, the possibilities for healthcare organisations to use social spending sites are limitless. Many healthcare organisations are using social media to engage with patients and consumers. And there are some great examples. Again we look at the Mayo Clinic, whose Center for Social Media mission statement is to “lead the social media revolution in healthcare, contributing to health and well being for people everywhere.”

Mayo has fully embraced the idea of connecting with patients and advocate communities via blogs, podcasts, Twitter, and social networking – for instance the Sharing Mayo Clinic blog, which features the voices and stories of Mayo patients. But there are times when social media delivers unintended and unexpected outcomes. In 2008 a woman and her mother leaving the Mayo Clinic stopped in the lobby to listen to an elderly couple playing the piano. She took a video of them with her phone and posted it on YouTube, where more than 7.5 million people have viewed it. This simple video communicated an image of the Mayo Clinic that no amount of purposeful advertising could have yielded. The Henry Ford Health System answers clinical questions live via Twitter. Doctors, medical students and curious nonmedical personnel followed as surgeons tweeted short updates on removing a cancerous tumour. Sarasota Memorial Hospital tweeted a kidney surgery live, trading more than 1,900 tweets among followers. J&J acquired Childrenwithdiabetes.com, a site which receives an average 10,000

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unique visitors a day. These tips, of course, are just a starting point. Although a majority of marketers have embraced social media and UGC, the rise in social networking and health-care blogging has sparked a nascent movement to set standards and guidelines that include conflicts-of-interest disclosure and privacy protection for “open media” in health care. The challenge with social media is not to violate important professional and legal boundaries. The American Medical Association has created a policy about professionalism in social media. Its guidelines include: maintaining confidentiality; privacy settings to safeguard personal information; and maintaining appropriate boundaries of the patient-physician relationship. For marketers making the business case for social media is imperative, although hospitals have always been conservative in marketing to patients. But there are a growing number of healthcare organisations leveraging social media as more than a marketing and communications tool. They embrace social media as an “innovation catalyst” and deploy more collaborative models that foster broader engagement and knowledge-sharing among patients, providers and trusted institutions. While the industry has taken a giant leap into the new social media world, the reality is healthcare has only scratched the surface. An inherent problem with the “buzz” from social media is that there is no way to rank their importance, and so they tend to be handled first‐in‐first‐out, if at all. But the biggest mistake hospitals make is confusing social media with one-way communication tools. Some hospitals have hundreds or thousands of people signed up as twitter followers, but only follow a handful themselves. Or they use Facebook to push out press releases and other information and to drive traffic back to their own site without showing any interest in what others are talking about. Any advertising that encourages increased resource use and increases the costs of care is inherently in conflict with ethical

Bitter pill: The biggest mistake hospitals make is confusing social media with one-way communication tools

medical care but social media offers an effective way of promoting your business and supporting any existing marketing at little cost. But Social Media should always be a complementary part of the marketing mix. In order for a hospital to be effective on Facebook or Twitter, someone needs to be there at all times to respond. But also there’s no one-size-fits-all answer for social media. Not every approach is appropriate for every hospital or healthcare organisation. One needs to find the right mix. More importantly, hospitals have to figure out how to communicate therapeutically during social media interactions. Just because a hospital is on Facebook doesn’t mean that it is building a meaningful Facebook experience for both the hospital and the patient. Whether you are looking to increase patient traffic, enhance your reputation, or just want to supplement your other marketing efforts, in order to realize the maximum benefit from social media marketing, it is important to strike a balance between excitement for the potential it holds as a marketing and information-gathering resource, versus the potential risks it represents.

People may say bad things about the facility. Learning to highlight the positives and manage the negatives is imperative. It’s even more challenging to measure the ROI from social media. While real relationships are a valuable way to measure your social media ROI, measuring the success of a new marketing campaign should include the number of eyeballs, shakes and finger swipes, the number of blogs, articles, tweets and digs, the number of conversions, calls, responses and recommendations. Social media and its rapid, informal communication style represents both possibility and liability for healthcare organisations. Social media, if designed well, managed correctly, and supported by the system, could optimise patient and provider experiences. But they need to live together in this space (and be supported by the system) to ensure social media is a cure and not a curse. n

Praveen Pillai A Middle East-based healthcare professional

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Profile

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The GMR Interview Marketing a new master plan for Saudi’s nascent real estate sector is a priority for Mohammed Itani. Alex Malouf reports from Riyadh. It’s rare for most marketing executives to claim that what they’re doing makes a difference in shaping a country’s consumption habits. For Mohammed Itani, however, nothing could be further from the truth. Itani, who has been responsible for marketing at Riyadh-based Injaz for several years, aims to literally reshape Saudi Arabia’s real estate sector. Launched in 2006 by a number of prominent Saudi investors, Injaz is one of the few kingdom-based real estate companies and master developers that is recognized nationwide. Injaz’s VP for marketing, Itani could almost be described as a veteran of the country’s nascent real estate sector following his five-year stint at another developer, Dar Al-Arkan, in a sales and marketing position. His responsibilities at Injaz include marketing projects to both potential customers and investors. “We have to speak to [consumers and investors] differently. Today’s investor does

fantasy cv Born: 1974 , Beirut Education MBA, Lebanese American University 2001 Marital Status: Lovely wife Dina and children Abdul Rahman (5 years) and Lamees (3) Hobbies: Reading business and psychology books, watching movies. First job: Administrative assistant. I was still doing my BA at that time in 1995. Career high: The launch of Dar Al Arkan IPO. It was a very exciting moment in my life. It is a good moment when you see something you worked hard on grow to become the biggest real estate developer in Saudi Arabia. Career Low: Realising it takes a lot to teach. I tried it for an hour. Very difficult. Fantasy Job: Real Estate and Technology. I hope that I can combine the two.

not only concern himself with ROI, he also wants to ensure the project will be a successful one and that the people or company behind the project he is investing in is sound and stable. We reach investors through direct contacts. We’ve found the power of PR is now more efficient than advertising when it comes to B2B. We are also present in important exhibitions where we can reach them. “As for consumers in the real estate sector, the most successful media in Saudi Arabia is newspaper advertising. For me, that reach must be developed by combining newspapers, outdoor and online advertising. Also, another essential element is word-of-mouth. Our people build excellent relations with our customers. The Saudi market lacks good service. We always aim to provide that to our customers,” he adds. Injaz is undertaking two master developments. Its first, Al Marina, is a 3.3-millionsquare-metre development that will link the

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Profile

Overcrowding: With such a large population, Saudi Arabia needs more housing

Our job is to convince the investors … that Saudi Arabia is a market based on real demand and where supply is minimal two cities of Al-Khobar and Dammam on the sea front. The project includes luxury villas, multiuse towers, impressive buildings, coastal houses, hotels, malls, schools, mosques, various public services and vibrant green areas, as well as recreational, sports, social, and tourist facilities. The company’s second high-profile project is Al Gamra to the north of Riyadh and in the heart of the ‘New Riyadh’ that is emerging. Al Gamra occupies more than 2.5 million square meters, divided into four blocs, and offers end-users and investors the ability to buy land or real estate. When talking to Itani the issue of trust is ever constant. During the past decade Saudi consumers and investors have been burnt by real estate frauds.

“From 2004 to 2006 there were companies who were launching projects on paper. These projects didn’t see the light. Many small investors lost a lot of money and a lot of fraud happened where people flew with capital. Until today, investors have had problems in getting their money back. They have had problems,” Itani explains. “The government stepped in to regulate the real estate market and real estate investment.” Since 2006, however, real estate investor sentiment has shifted, Itani believes. Investors are looking for safe returns from companies that are stable, established and can be trusted. “For any project that was launched in 2005 or 2006 you would find direct buyers, no matter the company and its size.

