17 NOVEMBER 2010 - NO 192
SECTOR ANALYSIS REGION’S AUTO MARKET GATHERS SPEED ON THE ROAD TO RECOVERY A MediaquestCorp Publication
Wat ‘appens nxt? CLIENT SERVICING PITCH UP OR SHUT UP SAY CLIENTS
INSIGHTS MARKETING WAGING WAR ON THE RAMADAN 2010: AMBUSH MARKETERS CONSUMER CHANGES
Registered in Dubai Media City
Bahrain 2.00 dinars | Egypt 18.00 pounds | Jordan 3.500 dinars | Kuwait 1.800 dinars Oman 2.00 riyals | Qatar 20.00 riyals | Saudi Arabia 20.00 riyals | UAE 20.00 dirhams
Glashütte Original – 165 years of watchmaking art. PanoMaticCounter XL
Glashütte Original. Founder of the German Watch Museum Glashütte.
The PanoMaticCounter XL. The art of complication. Featuring the new Caliber 96-01 with 584 individually crafted and manually finished components,
217 of which comprise a novel function that makes it possible to count and keep track of things from 1 to 99. Find out more at www.glashuette-original.com.
Bahrain: ASIA JEWELLERS, +973 17 534 444 · Jordan: TIME CENTER, +9626 552 5706 · Kuwait: MORAD Qatar: RIVOLI, +9744 833 679 · Saudi Arabia: ALFARDAN JEWELLERY, +9661 462 8972 · Syria: WATCH
YOUSUF BEHBEHANI, +965 2467 626, Lebanon: ATAMIAN, +9611 256 655 · Oman: MISTAL, +968 24771444 TOWN, +963 11 3736 115, Turkey: LPI, +90 212 296 7960 · United Arab Emirates: RIVOLI, +9714 800 rivoli
Glashütte Original – 165 years of watchmaking art. PanoMaticCounter XL
Glashütte Original. Founder of the German Watch Museum Glashütte.
The PanoMaticCounter XL. The art of complication. Featuring the new Caliber 96-01 with 584 individually crafted and manually finished components,
217 of which comprise a novel function that makes it possible to count and keep track of things from 1 to 99. Find out more at www.glashuette-original.com.
Bahrain: ASIA JEWELLERS, +973 17 534 444 · Jordan: TIME CENTER, +9626 552 5706 · Kuwait: MORAD Qatar: RIVOLI, +9744 833 679 · Saudi Arabia: ALFARDAN JEWELLERY, +9661 462 8972 · Syria: WATCH
YOUSUF BEHBEHANI, +965 2467 626, Lebanon: ATAMIAN, +9611 256 655 · Oman: MISTAL, +968 24771444 TOWN, +963 11 3736 115, Turkey: LPI, +90 212 296 7960 · United Arab Emirates: RIVOLI, +9714 800 rivoli
PROFILE
Wake up and smell the Corn Flakes: Talking to Kellogg’s Will Brockbank. 52
www.GMR-Online.com NOVEMBER 2010 – ISSUE NO. 192
NEWS
10
Carat wins World Cup guerilla Bavaria. O2 scores with Asian Cup. N_K_D delivers ‘social media’ pizza. Hug Digital officially launches. Trilingual site for ‘digital Arabia’. Social media takes centre stage at this year’s DIFF. Nestlé rolls out ‘Ajyal Salima’ with some help from AUB.
WORLD NEWS
20
18
Decaux launches OOH poster recognition for iPhones in France. Chilean miners provide global product placement platform. Texting central to US teen life, says study. Tourism Australia scores with YouTube Symphony Orchestra. MEC India bags two accounts. Dentsu Group consolidates subsidiaries to create ‘marketing cloud’. New York topples London as the world’s top ad creative city.
NEWS PLUS
22
We report from Riyadh on news and views from around the stands at the third Saudi Media Show.
44
INSIGHTS
26
GMR Exclusive: Egypt eclipses UAE as the rising star of Ramadan advertising. Regional ad spend and media consumption during the Holy Month differs widely from 2009, reports PARC.
CREATIVE VIEW
32
Did EWS’ little cape-wearing eco heroes or BMW’s artistic Kinetic Ball teaser campaign win over this month’s guest critics?
HALAL LIFE
66 4 Gulf Marketing Review November 2010
34
How Qatar’s Barwa Bank, a new entrant in the financial services sector, is using humour to position itself as the region’s ‘modern Shari’ah-compliant
bank’. We also look at how Shari’ah finance presents a marketing opportunity for everyone, irrespective of belief.
MARKETING
40
Ambush marketing can rob official sponsors of their rightful glory. So what can be done to give brands that actually pay a sporting chance?
COVER STORY: APPS
46
Are branded apps the white knights of mobile marketing or merely a tale of sound and fury…? We talk to brands and planners as they grapple with the phenomenon.
CLIENT SERVICING: PITCHING
62
In October’s GMR an agency chief struck a blow for fairer pitching practices in the region. This month the clients strike back…and it ain’t pretty.
MEDIA
66
Online protocol: Bayt.com’s Ali Sinaei specifies the dos and don’t-you-dares of social media marketing.
SECTOR ANALYSIS AUTOMOTIVES
70
How Germany’s premium brands held their ground throughout the economic crisis. Online media is not the way forward for everyone it seems. Eco strategies continue to dominate the global development agenda for manufacturers. Luxury marques add extra value while consumers – and manufacturers – continue to rise from the East and dealerships finally discover the delights of consumer-centric services. There is a lack of regionspecific advertising in the auto sector, plus the latest stats and analysis from Mediastow, Sekari and PARC.
© Corbis
70 SECTOR ANALYSIS: AUTOMOTIVES 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
AUDITED BY
Reproduction in whole or part of any matter appearing in GMR is prohibited by law without the prior written approval of the publishers. Opinions expressed in GMR do not necessarily represent the views of the publishers and editorial staff of the magazine. The publishers do not hold out any guarantee as to its accuracy, neither do they indemnify any loss arising through use of the information. All dollar prices ($) are US dollars, unless otherwise specified. All marketing data is subject to confirmation. Printed in the UAE by Atlas Printing Press
6 Gulf Marketing Review November 2010
MANAGING EDITOR Siobhán Adams siobhan@mediaquestcorp.com DEPUTY MANAGING EDITOR Precious Jasper de Leon precious@mediaquestcorp.com SENIOR SUB EDITOR Elizabeth McGlynn e.mcglynn@mediaquestcorp.com SUB EDITOR Salil Kumar s.kumar@mediaquestcorp.com ART DIRECTORS Sheela Jeevan, Alvin Cha, Aya Farhat CONTRIBUTORS Alex Malouf ADVERTISING: MEDIALEADER United Arab Emirates sales@mediaquestcorp.com Tel: +(971) 4 391 0760
Saudi Arabia: Ghassan A. Rbeiz ghassan@mediaquestcorp.com Europe: S.C.C Arabies 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62 Lebanon: Beirut, Lebanon Tel: +(961) 1 202 369 Fax: +(961) 1 202 369
PUBLISHED BY: Medialeader FZ/MediaquestCorp FZ Europe: S.C.C Arabies, 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62
CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman Haydar General Manager Simon O’Herlihy Creative Director Aziz Kamel Distribution & Subscription Director JP Nair, jp@mediaquestcorp.com Marketing Manager Joumana Haddad, joumana@mediaquestcorp.com KSA GM Tarek Abu Hamzy, tarekah@mediaquestcorp.com, Tel: +966 1 4194061 Lebanon GM Nathalie Bontems, Nathalie@mediaquestcorp.com, Tel: +961 1 492801 North Africa GM Adil Abdel, Wahab, adel@medialeader.biz, Tel: +213 661 562 660 France Sales Director Manuel Dias, dias@arabies.com, Tel: +33 1 4766 46 00
AA8_MC3 Retro GMR.pdf
10/13/10
6:01:36 PM
NEWS
New-look Rani to float beyond GCC Middle East Juice brand Rani Float has been given a new look in line with its plans for further expansion outside the GCC region. The brand will see an increased presence in countries such as Iran, Iraq, Egypt, Syria, India and Pakistan, as Rani maker Aujan industries tries to meet its goal of $1 billion in annual sales by the end of 2012.
Regional first for Trends magazine Monthly spearheads Mediaquest’s mobile app expansion. MENA Mediaquest Corp., publisher of GMR, has launched the iPad version of Trends – a first in the region. Founded in 1998, the monthly Arab affairs title, with an audited circulation of 50,000, is available on iTunes. “At $5.99 a month, this represents excellent value, which is almost the same price as the print edition, but now accessible worldwide,” said
Trend setter: iPad debut for title
Alexandre Hawari, co-CEO of Mediaquest Corp. “Mediaquest is at the cuttingedge of new media. It would
be wrong of us to ignore the popularity of the iPad in the region and appetite for content through new technology. What’s more, the iPad version of Trends will carry advertising that should be particularly appealing to those who want access to high-tech readers on the go,” said co-CEO Julien Hawari. Mediaquest will add more titles on mobile and iPad in the coming months.
Bavaria beverages appoints Carat ME
Chunky: New look initiates global plans
“The new design is an expression of a brand that is moving from a regional name to gaining widespread international exposure,” said Ahmed Shaboury, head of brands, Aujan Industries. A full 360-degree marketing campaign, developed with Face to Face, will support the Rani Float relaunch this month and includes outdoor advertising and activation. Since its launch in Saudi Arabia in 1982, Rani has reported double-digit growth year-on-year and become one of Aujan’s flagship brands.
10 Gulf Marketing Review November 2010
MENA Malt beverage Bavaria has enlisted Carat to help position the non-alcoholic drink as a premium imported brand. Bavaria grabbed the global spotlight during the World Cup when it hijacked the Netherlands versus Denmark match, planting a group of female
CLOSER ENCOUNTERS
spectators all wearing orange into the crowd. (Please see page 40, Ambush Marketing.) Carat says the Dutch-based brand, already popular in Iran, aims to reach consumers in the wider MENA region and plans to roll out a regional TV and OOH campaign, hoping to capitalise on the
consumer preference for malted beverages in many parts of the Middle East. “It was a tight pitch process, but we feel Carat delivered with its strategic thinking and complete understanding of the business and target market,” said Vera Sellink, brand manager.
The American University of Beirut (AUB) and Nestlé have launched a localised version of the Nestlé Healthy Kids Global Programme, Ajyal Salima. The initiative promotes better eating habits and a more active lifestyle among nineto 11-year-olds. The collaboration covers a three-year project by AUB financed by the Nestlé Healthy Kids Nutrition Research Fund. AUB says the percentage of overweight six- to 19-year-olds in Lebanon has risen from 20 per cent in 1997 to 35 per cent in 2008, with a doubling in obesity rates. Present at the signing were Nestlé Middle East chairman & CEO Yves Manghardt and the AUB’s Dr Peter Dorman, Dr Ahmad Dallal and Dr Nahla Hwalla.
GMR 280x215-E.indd 1
9/30/10 5:01:57 PM
NEWS
Social media to take the spotlight at DIFF 2010 Nearly 4,000 followers on Twitter and 4,300 fans on Facebook line up for festival. UAE The Dubai International Film Festival (DIFF) is strengthning its digital and social media marketing strategies to reach a wider audience this year. Two core elements were revamped this year: the website and free mobile app, called DIFF on the Go. While Dubaifilmfest.com has a new booking engine, the mobile app is coming out of its test year with more functionalities, including a secure payment platform for tickets and greater service. It’s now available in Symbian, BlackBerry, Android and iPhone platforms. “We have made significant strides in digital every year for the past few years, jumpstarting our Facebook, Twit-
Centre stage: Mahsa Motamedi
ter, YouTube and Photobucket presence, refining our own domains and boosting our mobile campaign with our first mobile app. We are even more excited about our roll-out this year,” said Mahsa Motamedi, director of marketing and sponsorship, DIFF.
TIMELY MOVE
Swiss watch brand Rado has opened its first stand-alone boutique in Iran. A part of the Swatch Group, Rado opens the monobrand store in collaboration with Kish Behin Trading, Rado president Roland Streule told GMR. Rado hopes to “strengthen its presence in Iran and improve brand awareness, distribution and proximity to clients”. A campaign supports the launch, covering OOH, print and instore activation.
12 Gulf Marketing Review November 2010
Similar developments are under way, with Leo Burnett as its creative agency and Asda’a for PR. Currently, DIFF has more than 3,900 followers on Twitter and 4,300 fans on Facebook. Scheduled for December 12-19, this year’s event has the tagline ‘Open Your World’.
As focus turns to more digital elements, Motamedi tells GMR that the budget is unchanged and DIFF will continue to use traditional media, primarily print and audio-visual platforms. On a regional level, DIFF recently partnered with the Cairo Film Connection, Screen Institute Beirut and BeirutDC, providing a “financial incubating fund of $10,000 for Beirut DC’s Documentary Course”. DIFF has also signed with film governing conglomerate Capital Regions for Cinema, extending its reach to key European markets such as France, Germany, Italy and Spain, and potentially building new collaborative ventures.
Baker embraces new digital initiative MENA Tim Baker, formerly GM of MCN-owned Initiative, who left the company late last year, has set up a new digital ideas agency. Baker has partnered with Oussama Jamal – formerly COO of MCN Media – to form Hug Digital. The agency will provide clients with creative digital ideas covering mobile, social media, online and production. Based in Dubai’s Media City, Hug’s clients to date include Flash Entertainment, Apple and Lacnor, along with a number of multina-
Open arms: Tim Baker
tionals that Baker declined to specify. For Flash, the agency has developed a UGC portal covering music, culture and art.
“I could see the huge potential of this region, whether it’s from client demand or consumers, which are forcing brands to catch up quickly or lose market share,” Baker told GMR. Baker has also linked up with Cairo-based Digital Republic as part of its partner network. Strategy and ideas are developed from Dubai and content is produced in Cairo. “Egypt is our digital kitchen,” he said. Resources in Egypt are cost-effective and high quality, Baker added.
NEWS
Firm eyes greater pizza the action
Qatar lines up for Asian Cup Qatar The Organising Committee of Asian Cup Qatar 2011 is working with the O2 Network to roll out its advertising, interactive and branding campaign throughout the Middle East. Six other agencies were originally invited to pitch, said O2. The marketing budget is undisclosed.
Kick-off: Asian Cup 2011 plans under way
Social media company chooses UAE as global headquarters UAE A social media company that “happens to sell pizza” has chosen the UAE for its global headquarters. The franchise brand N_K_ DPizza is due to open its first store outside its native US in Dubai Marina by year-end. This first global contract was awarded to Dubai-based operator and former Jones Lang LaSallle executive Ian Ohan. A second UAE store is slated for Dubai Studio City. Starting its franchise operations in 2009, the firm is hoping for a bigger slice of the $44 billion global pizza delivery sector, partly through its plans to open more than 50 stores across the region within the next seven years. It has more than 350 units under development in the US
An official mascot and a mega clock, which will count down the last 100 days before the start of the finals, are also planned. A website has already launched along with an ad campaign for ticket purchase. The site is expected to sell more than 500,000 tickets before the January 2011 start date. “The campaign focuses on activation rather than traditional media and some are planned for December,” Mohammed Johmani, CEO and founder, O2 Network, told GMR. The agency is tasked with digital and creative work, media buying and guerilla marketing in local hotels, public transport and OOH.
14 Gulf Marketing Review November 2010
Listening and learning: Robbie Vitrano
and is on track to have up to 500 stores under contract globally by the end of the year. N_K_DPizza has an active website and blog, as well as Twitter and Faceboook accounts, posting discussions on regional food and lifestyle. “Being fully aligned with the tenets of social media – dialogue, reciprocity, authen-
ticity, and a willingness to listen and learn – we find out immediately what people think of us,” Robbie Vitrano, cofounder and chief brand architect, told GMR. Community outreach, database marketing, direct promotion and events are also in the works and designed for its social media community. Originally named NAKEDPizza (a reference to its ingredients being free of various additives), the brand was changed to N_K_DPizza when it planned to open in the UAE. “We chose the name N_K_D as a cultural gesture of respect. It doesn’t change the important parts about who we are, what we believe, what we do, our mission or premise of value in any way,” Vitrano said.
Trilingual site opens for ‘digital Arabia’ Middle East Anayou.com, a trilingual mobile and web platform, has launched in beta version. Available in Arabic, English and French, the official launch date is yet to be confirmed. A product of the du Media lab, a division of the UAE teleco, the site is designed for the MENA region, offering content, applications and games, as well as access to social networks, entertainment, sports, two-way phone sync and a 2GB cloud storage space, called the “Vault”.
The blend of Arabic ‘ana’ (me) and English (you) in the name reflects the core premise of the platform as a place for both personal “ana” digital services and for engaging with communities, brands and the rest of the world, “you”. “In recognising the digital world as a positive driving force in people’s lives, we acknowledge that the people of Arabia deserve more from the internet than what is presently offered,” du CEO Osman Sultan said. Anayou.com is available on mobile, web and soon TV.
The site is built in partnership with several content, media, and technology providers, including Rotana, Getmo Arabia, Eurosport, MBC, Accenture, Funambol, Hungama, and gaming company F4. Seigel+Gale created the brand identity. TBWA\RAAD is looking after the branding and advertising, while Ketchum RAAD handles PR. There are 344 million Arabic speakers globally and Arabic is the seventh most popular web language, but less than one per cent of online content uses it.
21086-GulfMarketingReview_DPS_280x430.indd 1
10/14/10 12:03 PM
21086-GulfMarketingReview_DPS_280x430.indd 1
10/14/10 12:03 PM
WORLD NEWS
Silver lining for Dentsu’s clients Japan Dentsu Inc is creating a new “marketing cloud” to support the process for all its clients. The agency is partnering with its IT systems subsidiary, Information Services International-Dentsu Ltd (ISID), and Salesforce.com Co Ltd, the Japanese branch of US company Salesforce.com Inc (SFDC), to create the service. Dentsu has worked with SFDC and ISID to construct cloud-computing systems on an unprecedented scale for several large projects, the group says. By leveraging cloud computing, the service will enable smooth data integration management at each stage of the marketing process (product development, production, logistics/distribution, promotion/sales, verification/analysis and after-sales service) that, until now, had been difficult to integrate. The marketing dashboard function will enable all the data to be viewed in real time on a single screen, while the 2/2 uploading of Dentsu’s proprietary tools and database to the cloud will support faster and more effective marketing of client businesses, Dentsu says. Designed to facilitate management of marketing activities, from the planning of business operations and introduction of systems to implementation of operations, this “cloud” will link the marketing process to sales and CRM.