“Today it is different. Today investors want credibility, reliability. This is where we play a role as Injaz. Today they need to know the company, the shareholders of the company and the capability of the team working in the company. “They will look at the location, the future of that location and the products that you will develop. Then they will decide if they come in. Now investors are not looking at high profits, but rather reasonable returns. They want to be confident that the projects will happen and that it is not a drawing on a piece of paper.” For Itani and his fellow marketers in the kingdom’s real estate sector, the challenge is education. Despite the kingdom’s size and population, which are larger than the rest of the Gulf combined, there are few household developers in the country which are active nationwide. “There are very few developers in the Saudi market and each developer has his own target market,” Itani says. “They all talk about middle income housing demands, but you find no one caters to this market. The challenge is everyone

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Profile

Master development: Al Marina will link the two Eastern Province cities of Dammam and Al Khobar

We’ve found that the power of PR is now more efficient than advertising… in Saudi Arabia works in real estate. Everyone in Saudi Arabia knows both the stock market and real estate. They have been practising the old habit of buying the land and developing it themselves. We have a responsibility to educate the market about real estate development, as it is known outside of Saudi Arabia and the importance of buying from a master developer.” Rebuilding that trust has been central to Itani’s marketing strategy over the past few years. It hasn’t been helped, however, by the slump in the real estate sector in places such as Dubai. “After the crisis in Dubai and some other GCC countries, many of the real estate investments stopped. This has affected Saudi Arabia,” Itani says. “Many projects here too were put on hold. Our job is to convince the investors that Saudi Arabia is different and that Saudi Arabia

is a market based on real demand where supply is minimal. I think many investors are realising that now in 2011, that what we’ve always said is true.” Itani is brimming with passion when talking about the kingdom’s real estate. Even when asked about the threat of competition entering the market from Dubai, he welcomes the new entrants as a help rather than a hindrance. “We’re not looking to defend our brand from companies looking to come into Saudi Arabia. On the contrary, we want new entrants in the market. You cannot be creative and efficient unless there is competition. “We always encourage new companies to get into the market, especially international ones. Their know-how is essential to the development of the country. What we bring to the table is local knowledge which they don’t have. They will need

time to understand the Saudi culture and real estate sector. However, my view is that the market is big enough for another 100 developers,” says Itani. The indicators bear out Itani’s optimism. With one of the highest birth rates in the world, Saudi Arabia is in desperate need of more housing. “All figures show that it will continue to grow. According to the ninth KSA plan there is a demand for 1.2 million homes until 2015. The government expects that will help in building 25 per cent of these homes. This means that the private sector has to build around 900,000 homes.” The growth in the sector was recently highlighted by the much-publicised mortgage law. The kingdom’s mortgage legislation, which was proposed several years ago, is yet to become law. While some expect the law to give added impetus to the real estate drive, Itani is more reserved. “In my opinion the mortgage law will ease the financing process, but look at what is happening today. Any Saudi can go to the bank and take out a loan to buy a home. The problem is the home

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Profile

Master planners: Mohammed Itani with Omar Al Kadi, managing director, Injaz Development Co

Agency roster Creative: TBWA/Raad on the corporate brand and Al Gamra project. Al Marina project is out to pitch. Media: Carat. PR: Orient Planet and Alef International. Company creds Injaz Development Company was established in Riyadh in 2006 as a Saudi real estate company and major master developer. It specialises in strategic real estate development projects for short- and long-term investment, always in compliance with the highest international standards - “cities within cities”. It also acts as a real estate investor.

loan itself. The issue is with the amount anyone can afford. A Saudi has loans on his home, his car, and he will also have other responsibilities,” Itani continues. “Last year we were more optimistic about the mortgage law passing and its positive effects, but it needs some time. What the mortgage law will do is provide trust to finance companies already in the kingdom, and help attract others into the market.” It’s clear that despite the potential, Saudi Arabia’s real estate market will take time to rival the likes of Dubai in terms of master planning. However, Itani claims the market has seen dramatic changes. “The real estate market in Saudi Arabia is not yet developed and Injaz is one of the few developers present in the market.

“My own view is that the market needs more and more developers to come in. Ninety percent of the houses constructed today are being built by individual contractors. As a Saudi you will go and buy the land, bring the contractor, do the design and go to the bank to get the finance. Developers such as Injaz are trying to change this. We are trying to create a new lifestyle. Today, the average size of real estate projects in Saudi are 50 to 100 units. These projects are increasing in size and you’ll eventually see 200 to 300 units. Everyone wants to be part of a neighbourhood, as you’ve seen in Dubai in the Palm and other developments. It becomes an identity and that’s what we want to do here in the kingdom,” Itani says.

For any developers out there looking to make a quick buck in Saudi Arabia, forget it, he warns. The country’s authorities are loathed to repeat the mistakes made by other GCC states. However, Itani still believes that the country’s changing demographics means there is a demand for all types of housing projects, be they large or small. “If you buy land you need two years to complete the infrastructure and then get approval on that infrastructure. Are investors ready to wait two years just to begin marketing the project? Any real estate project in Saudi Arabia will take three to five years to come to completion. “Second, you have to look at affordability. Is there a market for multi-million riyal villas? Companies are selling their units as there’s so little choice in the market. Many people are buying apartments nowadays even, which is a relatively new occurrence. “Some real estate companies are building smaller-sized villas so they can sell these villas at lower prices and there’s a market for houses with three or four bedrooms as families in Saudi are becoming smaller. Developers need to study the kingdom’s market and cater to the real demand in the market.” Trust issues, the length of time required to complete projects, and a market needing educating. Does Itani wish he was doing something other than real estate? Far from it. “My work is challenging, but it’s also the most promising role I’ve ever had,” he says. “We have the opportunity to reshape completely the kingdom’s real estate sector. There are difficulties, particularly in terms of the time required to develop a project here. We’re not going to see hundreds of people queuing up to buy off-plan as used to happen in Dubai. However, we are working in the largest market in the Gulf. Saudi nationals want what we can offer [in terms of neighbourhood planning]. We are rebuilding the kingdom’s concept of what a real estate development can be, one brick at a time.” n

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

trAVEL And toUriSM Despite a predicted recovery for the region’s hospitality sector, recent unrest has seen hotel occupancy rates drop room for growth Egypt: tempting tourists Abu dhabi: capital gains Saudi: Summer staycations Qatar: Five-point plan new faces taking ﬂight SEtA: rewarding excellence Sekari search data Mediastow data PArc analysis PArc data

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nEXt MontH Food

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SPARE CAPACITY

According to the UNWTO World Tourism Barometer, international tourist arrivals rose by almost seven per cent to 935 million in 2010, rallying from a four per cent decline in 2009, when the impact of the global economic crisis was at its peak. In the Middle East, the figures were even more impressive – an increase of 14 per cent to 60 million arrivals, attributed in part to discounting by hotels and the advent of budget-friendly tourism options. And UNWTO predictions for 2011 were for more growth at a rate of between four and five per cent, a target that seemed achievable given the soaring visitor arrivals in the region so far. Fast forward a few months and the picture is very different. STR Global’s report on hotel performance for February indicated the extent of the damage to tourism in the region, demonstrating a decline of 12.6 per cent to 56.7 per cent for overall MEA hotel occupancy, although the average daily rate rose by 17.1 per cent to $188.53. According to managing director Elizabeth Randall, the month saw the first impact of unrest across the region: “Egypt’s occupancy dropped by 78.5 per cent to a monthly average of 15.9 per cent, while in Lebanon the collapse of the national unity government has affected the market with a drop in occupancy to 39 per cent for February.” Bahrain’s hospitality sector suffered less, with occupancy dropping 17 per cent to 61 per cent, but Randall said the full picture remained to be quantified in the ensuing months.

Countless reports in 2010 pointed to a recovery for the hospitality sector in 2011, but recent events in the region have caused a relapse … except in the UAE. Kathi Everden analyses the fall out.

Early check out: Overall MEA hotel occupancy declined by 21.6 per cent in February

Move down the Gulf and the mood was very different, with the UAE enjoying booming business as a result of a healthy mix of leisure, corporate, exhibition and school holiday traffic, in room for growth

Debatable: Park Regis Diversion: Al Bustan Kris Kin Hotel Dubai’s Centre & Residence’s Moussa El Hayek Scott Butcher

addition to some incremental arrivals due to events in Egypt in particular. According to Luc Delcomminette, VP of Arabian Adventures, overall visitor numbers to the UAE increased due to ongoing marketing efforts combined with the availability of rooms: “In the early days of the political crisis in Egypt, Arabian Adventures welcomed guests who diverted from their original destination. ”In addition to this, the diversity of Dubai’s offerings as a destination and the quality it provides at a competitive rate are also contributing factors.” Operators in countries that issued advisories against travel to Egypt took measures to place their clients elsewhere,

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S E CTOR A N A L Y S I S

Change of direction: The UAE benefitted from many tourists diverting their travel plans from Cairo and other cities

It has been a boost for the hospitality sector, but the longer term is more debatable... with Natalie Tours from Russia, for instance, increasing flights to the UAE to cater to demand for winter sunshine. In Abu Dhabi, guest nights in February increased by 29 per cent, occupancy rose by 16 per cent and the length of stay was extended by 10 per cent, with guest numbers from Saudi Arabia rising by 90 per cent, while arrivals from the UK increased by 29 per cent, from France by 49 per cent and from Russia by 88 per cent. Across the board in Dubai, hoteliers enjoyed a surge in business: “As a result of recent events in the region, Al Bustan Centre & Residence saw an increase in occupancy to almost 100 per cent since the beginning of 2011,” said GM Moussa El Hayek. “Exhibitions attracted thousands of visitors, and many tourists from the GCC diverted their travel plans from Cairo and other cities in the region to Dubai during the mid-year holiday.” Newcomers such as the Park Regis Kris Kin Hotel Dubai were operating at

almost full house too, according to GM Scott Butcher: “It has been a boost for the hospitality sector, but the longer term is more debatable, and it will depend on how quickly the affected countries stabilise – meanwhile, Dubai gains as it is seen as a safe haven destination in the region.” Some perceived a shadow over the Middle East as a whole, with Nick Bauer, GM of the Dusit Princess Dubai, reporting some cancellations: “These have been instigated by travel advisories as people at times can confuse the actual staying power