NY takes lion’s share of Cannes awards Wieden+Kennedy Portland come out on top with three gongs
18 Gulf Marketing Review November 2010
Global Jung von Matt Hamburg is the highest ranked agency in EMEA, according to the Cannes Lions Report 2010. With three gongs, Wieden X+ Kennedy Portland is the most awarded agency in North America; Leo Burnett Sydney is number one in Asia Pacific, and AlmapBBDO takes first place in Latin America, says the second annual review to be published by Cannes Lions organisers. The US and the UK stay in first and second place respectively as the most awarded nations. Brazil and Germany move into joint third place. New York, meanwhile, usurps London to become the world’s most creative city, while European independent agencies continue to dominate with Jung von Matt coming top.
Roaring success: Second Lions report aggregated awards tallies
For the first time the report identifies individual success, with Brazilian Luiz Sanches named highest-ranked creative director and André Kassu as top copywriter. Both are from São Paulo’s AlmapBBDO. Kieran Antill of Leo Burnett Sydney is the top-placed art
director, while V. Scott Balcerek and Kris Belman of Caviar LA take joint first place in the list of directors. The report provides official rankings of agencies by category, regions, countries and cities based on their performance at the Cannes Lions.
Two new account wins for MEC India India MEC India has bagged two new accounts. The agency’s entertainment and sports unit, MEC Access, has won the IP business of ABSIL, a Times Group company, to advise ABS on the best platforms for its IP assets. The media agency will also buy these platforms on behalf of the client. MEC Access launched as a specialist division of MEC in 2008. Since then it has managed relationships with Citi-IPL sponsorship, NiveaFemina Miss India partnership, HDFC Standard Life Spell Bee
Forward-thinking: Manjiri Kamat
activation and Honda Stunner activation, among others. In other news, wealth management firm The ASK Group has named MEC as media partner for all its businesses.
Commenting on the move, Salil Vaidya, head of marketing for ASK, said: “Given the challenges we face in reaching our prospects, who are some of India’s richest individuals and families, we needed a partner who could also offer unconventional and media neutral customer engagement solutions.” “The company has aggressive growth plans and we look forward to adding value through our unique active engagement approach,” said, Manjiri Kamat, GM, MEC Mumbai.
WORLD NEWS
JC Decaux snaps up OOH poster app France JC Decaux has launched poster recognition technology in its native France through an exclusive partnership with French mobile tag platform developer Telequid. Called U-snap, the app lets the public download images onto their iPhones and offers brands direct digital access to consumers, Decaux says. Users can download the app for free from the Apple Store to photo the poster. They are then re-directed to the advertiser’s content – trailers,
User friendly: Outdoor poster apps
new product information or discount vouchers, for example. Users will also receive updates about current interactive campaigns as soon as the app goes live. The launch was backed by an internet and mobile web ad campaign and emails aimed at iPhone users, a Facebook page, the u-snap.net web page, plus a competition offering holidays, iPads and MP3 players. Eventually, U-snap will be extended to Android or Windows and will be available internationally. According to newspaper La Tribune, clients include Orange, Lancome and Chupa Chups.
Word on the street: Teen texting is up Seventy-eight per cent prefer messaging to talking, study says US Teenagers in the US (13 to 17 years) send or receive 3,339 texts a month, more than six for every hour they are awake – an eight per cent rise over 2009, says research from The Nielsen Company. Teen males also outpace other male age groups, sending and receiving an average of 2,539 texts. Texting is the main reason for choosing a phone for 43 per cent of teens, which is why QWERTY is the first thing they consider. Texting is also regarded as easier and faster than talking. The majority of teens – 78 per cent – recognise the convenience of SMS, considering it easier – 22 per cent – and faster – 20 per cent – than
Important message: QWERTY is a major factor in the teen purchase decision
calls. Voice activity, therefore, has dropped by 14 per cent among teens, who average 646 minutes of talking time a month. The main area of growth is data usage, with 94 per cent of subscribers self-identified as advanced data consumers using their mobiles for messaging, the internet and gaming. Teen usage rose from 14
MB to 62 MB compared to Q2 2009. Much of this is by males who are more gadget-savvy than females, using 75 MB of data Vs 17 MB. Females use about 53 MB compared to 11 MB a year ago. Neilsen analysed usage among 60,000 mobile subscribers, plus data from 3,000 teens, from April to June 2010.
Oz tourism orchestrates YouTube promo Australia Tourism Australia is partnering with YouTube to support the second YouTube Symphony Orchestra, which travels to the country next year. The news follows the 2009 event that saw 90 musicians from 30 countries play in New York’s Carnegie Hall, attracting 25 million views from 226 countries. “Tourism Australia is leading the way in digital marketing to promote Australia around the world as a travel destination and this partnership is a perfect fit with our activities,” said Andrew McEvoy, MD Tourism Australia. “While TV, print and cinema advertising remain im-
Right note: Tourism Australia links up with the YouTube Symphony Orchestra
portant, our organisation has long been at the forefront in promoting Australian holidays in the digital space – and we continue to explore new opportunities for taking our tourism message to the world.” The tourism body will support the initiative through its global PR activities such
as the international media hosting and visiting opinion leader programmes. This month sees the YouTube Symphony Orchestra 2011 auditions being held. A panel of experts from orchestras around the world will select the semi finalists. The YouTube community adds its votes online in December, and the finalists will be selected in January. The event culminates in rehearsals and master classes at the Sydney Opera House next March. The highlight will be a performance by conductor Michael Tilson Thomas, which will be streamed live globally.
November 2010 Gulf Marketing Review 19
WORLD NEWS
Global The soft drinks sector was hit hard by the economic crisis, managing only three per cent growth in 2009, almost half that of 2006/2007, says a Euromonitor study. More than half of the world’s spend on soft drinks is in mature markets such as North America and Western Europe, the report says. Further growth
Oakley’s product placement goldmine Optics company extracts $41 million in equivalent ad time
Clutching at straws: Falling levels
in these regions, however, often cannibalises existing brands, therefore expansion into new markets is vital. The study also found that consumers are no longer willing to pay extra for health benefits. A clear message of value-added elements such as natural sweeteners will be needed to help justify premium prices. Last year’s purchases by PepsiCo and Coca-Cola of their domestic bottlers should help position them for long-term growth, but Japanese companies and other competitors are expanding at a faster rate. Drinks such as fruit/vegetable juice and RTD tea, however, are viewed as healthy and could offset flat growth in core categories during the next five years, especially in China, the study adds.
20 Gulf Marketing Review November 2010
Chile The 33 pairs of $180 sunglasses donated to the Chilean miners have turned into a product-placement goldmine for makers Oakley. The $6,300 gesture by the firm generated $41 million in equivalent advertising time, according to research for CNBC network by sponsorship evaluation firm Front Row Analytics. The bespectacled miners emerged following 69 days 625 metres underground. Eric Smallwood, VP project management, told CNBC that the research measured live coverage, recaps and a rough estimate of the audience watching around the world. Broken down by country, Oakley got the most exposure in China ($11.7 million), followed by the US ($6.4 million) and the UK ($898,000). Chile
© Corbis/AFP
Harder times for soft drinks sector
Visionary: Oakley upstages all other brand donors
came fourth with $703,000. The optics firm also became a hot topic on Twitter. Other firms wanting a slice of the action included Apple. CEO Steve Jobs sent each miner an iPod, while Greek mining firm Elmin offered Mediterranean holidays, said to include stopovers to
watch Real Madrid and Manchester United. Not all donors benefited, however. A Chilean sushi company was allegedly forced to apologise for exploiting the men’s plight when it offered them free meals for a whole year – only if they survived.
Fairer deal for Singapore’s halal buyers Singapore Supermarket chain FairPrice is planning to expand its halal offerings by introducing more halal corners in its stores. The Singapore-based major multiple currently offers more than 20 products, including instant noodles, chocolates and biscuits, and has recently listed the Brunei Halal brand range of products. FairPrice’s Halal corners are certified by MUIS – the Islamic Religious Council of Singapore.
Wider range: FairPrice ups halal choice
“We intend to expand the number of halal corners in our stores; we certainly want to work with as many sup-
pliers as possible to bring in more halal products,” said a company spokesperson. The chain courted controversy in 2007 when a picture of its pork products with MUIS certification was posted online, according to Halal.com. The chain lodged a police complaint alleging tampering of its products. Under the country’s strict laws an abuser of halal MUIS certification can face a $10,000 fine, a 12-month jail sentence or both.
Invest AD_Cor_LOC_GMR_215x280_e_H.ai
1
10/13/10
6:40 PM
NEWS PLUS
High quality: The best video production firms operating in Saudi Arabia have always been European, says Mypro CEO Tarek Othman (right)
SAUDI’S SHOW TIME
Alex Malouf reports back from the third Saudi Media Show in Riyadh. AT THE TIME of writing official attendance figures from the third annual Saudi Media Show held in Riyadh last month were unavailable, but early indications are that it surpassed last year’s 1,500. The two-day event hosted an array exhibitors, many of whom chose it as a platform from which to launch services or products. One such was UAE-based news portal Eye of Dubai, there to announce the debut of Eye of Riyadh. The portal focusing on Saudi Arabia was beta-tested during the summer. Abdullah Al Harbi, CEO of both Eye of Dubai and Eye of Riyadh, told GMR the new site will meet the growing interest in Saudi Arabia from beyond the Gulf. “The site is up-and-running in both English and Arabic. The reception that it has received so far is excellent, both from visitors and the Saudi government, and businesses inside the country,” Al Harbi said. “We’re working to sponsor and publicise events inside the country. We’ve already had a strong response. Until now
22 Gulf Marketing Review November 2010
there were no other means to see all the events in Riyadh in one place. We now offer that.” With 80 per cent of Saudis under the age of 25 online, there was “no stopping the move into digital media,” Al Harbi said. Executives from Riyadh-based media firm Think Media were on hand to exhibit their new range of multi-touch products. The firm claims to be the only provider of multi-touch tables, screens and walls in the country. “People are seeing the ‘wow’ effect with these multi-touch devices,” said Amr Sadek, business development manager, LOOKING TO 2011
Online: Eye of Riyadh’s Head-to-head: Phi’s Abdullah Al Harbi Salim Alghamdi
Think Media. “We’re already working with a number of companies, some in the government and others in the teleco sector, to introduce these products into the market.” Think Media can develop tailored applications for screens, as well as run CRM software on devices. And, while the firm is already working with corporates, Sadek thinks it may be some time before the technology enters the retail sector. “There’s strong interest being shown by retailers at the moment, but high prices are an issue. Still, there are few other marketing channels that get consumers so engaged as a touchscreen display.” Regional PR agency Headline, meanwhile, has opened a second office in Saudi Arabia. The agency, whose Saudi head office is in Jeddah, recently set up shop in Riyadh following several client wins. It predicts 2011 will be a year of strong growth for the country’s communications sector. Feras Al-Maddah, executive director of Headline, spearheaded the media cam-
GMR Local 280x215-E.indd 1
10/18/10 6:43:10 PM
NEWS PLUS
On the up: Headline’s Feras Al-Maddah (centre) predicts strong growth for Saudi’s PR sector
People have moved away from global names, as they were being overcharged. paign for the launch of the country’s road safety system. He believes PR growth in Saudi has been, and will continue to be, driven by government bodies rather than the private sector. “We’re receiving more enquiries from governmental bodies – be it ministries, universities or any other official organisations. They’re looking to do structured communication campaigns.” Although optimistic about 2011, Al-Maddah believes there is a vast misunderstanding surrounding the PR discipline itself. “We are still seeing this link between advertising and editorial. In addition, the media are still being provided with advertorial material rather than real news,” he said. Riyadh-based Phi Communications celebrated its first anniversary at the show with a raft of client wins. The agency has in the past year doubled its headcount to 12 and built a client roster that includes Kingdom Holding, Tang and Al Issa. According to account
24 Gulf Marketing Review November 2010
director Salim Alghamdi, Phi is now going head-to-head in pitches with established multinational agencies. “This year we won a number of clients and the momentum has picked up. We won Al Issa following a pitch with TBWA and Promoseven. With Tang, we flew to Dubai and provided creative that was very unorthodox, but which appealed to the client,” he said. “We’ve continued to maintain our emphasis on small- to mid-size firms. If we believe in a company’s abilities we will go with them. Many smaller firms cannot afford large agencies. However, we are not looking to grow too quickly, and if we can’t do something then we will tell the client no. “The past 12 months have proved that the days of networks being able to charge clients high fees are over. “People have moved away from global names as they were being overcharged. With the financial crisis people are looking for value for money, and that’s where we come in,” Alghamdi said.
One Saudi-based agency that specialises in sporting events is urging the industry to embrace similar activities. Riyadh-based Heights, which promotes and organises the Hail Rally in Saudi Arabia, claims few activities are as popular or powerful as sports. “Our biggest events in Saudi Arabia are sporting-related,” said executive Yusuf AlMaklief. “They’re not only being watched in Saudi Arabia, but outside as well. We’re looking to expand events such as the Hail Rally to other countries.” By promoting a national event with endorsements from the International Union of Cars, Hail has attracted rally drivers from around the world. Al-Maklief said: “As an industry we can do much more to promote our customers through sports. We see this as a major growth area over the coming years.” Heights, which has offices in Jeddah and Riyadh, also works with Saudi-based firms such as STC. The agency recently organised the first National Forum for Saudi Ladies. Video production agency Mypro was also at the show to emphasise the need for quality video production. The agency, which was founded five years ago and has worked with companies such as Al Marai and Saudi Telecom, believes standards in the video industry in Saudi Arabia need to be raised. “We often talk to companies that think they simply have to throw money at a video project and that’s it. There are so many firms in Saudi that don’t have the skills to execute video production,” said Mypro CEO Tarek Othman. Othman and his partner, Loai Kelani, have worked in the production industry for 15 years on documentaries, films, television programmes and corporate identity projects. “The best video production firms operating in the country have been European. We’re hoping to set the benchmark in terms of a Saudi-run and Saudi-based video agency that will give clients value for money, while also understanding the local culture,” Othman said. n
S
Putting the buzz into business travel • 15 minutes from Abu Dhabi International Airport • 50 minutes from Dubai • 10 high-tech meeting and boardrooms • A magnificent 504m2 ballroom • WiFi Internet and technical concierge • Spacious rooms and suites from 54m2 • 7 international restaurants and 2 bars Whether it’s closing that big deal, entertaining clients or relaxing after a stressful day, the inspiring surroundings of The Yas Hotel will cater to all your business travel needs.
The world‘s most exciting hotel www.TheYasHotel.com T. +971 (0)2 656 0000 F. +971 (0)2 656 0001 E. info@TheYasHotel.com Operated by Aldar Hotels and Hospitality
11827_TYH_Business_Gulf_Marketing_Review_215x280mm.indd 1
8/23/10 3:05:10 PM
Š Corbis/Grapheast
INSIGHTS
RAMADAN RATINGS
Soaps and dramas stole the spotlight from music and movies during the Holy Month, study says. CONSUMERS’ ACTIVITIES saw a major shift during Ramadan due to flexible and shorter working hours. The average time spent watching TV increased significantly during the Holy Month, with dramas, sitcoms, soaps and religious programmes all enjoying high ratings. Movies, music and sports channels, however, fared badly. Even news programmes were slightly affected. Total ad spend for newspapers and television grew to $2.1 billion from $1.58 billion, a rise of 34 per cent. This was driven by increased spend on Pan Arab, Kuwait and Egyptian TV. The Pan Arab, GCC and Levant regions posted a significant gain of 42 per cent
26 Gulf Marketing Review November 2010
spending on television, buoyed by a 49 per cent rise in spending on Pan Arab media. Newspaper and TV spend rose 34 per cent across the three markets, while it went up 49 per cent in the Pan Arab region. (Note: We define Pan Arab media as titles that have significant reach in two or more markets.) Having crossed $1.8 billion, Pan Arab media constituted about 77 per cent of television spend as advertisers focused on multiple markets rather than targeting specific areas through local channels. Pan Arab newspaper spend remained virtually unchanged with a modest gain of two per cent, but TV spend
increased by nearly 42 per cent. Pan Arab TV media spend hit $1.42 billion during Ramadan, up 49 per cent from last year. It now accounts for 77 per cent of the regional TV spend. Egypt continued its upward trajectory following a surge of nearly 168 per cent during H1, rising 26 per cent for TV during Ramadan. In Kuwait, TV made robust gains of 56 per cent during the month. Pan Arab media became increasingly focused. Advertisers targeted Egypt and Saudi Arabia proportionately as per their population. Telecom brands were the most advertised sector in the region, with five brands appearing in the top-10 list
1702 VW Touareg 8gearbox ad GMR(T).ai
C
M
Y
CM
MY
CY
CMY
K
1
9/23/10
1:12 PM
INSIGHTS
spend. Etisalat Egypt and Banque Misr ranked second and third respectively on Egypt TV. A number of advertisers preferred Pan Arab media to reach the Egyptian market. Pan Arab TV gained 49 per cent this Ramadan to attain a total spend of $1.4 billion and the region’s spending on television crossed $1.8 billion for the month. More stations and advertisers are targeting Egypt than ever before, with ads on main stations such as MBC Group and Rotana. It is likely, therefore, that ads in Pan Arab media will be directed at large markets on programmes with mass appeal.
Mass appeal: Bab Al Hara 5 is one of the top five advertised programmes with a Pan Arab reach
Egypt is continuing its upward trajectory following a surge of nearly 168 per cent… of advertised brands. The top five advertised brands were Etisalat Egypt, Mobinil, Zain, Chevrolet and 57357 Hospital. Food and beverages gained 77 per cent to become the second most advertised sector. Government organisations were third. The same pattern followed TV, but in newspapers the top advertised sectors were government, malls and retails stores, followed by automobiles. Egypt Egypt replaced the UAE as the biggest ad market in the region in H1, buoyed by a 168 per cent surge in TV spend compared to Ramadan 2009. The country will most likely emerge as the top spending advertising market in 2010 as TV spend surpassed $141 million, up 26 per cent over Ramadan
28 Gulf Marketing Review November 2010
2009. The region’s TV spend was up 16 per cent over the same period. The top five most advertised programmes all had a Pan Arab reach and raked in more than $50 million each. These were: Sheekh Al Arab Al Hamam, Aayza Atjawaz, Zohra Wa Azwagha Al Khamsa, Bab Al Hara 5 and Al Aaar. Al Jamaa, watched mostly by housewives as per PARC’s Egypt TV Ramadan tracking survey, was the most advertised programme. The spend for this programme alone exceeded $20 million. It was followed closely by Zohra Wa Azwagha Al Khamsa at $19 million. Dawam Alhal was third with nearly $9.3 million. The top three sectors by spend in Egypt were government communication, utilities and food and beverages. Waqfa Masriya was the region’s most advertised brand in 2010, ranking first on Egyptian TV
Saudi Arabia The Saudi market was affected by the 2009 downturn. It posted a five per cent drop overall and 6.5 per cent fall during Ramadan 2009, but recovered in H1 2010 to gain nine per cent compared to the same period last year. The market witnessed a robust growth of 39 per cent in TV spend compared to the previous year. The average growth during Ramadan was five per cent. Newspapers, which constitute an 80 per cent share among major media, gained only three per cent compared to Ramadan 2009. The country is also increasingly being targeted via Pan Arab media. Local channels contributed only four per cent of the media type share. The government, with a 21 per cent market share in advertising, was the top spending sector in the market. Malls and retail stores gained 21 per cent over last Ramadan and were the second biggest ad spenders in the region. Financial services reversed their decline of 73 per cent during Ramadan by posting an 87 per cent growth. Most of the sectors were in the black, with the exception of publishing media and real estate. The top five spenders in Saudi Arabia during Ramadan were Zain, STC, Al Ber Charity, Sony and Ford.