Confidence: MENATA’s Peter Lilley

Imaginative: Seven Tide’s Mike Scully

suffering countries with non-concerned peaceful neighbours.” And at the annual gathering of travel professionals at ITB in Berlin in March, there was pressure for incentives to keep the travellers en route to the Middle East, no matter the destination: “Agents were indicating the need for cheaper rates and more imaginative packages in order to entice summer leisure business to the region,” said Mike Scully, MD of Seven Tides and developer of several Movenpick hotels and resorts in Dubai. “However, most indications were that if Dubai remained competitive on both price and quality of offering, there would be no negative downturn … other than what would normally have taken place due to the present economic climate.” For the region as a whole, positive PR and marketing is essential, according to Peter Lilley, executive director of MENATA (Middle East and North Africa Travel Association), who warned of an escalating spiral of bad publicity: “It is understandable that tour operators have had to consider cutting capacity … but even quite modest cutbacks in capacity can potentially undermine consumer confidence.” n

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S E C TOR A N A LY S I S

pyramid selling

Following its political upheaval, Egypt looks to lure holidaymakers back with added-value initiatives

Approximately one million tourists left Egypt in nine days; the country’s aviation sector was said to have lost $170 million with EgyptAir cancelling 75 per cent of its flights; tourism industry losses touched $1 billion in the first 10 days, international cruise liners re-routed away from Egyptian ports and the fleet of Nile cruisers berthed indefinitely. For the millions involved with Egypt’s hospitality sector, it was a desperate plight – but not totally unfamiliar – following as it did in the wake of other crises including the attacks on foreign tourists that involved the authorities in a long haul to revive the country’s image. This time around, chairman of the Egyptian Tourism Authority (ETA), Amr El Ezabi, reports an upswell of sympathy at ITB. “We had one of our most successful

participations and there was a positive spirit – now we have to transform this sympathy in to bookings, and in dealing with tour operators we have to make the most of this high sense of awareness of the destination,” El Ezabi says. “The indices in the principal resorts in March were much better, and we were fortunate with Easter coming so late as this increased demand, despite the problem of late bookings.” Looking forward

Challenge: ETA’s Amr El Ezabi

Practically, El Ezabi said priority was a charter incentive programme for a limited period, aimed at ensuring capacity in to the country, as well as co-advertising with international tour operators: “We have had a common marketing programme with more than 190 tour operators worldwide, and we are seeking a new budget to extend these. “The focus will be on Europe, since this is 70 per cent of our source markets and easiest to get back – but we will look to target the GCC for the summer period.” Co-marketing with cruise liners to restore Egypt’s reputation as a winter cruise playground is also on the cards, but El Ezabi accepted that the major draw for many travellers will be price deals. “I know for a fact that for destinations such as Sharm-El-Sheikh and Hurghada,

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S E C TOR A N A LY S I S

Sun still shining: Tactical pricing and marketing have been rushed into play to tempt tourists back

...what we are encouraging is added-value, rather than straight discounting. deals with tour operators are inevitable,” he says. “Our point of view is that if we lower prices, it may be difficult to bring them back up and what we are encouraging is added-value, rather than straight discounting.” On the ground, tactical pricing and marketing have been rushed in to play to tempt tourists to fill the empty rooms: “At Taba Heights Marriott Red Sea Resort, a huge marketing effort was undertaken to demonstrate that life on the Red Sea remains safe and unaffected,” says GM, Jan Heesbeen. “Promotions and deals were created, aimed at enticing people to come back and see for themselves that the sun still shines here.” A small saviour during the crisis was the British market, which continued to arrive in the face of adversity and lack of a travel ban: “Apart from the British, all other nationalities, including Russian, French and Belgian, were asked to leave by their tour operators,” Heesbeen explains.

Across at El Gouna, GM of the Movenpick Resort & Spa, John Wood, had a similar experience as an almost-full resort emptied to just 100 guests in four days. “Fortunately, the Brits kept flying and, as a result, the travel advisories from virtually every country were lifted and most tour operators restarted their programmes,” he says. “We launched added-value initiatives with our UK tour operators first, and then extended these to our European partners positive outlook

Meetings: Dusit Thani Safe: Taba Heights Marriott Red Sea Lake View Cairo’s Resort’s Jan Heesbeen Jiri Kobos

as they returned, as well as giving very attractive early booking prices for the summer season.” However, with disruption during the peak booking season in Europe, Wood says the resort would also focus on the GCC and other Arab markets to foster growth in this area. In Cairo, hotels have been slower to see recovery, but there are positive signs in areas such as domestic corporate and meeting sectors, plus weddings, according to Jiri Kobos, MD, Dusit Thani Lake View Cairo. Although occupancy had dropped to 10 per cent, Kobos says it was up to 25 per cent by March and enquiries were coming in from European and Asian tour operators: “Initial feedback is an expectation of discounted rates, and we are responding with value-added offers inclusive of breakfast, airport transfers, meal plans and room upgrades, plus rate packages based on pre-paid terms,” Kobos adds. “We are also inviting any travel agents and media free nights to see the situation for themselves and experience our hospitality.” n

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S E C T O R ANA L Y S I S

capital gains

Abu Dhabi Tourism Authority reveals its marketing plans to attract three million visitors by 2014. Kathi Everden reports.

Check it out: Abu Dhabi’s consumer activation programme will target primary and emerging markets

Marketing by the Abu Dhabi Tourism Authority (ADTA) is accelerating this year as a consumer activation programme is finalised to stimulate travel demand to the emirate, as well as reinforcing its rising stature as a compelling destination, according to ADTA strategy and policy director Lawrence Franklin. “The campaign and programme will span approximately 30 weeks and be designed with a global footprint, enabling us to hit both our primary and emerging source markets with effective impact,” he says. “In numerical terms, it will be a major tactical promotion towards meeting our 2011 target of two million hotel guests, and 2014 target in excess of three million – while the mechanics will be founded on both the destination’s inspiration state and aspirational qualities, leveraging Abu Dhabi’s recent accolades

as a rising star on the international tourism stage.” A second-stage advertising campaign moves beyond awareness building to a call-to-action, running the question ‘so you think you’ve done it all?’ across TV, print and online outlets throughout the pan-Arab world, in Europe, Russia, Asia and North America, kicking off in April through to December. Additionally, the emirate is hosting an average of five journalists a week, has an extensive international exhibiGoing global

Well placed: ADTA’s Lawrence Franklin

tion programme, and is in the process of opening ADTA offices in Moscow, Jeddah and New York, the latter scheduled to open in June. It’s all part of the strategic marketing of Abu Dhabi, carried out in conjunction with Etihad Airways, which has its own ‘Essential Abu Dhabi’ programme, to increase the stopover market. It offers visitors discounts at hotels, for excursions, dining, cultural and entertainment events on presentation of a valid boarding pass. In another initiative, ADTA has teamed up with one of Europe’s leading travel groups, TUI AG, for a three-month B2C promotion. Windows of 220 TUI travel agencies will display TVs running footage of Abu Dhabi, while 150 poster slots will run promotional material for a week, and a further 12,500 agencies will feature posters of varied Abu Dhabi attractions. All things maritime are also taking centre stage with MSC Cruises set to home port at Mina Zayed this winter. Abu Dhabi is also positioned as the official destination partner for the Volvo Ocean Race arriving in the emirate on New Year’s Eve. “Abu Dhabi is well placed with its pristine coastline and 200-plus islands to tap in to the international trend of establishing private cruise islands or beach and other facilities dedicated to cruise passengers,” Franklin says. “In addition, we are finalising plans for a Race Village to be activated to welcome the Volvo Ocean Race fleet to ensure the destination delivers a welcome like no other … this will include major concert performances, in-port sailing and a host of family activities.” Marketing spend was not disclosed. n

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S ECT O R A N A L Y S I S

Close to home

The SCTA is investing $89 million to help double tourism within the next five years. Kathi Everden reports.

A recent announcement of a $89 million investment in tourism projects has reinforced the commitment of the Saudi Commission for Tourism and Antiquities (SCTA) to stimulate residents to holiday within the kingdom. The commission aims to double tourism revenues to $31.5 billion within five years, and also quadruple employment in the hospitality sector to reach the two million mark. Five new regional museums will be built in areas such as Dammam, Tabuk and Asir, and additional funds will be allocated to restore historical sites, while a country-wide boost to infrastructure will see more airports and a railway network. Meanwhile, addressing the undersupply of hotels in the kingdom, the SCTA has targeted an increase of 85,000 hotel rooms and a similar number of furnished apartments, with a large number of regional and international groups naming Saudi Arabia as their priority in the region.