Official Partner of BMW Sauber F1 Team
DS ROOKIE SHOCK-RESISTANT SAPPHIRE CRYSTAL WATER-RESISTANT 100 M STAINLESS STEEL WWW.CERTINA.COM
INSIGHTS
© arabianEye.com
The market, in all likelihood, will attain double-digit growth in 2010, but main advertisers with brands spread across the region will also use Pan Arab media to achieve better regional reach.
RAMADAN KEY SECTORS PERCENTAGE CHANGE Jewellery and watches Travel and tourism
Variant 08 vs 07 Variant 09 vs 08 Variant 10 vs 09
29 20
-43
38
-53
-5 16
Festival and entertainment
141
-78
Food and beverages
42
9
Publishing/TV/radio
-24
Financial services
63 186
-8 114
-64
-10
Communications
-37
Publishing/press
6 -2 216
60
-29
149
Real estate -88
-31
Professional services
-14
Automotive
91 -3 88
-38
36
Shopping malls
34
-1 6
Govt.organisation
8
-1
Total TV & newspaper
-38
-100
-50
36 74
-6 0
50
100
150
200
250
Note: The ad spend is calculated on the media rate cards and does not account for incentives and discounts that advertisers may avail from media owners.
UAE TV spend on local UAE channels reached $36 million, a four per cent growth. Spend in daily newspapers – $74 million – fell 10 per cent since Ramadan coincided with school holidays. Some dailies stopped publishing, switched to online or reduced publishing frequency during the month. Government and malls were the biggest spenders in local papers and TV during Ramadan. The third biggest was automotive. The top three most advertised sectors during Ramadan on TV were government, shopping malls and publishing media. The top five most advertised programmes across UAE channels were Shaabeyat Cartoon 5, Al Ghafa, Ma Asaab Al Kalam, Al Shara, and Lamasat Nafseya. The top five most advertised brands across local newspapers were du, Etisalat, Carrefour, Sony and Abu Dhabi Islamic Bank. Spend for newspapers and TV reached $110 million, which was more in line with Ramadan 2007 when it was nearly $107 million. In Ramadan 2008 spend rose 75 per cent, but Ramadan 2009 plummeted by 38 per cent. This year Ramadan saw a six per cent decline, although as the trends indicate the last quarter of 2010 is likely to see positive growth. n The views expressed are those of the author, and not necessarily those of PARC.
TELEVISION AND NEWSPAPER SPEND DURING RAMADAN 2010 66%
1% 5%
8%
4%
1%
8%
30 Gulf Marketing Review November 2010
5%
2%
Pan Arab
Egypt
Kuwait
Qatar
Jordan
Lebanon
UAE
Saudi Arabia
Oman
Shaharyar Umar product manager Pan Arab Research Centre, UAE
Welcome to our new programs Daily (except Thursday & Friday)
17.00 KSA
Daily 19.00 KSA
Daily 21.00 KSA
Tuesday 22.00 KSA
Wednesday 21.30 KSA
Thursday 21.30 KSA
Friday 19.30 KSA
Indian Dubbed Movies
Thursday 22.30 KSA
Friday 21.30 KSA
CRITIQUE
Client: BMW Agency: Art+Com, Berlin
CREATIVE VIEW BMW, Kinetic Ball teaser and EWS-WW, Heroes of the UAE Steve Hough executive creative director Memac Ogilvy Dubai Kinetic Ball This teaser is very BMW in its DNA in that it portrays a high-tech world of shiny objects – in this case using tiny silver balls to create a sculpture in the shape of a car. It’s fresh and compelling and a good way to deliver the message. It’s well executed and stylish. I feel it achieved the consumer promise of the ‘ultimate driving machine’. The teaser creates a halo effect for the rest of the line up, too, and you certainly get ‘dynamics’ from it – but not ‘joy’. Were we supposed to?
32 Gulf Marketing Review November 2010
Moving forward, it will be interesting to see how BMW manages to talk about these two aspects. The c a m p a i g n i s ve r y g o o d , b u t n o t mould-breaking. Heroes of the UAE This campaign is aimed at mums and children and I can imagine that, placed in the relevant media platform, it will be attention-grabbing, well received and make the point. It’s well thought through, well crafted and charming. It’s nice to see a campaign that tries to get under the skin of the issues and understands who it’s talking to. It’s also proof that you can make a point about the environment without
shocking people into getting the message across – although personally I prefer ads that do. It won’t win any awards, but it was never designed to. That said, it should work well. Rohit Arora planning director Team Y&R, Dubai Kinetic Ball While it refreshes the memories by reminding us of Honda’s Cog commercial, it is a great piece of art and is hard to believe it’s created without CGI. It’s subtle, beautiful and, more importantly, does great for the brand.
Client: EWS and WWF Agency: Touchpoints Consulting and Communications, Dubai
•A s a teaser did it create anticipation and desire? Yes. • Did it earn media for itself? Yes. • Does it live up to the consumer promise of ‘sheer driving pleasure’/‘joy’? Yes. • Does it support the brand platform of ‘ultimate driving machine’/‘driving dynamics’ (which people still remember rationally)? Yes. • Does it enthuse with its creative flair and unexpectedness such as their Hourglass installation for the 7 Series, the biggest billboard in Russia or the expression of joy? Yes. • Does it create a halo effect (as an innovator brand) for the entire line up? Yes. • Is it brand-coherent? Yes. • Is it a good campaign? Hell, yeah. Heroes of the UAE What I like about this campaign is the part-by-part approach to addressing the issue of sustainability, rather than a one-size-fits-all approach.
Sustainability could mean different things to different people and most of it being right – from planting trees to using plastic sensibly. With programmes at corporate, academic and individual level, it looks to touch many issues within respective control. The online and offline are well integrated in that regard. Strategically, the message that it’s “every child’s right” nicely taps into the fact parents care about what will happen to their children in the future. The print is cute, clean and has the vanilla factor. But does it make me stand up and change my ways? Not quite. Did the speech by then 12-year-old Severn Suzuki at the UN Earth Summit 1992 move people? Yes. While I understand the tone is too strong, the Eco-Agents (Children’s Environmental Organisation) campaign had a similar approach, but they balanced it
with the tagline: “We’re not angry, just very, very disappointed.” This could be a good inspiration. Overall, it appears genuine, is educational and participative, and these are the key ingredients to green marketing. n
STEVE HOUGH
Kinetic Ball Heroes of the UAE.
ROHIT ARORA
Kinetic Ball Heroes of the UAE.
November 2010 Gulf Marketing Review 33
©arabianEye.com
HALAL LIFE
FAITH IN FINANCE
Islamic banking is not just a belief-based pathway, it also makes perfect marketing sense, writes Ehtesham Shahid. WHAT IS THE difference if your shari’ahfinanced car purchase amounts to the same monthly installment as your colleague’s conventional finance for the same vehicle? Ask a shari’ah finance expert and a spirited defence will come your way. Here is one such explanation. From a shari’ah perspective, when conventional banks lend, they take the money back in the form of interest and money ends up being on either side. But if a car is financed the shari’ah way, the sum is not given as a loan. Instead, the funding institution buys it and sells it to the customer on Murabaha (purchase and sale agreement) basis and the customer pays back in stipulated time.
34 Gulf Marketing Review November 2010
Again, what is the difference? “The equity must be invested and should not be given as a loan. In other words, it should not be loan capital, but risk capital. So the bank is taking the risk and investing equity to get a return,” says Sohail Zubairi, CEO of Dar Al Sharia Legal and Financial Consultancy, a subsidiary of Dubai Islamic Bank. DOS AND DON’TS
Right way: Dar Al Sharia CEO Sohail Zubairi
Zubairi lists several “don’ts” from a shari’ah finance perspective: Do not trade in debts and risks; do not buy and sell guarantees; do not put the transaction odds heavily against one party; do not carry out transactions in prohibited goods; do not trample on the rights of other human beings for the sake of wealth; and, do not be rigid and exploitative with fellow human beings if they are in trouble. There is a list of “dos” as well. Apply money in trading, rather than lending; use money as risk capital instead of loan capital; trade in permitted goods, commodities, assets and services; share the risk in a transaction; accommodate delays in payments by your debtors in
Downturn aftermath Global financial meltdown notwithstanding, Islamic banks have continued to grow in prominence and size in recent years. According to a study published in August by Asian Banker Research, the world’s 100 largest fullfledged Islamic banks ranked by assets held more than $580 billion in 2008, a 66 per cent increase from the $350 billion held the previous year. This is especially significant considering the state of conventional finance industry across the world. Rushdi Siddiqui, global head of Islamic finance at Thomson Reuters, says this subprime-induced financial crisis
©arabianEye.com
case of genuine circumstances; and help the poor by way of zakat. Alongside the social orientation, it all boils down to the teachings of the Qur’an, which defines usury or interest (riba in Arabic) as “predetermined monetary gain on funds given as loan”, and hence forbids it. Instead of riba, Islamic finance practises the concept of sharing profits and losses, as opposed to transferring them. In other words, the emphasis is on treating money simply as a medium of exchange, and not as a commodity. It is this essential difference in the mode of finance that is driving one of the world’s fastest-growing economic sectors, comprising more than 400 institutions with assets under management in excess of $1 trillion. Geographically, the beginning of Islamic banking can be traced back to the Middle East, but the practice has blossomed into a worldwide phenomenon. Malaysia is recognised as an Islamic banking hub for the East, while other major financial centres such as London, Singapore and Hong Kong are also entering business partnerships with Middle Eastern financial institutions. Today, shari’ah finance institutions operate in more than 75 countries.
Fair exchange: The beginning of Islamic banking can be traced to the Middle East, but it is now practised worldwide
…the emphasis is on treating money simply as a medium of exchange and not as a commodity… has sidelined many of the “captains of capitalism”. “This presents a once-in-a-lifetime opportunity to present Islamic finance not as a piecemeal, faith-based pathway, but as a holistic solution to asset-based/ backed financing and investing in the real economy that contributes to real growth and development, and away from financial engineering,” he says. According to Siddiqui, the need of the hour is to inform CFOs of Fortune 500 companies, sovereigns and municipalities that sukuks (bonds compliant with Islamic law) can be a possible option for raising capital or refinancing. Not surprisingly, it turns out that – according to a Standard & Poor’s Ratings Services report – issuance of sukuks touched $9.3 billion in the first seven months of
2009 compared to $11.1 billion during the same period in 2008. “The medium-term outlook for the sukuk market remains positive, in our view, given the strong pipeline – with sukuks announced or being talked about in the market estimated at around $50 billion – and efforts to resolve the major difficulties impeding sukuk market development,” says S&P credit analyst Mohamed Damak. But it will be wrong to assume that everything about shari’ah finance is going great guns and that it isn’t faced with challenges of its own. To start there are limited Islamic secondary markets as well as an unlimited variety of shari’ah interpretations that can lead to confusion. Then there are concerns over a slow or stagnant development of Islamic financial instruments.
November 2010 Gulf Marketing Review 35
©arabianEye.com
HALAL LIFE
Growing in prominence: Today there are shari’ah finance institutions operating in more than 75 countries
…the world’s 100 largest full-fledged Islamic banks ranked by assets held more than $580 billion in 2008… Eye on the pie However, with all the signs of a bright future, businesses large and small are making a beeline to market products and services the shari’ah way, cutting across different sectors. Consider the recent launch by International Bank of Qatar (IBQ) of Al Yusr Car Murabaha, a shari’ah-compliant financing product, which offers flexible repayment tenures, without any requirements for salary transfer or guarantor. “The growing range of shari’ahcompliant financing products from Al Yusr Islamic banking service will not only provide customers with favourable financing options, but also enable them to achieve their short- and long-term financing goals, while positively impacting the development of a sophisticated financing infrastructure in the state of Qatar,” says Hassan Al Mulla, head of IBQ’s Islamic Banking.
36 Gulf Marketing Review November 2010
Saudi Arabia’s National Commercial Bank (NCB) went a step further, launching a shari’ah-compliant Visa Platinum Credit Card with two separate loyalty schemes – Bonus (cash back) and Amyali (air miles). This partnership is truly unique because it is also a coming together of the two financial worlds – conventional and shari’ah-compliant. For Adel Al Howar, the senior executive vice-president and head of consumer finance sector at NCB, it means access to the outside world. FRESH OFFERING
Sophisticated: Hassan Al Mulla, Head of IBQ Islamic Banking
“The card will provide our customers access to the most recognised and reliable electronic payment network in the world, which complements our focus on providing the best services to our customers,” he says. Elsewhere in New York, the Dow Jones Indexes, a leading global index provider, last year announced that Argentina, Colombia, Croatia, Lebanon, Mauritius, Nigeria, Peru, Saudi Arabia, Serbia, Tunisia and Ukraine would be added to the Dow Jones Islamic Market Index universe, taking the total number of countries in the index from 57 to 68. In Dubai, with an eye on the exponentially growing demand for shari’ah-compliant financial instruments, Mashreq Capital launched the Badr Al-Islami Income Fund in partnership with Badr Al-Islami, the Islamic banking division of Mashreq. The fund is one of the first regional Islamic fixed-income funds with the stated objective of generating long-term returns in the seven per cent range without excessive volatility. For businesses of all hues, shari’ah finance presents an opportunity… irrespective of belief. n
HALAL LIFE
RIGHT ON THE MONEY
Qatar’s Barwa Bank thought twice before it launched its new campaign – but it proved a hit.
Upbeat approach: Positioning itself as modern and Shari’ah-compliant, Barwa Bank used humour in its campaign
LAUNCHED IN 2008, Qatar-based Barwa Bank started amid financial uncertainty. But rather than seeing it as a hindrance, the Shari’ah-compliant bank believed it was the ideal time. “We launched at the right time, without any baggage [from the global recession],” says Hussain Fakhri, head of marketing and communications, Barwa Bank. The bank is positioning itself as a “modern Shari’ah-compliant bank”, targeting 25 to 45 year olds – across all denominations. “We’ve purposely left out the word ‘Islamic’ because we want to be about inclusion,” Fakhri says. One of its latest marketing efforts offers a humorous take on banking;
38 Gulf Marketing Review November 2010
regional and Shari’ah-compliant banks usually adopt a more sombre tone. Working with Kuwait-based creative agency P&A, Barwa Bank launched its $1.5 million campaign at the end of Ramadan. Focusing on lapses in customer service, the campaign focuses on a client who, in each episode, tries to use a service or product. His attempts end unsuccessfully – but in a humorous way. Featuring the tagline “If you think all banks are the same…think again,” it aired through four TVCs. The campaign was also rolled out in cinemas, print and outdoor. Barwa Bank has a YouTube page, which has garnered more than 1,200 views since it became operational in
August, and an internet banking facility that goes live this month. The Barwa Bank is also opening what Fakhri describes as “a new concept branch” in December. “It is designed to be a new way of banking. It will answer needs for transparency in banking as well as accessibility and ease of use,” Fakhri says. This upbeat approach to Shari’ahcompliant banking is also translated into the bank’s corporate ID. The six colours of its logo are designed to appeal to a “young, vibrant”audience. “We are a Shari’ah-compliant bank, but we’re not a religious institution, we are a business. We want to compete on a global level and as such send a message of inclusion,” Fakhri says. “We believe that Shari’ah banking is ethical banking,” he adds, citing that the next level of communication will be heavily focused on educating consumers about Islamic finance. This phase is slated for next year. Operating under the Barwa Group umbrella, the bank has also recently acquired Qatar-based investment and financial services companies The First Investor, The First Leasing and The First Finance. “These acquisitions have transitioned the company into a ‘bank group’ and not just simply a bank,” Fakhri adds. Currently focusing on the Qatar market, Barwa Bank is also looking to grow across the region and into emerging markets. Branches outside of Qatar are expected to announce expansion plans in the first half of 2011. n
MARKETING
SIEGE MENTALITY
As the region pushes further into the global sports events sector, a clever battle plan is needed to slay the ambitions of ambush marketers.
WE’VE ALL HEARD the story and seen the pictures. During the game between The Netherlands and Denmark at this summer’s 2010 World Cup in South Africa, 36 young women stripped in unison to reveal matching orange dresses in support of the Dutch. Minutes later, they were evicted from the stadium, taken to police headquarters and threatened with criminal charges. The reason? The orange dresses are the trademark of Dutch company Bavaria Brewery, which set up the stunt as an ambush marketing ploy for free publicity. Fifa’s exaggerated reaction gave the brewery its two minutes of fame, as the media leapt on the event while helpfully providing definitions of ambush marketing in the bargain. One question, however, was ignored in the scramble that ensued – was it all worth it?
40 Gulf Marketing Review November 2010
Free for all? Ambush marketing is mostly defined as any instance where a company or brand associates itself with, suggests a connection to, or launches a marketing initiative around an event, without having to pay a sponsorship fee to organisers. While any event is susceptible to ambush marketing, large-scale sporting events, such as the Olympics and World Cup, are principal victims due to the TV coverage they attract. Nike is one of the biggest ambush marketers. At the 1996 Olympics in Atlanta, the sporting-apparel giant saved $50 million in sponsorship that Reebok had shelled out and instead bought Nike billboard advertising across the city, handed out Nike flags to spectators and set up a mammoth ‘Nike Village’ overlooking the stadium. Evaluations showed most of the public thought Nike was the official sponsor.
It struck again at this year’s World Cup. Adidas reputedly paid some $170 million as official Fifa partner while Nike ran an ad campaign called ‘Write the Future’, starring Cristiano Ronaldo and Wayne Rooney. The viral video spread, achieving 20 million views on YouTube alone. The Nielsen Company reported that in the month leading up to the World Cup, Nike was mentioned online twice as much as Adidas, despite the latter being the official partner. Obviously, the Nike ads did the job in ambushing the World Cup. Other examples show even more creativity. At the 2009 British Open golf championship, Hugo Boss arranged for a giant sailboat with its logo to patrol the waters surrounding the course; at the Atlanta Olympics in 1996, British sprinter Linford Christie wore contact lenses that prominently displayed Puma logos.
3090GMR FullPage280X215.indd 1
10/28/10 4:35 PM
MARKETING
Game plan: Major sporting events are particularly vulnerable to ambush marketing
Fifa turned an inconsequential, cosmetic ambush into the biggest sponsorship story. The sheer volume of opportunities available for ambush marketing has seen it take countless forms over the years, from staged protests with branded banners to branded buses offering free transportation around venues. The activity can be small – handing out event memorabilia such as T-shirts and whistles for use inside stadiums, or paying for a branded blimp to fly over the crowds, as Pepsi did at the 1996 Cricket World Cup. Tough to control The phenomenon, however, poses a huge threat to event organisers, as it depreciates the value of their multi-million-dollar sponsorship packages. This could drive down their value in the long run, severely affecting financial resources available for sporting events. Ambush marketing – true to its name – can be launched at any time from any direction, making legislation to control it difficult.
42 Gulf Marketing Review November 2010
To protect its sponsors, Fifa has created a Rights Protection Program (RPP) team to monitor brands and patrol the streets of host cities to find unauthorised activity. The RPP has reported a remarkable rise in the number of infringement deals in the past two decades, rising from 258 infringements across 39 countries at the Fifa World Cup USA in 1994, to 3,300 cases across 94 countries in Germany 2006. Another form of legislation calls for the event to be categorised as a ‘protected event’, meaning that any allusion to it for commercial gain is strictly prohibited. In Germany, ambush marketing can fall under the Unfair Competition Code, while in the US, the Lanham Act states that if the company can prove its competitor was misleading consumers to believe something not true, then it could be prosecuted. The vague nature of the legislations, however, means that event organisers are turning to host governments to help them in the clampdown.
In the lead-up to the Doha Asian Games in 2006, the organising committee left no room for argument when it joined forces with the government to appoint a task force including Doha Police, customs officers and the judiciary to stamp out ambush marketing. A ground-breaking law was passed that punished violators with jail sentences of up to two years, as well as fines of up to $27,500. The organising committee of London’s 2012 Olympics has trodden a similar path, with the London Olympics Bill allowing organisers to grant licences to sponsors to use specific words, images and logos. Any company using similar combinations can be fined up to $31,000. They have, furthermore, bought up all outdoor advertising space within a certain radius of the games, to ensure that only official sponsors advertise in the vicinity. Can it be stopped? While passing increasingly stringent laws to protect sponsors may appease multinational companies, it can have the opposite effect of amplifying ambush activity. Kim Skildum-Reid, author of The Ambush Marketing Toolkit, says legislation simply doesn’t work. “IP infringement is illegal and has been around longer than ambush marketing. All anti-ambush legislation does is cast the net wider for IP infringement – adding a few dozen more words or phrases that ambushers can’t use,” Skildum-Reid says. In the case of Bavarian Brewery, Skildum-Reid feels Fifa shot itself in the foot. “Fifa turned an inconsequential, cosmetic ambush into the biggest sponsorship story of the World Cup,” she says. “Instead of realising that 36 pretty girls sitting together in orange dresses are not going to harm the sponsor, and rolling their eyes at a lame attempt to ambush the World Cup with a low-impact, firstgeneration visibility grab, Fifa ejected the women, arrested the ringleaders, and made Bavaria Beer and its models a global phenomenon.”
© Corbis/AFP
MARKETING
Raising the bar: Ambush marketers cannot infiltrate an event if the official sponsorship is well planned and executed
All anti-ambush legislation does is cast the net wider for IP infringement… So what is the most effective way to combat ambush marketing? Skildum-Reid believes attack is the best form of defence. “Ambush marketing is just a form of guerilla marketing,” she says. “In this case, it exploits deficiencies in the sponsor’s leverage programme to create marketing value for a brand. The solution is to leverage your sponsorship as thoroughly as possible, by ensuring your brand is a natural match, focusing on the experience of the event and adding value through small, meaningful benefits that demonstrate your understanding of your target markets. Sponsor well and there is no room for ambush.” Laying siege In the Gulf, the concept is not lost on local sporting events. But despite the GCC hosting some of the world’s biggest sporting events, including the Fifa World Youth Cup 2003, Fifa Club World Cup 2009 and 2010, Doha Asian Games 2006, a host of annual tennis and horse racing events, there is little ambush activity.
44 Gulf Marketing Review November 2010
Sinead El Sibai, manager of events, advertising and media relations at Dubai Duty Free, has been involved in the organisation of Dubai Tennis Open since its inception in 1993. She has not yet seen any attempts by ambush marketers to capitalise on the event’s success. “I cannot recall any real attempt at ambush marketing,” El Sibai says. “We do keep quite a tight control over the sponsorship benefits for our sponsors, all of whom would be very quick to point out if any third-party company was trying to encroach on their sponsorship rights. “The only time I remember having any problem was when a new sports publication tried to distribute their magazine at the stadium, positioning it as the ‘official magazine’. But once it was spotted and we spoke to the publisher, they pulled their magazine immediately,” she says. However, El Sibai does not see this as a lack of creativity on the part of marketers, but as a positive cultural etiquette. “I believe it highlights a good aspect
of marketing in this region, which is the fact that boundaries are respected.” What next? As the GCC achieves further prominence in the sporting world through its sponsorship reach, as shown by Emirates airline and Etihad Airways, and its event capabilities, as demonstrated by Qatar’s brave World Cup 2022 bid, it is natural that it will soon feel the effects of ambushers. If the Gulf learns from the lessons of other organising committees and regulators, it will see that excessive reaction will only give it a bad name and ambush marketers the leverage they aim for. More important will be the GCC’s ability to help sponsors maximise benefits by allowing them to leverage them in engaging and relevant ways that create memorable brand-related experiences for event participants, thus freezing out opportunities for ambush. Vimto-branded contact lenses? It might just happen. n
Jamal Al Mawed senior account manager, d’pr Dubai
Final GMR-FPC Maktoob.indd 1
5/25/10 6:05:35 PM
Š Corbis
COVER STORY
46 Gulf Marketing Review November 2010
‘APPY NOW? Branded applications are all the rage, but that doesn’t mean they are without their challenges. SMARTPHONES ARE the future of mobile. Of that, there is no doubt. The fact that more than 250,000 ‘smart’ devices are being sold and activated worldwide every day is testament to that fact. Apps are also fast becoming a way of life for businesses, agencies and brands. It took Apple just nine months to deliver one billion app downloads. A little more than 13 months later, more than five billion apps had been downloaded to iPhones and iPod Touches worldwide. However, despite the cheerleading that accompanies each new Android, Nokia or iPhone announcement, there is a significant risk factor. According to Josh Bernoff of Forrester Research: “Ever since Beta versus VHS, we’ve been in an environment where if you made the wrong choice, you ended up behind. That’s still true. You’re going to be making a bet, and if you make the wrong bet, you might regret it later.”
For brands, agencies and companies, the investment required to take an application from idea to cross-platform success can be considerable. To give you some idea of why this is – consider just some of the platforms that you can now develop apps for: iPhone, iPad, Nokia (Symbian and Maemo), Android, Samsung Bada, Palm Web OS, BlackBerry, Windows Mobile 7 and Windows Mobile. IN TOUCH
Basics first: Narain Development: Grow’s Barry Flaherty Jashanmal of JNC
When you consider that each operating system and app will likely require individual design and development, you can see where costs can start to skyrocket. Alongside this is the danger that the expensive app will merely be a transitory plaything on a user’s handset. Borrell Asssociates, a US-based research company, recently reported that despite half a million apps being downloaded every hour, the average user only has 22 apps on their phone. More worrying for agencies and brands is the fact that only five per cent of those apps are still on a user’s phone after six months. Smartphone applications can be hugely successful vehicles, however, for driving user engagement and deepening brand knowledge. Carmakers have been particularly quick to capitalise on this new market – engaging in both bespoke application development and application sponsorship.
November 2010 Gulf Marketing Review 47
© Corbis
COVER STORY
On the up: A recent report says half a million apps are downloaded every hour
… 100 engaged users are more important than 1,000 downloads… Jeri Ward, GM of marketing and strategy for Audi in America, says her brand’s demographic is the iPad and iPhone generation. “We know our owners and potential buyers are tech-savvy, connected individuals. What better device could we use to showcase our spirit of innovation,” she says. Audi has launched several innovative apps to showcase its cars, and recently did a deal with the UK’s Daily Telegraph newspaper to sponsor its iPad application, which is now given away to users for free – a move that many believe may be the best way forward for brands that want a more lasting app-based relationship with their consumers. In this region, smartphone ownership is high. New devices such as the iPhone 4, iPad and newer Android phones command premium prices in shops across Beirut, Dubai and Riyadh. However, the pace of app development has not yet matched the appetite for smartphones.
48 Gulf Marketing Review November 2010
Barry Flaherty, director of international business development at Dohabased agency grow, says agencies are sometimes to blame for this lack of regional innovation. “I am sure there are many brands with apps in development, but it’s slow,” he says. “Most of the innovation in the GCC is coming from Abu Dhabi or Dubai, such as Flip Media who have successfully published two apps (Naviflix and Mumbaikar). However, most brands look to their agencies for blue-sky thinking and innovation, but these agencies tend to lean heavily towards selling simple GROWTH PATH
Optimistic: Samer Hamze, MD of International Nomads
websites, media buying and print production. The joined-up story of weaving digital marketing, search, social media and mobile apps with clear measurability is still lacking.” He sounds a note of optimism, though. “There are some noises about empowering the universities to become more involved in the development with SDKs (software development kit). Wireless innovation centres and knowledge clusters such as Abu Dhabi’s TwoFour54 will help drive knowledge transfer and increase the pace of app development,” Flaherty says. “Brands such as Qatar Airways have finally launched their own app, built by aviation specialists mobiqa.com, so the green shoots of development are there. Museums are also leading the mobile charge for localised apps to drive the number of visitors and quality of the experience.” Narain Jashanmal, GM – NPP and Books at the Jashanmal National Company, also suggests that agencies could do a lot more for their clients in this app-centric world. “For those who aren’t confused and who are making the decision to use digital marketing as a communications channel,
ONE SMALL STEP FOR MEDIA PLANNERS. ONE GIANT LEAP FOR TARGETED REACH. Sport360º is the UAE’s only daily sports newspaper that provides marketeers with a very focused and engaged target audience - the passionate sport fan. Take the right step in your media plan. We promise you nothing short of the moon for your brand.
sport360.com
COVER STORY
Right message. Mobile apps can be hugely successful marketing tools when created, designed and developed well
…free apps are seven times more likely to be downloaded than paid apps… the next challenge is to cut through the hype and nonsense their ad agencies try to sell them,” Jashanmal says. “To give an example: an ad agency would rather build a flash micro site that’s totally search-engine unfriendly, and then set up a managed Facebook fan page, than take the less glamorous but more efficient and cost-effective route of crafting specific Facebook and Google ads that send traffic to a simple lead-generating landing page.” “Why? Because the client is likely to realise pretty quickly that he can manage the latter themselves while the former looks like it requires a much higher level of expertise. To apply my previous point to apps, I think most companies need to address the traditional web basics first, then look at what type of apps can add value to both them and their customers,” Jashanmal adds.
50 Gulf Marketing Review November 2010
He also noted one regional innovator and an opportunity that many overlook. “In terms of brands leading the way Aramex is one that comes to mind. It’s always been pretty forward thinking and has recently released a simple iPhone app that shows drop-off locations and allows one to track packages in transit. Where there is scope in our region is in the B2B app sector. Both iPhone and Android handsets are underrated enterprise devices, an area in which Windows Mobile (up to version 6.5) has traditionally excelled. There’s plenty of scope for using these devices for data collection, transaction management, inventory management and so on,” Jashanmal says. Samer Hamze, MD of International Nomads, a Saudi agency that specialises in digital marketing and advertising, echoes Jashanmal’s concerns. “We have found a lot of verbal interest, but
very few actually jump on board,” he tells GMR. “The key words are growing markets and it feels as if no one will make a serious move until their competitors start in on the game. “Without a doubt, mobile applications are the way of the future for many of the service providers in the Saudi market which, to be fair, in the last year has been very welcoming of digital media. But, to be honest, there are steps before they get to a mobile application, and that’s a well planned and effective online presence,” he says. “No one is leading the way yet, but I’d say it will be telecos, banking or retail that will make the breakthrough. Localisation is a huge issue. Obviously Arabic is right to left, so you can imagine what this can cause, if you’re translating an app.” When created, designed and developed well – in a way that ties in the app with the brand or with a specific campaign – there is no doubt that mobile apps can be hugely successful marketing tools. To
give some idea of just how successful, consider that Barclays bank had nearly 10 million downloads of its ‘Waterslide’ app, which tied-in with a recent TV campaign in the UK. Paul Troy, head of advertising and sponsorship at Barclaycard, notes its cross-platform appeal. “This is a first in financial services. The Waterslide ads on TV and online engaged millions and the app gives people the opportunity to go on an imaginary waterslide themselves,” he says. Other success stories include Zippo’s lighter app, which was downloaded more than six million times; the Audi Driving Challenge, which generated more than 4.5 million downloads; and Bank of America’s mobile banking app, boasting more than three million downloads. It becomes obvious that the mix of so-called ‘gimmick’ apps, designed to be fleeting and transitory, and useful apps that have a greater connection with the brand and its activities, is significant. Choosing the right type of application for a brand is key. Considering a free app versus a paid app is another hurdle. Research by Pinch Media has shown that free apps are seven times more likely to be downloaded than paid apps. And consider carefully the metrics for success. Ed Kaczmarkek, director of innovation for Kraft Foods Inc, says: “100 engaged users are more important than 1,000 downloads.” While there are still pitfalls in the whole area of branded applications, the opportunities are great. Barclays’ Waterslide has translated into 650,000 hours of brand engagement. Kraft says 90 per cent of people who use its apps go on to register on its website, while Audi has noted half a million referrals to the A4’s mobile site. The ultimate challenge for brands in this part of the world, and others, is to create applications that are useful, relevant, fun and engaging. Then there’s just the small matter of figuring out what platform to release them on... n
BUT NOT EVERYONE’S ‘APPY… Apple may be leading the way in smartphone and tablet innovation as well as dominating the app marketplace, but one of its more recent ventures has shown signs of weakness. The iAd platform – announced in April – spearheaded Apple’s foray into the world of mobile advertising. During the presentation at which he announced iAd, Apple CEO Steve Jobs demonstrated an interactive ad for Toy Story 3 and announced a slew of launch partners for iAd including Disney, Unilever and Nissan. Each company was paying a minimum $1 million for its participation. But, impressive as the iAd platform is, it has been dogged by problems. Apple has adopted a stringent approval process, meaning only it can create the ads. What’s more, only Apple can approve the creative, meaning that everything has to be cleared by the notoriously picky Jobs. In August, Chanel announced it had abandoned plans to launch an ad campaign on the iPhone – the iPad version of iAd will roll out later in the year. At around the same time The Wall Street Journal published an article suggesting that Apple’s control of the ad-making process and the timelines required were frustrating many advertisers. It seems Chanel was not the only one of Apple’s 17 iAd launch partners to feel these frustrations. Last month adidas announced that it was pulling an estimated $10 million campaign from iAds. Insiders suggested that Apple’s ‘control freak’ tendencies cost them a lot of money when it rejected the adidas creative concept three times. That said, however, it’s worth noting that Nissan – which has managed to get a campaign running on iAds – reports that it “has driven exceptional results to date” and that the tap-through rate on an iAd is five times higher than the click-through rate of Nissan’s standard online Leaf campaign.
November 2010 Gulf Marketing Review 51
PROFILE
THE GMR PROFILE
Reshaping the deeply ingrained breakfast habits of Arab consumers is the ultimate goal for Will Brockbank, rugby loving marketing chief of Kellogg’s Med/Middle East. Siobhan Adams reports.
52 Gulf Marketing Review November 2010
WILL BROCKBANK Born: UK, 1979 Marital status: Engaged to be married February 2011 Qualifications: Commerce with Spanish – University of Birmingham and Alcala de Henares, Madrid Hobbies: Wakeboarding, skiing and rugby First job: Brand manager-Gallaher Ltd. (UK tobacco company, now JTI) Career high: Being part of the team that brought the “Special K Challenge” to the Middle East, delivering a 12 per cent incremental share in its first year Career low: Selling cigarettes to independent shopkeepers from the back of a car as part of graduate training in the UK Fantasy job: Owning and running a vineyard or marketing director for the International Rugby Board
plays centre for the Dubai Dragons – he had been badly injured during a match and nearly lost an eye. Fast forward a few months when a large dose of good fortune and some highly effective reconstructive surgery see him make a full recovery. Thankfully. So, when we do finally meet, I find him fighting fit and still slaying for the Dragons. A player for some 25 years, he is more than capable of tackling any challenges that come his way… a trait he will need to deploy as much off the field as on it if the news from Kellogg’s HQ in Battle Creek, Michigan, is anything to go by. It’s now barely six months since the world’s largest cereal-maker woke up to the alarming news that a foul smell was emanating from its cereal boxes. This was followed by reports of nausea and vomiting among five US consumers. Twenty-eight million boxes were immediate recalled.
s
IT’S TAKEN a long time to get to this point. In fact it’s taken more than two years of arranging, re-arranging and postponing indefinitely before I eventually manage to squeeze into the crammed diary of Will Brockbank, marketing director, Kellogg’s Med/Middle East. And it’s not for want of trying on the part of the highly amiable, jocular, 31-yearold Brit. It’s just that he spends most of his life suspended at 30,000 feet, jetting among the 50-plus countries spanning Africa, the Mediterranean and the Middle East, for which he is responsible. His frenetic travel schedule has largely been the reason behind our many thwarted attempts to meet. Except, that is, the last time. For just when we thought we’d finally nailed it I got an urgent, out-of-hours call from his PR agency, Manning Selvage & Lee, informing me that our interview had been cancelled. Brockbank, it turned out, was in intensive care. A fervent rugby player – he
November 2010 Gulf Marketing Review 53
PROFILE
Comic relief: a UGC digital campaign for children brought a standard on-pack promotion to life, says Brockbank
…Arab consumers have such a huge breadth of choices that cereal doesn’t feature.