“Saudi Arabia is our number one development market in the Middle East. Riyadh is drawing both domestic and international visitors from strong business and corporate markets, for instance,” says Andrew Clough, svp, development, Hilton Worldwide, the Middle East & Asia-Pacific. The group has signed to operate a new hotel in Al Khobar, as well as two new properties in Riyadh, where other new entrants include Kempinski, Ritz-Carlton, Movenpick, Aloft, Crowne Plaza, Four Points by Sheraton, Fairmont, a second Four Seasons and Centro by Rotana. Rocco Forte and DusitThani are two newcomers for Jeddah too, while Marriott is to operate two properties in the Red Key focus

Dedicated: Elaf Group’s Ziyad bin Mahfouz

Sea province of Jizan. Accor, meanwhile, has ambitions for a network of budget Ibis hotels, starting with hotels in Riyadh and Yanbu. National companies are also investing in the hospitality sector, with the Elaf Group of Companies offering a portfolio of integrated offerings including customised packages, charter flights, conventions and meetings, visa issuance and more. President Ziyad bin Mahfouz says the group aimed to increase its hotel interests with four additional properties by 2012, adding to its existing inventory of 2,300 rooms. “Elaf Group’s strategy is to complement the growing focus on domestic tourism by developing dedicated service and product offerings that add value to the travel experience of domestic tourists,” he says. “With the SCTA increasingly promoting historical sites and cultural heritage, people are getting more excited to explore new destinations within the country, particularly sites that are being added to the U N ESC O World H eritage List.” n

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S E C T O R ANAL Y SIS

Limbering up

Qatar kicks off its global tourism strategy with a five-point plan. Kathi Everden talks to QTA chairman Ahmed Abdullah Al Nuaimi.

With plans to double hotel inventory following its successful bid for the 2022 FIFA World Cup, plus a national airline that’s really going places, Qatar is poised to take its place on the global tourism stage. And, marketing to align demand with product expansion, the Qatar Tourism Authority (QTA) has set out five planks on which to boost its awareness and appeal – sports tourism, meetings and events, culture, leisure, and stopover traffic. Working with Qatar Airways on the latter sector is a natural choice given the airline’s 100-destination network and plans for 20 additional routes in the next two years with an order book of 200 aircraft. “If we can capture just five per cent of the 16 million passengers carried annually by the airline, it will be a good market for us,” says QTA chairman, Ahmed Abdullah Al Nuaimi. “This figure could double to 35 million with the new airport, and our aim is to promote the message that we can offer culture, desert adventure, spas, sunshine, shopping, restaurants and more.” Al Nuaimi acknowledges that the public perceive Qatar to be boring with little to do,

but a campaign aims to refute that. “The first focus will be in the UK, just prior to the World Travel Market [in London in November], when we will do a roadshow to different cities including Manchester, Glasgow and London – this will be supported by a PR and advertising campaign. “We will take the opportunity to monitor the response we get to assess how effective our message is,” he says. “Then we will do the same in four or five cities in Germany before the ITB. We will also be supporting a major Qatar investment event in New York.” Closer to home, Al Nuaimi says plans for a major regional campaign had been put on the back burner following recent events, although there was one positive outcome. “We will wait until spring Highly selective

Not for the masses: QTA chairman, Ahmed Abdullah Al Nuaimi

next year to target the GCC with a dedicated campaign. “We feel it would be difficult to get our message across due to the instability in the region – although we have benefited from an influx of family visitors from Saudi Arabia as they seek alternative destinations to Egypt, Lebanon and Bahrain. “They can see there is much to do and the perception that Qatar is not a leisure destination is changing [in that market].” The QTA is taking a measured approach tailoring its message to coincide with product development that will include cultural attractions, sport events and a huge injection of hotel rooms, including resorts and city properties. St Regis, Wyndham Grand, Solis, Kempinski, another Four Seasons, Nikki Beach and Planet Hollywood Hotels are all set to open their doors. In addition, two convention and exhibition centres will launch within two years, reinforcing Qatar’s aim to become an international meeting venue. “Mass tourism is not for us,” stresses Al Nuaimi. “What we are targeting is upscale leisure and stopover traffic, as well as corporate and M ICE business.” n

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Operational change: Al Maha has brought in Starwood Hotels’ reservations and marketing systems

ALSO KNOWN AS . . .

C I

Rebranding popular properties requires more than just promoting a new name.

Long-term residents in the Gulf know that street names are a relative innovation, with roundabouts and hotels traditionally being the preferred guide to locations, but as new brands arrive in the region, and contracts are up for renegotiation, there’s a whole new name game on board. For some, such as the UAE’s Al Maha, it’s an operational change, bringing in Starwood Hotels’ reservations and marketing systems, but leaving the resort recognisable as Al Maha, a Luxury Collection Desert Resort & Spa. Other changes are more dramatic. Starwood, again, has won a contract to take over from the InterContinental, Muscat. Here the redevelopment will be wholesale, with three Starwood

brands evolving from the demolition of the InterContinental, with Westin, Element and W hotels to be built on the site. Conversely, the group has lost its management contract for Le Meridien Kuwait, but generally it is the bigger groups that are the beneficiaries of the recent downturn in the kingdom’s hospitality sector. TRAINING DAY

Brand DNA: Karin Sheppard, regional IHG, VP commercial

According to Neil George, VP, acquisitions and development, Starwood Middle East, the group was being approached by owners who wished to tag their properties with a Starwood brand: “If they have signed with brands that are not as well established (as we are), the importance of a global sales network, systems and branding has now become apparent.” Still, in a region where brand and bling are paramount, there’s always room for more: Versace, Le Bristol, Rocco Forte, Waldorf Astoria, Langhams, Planet Hollywood Hotels, Wyndham, Louis Vuitton, Club Med, Alila and Missoni being just some to open in the next two years. For established hotels, the marketing

CMY

T F in

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2011 01

issue is more than one of pushing a new name, particularly when the hotel concerned has been through the process more than once, the Royal Abjar, aka Renaissance Dubai, aka the Crowne Plaza Deira Dubai, being a perfect example. For Karin Sheppard, regional IHG, VP commercial, the process of marketing the new hotel was to instil the DNA of its brand within the staff. “First thing was to take colleagues through training on how to deliver the service experience,” she says “We were fortunate to come in at a time when the owner has committed to a $55m renovation that will start in June. “This includes our Sleep Advantage – beds, bedding, aromatherapy, quiet zones and more – plus meeting rooms that are more creative and conducive 11 GMR Half page advert FINAL FOR PRINT.pdf to thinking out of the box.”

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From the owner’s perspective, the Crowne Plaza brand’s weight of its parent IHG’s global presence is with its sales network, web system that drives more than two-thirds of reservations and the largest hotel loyalty club with 56 million members worldwide, including 500,000 active members in Saudi Arabia. “These are really powerful marketing tools and we continue to innovate,” says Shepperd. “We are moving in to the mobile space with an app for iPhone and BlackBerry, enabling users to

make reservations, check their loyalty points, etc.” And, for budget-stretched hotels, another bonus of the IHG might is the online resource library: “We can give templates for events such as Easter promotions. . . they don’t need to use an agency, while we know that they are doing things to the brand standard.” Getting it right, the Crowne Plaza Deira Dubai name change was even communicated to Dubai taxi drivers, a vital and often over-looked marketing exercise. n