54 Gulf Marketing Review November 2010
we would because of the expected expat exodus. It’s held really firm.” He’s expecting to finish the year with a 10 per cent growth in the UAE alone. His other markets are also growing at a double-digit rate. The UAE, in fact, constitutes some 35 per cent business of ME/Med which, highly unusually, is the same in Saudi Arabia. “Most FMCG companies will tell you that Saudi Arabia is 50 per cent of their business, followed by the other markets. For us, Saudi and the UAE have the same weighting. We sell the same volume in a market with four million people as we do in one with 29 million people,” Brockbank says. Western expats in this part of the world are a relatively easy target for the top-50 global brand. Not Arabs, however, whose deeply ingrained breakfast habits rarely embrace processed food, no matter how ‘healthy’ and ‘fortified’ it may be.
s
And with the group’s Q2 profits down 15 per cent compared to the same period in 2009, from $354 million to $302 million, 2010 has not been the most carefree in Kellogg’s 104-year history. None of this fazes Brockbank, however. His territories may only account for 1.2 per cent of the group’s total global business, but the 26 million kilos of cereals (30 SKUs) and snacks (15 SKUs) he shifts each year generates a not insignificant $150 million. And, despite the much vaunted Great Expat Exodus of ‘09, which threatened to decimate premium-branded FMCGs in supermarkets across the UAE, his sales are growing. “We’ve actually had a really good year,” he tells me when we finally catch up in his Dubai HQ office. “It was a good 2009 and 2010 in the UAE. The UAE, as a category, is still growing at nine per cent. We haven’t seen the impact we thought
So battling for an invite to a traditional Arabic breakfast table, laden with fresh salad, foul, cheese and labneh, is one that Kellogg’s is having to tackle from all sides. “Our biggest challenge is to increase our penetration just in the breakfast occasion,” Brockbank tells me. “Arab consumers have got such a huge breadth of choices at breakfast that cereal doesn’t currently feature.” Penetration in Saudi Arabia, for example, is at a respectable 40 per cent, but growth is coming from increased frequency and weighted purchase from consumers who already buy into the category. “What we are not managing to do,” Brockbank says, “is grow that penetration base, so that consumers who already buy cereal buy into it for breakfast and actually increase their cereal consumption.” On the upside, TNS data points to healthy sales among Saudi nationals, but less among expat Arabs. “Our penetration with locals is just as good in Saudi Arabia, but we need to get it higher,” Brockbank says. And it isn’t just the conventional Arabic breakfast food that confounds Kellogg’s.
ONE SMALL STEP FOR MEDIA PLANNERS. ONE GIANT LEAP FOR TARGETED REACH. Sport360º is the UAE’s only daily sports newspaper that provides marketeers with a very focused and engaged target audience - the passionate sport fan. Take the right step in your media plan. We promise you nothing short of the moon for your brand.
sport360.com
PROFILE
Breakfast at Tesali: Cereals are often perceived as a children’s treat among adult consumers and not breakfast food
…we do breakfast, we’re good at breakfast and that’s where we should really stay.
56 Gulf Marketing Review November 2010
meal for the family and a good way to start the day,” he says. Education campaigns around nutritional functionality underpin the group’s communications platform and accounts for a sizeable chunk of the annual $15 to $20 million marketing budget Brockbank has spent in the past three years. “For example, when we talk about Coco Pops we talk about the vitamins, minerals and iron which will improve the start of the day for any child,” he says. A close relationship with the Arab Centre of Nutrition – which officially endorses Kellogg’s Corn Flakes – also helps inform CONSUMER ENGAGEMENT
Ideal match: Branded content has become a key communications plank following Special K’s guest appearance on MBC’s Perfect Bride last year
s
“One of the biggest issues we have in Saudi Arabia is that we [cereals] are called tesali, Arabic for fun food for kids,” he continues. It’s an association that puts his products firmly within the snacking occasion, not breakfast. “They almost see it as being something that is quick and easy to prepare to give to kids as a treat on the odd occasion rather than being a nutritious start to the day,” he adds. Well, don’t they have a point? I counter. Wouldn’t most mums opt for fresh tomato and cheese over Coco Pops? Especially, I say, when public awareness campaigns are continually bombarding them with polemic warnings on the dangers of childhood obesity, diabetes and heart disease? (Even as I write, a press release about a UAE health and fitness survey by Zarca Interactive arrives in my inbox. Some 61 per cent of respondents in the UAE define themselves as obese or overweight, it states.) “One of the things we are really trying to do is educate mums and families into why it isn’t just fun food for kids and why it’s a more nourishing and wholesome
the communications strategy. In fact, one of the issues unearthed by the centre is that Saudi children often skip breakfast altogether, having their first meal of the day at around 11am. “What we are really saying is that this very quick, simple-to-prepare meal is a great start to the day for kids, and certainly helps them perform,” Brockbank says. But surely there is mileage within the snacking segment, especially with portion-controlled packs or a quick bite after school? Kellogg’s, naturally, is way ahead of me there and has already flirted with the non-breakfast occasion. “We do provide portion packs,” he says “but a lot are bought precisely because the actual average weighted consumption is so low.” He goes on to explain that smaller formats are a good entry-level proposition in low-penetration markets. “A lot of our developing markets have grown volume through smaller trial packs,” Brockbank says, but adds that all this is, in reality, a secondary concern. “One of the things we’ve tried to make sure of during the past five years is that we do breakfast, we’re good at breakfast and that’s where we should really stay. And, while we understand that there is a big breakfast culture in the Arab world, what we should be trying to do is increase our penetration in that occasion rather
When you’re switched on, it’s easier to switch off.
Now you can get business done efficiently and effectively with our business travel package at Crowne Plaza Hotels and Resorts across the Middle East and Africa:
• Free broadband access • Free buffet breakfast to start your day • Free laundry pressing service And then you can truly switch off, thanks to our dedicated SleepAdvantage™ programme that has everything you need for a restful night - perfect pillows, fine cotton bedding, sleep amenities and a guaranteed wake-up call – or your room is free*. Wake up new.
Call and ask for the business travel package on
UAE 800 4642 or Saudi Arabia 800 8971 465 crowneplaza.com/businesstravel crowneplaza.com /businesstravel Offer valid until 31st December 2010. *Terms and Conditions apply.
Bahrain 800 00 880 | Egypt 0800 44 333 22 | Jordan 0800 22 666 Kuwait 2473 2100 Ext. 6233 | Lebanon (01) 426 801 (Ask for 866 866 7556) Oman 800 77 999 | Qatar 0800 971 234 | South Africa 0800 999 136
PROFILE
Colourful range: Kellogg’s has a vast array of category segments from Ready to Eat cereals, Family, Children, Adults and Shape Management
…we sell the same volume in a market with four million as we do in one with 29 million…
58 Gulf Marketing Review November 2010
“They understood how it worked and were enthusiastic to try it, but what we didn’t understand was the best trigger to talk to them about doing it,” Brockbank says. Cue the company’s global insight research tool, Traps and Triggers, created to provide a deeper understanding of the motivators to diet. “When we did some research, we found that weddings were a huge trigger in Saudi, and not just their own weddings, but invites to other people’s.” Weddings, it transpired, were the ideal opportunity for 20- to 30-year-old women to promote themselves before the mothers of prospective grooms. Apparently, the length they will go to to look their best knows no bounds, Brockbank says. “They were talking about drinking vinegar, wrapping themselves up in cling film, soup diets, celery diets and all these crazy things before weddings.” To say that women were engaged by both the localised global versions is a cringe-worthy, predictable cliché, but valid nonetheless.
s
than just playing around the fringes in other opportunities.” Mums and kids, however, are not the only route to breakfast. The universal preoccupation of slimming among women holds just as much weight, if not more, in the Arab world. The famed Two Week Challenge – lose two kilos in two weeks by replacing two daily meals with a bowl of Special K – has proved hugely successful in the GCC and Levant, although the application for the individual territories is, of course, very different. Engaging the UAE and Lebanon markets was relatively easy where adaptions or localisation of the ‘Get Ready for Summer’ and ‘New Year Challenge’ campaigns were more culturally acceptable. Clearly, however, shooting for the ideal bikini or Little Black Dress figure is not going to work as well in Kuwait, Bahrain and Qatar, much less in Saudi Arabia. Preliminary research, however, had showed that the weight-loss promise certainly clicked with Arab women.
“In the UAE we grew 10 per cent in 2008, which was the first year we ran it. We grew five percentage points in Saudi Arabia and in Lebanon we retook leadership in the Shape Management Segment, growing 10 percentage points value share.” Kellogg’s I should point out, has an astonishing array of segments, ranging from RTEC – Ready to Eat Cereals; Family (Corn Flakes); Children (sub-segmented into chocolate and pre-sweets such as Frosties and Fruit Loops); Adults, mainly mueslies, but encompassing the ‘young adult indulgence segment (see GMR October News for Tresor launch.) and, finally, Shape Management. “They are very much Kellogg’s segmentations which we’ve asked Nielsen to apply,” he reveals. Families or Corn Flakes account for 60 per cent of regional business, unlike the rest of the world where they are much less except, again, in the UAE. “If you look at somewhere like the UK, the balance would be 10 per cent volume in Corn Flakes and 40 per cent Special K. In Saudi it’s 60 per cent Corn Flakes.” In the UAE there is a more even split – roughly 30 per cent each for Family, Shape Management and Children. “So there are big differences across the regional markets.”
PROFILE
AGENCY ROSTER Media: Carat ME (European and regional) Creative and digital: Leo Burnett, Dubai PR: Manning Selvage & Lee (project basis) COMPANY CREDS With 2009 sales of $12.5 billion, The Kellogg Company was founded in 1906 in Battle Creek, Michigan, and is the world’s leading producer of cereal and a leading producer of convenience foods. The company’s brands include Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Club, NutriGrain, Rice Krispies, Special K, All-Bran, Mini-Wheats, Morningstar Farms, Famous Amos, Ready Crust, Kashi and Tresor. Kellogg products are made in 18 countries and marketed in more than 180. Kellogg’s opened a local representative office to service the Middle East region in April 1999.
That must make campaign and media planning rather complex, I suggest. Our discussion then veers off into media planning. He tells me that along with boosting its activation activity the company is also reworking the owned, bought and earned model. “What we’ve tried to do, certainly for 2010, is make sure we’ve got a much higher level of integration among the three, essentially trying to drive owned and earned much harder,” Brockbank says. He cites Coco Pops. Back in 2007 – and for eons before that if my memory serves – Coco Pops used to include the free toy figurine in the pack with a puzzle on the back of the box (how old am I?). “And that would simply sit on the shelf. We’d talk about it instore and that was it. We’d sell about 10 per cent more.”
60 Gulf Marketing Review November 2010
This year, however, it’s different. The latest regional on-pack campaign sported a CD allowing kids to create their own comic. “So, instead of just having the packs sit on the shelf letting consumers find out about it, we created a TVC to tell them about it. We created a website where they could download new versions of that comic and upload their versions onto the website.” The children could also vote for their favourite UGC comics and upload them to social networking sites where others could read them. “So, all of a sudden you go from having a flat promotion on shelf to a promotion that lives not only on shelf but on TV and online, and drives consumers to interact.”
He adds that children in the Middle East are particularly tech savvy. The company’s Arabic site has 100,000 unique visitors, with the majority of them from Saudi. The English one garnered 5,000. Last year Kellogg’s Group announced that 10 per cent of its 2010 budget would be spent online. At the time Brockbank had reservations that he could do this in the Middle East, I remind him. “My concern then was around consumers interacting to the extent that we hear when we go to those conferences where it’s always ‘The internet is the next best thing since sliced bread.’” Brockbank is yet to get to 10 per cent, but he’s more than halfway there with six per cent of total working media devoted to online. “We just had such great experiences with it this year, particularly understanding kids and the things that can really add value for them,” he says. But, adds Brockbank, Kellogg’s as a company has always been “a real traditional media buyer.” The largest chunk of spend is still spent on Pan Arab TV, although radio in the UAE is effective for reaching disparate audiences, while outdoor is always a winner in Lebanon, he adds. Branded content has become another key communications plank following the success of Special K’s guest appearance on MBC’s Perfect Bride last year and, more recently, Greece’s Top Model. But Brockbank cautions it has to be relevant. “You can’t crowbar stuff in just because you like the programme,” he says. But whichever medium he and media agency Carat decide upon, the main quest for 2011 will be to “better understand how we can do that with local Arabic-speaking adult consumers.” Our interview concludes with Brockbank preparing to go to the – you guessed it – airport. Only this time it’s not for work. He’s accompanying his fiancée Rebecca on a trip to London to find her wedding dress. I’m guessing this is one bride-to-be who won’t be drinking vinegar or wrapping herself in cling film.
© Getty/Gallo Images
CLIENT SERVICING
LIFE’S A PITCH
Agencies’ complaints about the pitching process in the region are well known. But are they really that downtrodden? Or just divas? THERE ARE too many pitches. And too many agencies are involved in those pitches, grumbles the region’s marketing agencies. Just check out last month’s GMR to see how strongly agencies feel about this: There should be some financial incentive for putting in all those man hours from our most creative, brilliant people and showing you our most creative, brilliant work, which you reject but then steal. There has to be a better way…they say. Clients, it turns out, have issues too. Not just with proposed changes, but with the existing model. Top of their gripe list? Agencies are a bit, well, dishonest when it comes to those first meetings. It’s a problem with which Alex Andarakis, founder and managing director of Andarakis Advisory Services (AAS), is familiar. Andarakis is a client-side veteran of several leading global and regional brands – including Lipton, Aujan’s Barbican, Emaar and Al Islami – who now runs his own
62 Gulf Marketing Review November 2010
strategy and marketing advisory service. “At the initial pitch, a lot of agencies bring in their senior, highly experienced people – and that’s the only time you ever see them,” he says. “From a client’s perspective, if the senior guy’s going to be at the pitch, then the senior guy has to be on the business. The first question I ask is: ‘Is this the team that I’m going to see every time I have a major communication or media requirement? If not, then get me that team.’” This may be one solution to the stress apparently being caused by pitching so often: Stop making the same people do all the pitches. But supposing agencies clean up their acts, do clients think their oft-repeated complaints are valid? Thomas Lundgren, founder of home furnishings store The One, in Dubai, has first-hand experience of invoking agencies’ wrath. In 2007, he staged an ‘open pitch’ for The One’s creative account,
inviting numerous agencies along to a “Thomas Lundgren Breakfast Show”, and telling them that if they wanted to pitch they had to record a song for The One – in just 24 hours. “I can’t understand why that was controversial,” Lundgren says. “I thought the agencies would find it fun. There were complaints that too many agencies were involved, but it’s a free world. They knew how many agencies were there. Just make a choice.” Lundgren believes that as long as the client is transparent about the process, agencies can make up their own mind. Preferably without moaning. “From an agency perspective, I have sympathy,” he says. “There probably are too many pitches. But you can avoid that, as an incumbent, if you deliver on what you promised up-front. Then your client’s never going to go to pitch.” Sometimes, though, a review is una-
Progressive Publishing in Action .ae The marketing and advertising resource
Al Tasweeq Al Arabi
500 million impressions
Watch this space Cons u m e r P u b l i s h i n g Contract Publishing B2B Publishing License Publishing Yearbooks Awards Conferences Digital Media Representation
France I Lebanon I Tunisia United Arab Emirates Saudi Arabia I Algeria
UAE I t: +971 4 391 0760 I f: +971 4 390 8737 I P.O.BOX 72184 Dubai Media City I Thuraya Tower II I 24th Floor I Dubai www.mediaquestcorp.com
MEDIAQUEST NEW OK GMR 215x280.indd 1
KSA I t: +966 1 419 40 61 I f: +966 1 419 41 32 P.O.BOX 14303 I Riyadh 11424 www.mediaquestcorp.com
LEBANON I t: +961 1 49 28 01/2/3 I f: +961 1 49 28 01 Sin El Fil-Horsh Tabet I Dimitri AL Hayek Street I 5th Floor I Azar Bldg. I Beirut www.mediaquestcorp.com
10/27/10 11:39 AM
CLIENT SERVICING
Same old song: Would agencies require a global brand to pay for a pitch?
If Coke says, ‘We’re not paying you to pitch,’ do you think no one is going to pitch for Coke? voidable. Lundgren says: “The movement of people from one company to another – which happens a lot in this region – is another reason why clients are quite happy to change who they’re working with. Let’s say I’m at Emaar and I’m working with Agency X. If I go somewhere else, I’d want to work with the same people.” Andarakis suggests that a process such as Lundgren’s – involving too many agencies – reflects badly on the client. “I honestly believe that if you have more than three agencies involved in a pitch, then you don’t know what you want,” he says. Forgiving though he is, Andarakis is unequivocal when asked about agencies’ suggestions that they should be paid for pitching. “As a client, I would never, ever, pay for a pitch. It’s a cost of doing business for an agency,” he says. If agencies are to be paid for pitching, then one of two criteria must surely be
64 Gulf Marketing Review November 2010
met. Either they’d better be a really good agency, or everyone must charge. There are problems with both these factors. First, agencies in this region – brace yourselves for a shock – aren’t that good. Secondly, as Lundgren points out, it seems unlikely that all agencies would adhere to the rule. “If Coke says ‘We’re not paying you to pitch,’ do you think no one is going to pitch for Coke?” he says. “Of course IN CHARGE
‘Won’t pay’: AAS’ Alex Andarakis
Controversial: The One’s Thomas Lundgren
they would. If you have an account that people really want, they will do anything to get it.” Lundgren understands that agencies have a reason to want to protect their ideas from unscrupulous clients, though. “There are clients here, I’m sure, who steal ideas,” he says. “That’s probably what agencies are most afraid of. You can’t sue, the legal process would take 244 years, and you probably wouldn’t win anyway. But maybe something else would work.” He suggests that an agency could ask for a refundable deposit. “Maybe say that if clients want you to pitch, they have to pay X amount. If they pick you, they get that money back, if they don’t, you keep the money, but they’re allowed to use any ideas you present,” Lundgren says. Ultimately, Lundgren says it’s a case of supply and demand. “If you were an agency that everybody wanted, you could charge. Then it’s the client’s choice whether they want you. But you’ve got to have something to offer that no one else can,” he says. Both Andarakis and Lundgren insist the client’s in charge. It’s their business, so they can invite whom they wish, when they wish. The pitching status quo, it seems, is unlikely to change. But, according to Lundgren, that doesn’t necessarily mean clients will always have their own way. “It’s like a romantic relationship,” he says. “Let’s say you get a new girlfriend every year, or every month. Girls, if they have any sense, will eventually say: ‘I don’t want anything to do with this guy, he’s an asshole.’ And it should be the same with clients and agencies.” In other words, if agencies are annoyed with clients who keep throwing pitches, they just shouldn’t participate. “If you have problems with the process, you should have the balls to do something about it. Otherwise, agencies are just prostituting themselves,” Lundgren adds. “You can’t sit there and say, ‘Clients should only do this every two years and then throw yourself at Pepsi or Coke or any other big brand that comes along.” n
© Corbis
MEDIA
STICKING POINTS The dos and don’ts of social media marketing – or how not to annoy consumers too much. WE’VE ALL heard it before: Social media is a great platform to engage consumers and increase brand value. So, instead of boring you to death with another discussion on how consumers are increasingly using social networks and how important it is for brands to exist on these platforms – blah, blah, blah – I’ll jump to the real question: How can a corporation make use of the unstoppable force of social media? Here are six dos and don’ts you need to be doing – and not doing – to win with social media. Setting your strategy Do: Know your audience LinkedIn. Twitter. Facebook. YouTube. Flickr. Digg. StumbleUpon. Scribd. MetaCafe. NetVibes. There seems to be an
66 Gulf Marketing Review November 2010
endless number of social networks, many of them quite successful. The first thing that a marketer needs to do is establish which social networks his or her consumers are using. There is very little point in a shipping company building a huge profile on Facebook if its target audience is more likely to be on Xing or LinkedIn. Do: Keep communication meaningful Always remember why your prospect or consumer is using different social media platforms. Users are often on social media sites to see and be seen, to connect with friends or just keep in touch. They are unlikely to want to be inundated with blatant advertising. To create “brand ambassadors” out of these consumers, you need to speak
the relevant language and be very, very patient. If it suits your brand and the platform they prefer, try to engage users with fun. If “fun” is very far from your brand values, you can be informative and provide relevant and interesting information that you know your audience would appreciate. Be at their convenience – remember, you’re in their world now. Do: Supplement search strategy Web search advertising is extremely important, not only for driving traffic, but also for retaining brand dominance. Bear in mind, however, that search advertising is common fare for most companies now, and even though positioning counts for a lot, consumers still rely on the most
© Corbis
old-fashioned marketing weapon of all: word of mouth. To an extent, I don’t care how many times I clicked on your ad and went to your website to hear you wax lyrical about how great you are; if I hear from a friend that your competitor is better, I’m going to put a lot of faith in that. Make sure you exist on all the social media channels that your consumers are on; not only can they build a stronger relationship with you, they can be your brand ambassadors on their network as well. In short, search places keep you up there and allow you to be found, but real relationships can be built through connections made via social media. Do: Monitor, monitor, monitor Finally, remember that the maintenance of your social media profile is not a nine-tofive job. Conversations about your brand, or at least your product or service, will happen at all times, whether you are there to hear or not. If you’re there, you at least give yourself a chance to be part of that conversation, and firefight if needed. A great analogy I once heard was: “How does Batman sleep at night?” In short, there will always be conversations to be had, and fires to be put out. So devote as many resources as you can at all times. The don’ts Don’t: Unsolicited = Bad Again, you need to think why your consumer is on a particular site. It’s OK to connect to a user on LinkedIn, even if you don’t know them, if you are trying to create a business link or perhaps offer them a job. It is not OK to connect to strangers on Facebook to tell them why they should buy your magazine or come to your store. Don’t: Social media sites are not a dumping ground for your press releases Use your profile to have dynamic conversations with your prospects or consumers. Remember that your community manager, or whoever is speaking on your behalf,
Driving force: Chevrolet’s ‘Hiroshi and Osamu’ campaign proved a success
It is not OK to connect to strangers on Facebook to tell them why they should buy your magazine or come to your store. is speaking with the brand-values hat on, and that every interaction could potentially be make or break. Do not bore consumers with your latest wonderful piece of PR. Listen to what they are saying and respond to them personally. Remember, it’s better to create one new strong bond with a consumer every day than drive away 100 bored customers. The good, the bad and the ugly Now that doesn’t sound too hard, does it? Here are three examples of companies that have had varying experiences with social media. The good This campaign did what I like best: It made me laugh while discovering more about something I’m interested in.
‘Hiroshi and Osamu’ is a wonderfully thought-out initiative by Chevrolet. Supremely simple in concept, the tongue-in-cheek factor, as well as excellent execution, ensured that the campaign was a great success. The basic story is that Kenshin, a high-ranking official in the Japanese auto industry, sends two loyal employees — Hiroshi and Osamu — to the Middle East to find out why Chevrolet cars are outselling Japanese ones. Their findings ultimately focused on the main strengths of the American behemoth: Low ownership cost, peace-of-mind, safety, quality, reliability and durability. Although the campaign was launched across multiple media, the litmus test of its success was the incredible virality and interactivity of its Facebook profile. It attracted more
November 2010 Gulf Marketing Review 67
MEDIA
Follow the leader? Did the CNN/Ashton Kutcher race to gain one million Twitter followers do much to enhance the news channel’s core brand values, asks Sinaei
than 24,000 fans – and is still growing – and received a huge amount of positive press. The lesson: The Facebook page was manned at all times, all questions were answered, and the theme – a humorous look at an important buying decision – remained true throughout. The bad In the spirit of chivalry, I cannot bring myself to talk badly about another organisation in the region – and I do want to keep this one regional – so I’m going to talk about my own company, Bayt.com. Don’t be so surprised. We’re not perfect, you know. Basically, we were so keen to start engaging our users on social media sites that we jumped into a dialogue with them before having a really solid strategy. The result? For a long time our Twitter and Facebook accounts were effectively a live stream of the latest content on Bayt.com. What value was there when users could just visit Bayt and get the same content? Well, not much, really. Then we decided to turn the tables round and “do” social media right. We got rid of the automated RSS feeds littering our Twitter microposts
68 Gulf Marketing Review November 2010
and the automated job postings on Facebook. We started listening to conversations happening on social media sites and targeting relevant jobs to the people who were actually looking for them. We decided to start sharing our office culture on Facebook by posting pictures of birthdays at Bayt and football games that our employees took part in (and lost, I might add). I’m happy to say that we now have a much more dynamic approach, and we keep our social media profiles manned at all times, to make sure conversations are taking place no matter what time of the day. The lesson: It’s not enough to just “be there”. We all need to ensure that we put as much effort into creating a unique presence on social media sites as we would if we had a group of our most important customers visiting our offices. The ugly As some of you may know, there was a very public race between actor Ashton Kutcher and CNN. Kutcher challenged CNN to see who would be the first to reach one million Twitter followers.
I don’t know – and don’t really care – who won that race. I’m not even going to bother to research it for the purposes of this article. What I do know, though, is that they both achieved the million mark and plenty more, but what did CNN really gain? Credibility? If the endgame was just getting more followers, then job done. But the grey area here is quality over quantity: Should a network such as CNN get involved in what can be described as a publicity stunt? You decide. The lesson: Know your objectives before you start. If the objective for CNN was to gain one million Twitter followers no matter what the methods, then it was a success. But the reason I placed it in ‘The ugly’ department is because many would argue that how CNN got there would ultimately erode the brand as a trusted news provider. I would love to hear your views on this. I’m undecided. n
Ali Sinaei head of online advertising Bayt.com
www.menacristal.com 31 Jan. / 4 Feb. 2011 - Mzaar Kfardebian, Liban
Fernanda Romano
Global Creative Director of Digital and Experiential Advertising Euro RSCG Cyber Cristal Jury President
Mauricio Sabogal
Worldwide Managing Director Initiative Media Cristal Jury President
Competitions are open for the MENA Cristal Festival BEFORE FRIDAY 22ND OCTOBER: - Direct & Promo - Cyber - Media
BEFORE FRIDAY 29TH OCTOBER - International Production
BEFORE FRIDAY 7TH JANUARY: - Film - Radio - Outdoor - Daily Press - Magazine - Print Craft - Corporate - Integrated
S E C T O R A N A LY S I S
AUTOMOTIVE The recession continues to impact NPD and marketing strategies but the region continues to outpace global sales average. Purchase power Premium models Online is key Green machines Lap of luxury Consumerism Regional advertising On dealership Auto search Media coverage PARC analysis PARC data
71 72 74 76 78 80 82 86 88 90 92 94
Š Corbis
NEXT MONTH COLD BEVERAGES
70 Gulf Marketing Review November 2010
TAKING CONTROL NOT MANY YEARS ago the automotive world was a very different place. Back then, cars would drop from the heavens, ricocheting off dealership forecourts and onto the driveways of the masses. Cars would be snapped up as soon as they arrived; the Middle East provided a modern-day gold rush with auto riches at stake. Forget bankers, it was car salesmen who were lucking out with good times and big order books. Now, after two years of recession, the car industry, like so many other sectors, has been forced to adapt its methods and increase efficiency. Gone are the days of credit currency falling like ripe fruit from trees. Gone too is the first-come, firstserved model at dealerships, with customers tussling for stock. “Today it’s all about delighting the customer,” says Audi Middle East’s Jeff Mannering. He is referring to the overall customer experience, from welcoming visitors to five-star showrooms to importing the best products and providing a high standard of after-sales service. “I believe there is a whole lot of people out here who are not loyal to brands, and if you can really focus on your customer and really build your brand awareness, and have a strong desire to get there, you can do it,” he says. While no manufacturer will admit this on the record, many of their dealerships are new to the idea of delighting customers after a sale, even though this is now their prime battleground. This even applies to the top end of the market. “We needed to see an improvement in the customer experience, so now we are renovating our Dubai showroom,” says Pietro Innocenti, general manager of Ferrari MEA.
©arabianEye.com
The consumer is back in the driving seat, leaving the auto industry having to adapt its sales methods to generate sales.
Behind the wheel: The recession has forced dealerships to improve the showroom experience
“We are currently focusing on the way we provide services so that we can strengthen our organisation after the recession,” he says. But in the Middle East, the popular category is the biggest battleground, despite the roads here appearing full of top-line machinery. “The recession has taught us that our clients are our main asset,” says Peugeot SHIFTING FOCUS
Improvement: Ferrari MENA’s Pietro Innocenti
High standard: Jeff Mannering, Audi’s regional chief
Middle East’s GM Jamal Sahl. “This is why the brand has been working very hard in order to please the existing customers and attract new ones.” In Saudi Arabia, General Motors’ local partner, Universal Motor Agencies (UMA), this year revealed a $40 million plan to expand its customer service facilities. “UMA is being more accessible to its customers and providing them with a more complete range of services, handled by highly-trained professionals,” says Walid Telmesani, the firm’s COO. It seems that any improvements in dealer performance this year will be timely. This follows the results of a YouGov Siraj survey in June this year, which showed a lack of approval for dealership service across the UAE and Saudi Arabia. The findings revealed that only 55 per cent of car owners choose to regularly service their cars at authorised dealer workshops. n
November 2010 Gulf Marketing Review 71
S E C T O R A N A LY S I S
GAINING PACE
German premium brands are well on the road to complete recovery.
Smooth run: a ‘best price’ mentality prevails
“THE ECONOMY is volatile and all companies, no matter how big or small, need to have vision, a strong plan and financial security to weather turbulent and challenging times,” says BMW’s Phil Horton, on what he has learnt from the recession. His paymasters were lucky. Unlike some of his transatlantic rivals, Munich had funds in reserve to sit out the tough times. Bitter rival Audi was also in a good position. With a strong range and the backing of the supremely wealthy Volkswagen, Audi had a safe harbour to weather the worst of the storm. It also allowed the carmaker to stay true to its name. “One thing Audi does not do is discount our brand,” says Jeff Mannering, the Ingolstadt carmaker’s regional chief. “We have a great brand and great products, and this always puts us in a strong position, no matter what challenges are presented.”
72 Gulf Marketing Review November 2010
Mannering was alluding to the many manufacturers that have turned to incentivising their products to shift stock surpluses and maintain sales levels. Overstock has been a real issue for many importers given the scale and speed of the slump. Mercedes, for instance, found that its first course of action was to reduce its inventory level. “We worked very hard with our distributors across the region to help them initially reduce stocks and now sell more cars with the introduction of special editions across all segments,” CUSTOMER SATISFACTION
Personalisation: Robin Colgan, Jaguar Land Rover’s regional chief
says Franz Bernthaler, Mercedes’ marketing chief. “We have learnt from this recession that you can never be too complacent. The climate can change very quickly.” Interesting times lie ahead for The Big Three of Germany’s Deep South. For generations they have been known as the car industry’s innovators⎯in terms of product and gadgetry,⎯and now they will need to gather all their wiles to fend off the growing challenge from the Far East on their traditional turf of the sports saloon. The Teutonic Three, along with AngloIndian manufacturer Jaguar, agree that consumer demands are evolving. “Our customers are now far more savvy than they used to be and their buying requirements are increasingly more sophisticated,” Bernthaler says. “However, in this part of the world, they still want to ‘do a deal’ and it is the best price or nothing.” BMW finds that its typical customer varies from country to country within the region, and so it is important for the carmaker to conduct a wide range of research to find who it is dealing with. “This research is used across various areas of our business, from the design to the development of our cars, to the way in which we market our company and our different brands,” Horton says. Robin Colgan, Jaguar Land Rover’s regional chief, adds that one of the greatest customer trends is towards increased personalisation. “Our customers want to and have the ability to specify and build a vehicle that will be quite unique,” he says. It seems that this is part of the public’s reaction to the recession, through which they have become accustomed to getting the best and the most for their money. n
January 2010 /N° 139
Add depth to your perspective through our uncompromising investigations and unbiased insights.
January 2010 /N° 139
Some people only see what’s on the surface.
EGYPT
IRAN
Hijab-free zones spring up in Cairo
Wealth, family ties offer no protection
Running on Empty Gulf nations scramble to build a lucrative future from today’s oil wealth
West Bank Battle
This time the fight is over mobile networks
Lots of Hot Air
WO
Al Gore messes with industrial giants
R LD
F M IC W NO PREVIE
OR
UM
ECSOPECIAL
A MediaquestCorp Publication
TRENDS
A MediaquestCorp publication
TRENDS AD GMR "Depth".indd 1
Canada ........................C$ 7.50 France ..........................€ 4.57 Germany ....................... € 6.14
Egypt ..............................E£ 10 Italy.............................. € 5.17 Jordan ............................. JD 4
01-TRE-Cover Petroleum.indd 3
Kuwait ...........................KD 1.2 Lebanon .................... L£ 5,000 Morocco.........................DH 22
Oman............................ OR 1.5 Qatar .............................QR 15 Saudi Arabia ...................SR 15
Switzerland ....................SFR 8 Syria............................ S£ 100 Tunisia .......................... TD 2.5
UAE .............................AED 15 UK .....................................£ 2 USA ....................................$ 5
Registered in Dubai Media City
12/28/09 5:11 PM
8/16/10 11:23 AM
S E C T O R A N A LY S I S
ONLINE IS KEY
But not all automakers are convinced it’s the way forward.
Attention-grabbing: Online communication is particularly effective among younger consumers
WHILE MOST automakers have started using online media to convey their messages – even the luxury segment is using the internet – some still have reservations. “We all know online is the way to go,” says Ian Gorsuch, McLaren Automotive’s regional CEO. “The way internet has spread over the past decade is the best proof that online outlets are taking on the future.” This is already the case for brands such as Peugeot. According to Jamal Sahl, general manager, Peugeot Middle East, “Online is a great medium that has already taken a significant share of marketing strategies.” For a few luxury brands, however, the mass marketing afforded by online advertising holds less appeal. “Online communication and, more specifically, new technologies will be used by many companies,” says Maserati CEO Umberto Cini. “However, we will remain focused on one-to-one relationships with our customers.” Expanding its online offerings, General Motors Arabia is advertising available vacant
74 Gulf Marketing Review November 2010
digital positions. Digital manager Sayed Abu Diwan says: “It’s definitely interesting when it comes to digital marketing. We wanted to communicate with our customers in a proper way… with one voice.” For exclusive brands, the value of online marketing is clear. “Online marketing is already an integral part of our marketing efforts,” says Deesch Papke, MD of Porsche MEA. Porsche’s Facebook page has attracted more than 730,000 people and thousands visit its YouTube channel each time a new post is uploaded. DRIVING FORCES
Engaging: BMW’s Phil Horton
Online: McLaren Automotive’s Ian Gorsuch
Competition has now moved into the cyber-sphere. The key, says BMW’s regional MD, Phil Horton, who is responsible for the Mini brand, is “to ensure that online communication is different and engaging”. “We have seen the effect online marketing has had on the world, particularly among the younger target audience, and we are all aware that this area will become even more widely accepted as a communications channel and more and more businesses will find ways to use it,” he adds. For Bentley, the line between social media and personal relationships is to be navigated carefully. “As our ownerdemographic moves towards a younger and more affluent customer, we are seeking more ways to engage through e-media,” says Chris Buxton, Bentley’s regional chief. “That being said, Bentley has always been proud of our ability to offer a very personal approach. There must be a balance in the way we communicate in the future to ensure that this is maintained.” Jaguar Land Rover’s Robin Colgan says the role of the web will grow in the premium segment, but the industry will continue to struggle with it. “We keep throwing traditional creative executions at new media, and the results are poor because we no longer have a captive audience that can’t avoid viewing our adverts,” Colgan says. “Understanding the prerequisite to engage, entertain and educate our audience is proving to be a hard-earned lesson, but we’ll get there.” And even though Mercedes has its own digital communications staff, the company’s regional sales and marketing director, Franz Bernthaler, is reticent. “Online is increasingly important, but it will never take over from traditional media or showroom visits and face-to-face selling,” he says. n
S E C T O R A N A LY S I S
GREEN LIGHT
Auto companies make more moves towards eco-friendly motoring.