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

spreading their wings

Low-cost carriers continue their ascent within the region’s travel sector

New heights: flydubai is pursuing aggressive expansion plans

With flydubai now the second biggest operator out of Dubai International Airport and Air Arabia dominating Sharjah’s aviation scene, there is no doubt that low-cost travel has taken off in the region. The YouGov SIraj Travel Tracker December 2010 showed the percentage of business travellers using a low-cost carrier (LCC) for short-haul flying rose from 48 per cent in 2009 to 64 per cent in 2010, while around two-thirds of leisure travellers also used a LCC – and both sectors expected to use these airlines more in the future. According to Scott Birch, research manager for travel and tourism at YouGov Siraj, people are turning to LCCs as a way to get more out of their budget: “The trend signals a diminished distinction between an economy seat on a legacy carrier that is essentially the same seat on a LCC.” Other findings included increased online booking, with 83 per cent of both business and leisure travellers taking to the web to make travel arrangements, with nearly half

booking all of their trips online: “Online booking is often under-estimated in the region, but our results show that online is a key channel for travel booking, in the UAE at least.” Responding to demand, carriers such as Air Arabia and flydubai are pursuing aggressive expansion plans, but the fragile nature of the sector and low margins has been demonstrated by slashed profits and closures at some other regional LCCs. Air Arabia’s profit plunged by more than 30 per cent, attributed to rising fuel costs, while operationally it flew at an average 83 per cent load factor with 4.45 million passengers. It is also negotiating for a Jordan hub to add to its existing networks out of Sharjah, Egypt and Morocco, and will take delivery this year of six of the 44 A320 aircraft on order – with plans to double its fleet by 2016. Kuwait’s Jazeera Airways recouped its position in the second half of 2010 with healthy second-half results trim-

ming full-year losses to KWD2.8million ($10 million), following a loss of KWD8.2million ($29.5 million) in 2009 – but airline officials say the carrier is on track to serve 82 routes in the Middle East within five years. Its neighbour in Kuwait – Wataniya Airways – was unable to sustain operations, attributing closure to both bad financials and the insecurity in the region, as well as a ‘flood of capacity’ in its home market, while Saudi’s Sama suffered a similar situation and ceased operations in autumn last year. Aiming to carve its own niche, Saudi’s remaining LCC – Nasair – has signed a code-sharing deal with Qatar Airways to feed in to that airline’s long-haul routes, and is planning more regional connections to destinations such as Iraq, Iran, Pakistan and Africa. In Qatar, a pending order for short-haul Bombadier aircraft could signal the launch of that emirate’s first LCC as a division of Qatar Airways, while Eithad has dipped its toes in the water with the launch of economy-only flights to selected shorthaul destinations. On the fast track, flydubai operates to 30 destinations less than two years since its 2009 launch, offering services to secondary cities and destinations that are not on the radar of the bigger carriers. New on its network is Abha and Gassim in Saudi Arabia, Sohag in Egypt, Ashgabat in Turkmenistan, Chittagong in Bangladesh and Port Sudan, while it will take delivery of nine B737-800 aircraft in 2011 as part of its 53-plane order on launch. And demonstrating how different a lowcost model can be from traditional airline operations, both flydubai and newcomer RAK Airways have announced arrangements with exchange bureaux to permit customers to pay for bookings made via a call centre – serving customers without access to credit and online services. n

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

Local attractions

We report from Riyadh on the Saudi Excellence in Tourism Awards.

The Saudi Excellence in Tourism Awards (SETA) made its debut during the Saudi Travel and Tourism Investment Market (STIMM) in Riyadh in March. SETA is intended as an annual event. Its aim is to recognise above-average or improved levels of achievement by individuals and organisations involved in the various businesses of the kingdom’s growing tourism industry. It is hoped that the awards – which is the initiative of a group of local businessmen supported by the Saudi Commission for Tourism and Antiquities (SCTA) – will also lead to an overall enhancement in performance. The principle focus of Saudi Arabia’s tourism positioning is the recovery of its rich urban heritage. The kingdom has a long and rich tradition dating back centuries to the trading caravan which meandered across the re-

gion. It is the remnants of these historic traditions that are being reinvigorated for the benefit of tourists and as a new pillar of the economy. It is also an avenue for future employment. Several hundred professionals from across the travel sector gathered at the Riyadh Convention and International Exhibition Centre for the presentation ceremony. The event was held under the auspices of HRH Prince Sultan bin Salman bin Abdulaziz, president of SCTA. Categories included: accommodation; shopping and entertainment; food and catering; tourism industry, tourism professional, MICE and special contribution to tourism, with the Grand Prix being a President’s Award. Within the eight categories, there were 26 sub-categories, which covered all aspects of the kingdom’s tourism business.

Unsurprisingly, the judges could not indentify winners in all 26 categories, although this was widely interpreted as a testament to the integrity of the judging. In his opening address, Barry Gray, chairman of the panel of judges, said: “The judges have set the bar high during the review of nominations and in some categories they have not [chosen to] award. “Nominees not selected should not be too disappointed, and with improvement to nomination packs in next year’s awards, as well as refinements to the categories, there will be new chances to [win].” In some cases, Gray added, good nominations had been submitted, which enabled the judges to undertake a detailed review of the submissions. Initial nominations were made online, allowing the public to then vote. The purpose of the online voting was for the organising team to identify an

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initial shortlist. Having achieved this, the nominees were then asked to submit a detailed report to support their nomination. Explaining the judging process, Gray said: “In order of importance, the judges relied on four things in their review: The information provided and quality of nomination packs submitted, the judge’s personal knowledge of the category, the nominee or their business, the number of votes received on the award’s website and the discussion between the judges on each category or sub-category”. The judges comprised eight leading national and international experts connected with tourism, hospitality, marketing and commerce. The group included two professors specialising in tourism from leading universities, and all had a long involvement in the kingdom’s tourism industry. The prestigious President’s Award was presented to HRH Prince Mitb bin Abdullah, Minister of Municipal and Rural Affairs, in recognition of the support provided by regional municipalities in the development of tourism. In his closing address, HRH Prince Sultan said: “The Saudi Excellence in Tourism Awards is another step in a continuous path of development and improvement in the facilities and services on offer in the kingdom. “Whether in the green and rugged highlands in the south, the unique geographic features of the central area, or the wildlife and marine environment of the coastal areas, Saudi Arabia truly has something for everyone.” He added that tourism is on track to provide more than two million jobs by 2020, half of which will be filled by Saudi nationals. “We anticipate spend in the tourism sector to increase to more than $4.5 billion by 2020, while also expecting to attract more than $15.9 billion investment from both public and private sectors during the same period,” Prince Sultan concluded.

AND THE WINNER IS. . .

Winner: The Globe

ACCOMMODATION Best Luxury Hotel Best Domestic Hotel Best Mid-market Hotel

Al Faisaliah Hotel, Riyadh Avail Grand Hotel & Suites Park Inn Hotel, Al Khobar

SHOPPING & ENTERTAINMENT Best Shopping Experience

Al Faisaliah Shopping Mall

FOOD & CATERING Best Fine Dining Restaurant Best Traditional Food Best Mid-market Restaurant

The Globe Al Khobar Heritage Village Steak House

TOURISM INDUSTRY Best Tour Operator Best Tourism Attraction

Jawlah Tours Company Old Council Souk

TOURISM PEOPLE Best Tourist Guide

Khaled Al Took

SPECIAL RECOGNITION Special Contribution to Tourism Group Mohsen Al Hokair PRESIDENT’S AWARD President’s Award

HRH Prince Mitb bin Abdullah, Minister, Municipal and Rural Affairs

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S e C T O R a N a LY S i S

JUDGING PANEL SCTA 2011 Barry Gray Organising consultant, chairman, judging panel Barry Gray is a specialist in marketing communications and customer engagement. In 1995 he set up GBC, a media, publishing and communications company specialising in conferences, business awards and magazines. In 2002 he launched the GMR Awards which, over six years, became the region’s most successful marketing awards. Having divested his business interests in 2008, Gray now provides consultancy on publishing, marketing and customer engagement across a number of business sectors and activities.

Omar a. al-Mubarak Oversight manager Licensing and quality department, SCTA Omar A Al-Mubarak is the accredited judge representative for Saudi Arabia at the Arab’s League, Quality in Tourism Awards. He has experience in managing large engineering projects. Previously he was director of the quality control auditors at Al Yamama Cement factory in Riyadh and director of the Gaz project, before taking up his current position managing quality control systems for the licensing division of SCTA. He holds a degree in civil engineering and an MBA.

dr. abdulmohsen al hijji Faculty of Tourism King Saud University Dr Abdulmohsen Al-Hijji is a highly respected educator with extensive experience in tourism specialising in leadership management and the development of job skills. He is assistant professor at the University of King Saud, Riyadh, most recently in the College of Tourism and Antiquities. He has also written many papers related to tourism and contributed to a number of tourism committees. Dr Al-Hijji holds a BA in arts and education, an MA in geography and a PHD in philosophy.

Guy Wilkinson Managing partner Viability Consulting A highly experienced hospitality consultant and wellknown hospitality journalist, Wilkinson has been based in the Gulf for 15 years. He previously held management posts at PKF The Consulting House, which he co-founded, and TRI Hospitality Consulting. He has far-reaching knowledge of the kingdom’s hospitality sector having travelled extensively, and contributed to more than 350 hotel and real estate projects throughout the Middle East and Africa.

dr amal bin Yahya bin Omar al-Shaikh Assistant professor of leisure and tourism, King Abdulaziz University Dr Amal has a PhD in arts and human geography, with a specialisation in the geography of leisure and tourism. She has taught at King Abdul-aziz University, Jeddah, since 2007, with a research focus on geography of leisure and tourism. Dr Amal is also a member of the Tunisian Association of Digital Geographic Information; the Geographic Societies of Kuwait, Egypt, America, the UK and New Zealand, as well as the Egyptian Tourism Asso-

abed Bibi Independent Brand Consultant Abed Bibi is a specialist in corporate branding and marketing communications within the GCC and Levant. His career includes five years at MBC Group as GM of Arab Media Services; co-founder of Future TV and regional director of the region’s largest media house, Al Khaleejiah Media. He was also VP, marketing and communications, Majid Al Futtaim Group. As an independent consultant specialising in branding and media communication, he has advised many of the region’s best known companies.