THE ENVIRONMENT continued to dominate the 2010 agenda for carmakers. By now, the most significant ones have joined the march towards greener motoring, and either implemented new strategies or expanded existing ones. The race is now on to see which one can produce the best environment-friendly automobiles. Several premium companies already claim to be leaders in the green field. Porsche CEO Deesch Papke says: “We are not following, but are the trendsetters in this regard.” Porsche claims to be the first of many premium manufacturers, including Mercedes, Lexus and BMW, to launch a hybrid car in Europe. In its present state, hybrid technology is ill-suited to power many luxury automobiles. The weight of a Bentley or Rolls-Royce can prove too much for a hybrid engine, while for makers of lighter vehicles such as McLaren Automotive, they simply do not yield the requisite level of performance. Consequently, McLaren Automotive has adopted a different strategy. “We have the lowest emissions in our sector,” says CEO
76 Gulf Marketing Review November 2010
Ian Gorsuch. “If you look at CO2 emissions per horsepower, we are lower than any car on the market, including hybrids.” Lamborghini has taken the same focus and plans to reduce CO2 emissions by 35 per cent by 2015. The Italian firm, which was the first from that country to obtain certification through the European environmental standard, has “a fully integrated environmental strategy based on both production process and product innovations”, according to CEO Stephen Winkelmann. Several manufacturers have also undertaken to clean-up production facilities. BMW, which for six consecutive years has been named the world’s most sustainable automaker by the Dow Jones Sustainability Index World, plans to reduce energy, water and sewage consumption, and solvent emissions by 30 per cent by 2012. BMW is currently at the forefront of the auto-enviro movement. So far, the company says it has reduced fleet emissions more than any other car manufacturer, without compromising on performance.
The new BMW 7 Series is set to be the most fuel-efficient vehicle in its class, despite being more powerful than its predecessor. This, says Philip Horton, MD, “proves that sustainability and driving performance can go hand-in-hand”. As the green movement quickly accelerates, it is not clear if customers will be willing to make the compromise. Most carmakers, such as Jaguar Land Rover, gesture towards an emerging market for energy-efficient vehicles. According to regional director Robin Colgan, “Customers are demanding that we take definitive action to address this issue.” The call for greener vehicles is growing. Papke says: “With fuel prices [in the Gulf region] being lower than in the European and US market, the demand is not as high.” Frank Bernthaler, director of Mercedes, which last year became the first to introduce a luxury hybrid into the region, says: “With low petrol pricing, the vast majority will continue to be happy with their big V8 engines for years to come.” n
Book early to save!
www.terrapinn.com/csmena
CRM Loyalty Social CRM Experience Acquisition Business intelligence Customer Service & Support
The Middle East’s largest gathering of leading regional and international brands Hear from over 35 leading brands on their CRM strategies to acquire and retain high value customers Find out how to use business intelligence to create the optimal offering Learn how to build customer trust. Don Peppers leads an exclusive MasterClass on customer engagement – only 50 seats available so book now! Understand the business case for investing in social media to turn honest customer feedback into profitable business decisions Everything you need to know about delivering a superior experience by giving your customers a seat at the drafting table
22-25 November 2010, The Address Dubai Marina, Dubai, UAE
Sponsored by
Media partner
Organised by
Register today: www.terrapinn.com/2010/csmena
The Customer Show ME 2010 AD 215-280-GMR.indd 1
10/13/10 11:46:43 AM
S E C T O R A N A LY S I S
ADDED EXTRAS
Adaptation through flexibility is helping luxury sector weather the crisis.
Taking cover: Carmakers are offering additional product and service enhancements
FOR MANY luxury carmakers, the recession has reinforced the value of flexibility. Top-end brands seem to be looking for the right balance to build on the varying impacts of the global downturn. Since the recession, Maserati has also looked at providing what it terms “additional peace-of-mind services”, in other words “incentives”, offering insurance, extended warranties and maintenance plans. “The customer doesn’t want to worry about these factors,” says the company’s regional chief executive, Umberto Cini. “He or she just wants to buy the car and enjoy it.” Lamborghini has placed a similar emphasis on adaptability, and combined consumer choice with it. “Since the recession, we have put the highest flexibility and best cost-efficiency schemes available into place,” says Stephan Winkelmann, Lamborghini’s president and chief executive.
78 Gulf Marketing Review November 2010
“We also remain committed to introducing a new model every year. Much of our strength comes from product development and concentrating on growing developing markets.” Bentley has translated flexibility into looking at its production run to maintain exclusivity, a USP during a period when it would otherwise be tempting to sell surplus stock. “We constantly monitor the individual market performance of our cars and other EXECUTIVE MOTORING
Constant adjustment: Peace of mind: Maserati’s Umberto Cini Bentley’s Chris Buxton
factors and adjust production and distribution accordingly,” says Chris Buxton, Bentley’s regional director. “Our mantra of building one less car than what demand dictates remains.” The company has found that new models, especially sports cars, tend to perform better in the current market. “Looking at the high-luxury sector in general, we are in line with the overall market trend and have successfully reduced our stock levels ahead of our new model launches this year,” Buxton adds. Ian Gorsuch, regional director of McLaren Automotive, a new entrant to the luxury segment with the promise of a first highperformance sports car early next year, has been looking closely at how the segment has been faring of late. “Those who looked after their customers best before the recession have come out best,” he says. “As with all luxury products, it is about winning over buyers’ emotions. In the next decade this will be done with credibility, with an authenticity to what you do.” Finally, there are manufacturers who have been able to enjoy the luxury of ignoring the recession. Asked how the market has changed after two difficult years, Koenigsegg’s regional boss, Andreas Petre, says: “It hasn’t changed very much for us because we only produce 20 cars per year and sell mostly to royal families around the GCC.” Petre also has some radical views compared to his competitors. He is the only industry expert to predict massive growth over the next year; says online advertising will take over completely from conventional forms (or any at all in a segment that rarely advertises); and insists shorter model lifespans of three to four years will become the norm. n
© Corbis
S E C T O R A N A LY S I S
CROSS ROADS
Carmakers begin to change focus as East puts pedal to the metal.
“LOOKING AT the auto market, there is currently a strong trend towards the East,” says Deesch Papke of Porsche. “Without a doubt a market such as China is reporting record sales, and I am sure we will continue to see this trend over the next few years.” Europe and America have always enjoyed automotive superiority over the rest of the world but, patriotism aside, Western manufacturers are jumping for joy at the prospect of a rising East. “It’s not only the Far East that is growing rapidly. The Middle East, India and Africa are also expanding, showing potential,” Papke says. Once you get into a market, you must know how to target customers. Sales territories under “Middle East and Africa” are as varied as they are large. How do manufacturers define their typical customers? Papke says: “There is no such thing as an ordinary customer, especially in this part of the world. Thus our communication is neutral with regard to approaching anyone.”
80 Gulf Marketing Review November 2010
Mercedes, on the other hand, finds it tough to generalise because it caters to a wider demographic. “I think it is now harder than ever to define the typical Mercedes-Benz customer because of the different segments we cater to and the vast product line-up we offer,” says Frank Bernthaler, director of sales and marketing. “However, we are seeing a shift to a younger demographic with the success of our C-Class, and expect this to continue as we explore more entry-level segments in the next few years.” Jaguar Land Rover tends to think about its customers “in terms of ‘mindset’ rather CONSUMER-CENTRIC
Neutral: Porsche’s Deesch Papke
Exploratory: MercedesBenz’s Frank Bernthaler
than simply age or income”, says Robin Colgan, regional MD. “For example, Jaguar customers tend to be very individualistic and independent minded…while Range Rover customers are comfortable in the city and the desert and have a healthy respect for heritage and tradition.” BMW bases its knowledge on cold, hard research. “It is possible for BMW Group to define our typical customers as we regularly conduct research around the world to gain insights into their demographics and lifestyles,” says Phil Horton, regional MD. Conversely, Ferrari sees that while intelligence is essential, the variety of m a r ke t s w i t h i n t h e M i d d l e E a s t necessitates improvements in this field. “Lebanon is very different from Saudi Arabia, so we have our sources for gathering intelligence,” says Pietro Innocenti, Ferrari regional chief. “But I have to admit that this is an area we are looking to improve on: to create reliable information. It’s then a matter of putting all this information together to have a solid market intelligence to drive your business.” n
0700-00002 EUROSPORT ARABIA-B2B_ads_GMR 280x215_Q.ai
1
10/17/10
5:43 PM
S E C T O R A N A LY S I S
SELLING IN SAUDI
The kingdom proved more resilient than its neighbours, although relevant auto ads could have improved performance all round.
Shifting gears: Auto ads are mostly imported and often do not relate to regional consumers
EVEN THOUGH Saudi Arabia fared pretty well in the immediate aftermath of the economic crisis, it still suffered in the long run. With banks in the country and all over the MEA region tightening their loan policies, and consumers becoming more cautious in their spending, Drive
82 Gulf Marketing Review November 2010
Dentsu shares insights and emerging trends within the auto sector. Car sales in Saudi have dropped 11 per cent in comparison to 2008. Given that more than 45 per cent of purchases are dependent on credit, dealers, manufacturers and consumers have had to
face with the harsh reality of the current market. Gradually, this has created caution in spending. To be able to understand and predict how the auto market will turn out in a country, one must analyse trends and conditions in surrounding nations. The world is getting smaller, and influences, much like people, travel overseas. As the global economic crisis led to a drop in oil prices, loan rejections went up six-fold – from five per cent to 30 per cent – while the real-estate market crashed. All this is reflected on the UAE market. While the UAE may not be a huge factor to the Saudi economy, residents in the country have started approaching decisions with much more precaution anyway. They have become aware of developments in neighbouring countries such as the UAE and fear the same thing will happen with them. Consequently, they are acting with caution, much like others in the rest of the region. In comparison to the UAE, Turkey and South Africa, the automotive market in Saudi has fared pretty well. Last year, Turkey experienced its lowest vehicle sales in five years, with a 9.4 per cent decline. The country that is truly suffering, however, is South Africa, which witnessed a 22.4 per cent decline in sales. Even though Saudi Arabia’s decline is 11 per cent – in comparison to Turkey’s 9.4 – the kingdom is the largest importer of cars in the Middle East and has a steady used-car market. So Saudi Arabia can rebound quicker than most countries. Already there is a growing trend in sales in the country. According to research, car loans will soon return to normal
S E C T O R A N A LY S I S
Driving lessons: Localised versions of international campaigns don’t always engage
Consumer confidence is still down and most are looking for alternative purchases as they cut back on spending. and increase from being more than 45 per cent of car purchases to more than 70 per cent. As of now, though, consumer confidence is still down and most are looking for alternative purchases as they cut back on spending. Preference on models has shifted as a result. The superstar SUV is no longer the celebrity, for example. Smaller, fuel-efficient cars are becoming more popular. This change in consumer preference will be fruitful to the region as new business will find itself settling in Saudi Arabia
84 Gulf Marketing Review November 2010
and surrounding countries, especially the Asian auto firms who are well known for their quality compact cars. These cars will find a new demographic of consumers as well, with 28 per cent of them falling under the 16-to-31 age range. Alternative trends are also emerging. Consumers are considering renting cars. Instead of buying and worrying about maintenance, consumers feel better off leasing vehicles. With these new trends, the world must realise that each industry affects the other and that it’s time to work to-
gether. Teamwork leads to revolution and change. A hidden treasure that no one knows about is an item that practically does not exist. I say this to emphasise that if cars need to be sold, they need to be heard of. If people hear about cars and respond, sales will increase along with consumer confidence. To hear about a car, you need to advertise it. To ensure response to that advertisement, you need to know who you’re talking to, which is why all this research is essential for other industries – specifically advertising industry. Every professional will agree: auto sales would have fared much better had auto-advertising hit its target. For example, most auto ads are imported from global ones. This makes it harder for consumers to make a connection with the brand. They may be familiar with the car but may not be able to relate to the ad. Also, the ads are missing their target, which is the youth. Maybe the youth aren’t given enough credit because their age is mistaken for lack of influence and effect. One of the biggest purchasing factors is credit, and since it’s difficult to get that, consumers respond to ads that fill that need – the need to save, the need to afford. Drive has launched local ad campaigns for Toyota, so consumers can finally feel someone is talking to them; that someone actually knows them. The campaign has a human and emotional element, as opposed to ads that simply show a car being driven. It’s important to know the market before trying to sell it. Experience breeds wisdom, and research breeds credibility. It’s vital to have both. n
Tarek Al-Jundi PR consultant Drive Dentsu, Beirut
November 2010 Gulf Marketing Review 85
S E C T O R A N A LY S I S
WHEELER DEALERS
Tactical promotions and TV are keeping auto advertising buoyant.
DEALER/CORPORATE SPLITS BY MARKET (000 US$) Dealer Jan-Sep 09 Pan Arab 18,738 Egypt 30,766 UAE 30,001 KSA 40,080 Lebanon 700 Kuwait 16,596 Oman 7,294 Qatar 8,471 Bahrain 4,093 Jordan 1,238 Syria 1,813 Pan Asian 0 Totals 159,791 Country
Corporate Jan-Sep 09 86,151 6,110 22,540 8,038 41,126 17,260 1,585 492 857 4,100 2,031 1,766 192,056
Dealer Jan-Sep 10 26,281 58,234 41,060 42,439 907 15,413 10,381 7,724 5,949 2,426 2,414 50 213,278
Corporate Jan-Sep 10 206,490 6,654 21,705 15,192 34,887 18,455 2,448 97 451 3,106 2,700 3,355 315,541
Dealer 09-10 Var% 140% 189% 137% 106% 130% 93% 142% 91% 145% 196% 133% 133%
Corporate 09-10 Var % 240% 109% 96% 189% 85% 107% 154% 20% 53% 76% 133% 190% 164%
Source: IPSOS, 2010
IN LINE with the resurgence in consumer confidence in most Middle East markets, the auto category rebounded with an increase of almost 50 per cent in media ad spend for January to September 2010, compared to the same period last year. The sector is now second in overall media spend in 2010 to date compared to the fourth quarter of 2009. This is backed with a 12 per cent year-on-year increase for the wider Gulf sales. Egypt saw the biggest gain, up 33 per cent YOY, according to the Egyptian Automobile Manufacturers Association (source: BMI). The premium luxury segment also saw significant impetus in sales. The Pan Arab market took the lion’s share. It was also the main beneficiary with a 122 per cent gain over last year.
86 Gulf Marketing Review November 2010
Other increases came from Egypt, Oman and Syria. The dominance of TV is significant, especially in Egypt and most of the Levant. The exception is the GCC where newspapers lead, primarily due to tactical campaigns that tend to be heavily dealer-supported. Interestingly, in 2010 the ‘cars’ category is number two in print and TV across the region. The past four months accounted for 40 per cent of spend. There was a surge in August due to Ramadan and allied tactical offers. We expect another surge this month and next, when 2011 models arrive. Dealers delayed promoting new models from September, possibly to deplete the inventory. While most corporate spend was on TV, this year saw the medium get a
boost with an unprecedented 240 per cent rise over the same period last year. On the other hand, with the exception of Kuwait and Qatar, most local markets saw a triple-digit increase by the dealers, mainly due to the tactical ‘bundling’ offers by dealers and dealer-backed financing and after-sales service assurances. In terms of a messaging strategy we see an increased focus on ‘passenger’ cars, ie saloons, while spend on ‘fourwheel drives’ and communication of the entire ‘range’ has reduced. The consolidation in spend is evident, with the top 10 brands accounting for nearly 75 per cent. Again, their focus is distinct with brands such as Chevrolet, Kia, Hyundai and Ford being the major spenders in all media types, with the exception of magazines, in which the premium car segment has nearly 33 per cent. As per BMI the projection for MENA is a 6.7 per cent sales increase in 2010. This acceleration is due to innovation in terms of new models, promotional marketing and the potential of hitherto untapped growth markets such as Egypt (with an average penetration of only 8.9 per cent car per household (Source: Euromonitor), which will ensure the category maintains its momentum in the years to come. n Note: Ad spend is based on monitored advertising and is calculated on the media rate cards. It does not reflect incentives and discounts that advertisers/MBUs may avail from media owners. All monitored data is sourced from IPSOS-Stat.
Burt Reynolds associate media director, Magna, Dubai
No two days are ever tHe same STArT yOurS wiTh bLOOMberG TeLeviSiON ANd STAy buSiNeSS ShArP ®
Global Connection with Linzie Janis 0700 - 0800 Riyadh 0800 - 0900 Dubai Business and financial news from the US, Europe and Asia, to prepare you for the impact of the world on your business day ahead. On The Move with Francine Lacqua 1000 - 1100 Riyadh 1100 - 1200 Dubai As Europe opens for business, Bloomberg Television is there – business analysis with CEOs and market leaders, live from where the news happens.
Countdown with Maryam Namazee 0800 - 1000 Riyadh 0900 - 1100 Dubai A fast-paced run-up to the opening of the European markets, with in-depth interviews and analysis of what is happening in the markets and why. The Pulse with Andrea Catherwood 1100 - 1300 Riyadh 1200 - 1400 Dubai Award-winning anchor Andrea Catherwood provides commentary and critical analysis on breaking business stories, along with key interviews of major players impacting the market.
Bloomberg Television is available on The Orbit Showtime Network, cable and satellite in the Middle East.
Telephone: +44 20 7330 7500 Email: tvmarketing@bloomberg.com www.bloomberg.com ©2010 Bloomberg Finance L.P. All rights reserved. 40501313 0910
S E C T O R A N A LY S I S
DEALS ON WHEELS
In Saudi Arabia motorcycles are overtaking cars when it comes to online searches, while pre-used dominates in the UAE.