Leanne arnold Director – KAMAR Leanne Arnold specialises in cross-border communications within MENA and in developing brand ID. Her tourism experience spans managing CRM for English Heritage, marketing strategies and launching resorts for Qatari Diar in Morocco and Cairo, and developing national MICE tourism capabilities and hotel operating strategies for @Bahrain. Her career began in finance before taking strategic and creative roles on the corporate and agency side with TBWA and Proximity at board-level, and within the region with Qatari Diar, Abu Dhabi Culture and Bahrain Heritage Authority. She holds a first-class degree in psychology and communications.

Sultan Mohammed al-Malik Riyadh Chamber of Commerce Sultan Al-Malik specialises in marketing, research, PR and international relations. He is GM, international affairs, PR and media, with the Communication and IT Commission. Prior to this he was with the Advanced Electronics Company Ltd and the Saudi Industrial Development Fund in senior business development roles. He is a board member of the Marketing Committee of Riyadh Chamber of Commerce and a member of the Young Arab Leaders. He holds a masters in international marketing, University of Strathclyde, and a diploma in commerce and English, University of Colorado, plus a BA in business administration, King Saud University.

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

Turbulence ahead?

If airline brands continue to ignore consumer sentiments online they could be in for an increasingly bumpy ride.

New horizons: Airlines must transcend call centres if they are to connect more effectively with consumers

travel – and especially airlines – have played a pivotal role in the UAE’s growth. From its humble beginnings in 1985, Emirates is now the world’s largest international carrier (by capacity); Etihad, meanwhile, was named the “Middle East’s Leading Airline” last year. Then there is Air Arabia, the first Middle Eastern low-cost carrier, flydubai, which launched in June 2009, as well as all the other international carriers. Sekari wanted to find out whether that same energy was reflected in consumers’ online behaviour. Our analysis revealed a substantial number of searches for keywords such as “flight” and “flights” for which there were 200,000, on average, in one month – an enormous amount of potential internet traffic for those airlines that rank high for these search terms. Interestingly, “flights to Dubai” was the 13th most popular key phrase for local searches on Google.ae, showing the

importance of the domestic market for incoming flights. People are either searching for flight information for friends and family or companies are searching for flights for staff flying into Dubai. The reasons are numerous, but local search ranking is just as important as international markets. Unsurprisingly, when it came to the number of mentions in social media regarding the top 20 airlines that fly out of Dubai, Emirates was the clear leader. On average, the sentiment was among the most positive from all the other brands, a clear reflection of the amount of buzz surrounding Emirates Airlines. Much of the commentary was on the A380, along with confusion over security regulations, particularly the rules regarding taking liquids onboard. This shows a lack of knowledge regarding rules in different parts of the world. Perhaps this could be an opportunity for an airline to be pro-active and respond to queries and offer advice. Help when

it’s needed, and where it’s needed. Now, that’s customer service. Airlines need to transcend call centres and realise that conversations are taking place elsewhere. It’s not about control, it’s simply about being involved. Consumers don’t want brands to control the information. They simply want brands to be engaged and receptive to their needs. Etihad came second in the number of mentions in social media, with 96 in one month, versus Emirates’ 321, with a similar positive sentiment index. Air Arabia showed the least positive sentiment. It could be argued that there is more to complain about with any low-cost carrier. However, for a business model that relies so heavily on internet sales, and in today’s age of consumer comments via social media platforms, low-cost carriers need to pay extra attention to what is being said online. If their potential consumers are engaging in this medium, then so must their customer services. Negative sentiment can be easily turned into a positive if the brand reacts to the issues, shows a genuine willingness to improve, accepts responsibility or, at the very least, acknowledges the customer. With all these communications being online and being ranked by search engines, the brand that engages the most online will also get the highest visibility. Disengagement is perilous: It carries a high risk that only negative sentiment gains the highest visibility. n

Lee Mancini head of Sekari SEO Dubai

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Search and Social Market Analysis Travel: UAE Top 20 Keywords – travel market # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Top travel brands by volume of social media sentiment

Keyword (UAE) air lines airlines flight flights air line airline online airlines holiday flights to cheapest flight flights from cheap flight flights to dubai cheapest flights cheap airfares cheap flights flights cheap cheapflights cheap flights to vacation

Search volume 550,000 550,000 110,000 90,500 90,500 74,000 74,000 60,500 49,500 33,100 33,100 33,100 33,100 27,100 27,100 27,100 27,100 27,100 14,800 14,800

Search Engine Results Pages (SERPS) research conducted on Google.ae. Top 20 keywords with the most amount of searches last month based on local results from Google.ae

Brand Aeroflot Air Arabia AirFrance KLM British Airways Cathay Pacific Emirates Etihad FlyDubai Gulf Air Jazeera Airways Kuwait Airways Lufthansa Malaysia Airlines MEA Oman Air Qatar Airways Royal Brunei Royal Jordanian Saudi Arabian Airlines Singapore Airlines Turkish Airlines Virgin Airlines

Sentiment 0.00 -0.16 0.00 0.21 0.00 0.34 0.33 0.14 0.13 0.05 0.00 -0.06 0.40 0.20 0.25 0.06 -1.00 0.44 0.00 0.25 0.33 0.41

Volume 3 25 9 39 7 321 96 22 8 21 3 18 5 10 8 89 1 9 5 40 3 37

2,679 – total number of mentions regarding generic travel-related phrases

Source: Sekari SEO 2011

Social media – Volume vs sentiment graph: UAE 30 Emirates (321 mentions with 0.34 sentiment) 25

HIGH VOLUME POSITIVE SENTIMENT

HIGH VOLUME NEGATIVE SENTIMENT

Etihad Qatar Airways

Number of mentions

15 Singapore Airlines

British Airways

LOW VOLUME NEGATIVE SENTIMENT

Air Arabia

Jazeera Airways

Lufthansa Air France KLM Kuwait Airways Saudi Arabian Airlines Aeroflot -0.50

-0.40

Source: Sekari SEO 2011

-0.30

-0.20

-0.10

MEA

0 Range of sentiment

LOW VOLUME POSITIVE SENTIMENT

Fly Dubai

Gulf Air

Oman Air

Turkish Airlines 0.10

0.20

Virgin Airlines

0.30

Royal Jordanian Malaysian Airlines 0.40

0.50

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SECTOR ANALYSIS

PR Wars

As tourists reroute from North Africa to the UAE, a battle for PR coverage is breaking out among leading hotel brands. The influx provided a welcome boost for the emirate’s economy.

Very hospitable: 244 hotels with 55,000 rooms will open in the UAE by the end of the year

This year, the Abu Dhabi Tourism Authority expects 1.9 million hotels guests. This forecast has driven major hotel developments in the emirate, while encouraging collaboration among hotel chains, travel agencies, tour operators and airlines, all hoping to capture a bigger share of the tourism market. Several upcoming global sporting events, including the Mubadala World Tennis Championship and the Abu Dhabi HSBC Golf Championship, will help Abu Dhabi’s hotel industry sustain growth. Dow Jones reported in March how political unrest had devastated tourism across much of the Middle East. Dubai, however, saw an influx of tourists who diverted from destinations such as Tunisia and Egypt.

Penetrations All 10 hotel brands featured more

The UAE’s travel and tourism sector is thriving again, especially the hospitality sector, which has been showing a resurgence with higher occupancy rates driven by an upswing in tourist arrivals at the end of 2010. There was a drop in the overall revenue per available room, however, as thousands of hotel rooms in Dubai and Abu Dhabi became available, reported the Khaleej Times in January. Latest figures from the Dubai Department of Tourism and Commerce Marketing show that Dubai’s hotel industry posted a six per cent hike in revenues and guest numbers in the first nine months of 2010. With 244 hotels, containing 55,000 hotel rooms, planned to open in 2011, the UAE will create 120,000 new jobs by year-end.

Facets of coverage After evaluation of the media coverage of many hotels in the UAE during March 2011 (the UAE and Pan Arab markets), we selected the top 10 in terms of volume of coverage; Armani, Hilton, InterContinental, Jumeirah, Le Meridien Dubai, Park Hyatt Dubai, Rotana, Shangri-La, Sheraton and Traders. Sheraton achieved the highest volume of coverage with 185 clippings, followed by InterContinental with 139, Shangri-La with 128 and Hilton with 116. Traders Hotel achieved the lowest volume relative to the other brands, with 24 clippings only. Interestingly, while Sheraton achieved the highest volume, it ranked fourth in terms of OTS. It was InterContinental that achieved the highest OTS with 11.6 million, followed by Rotana with nine million and Hilton with 8.4 million. Armani achieved the highest NCS (Newspaper Coverage Size), in column centimetres, followed almost equally by InterContinental. Rotana was third. Jumeirah achieved the highest MCS (Magazine Coverage Size), measured in pages, followed by Shangri-La and Sheraton. It is interesting that while Sheraton achieved the highest volume of coverage, InterContinental achieved the highest OTS, Armani the highest NCS and Jumeirah the highest MCS, indicating that the PR strategy is different for those four leaders.

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Language

Armani

Hilton

Intercon

Jumeirah

Le Meridien

Park Hyatt

Rotana

Shangri-La

Sheraton

Traders

Penetrations – March 2011: UAE

Arabic English Genre News and politics Lifestyle and general interest Celebrity and society Entertainment and listing Fashion and shopping Travel and tourism Homes and properties Sports Parenting and childcare Business Catering and hospitality Motoring Building and construction In-flight Food and cooking Logistics Men’s Women’s Teenage and children’s Advertising and marketing Clipping types Photo caption Advertorial Review Latent mention Hosts event Deals Promotion CSR Interview News Media types Newspaper Magazine

10 43

30 128

67 198

10 55

1 75

3 62

97 3

33 140

62 251

1 23

21 4 10 15 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0

92 6 2 28 0 12 1 4 2 4 6 1 0 0 0 0 0 0 0 0

189 20 1 31 0 10 0 3 0 7 4 0 1 1 0 0 0 0 0 0

11 11 13 11 0 6 1 6 0 0 2 0 0 0 2 1 1 0 0 0

15 3 5 38 0 0 0 14 0 0 0 0 0 0 0 0 0 1 0 0

6 5 4 41 0 1 1 4 1 1 0 0 0 0 1 0 0 0 0 0

99 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

82 17 3 44 2 8 0 11 0 2 0 0 1 2 1 0 1 0 0 0

82 39 1 107 0 11 2 16 0 1 2 0 0 0 0 0 0 0 1 1

2 0 0 20 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0

17 15 3 2 6 0 0 5 0 0

43 30 11 4 12 9 0 6 1 0

45 59 8 2 21 0 0 0 0 4

22 21 3 2 7 6 0 0 0 0

29 27 0 0 19 0 0 0 0 0

19 26 8 2 7 0 3 0 0 0

33 29 8 0 12 0 0 4 0 0

44 48 11 3 20 0 0 0 0 2

49 64 31 1 28 0 0 0 0 12

15 7 0 0 0 0 0 3 0 0

21 32

92 66

190 77

11 54

13 63

6 59

99 1

81 93

136 179

2 22

Facets of Coverage – March 2011 VOC (Volume of coverage)

OTS (Opportunities to see)

48 116 139 61 75 65 86 128 185 24

2,704,106 8,376,688 11,581,873 2,601,279 3,361,416 2,432,457 9,011,755 7,422,367 7,847,157 705,457

Armani Hilton InterContinental Jumeriah Le Meridien Park Hyatt Rotana Shangri-La Sheraton Traders

NCS (Newspaper coverage size) 9,424 4,053 9,257 805 1,555 1,053 8,080 5,723 3,033 199

MCS (Magazine coverage size) 14.48 22.1 15.54 36.31 6.14 12.42 0.42 31.31 29.56 5.03

Source: Mediastow March 2011

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SECTOR ANALYSIS

Recruiting: Dubai hotels enjoyed an unexpected surge in occupancy in early 2011 as many winter tourists diverted from Tunisia and Egypt

All 10 hotel brands featured more in English publications than Arabic, except Rotana… in English publications than Arabic, except Rotana, which had a substantially larger Arabic penetration. In terms of publications’ genre penetration, all hotels displayed the greatest portion of their coverage from ‘news and politics’, ‘lifestyle and general interest’, ‘celebrity and society’, ‘entertainment and listing’ and ‘travel and tourism’ publications. InterContinental, Shangri-La and Jumeirah displayed the greatest diversification in terms of genre. There was considerable coverage coming from ‘sports’ and ‘business’ publications. Media type penetration displayed m i xe d re s u l t s. W h i l e m o s t h a d greater magazine coverage, Hilton, Intercontinental and Rotana had greater newspaper coverage. Clipping types/messages The top-10 hotel brands achieved nu-

merous advertorial and photo caption coverage. They all covered their own events except Traders. ‘Review’ clippings were also popular, with the exception of Traders and Le Meridien Dubai. The Sheraton and Hilton hotels achieved the highest amounts of all clipping types with the exception of ‘promotion’, where Park Hyatt led. ‘Deals’ were only shared by Hilton and Jumeirah hotels, while the most coverage fell under ‘advertorial’ and ‘photo caption’. Conclusion The hotel sector is on the fasttrack again and media coverage is increasing as PR competition intensifies. An improving economy, social unrest in the region shifting tourism to the UAE, a boost in efforts by the tourism authorities, and forthcoming events, point to a positive outlook.

While media presence is of great value, close-to-identical media coverage for all hotels creates an environment of noise. It would prove useful for each hotel to focus on what sets it apart, while maintaining high media presence. Abu Dhabi and Dubai are both buoyant, and while Abu Dhabi boasts many forthcoming events, Dubai’s tourism is picking up, making the two emirates equally attractive. Diversification in genres and clipping types would also achieve higher resonance. Increasing press release coverage is also beneficial. The months ahead are likely to filter out a clear leader in terms of PR. n

Data: March 1 to 31, 2011. The hotels featured in this article comprise generic brands and individual properties.

Hisham Elzubeir, research director, Mediastow

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SAUDI ARABIA

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

Still climbingâ&#x20AC;Ś

Pan Arab spend on travel and tourism has remained on an upward trajectory, with only airlines showing a drop. Ad spend on travel and tourism reached nearly $0.6 billion as the sector maintained positive growth with an eight per cent increase in 2010. Restaurants, contributing a 42 per cent share of spend, posted a healthy growth of 17 per cent. Spend on airlines, however, dropped by 18 per cent. Spend on resorts rose by 37 per cent, while hotels reversed its downslide of 2009 with a 10 per cent growth in spend during 2010. Travel services also reversed its downslide with a healthy growth of 30 per cent in 2010. Pan Arab media, which refers to media titles with significant reach in two or more markets, grew by 14 per cent to occupy 38 per cent of the total regional spend. The top spending market, the UAE, kept its spot with an eight per cent increase. Kuwait is the second top spender, but posted a modest decline of four per cent

in 2010, versus a 71 per cent surge in 2009. The decline, therefore, can be perceived as a healthy correction. Saudi Arabia, in third position, posted the biggest increase at 26 per cent. Other market variations include: Egypt (+5 per cent), Qatar (-1 per cent), Jordan (+6 per cent), Lebanon (-6 per cent), Oman (+14 per cent) and Bahrain (+11 per cent). Among major monitored media types, spending on TV surged by 13 per cent and now occupies 45 per cent of total spend. Spend on newspaper was flat at three per cent and saw its share drop to 33 per cent in 2010, from 35 per cent in 2009. The ad spend in magazines gained 15 per cent as the medium shares 13 per cent of the total measured spend. The top five airline spenders are Qatar Airways, Saudi Arabian Airlines, Turkish Airlines, Emirates Airlines and Egypt Air.

McDonaldâ&#x20AC;&#x2122;s, KFC and Pizza Hut are the top spenders in the fast-food section. Crowne Plaza, Sheraton and InterContinental appear as top spenders in hotels in 2010. The ad spend in 2011 is likely to be affected by the political upheavals in the region, particularly in Egypt. As Egypt emerges from the current unrest, a huge potential lies in the market that advertisers are likely to exploit. 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 analyst Pan Arab Research Centre, UAE

76 Gulf Marketing Review May 2011

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

ALL ABOARD

The UAE’s disparate population produces a unique type of traveller. WITH VARIOUS initiatives in the region to diversify oil dependence, focus on tourism has gained further emphasis. Dubai is home to the fourth-busiest airport in the world, boasting more than 46 million passengers every year. Marry that with the economic downturn and it is easy to see why there is increasing interest in the tourism pattern of residents in the Middle East. According to the latest TGI UAE survey, in March 2011, residents from the UAE travel, on average, twice a year on personal visits and three times a year for business. The frequency of travel among Arab expats is highest, at 3.8 visits a year. Frequency among females for personal visits is only three per cent higher than males. On average, males travel 40 per cent more for business than females. When flying for personal reasons the most important factor when choosing air-

lines is the price, while convenience and in-flight/comfort are the top two factors for business travellers. Some 87 per cent of travellers surveyed from the UAE choose economy class when flying and, on average, spend approximately one hour, 54 minutes waiting at departure. Air Arabia, Emirates Airlines and Egypt Air are the top three airlines used by frequent fliers, ie those travelling more than three times a year from the UAE. However, 66 per cent of UAE nationals frequently fly with Emirates Airlines, the most travelled airline in that segment. Etihad Airways is second. Air Arabia and Egypt Air are the top two airlines of choice for non-Arab expat frequent fliers. Air Arabia and Emirates Airlines are the top two airlines among Arab expat frequent fliers. One out of four frequent fliers books via the internet and around 70 per cent

of travellers from the UAE have holidayed abroad in the past 12 months. Residents prefer to go on vacation in the months of July and August, staying, on average, for 18 days. The avergae cost per capita for a family to go on holiday, based on a group of three, including one child, is $1,000. GCC residents, therefore, are among the most travelled in the world and comprise various segments. The needs for each segment are distinctly different from other segments and it is likely in today’s economic climate that the industry will focus on fulfilling them more closely than before. ■ Shaharyar Umar analyst, Pan Arab Research Centre (PARC). The views expressed in this article are those of the author, and not necessarily those of PARC.

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Lower frequent traveller, higher internet usage

Higher frequent traveller, higher internet usage

200 180 160 140 120

Internet usage

100 80 60 40 20 0 40

120

140

Frequent traveller

Lower frequent traveller, lower internet usage Non-Arab expats Arab expats Level 3 (Next 30%) middle class

100

KLM Egypt Air Air Arabia

Air India Etihad Air Gulf Air

NEGATIVE CORRELATIONS: Obtuse angle among variables

160

200

Higher frequent traveller, lower internet usage

flydubai Qatar Airways Emirates Airlines

National Level 2 (Next 20%) upper middle class Level 1 (top 10%) upper class

POSITIVE CORRELATIONS: Acute angle among variables

I would never think of taking a package holiday I like to stand out in a crowd To do my shopping by internet Travelled to Africa makes my life easier

180

Travelled to America

Money is the best measure of success I do some form of sport or exercise at least once a week

I always use money off coupons and vouchers

I enjoy planning holidays Travelled Arab World I like to take holidays in the UAE rather than abroad

I can’t resist expensive perfume

We should be open-minded towards other cultures

Travelled to Europe I like to keep up with the latest fashions I dress casually

Travelled within GCC I like to go back to familiar places for holidays Travelled to Asia/Far East I love travelling abroad

I like to go on holidays where activities are organised for me

May 2011 Gulf Marketing Review 79

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

CATEGORY: TRAVEL AND TOURISM Millions US$593

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 150,833 197,326 224,237 United Arab Emirates UAE 86,877 86,451 93,341 Kuwait KWT 44,393 74,632 71,964 Kingdom of Saudi Arabia KSA 55,227 53,010 66,582 Egypt EGY 46,596 40,827 42,802 Lebanon LEB 29,698 32,481 30,577 Qatar QTR 14,984 19,738 19,465 Jordan JOR 7,868 17,152 18,120 Oman OMN 9,609 10,035 11,472 Bahrain BAH 7,921 7,131 7,925 Other Markets** OTH 4,653 8,835 6,317 Total All Markets 458,659 547,618 592,802

14 8 -4 26 5 -6 -1 6 14 11 -29 8

Newspapers

2010

%Var’n YTD

2010

198,707 3,299 31,204 659 12,196 19,653 40 371 88 384 1,693 268,294

14 35 -2 -27 184 -6 -11 -31 -68 68 16 13

414 41,874 36,043 47,942 16,762 4,289 15,006 16,832 10,918 3,668 3,549 197,297

%Var’n YTD

Magazines 2010

Radio

%Var’n YTD

-31 25,116 -8 27,133 -1 3,460 26 3,373 -10 5,960 0 4,249 13 2,115 8 917 18 466 7 3,223 -41 882 3 76,894

2010

15 23 -17 11 17 29 -7 -4 -1 28 -3 15

0 2,457 1,220 495 4,200 317 216 0 0 267 193 9,365

Outdoor

%Var’n YTD

Category split by market

2% 2% 1%

16%

75%

38%

3% 12%

3% 5% 7% 11%

50% 25% 0%

Total GCC LEV PAN UAE KWT KSA EGY LEB QTR JOR OMN BAH OTH 592802 497050 95752 224237 93341 71964 66582 42802 30577 19465 18120 11472 7925 6317

Television

Newspapers

Magazines

Radio

Outdoor

Cinema

%Var’n YTD

0 83 17,785 -25 37 -43 14,113 -2 3,684 -81 2,069 -24 2,088 0 -100 0 -22 151 -58 0 -14 39,927

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

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

2010

Cinema

+8%

20 -93 38 -57 -13 -100 7450 -1

2010

%Var’n YTD

0 793 0 0 0 0 0 0 0 232 0 1,025

-61 -6

Pan Arab UAE Kuwait KSA Egypt Lebanon Qatar Jordan Oman Bahrain Others

SPLIT BY PRODUCTS – 2010 All Markets 18% 42%

Restaurants-fast food Resort areas Travel services

Pan Arab Media

13% 8%

11% 8%

Airlines Hotels Others

4% 5%

39%

Restaurants-fast food Airlines Hotels & resorts

41%

27% 21%

Resort areas Hotels Others

GCC Markets 28% 41% 28% 41% 26%

Restaurants-fast food Resort areas Travel services

Airlines Hotels Others

Levant Markets 39%

10%

18%

Restaurants-fast food Travel services Hotels & resorts

7% 8% 18%

Airlines Hotels 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 McDonald`s Kentucky Egypt Pizza Hut Domino’s Pizza Hardees Qatar Airways Saudi Arabian Airlines Turkish Airlines Egyptair Emirates Airline Al Tayyar Burger King Etihad Airways Gulf Air India South Africa Abu Dhabi Mo`men Turkey

Pan Arab Media Value 50,770 45,309 23,571 22,241 18,376 15,900 12,478 12,016 10,444 9,198 8,921 8,096 7,607 7,004 5,850 5,656 5,334 4,633 4,514 4,338

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

Brand Egypt Kentucky Domino`s Pizza Pizza Hut McDonald`s Turkish Airlines Qatar Airways Hardees Saudi Arabian Airlines India South Africa Al Tayyar Thailand Al Baik Egyptair Burger King Abu Dhabi Mo`men Etihad Airways Turkey

GCC Value 23,325 19,335 17,601 13,147 11,593 9,573 9,204 7,977 7,900 5,461 5,334 4,166 4,156 4,035 3,975 3,737 3,557 3,549 3,406 3,103

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

Levant Brand McDonald`s Kentucky Egypt Pizza Hut Domino`s Pizza Hardees Saudi Arabian Airlines Qatar Airways Turkish Airlines Al Tayar Emirates Airline Burger King Etihad Airways India Gulf Air South Africa Abu Dhabi Turkey Thailand Al Baik

Value 47,632 31,750 23,535 21,427 17,928 13,649 11,789 11,169 10,035 8,030 8,028 7,081 6,932 5,656 5,517 5,334 4,612 4,250 4,241 4,223

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

Brand Kentucky Egyptair McDonald`s Hardees Dallas M.e.a. Bab Al Safa` Holiday T & T Qatar Airways New Plaza Express Holidays flydubai Royal Jordanian Beirut Golden P. Y & C car rental Mo`men Emirates Airline Cairo Airport Pizza Hut Wataniya Airways

Value 13,559 5,009 3,138 2,251 1,742 1,573 1,571 1,479 1,309 1,298 1,296 1,243 1,124 1,106 1,089 954 893 865 814 751

Source: PARC

All market

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GMR-FPC-outlined.pdf

CMY

4/17/2011

11:26:31 AM

DIARY

GMR Event: Marketing to Women

Women 24/7: So, where’s your brand when she needs it? Whether she’s young, older, married, single, professional or housewife, local or expat, female consumers are more pre-occupied than ever in today’s always-on era. Nowhere is this more evident than in the Middle East where advances in socio-economic status, along with the seismic impact of digital media, are reshaping women’s personal agendas, the structure of their daily lives, their brand relationships, and profoundly altering their need-states. Understanding core needs is key to effective, sustainable marketing communications. The 5th annual GMR Marketing to Women Conference will deconstruct conventional marketing wisdom to help unearth fresh insights, new attitudes and behaviour as part of a deeper drill into what women really need from your brand…and chances are it’s not what you think. This one-day conference will highlight emerging global trends, provide the latest tools and techniques to help marketers connect more deeply with one of the region’s most influential consumer bases. Promising exclusive research, packed with insights, thoughtleadership and case studies, Women 24/7 will help regional and global brands communicate more effectively and create deeper and longer-lasting relationships with the region’s female consumers. 5th Annual Marketing to Women Mediaquest Corp Date: May 31 Location: The Address Hotel, Downtown Dubai, UAE T: +971 4 3910760 W: gmr-online.com/m2w.php

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82 Gulf Marketing Review May 2011

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