LAST YEAR it was all about the number of cars left stranded at Dubai airport. Like many industries, automotive was hit hard during the recession. This year, with so many cars in the market, it’s all about good deals, with ‘used cars’, ‘second-hand cars’ and ‘used auto sales’ among the most searched for phrases in the UAE. What is surprising, considering the credit crunch, is that luxury brands such as Lexus and Porsche were in the top 10, proving that times are not tough for everyone. The biggest surprise for our research team, however, was that their brand websites did not make the top 10. This doesn’t mean they do not rank first for their own brand name, simply that, on average, they do not rank well across a number of car-related keywords. Perhaps this is something for the official branded pre-used car dealer-
88 Gulf Marketing Review November 2010
ships to take note of because it is a significant missed opportunity. The sites that did rank well on Google.ae were mainly regarding second-hand classified ads. In Saudi Arabia it was a slightly different scenario. Among the Arabic top 10, search queries were more generically related. And, as we have seen so often in Saudi, the content that ranks high is always in forums and blogs. What this means for automotive marketers looking to raise their brand profile in the kingdom is that they must be more conscious of social media optimisation, in other words not only developing more social media-led marketing, but the optimisation of their social media content so that it ranks well in search engines. What was interesting was that the Jeddah Bikers website ranked so high for car-related keywords, which to me
proves the importance of Arabic content, as the site was both in English and Arabic. The fact a website for a motorbike club should perform so well for carrelated phrases highlights the opportunity available for auto-branded sites. This is especially true for those looking to use car-related keywords to perform well with the minimum of SEO in a market that is still in its infancy when it comes to search tactics. It would seem that traffic is there, but marketers are not. Until top brands realise the missed opportunity, other websites will be driving off into the sunset on two wheels instead of four. n
Lee Mancini head of Sekari Dubai
© Corbis
TOP10 10KEYWORDS SEARCH RESULTS GOOGLE.AE (GLOBAL) TOP
TOP10 10SEARCH SEARCHRESULTS RESULTS–GOOGLE.AE (GLOBAL) TOP UAE # 1 2 3 4 5 6 7 8 9 10
Coverage 80% 80% 65% 65% 60% 60% 60% 60% 55% 55%
Average rank 7.75 29.19 21.77 28.31 8.00 12.08 16.58 25.50 5.45 8.27
Domain en.wikipedia.org drivearabia.com autodealer.ae datadubai.com autotraderuae.com uae-autos.com imdb.com autos.yahoo.com autosouk.com emirates-ads.ae
Performance data based on Google.ae. Results show the top 10 performing websites which on average have the highest rank and the most rankings coverage in top 10 positions for all top 10 keypharases in natural search results in Google.ae and below on google.com.sa
# 1 2 3 4 5 6 7 8 9 10
Keyword (UAE) Car Cars Used cars Second-hand cars Used autos Used auto sales Lexus Porsche Suzuki Cars for sale
Keyword (KSA) Cars Sale of cars Haraj cars Cars 2010 Cars sale Cars for sale Car for sale Cars 2009 Car prices Location of autos
Search Engine Results Pages (SERPS) Research conducted on Google.ae. Top 10 keywords with the most amount of searches last month based on local results from Google.AE and Google.com.sa. All of the Saudi Arabia keywords were originally recorded in Arabic and then translated.
TOP 10 SEARCH RESULTS – SAUDI ARABIA # 1 2 3 4 5 6 7 8 9 10
Coverage 80.95% 57.14% 52.38% 52.38% 47.62% 42.86% 42.86% 42.86% 42.86% 42.86%
Average rank 9.94 15.75 16.27 24.09 25.30 1.44 17.33 17.44 23.33 24.22
Domain assayyarat.com carsdir.com alqaly.com jeddahbikers.com forum.al-wlid.com sayaraat.com mstami.com 3arabiyat.net alhnuf.com ejabat.google.com
November 2010 Gulf Marketing Review 89
SECTOR ANALYSIS
RALLYING MOOD
The UAE’s auto sector is certainly gaining momentum judging by the level and quality of recent press coverage.
© arabianEye.com
turnover of AED2.5 billion. ($681 million). The distributor was aiming for a 25 per cent market share in the UAE by the end of 2010, which would put its annual sales at more than 80,000 units.
FOLLOWING THE slowdown in 2009, the GCC’s auto market is expected to regain traction this year due to economic recovery, improved confidence and ease of credit, says Business Monitor International (BMI). Nonetheless, credit remains tight, and caution is the watchword for many investors. BMI projected vehicle sales to grow by 8.5 per cent to 352,913 units in 2010, slightly below 2008 levels, but a good recovery from 2009. Auto finance in the UAE has eased, but it is not flowing as freely as the positive economic outlook and banking results might suggest. Many banks have tightened their lending terms to avoid non-performing loans, so recovery is not as strong as it could have been. A recent study from Dubai Chamber of Commerce and Industry indicated a rebound in auto exports to the UAE, which rose in early 2010. The trend is expected to continue towards the end of the year. Earlier, the global financial crisis had negatively affected capital formation and consumer spending on durable goods. One of the hardest hit was the auto sector, as reflected by the bankruptcy of US
90 Gulf Marketing Review November 2010
giant General Motors (GM) and the cut in production at other auto firms. It was only in the latter part of 2009 that plans to beef up inventories began to materialise, focusing on the production of more fuel-efficient and small car models. The study said exports of the leading suppliers of vehicles to the UAE started to pick up in early 2010. Compared to the record high in 2008, Japan’s exports declined by 64 per cent in 2009 and saw a monthly fall of 20 per cent in January 2010. The following month, however, a reversal in trend by five per cent was seen, which was followed by a substantial monthly growth of 71 per cent in March. The UAE sees increasing competition. Toyota Motors has traditionally been a market leader in the Middle East, even in the more affluent Gulf countries, where it generates around 6.5 per cent of its total sales. However, the firm may be losing its edge, with rivals gaining on it. Arabian Automobiles Company, the exclusive dealer for Nissan Motor, Infiniti and Renault, sold 25,204 units, up 18 per cent year-on-year, and generated a record
Media comment We had a look at 26 auto brands in the Q3 2010 UAE media, a total of 3,595 clippings (Audi, BMW, Cadillac, Chevrolet, Chrysler, Ferrari, Fiat, Ford, Honda, Hummer, Hyundai, Kia, Lexus, Mercedes, Mitsubishi, Nissan, Opel, Peugot, Porsche, Renault, Rolls-Royce, Saab, Suzuki, Toyota, Volkswagen and Volvo). Toyota achieved the highest volume of coverage in July, August and September followed by BMW in July and September. Ford came third in July and September and second in August. Hummer and Saab’s media presence was barely discernible with a total number of clippings a month ranging from three to 11 only. In terms of NCS (Newspaper Coverage Size), measured in CC, Toyota took the lead in July and August. However, BMW was ahead in September with 14K cc. Nissan’s third rank in September coincided with a rise in its UAE sales in the last period. As for the Magazine Coverage Size (MCS) measured in pages, BMW took the lead in July with 83.6 pages, followed by Mercedes with 62 and Porsche with 52.3. August saw Mercedes take the lead, followed by Audi and BMW. In September, BMW was again in front, followed by Porsche and Audi. It is worth noting BMW’s large number of pages in the month relative to other auto makers (124.13). In terms of OTS, Toyota had the lead in all three months of Q3. BMW ranked second in July and September, while Mercedes was second in August. Volkswagen was third.
JULY 2010 Porsche Peugot Lexus Chrysler Renault Fiat Mercedes-Benz Honda Daimler Nissan AUGUST 2010 Lexus Mercedes-Benz Renault Chevrolet Mitsubishi Chrysler Volvo Audi Hyundai Honda SEPTEMBER 2010 Mitsubishi Chevrolet Kia Chrysler Honda Fiat Mercedes-Benz Renault Ferrari Hyundai
Volume of Coverage
NCS (Newspaper Coverage Size)
MCS (Magazine Coverage Size)
OTS (Opportunities To See)
72 44 77 53 67 55 93 96 81 117
7,012 2,626 6,331 4,713 4,517 4,437 9,257 7,058 6,111 7,808
52.32 2.63 8.44 3 23.71 17.7 62.01 13.69 0.35 11.83
7,323,550 8,309,771 8,879,625 9,183,600 9,310,300 9,490,055 9,670,353 11,828,123 13,582,825 13,768,685
61 68 44 55 48 49 52 85 54 97
6,105 4,864 3,137 5,649 3,477 7,101 4,787 4,279 5,552 9,703
16.44 76.33 13.21 6.5 9.74 0 7.38 47.68 0.32 6.09
5,281,361 5,817,907 6,080,634 6,139,050 6,269,712 6,751,230 6,781,493 8,136,300 8,307,338 11,292,872
47 50 54 33 67 38 80 83 107 93
3,408 3,928 2,381 3,154 5,614 3,110 6,457 9,159 8,537 6,116
1.54 5.82 7.79 0.68 17.76 0.36 34.31 13.26 17.03 4.12
6,384,737 6,574,830 6,621,517 6,676,813 7,254,339 7,918,788 9,667,771 10,570,211 11,041,298 11,149,155
Source: Mediastow, July-September 2010
Content analysis The messages for the various auto brands varied in Q3. While most of the brands featured numerous messages regarding new launches, showrooms, promotions, deals and reviews, BMW, Porsche and Mercedes featured a number of interviews, events participation and competition news. There were, however, some clippings with negative messages, such as poor financial performance, drop in stock prices, drop in sales or auto recalls. Conclusion Comparing September 2009 coverage with September 2010, it is interesting
to note that most of the auto brands – including BMW, Cadillac, Chevrolet, Honda, Mercedes, Mitsubishi, Renault and Toyota – experienced a drop in media coverage numbers (volume of coverage, NCS, MCS and OTS).However, Ferrari and Nissan saw an increase in media coverage. It seems 2009 was a year with high hopes of bouncing back. Market research reviews were mixed. The increase in coverage in September 2009, not only in numbers but in variety and frequency of positive messages, was an effort by the brands to rally following the financial crisis.
This year reports are more optimistic, with the early months indicating healthy growth. It may not be the time for auto brands to reduce their PR, at least until they reach pre-2009 levels, as the race is now on. Nissan and Hyundai are showing signs of growth, both in terms of market share and media coverage. Competition is likely to get tougher in the media. n
Hisham Elzubeir research director Mediastow, Dubai
November 2010 Gulf Marketing Review 91
© arabianEye.com
S E C T O R A N A LY S I S
PULLING AHEAD
The slowdown in regional auto ad spend is beginning to reverse. THE AUTO sector has weathered the recent storms affecting high oil prices, the economic downturn, and tightening of bank loans and recalls. It emerged stronger in 2010 as it spent $314 million in regional monitored media in the first half of this year, compared to $252 million in H1 2009. The sector has reversed its downslide of nine per cent in 2009 by reporting accelerated growth of 25 per cent across the region for the same period, while Pan Arab media, which contributes 36 per cent of the total regional spend, gained 71 per cent compared to the previous half. The GCC has 43 per cent of the regional market share. The remainder comes from the Levant. Saudi Arabia, which is the top spending auto market in the region, consolidated its position by increasing the spend by 31 per cent in H1 2010. Egypt followed with 26 per cent, while the UAE registered a growth of six per cent during the period to retain third place. The growth was not uniform across the region as some markets were in the red.
92 Gulf Marketing Review November 2010
Kuwait’s spending plummeted by 15 per cent while Lebanon’s tumbled by 18 per cent in H1 2010. Qatar also witnessed an 11 per cent decline for the same period. The auto sector followed the regional trend of shifting spending from newspaper to TV. TV spend is now 41 per cent across all major media type for the first half of 2010, up from 33 per cent in 2009. Print found the conditions challenging. Newspaper spend declined from 53 per cent to 45 per cent, with magazines falling from nine per cent to seven per cent in H1 2010. General Motors (GM) replaced Toyota as the region’s top advertiser in the sector. The American company increased spending by 3.5 times in H1 2010, placing Chevrolet at the top with $42 million. GM spent more on Cadillac this year, but placed less emphasis on GMC as well as corporate advertising. Nissan doubled its spend in 2010 and ranked second, while Toyota slipped to third position with a single-digit decline in spending.
The spend on Nissan included Infiniti. Hyundai and Kia shared the next two spots in the league of top spenders. The outlook for the sector is bright and can be substantiated by the purchase intention ranging from 15 per cent to 19 per cent across major markets, namely Saudi Arabia and the UAE respectively, according to the latest TGI Survey by Parc. The sector spent nearly 70 per cent more during Ramadan this year on TV and newspapers compared to 2009. Going by this trend, the sector is likely to surpass the highs of 2008 spending and will register a robust growth over 2009. The ad spend is calculated on the media rate cards and does not account for incentives and discounts that advertisers may avail from media owners. n
Shaharyar Umar product manager Pan Arab Research Centre, UAE
SECTOR ANALYSIS
CATEGORY: AUTOMOTIVE - ARAB ADVERTISING MARKETS - 2010 MILLIONS US$314
MARKETS RANKING & MEDIA SPLIT (000 US$) 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 74,239 66,655 113,843 Kingdom of Saudi Arabia KSA 40,145 37,119 48,752 Egypt EGY 43,559 36,695 45,075 United Arab Emirates UAE 37,327 33,993 36,140 Kuwait KWT 23,902 28,765 24,538 Lebanon LEB 12,983 17,034 13,952 Qatar QTR 10,177 12,178 10,812 Oman OMN 9,246 8,476 10,199 Jordan JOR 2,949 3,552 4,040 Bahrain BAH 3,323 3,569 3,618 Other Markets** OTH 4,143 4,144 3,506 Total All Markets 261,993 252,180 314,475
71 31 23 6 -15 -18 -11 20 14 1 -15 25
2010
%Var’n YTD
103,840 81 562 -43 7,391 859 1,360 -35 3,026 -54 10,543 -18 0 -100 1,738 74 19 36 0 -100 936 5 129,415 56
Newspapers 2010 26 37,458 28,331 30,092 18,954 1,940 9,241 8,185 3,859 2,759 1,841 142,686
%Var’n YTD
Magazines %Var’n YTD
2010
-89 9,977 18 1,883 9 2,555 13 3,142 -1 2,384 -5 888 -16 719 16 276 14 162 0 732 -22 576 8 23,294
11 22 1 13 -6 25 -23 -12 3 -1 14 7
Radio 2010 0 135 1,238 306 174 35 31 0 0 18 153 2,090
+25%
Outdoor
%Var’n YTD
Cinema
%Var’n YTD
2010
0 0 -69 8,714 -1 5,560 -65 1,017 -47 0 -93 546 41 821 0 -100 0 -100 -54 96 -61 0 -46 16,754
2010
281 -10 -14 -100 -40 263 0 0 4700 0 53
0 0 223 0 0 0 13 236
%Var’n YTD -39 117 -36
**Other markets: Combined - Syria, Yemen & Arasian
Ranking of Markets & Media Split (000US$) 100%
Category split by market 16% 36%
75%
3% 1% 1% 1%
50% 25% 0%
Pan Arab KSA Egypt UAE Kuwait Lebanon Qatar Oman Jordan Bahrain Others
14% 12% 4% 4% 8%
Total GCC LEV PAN KSA EGY UAE KWT LEB QTR OMN JOR BAH OTH 314475 249456 65019 113843 48752 45075 36140 24538 13952 10812 10199 4040 3618 3506
Television
Newspapers
Magazines
Outdoor
Radio
Cinema
SPLIT BY PRODUCTS – 2010 GCC & Levant Markets 23%
36% 14%
8%
Pan Arab Media
7%
Passenger cars Four-wheel-drive Road vehicles range
6%
42%
12%
9%
Car dealers Corporate advert Others
6%
Passenger cars Four-wheel-drive Corporate advert
GCC Markets 35%
26%
28% 15%
9%
Petroleum Co. Lubrication oil Others
Levant Markets 12% 6%
42%
1% 10%
6%
Passenger cars Four-wheel-drive Road vehicles range
Car dealers Corporate advert Others
8%
Passenger cars Car dealers Four-wheel-drive
15% 13% 12%
Corporate advert Road vehicles range Others
TOP BRANDS – ALL MEDIA (000 US$) – 2010 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Brand Chevrolet Hyundai Nissan Toyota Kia Ford BMW Cadillac Castrol Lexus Renault Mazda Infiniti Mercedes Mitsubishi Honda Audi Qatar Petroleum Suzuki Volkswagen
PAN ARAB MEDIA Value 42,295 24,855 23,438 20,884 20,060 16,419 11,846 7,671 6,640 6,401 5,461 5,022 5,009 4,729 4,395 4,161 3,795 3,589 3,476 3,463
94 Gulf Marketing Review November 2010
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Brand Chevrolet Hyundai Kia Ford Nissan Castrol Cadillac BMW Toyota Qatar Petroleum Qafac Hankook Renault Land Rover Mercedes Lexus Range Rover Mazda Audi Suzuki
GCC Value 22,269 13,673 12,722 9,409 6,628 5,710 5,241 4,962 4,068 3,067 2,714 2,237 2,051 1,595 1,467 1,378 1,206 1,057 1,000 849
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LEVANT Brand Chevrolet Nissan Hyundai Toyota Kia Ford BMW Cadillac Castrol Lexus Infiniti Mazda Mitsubishi Honda Qatar Petroleum Audi Porsche Mercedes Renault Volkswagen
Value 30,951 21,445 20,268 17,970 16,858 15,544 10,175 7,159 6,607 5,432 4,569 4,007 3,961 3,656 3,589 3,302 3,284 3,251 3,192 2,929
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Brand Chevrolet Hyundai Kia Toyota Renault Suzuki Nissan Al Masreya BMW Speranza Rymco Mercedes Skoda Daihatsu Jeep Mazda Lexus Mobil Ford Opel
Value 11,344 4,587 3,202 2,914 2,269 2,020 1,993 1,934 1,671 1,620 1,498 1,478 1,332 1,317 1,142 1,015 969 927 875 857
Source: PARC
GCC & LEVANT
CATEGORY: AUTOMOTIVE – AGCC, LEVANT, PAN ARAB & ARASIAN MEDIA MARKET ADVERTISING EXPENDITURE FOR TOP PRODUCTS (000 US$) 2008 – 2010 (JAN - JUL)
MILLIONS US$314
Media Split %
2008 2009 Passenger cars (PSC) 90,110 84,506 Four-wheel-drive (4WD) 50,978 57,367 Road vehicles range (RVR) 28,526 31,830 Car dealers (CRD) 32,453 33,380 Corporate advertising (CPA) 8,854 11,475 Others (OTH) 51,072 33,622 Total/Average 261,993 252,180
2010 113,756 73,254 35,694 25,271 22,518 43,982 314,475
%Var’n Y10/09 35 28 12 -24 96 31 25
Sh% 36 23 11 8 7 14 100
2010 Media Split %
TV 46 45 9 17 72 46 41
NP 40 42 82 75 16 33 45
MG 10 10 2 2 1 8 7
Top Brands Y2010 (000 US$)
RD 0 0 1 1 1 1 1
OD 4 2 5 4 10 12 5
CN 0 0 0 0 0 0 0
Product Growth 2008 - 2010 (000 US$) 120000
PSC
100000
4WD
80000
RVR
60000
CRD
40000
CPA
20000
OTH 0%
20%
40%
60%
80%
0
100%
PSC
Newspapers Television Magazines Outdoor Radio Cinema
4WD
RVR
2009
2010
CRD
CPA
OTH
2008
OVERALL MEDIA SPLIT ANALYSIS (000 US$) Media Television Newspaper Magazine Radio Outdoor Cinema Total
Value 82,032 134,595 24,791 4,591 15,271 713 261,993
2008
Sh% 31 51 9 2 6 0 100
Value 82,758 132,508 21,701 3,872 10,972 369 252,180
2009
Sh% 33 53 9 2 4 0 100
Value 129,415 142,686 23,294 2,090 16,754 236 314,475
2010
Sh%
41 45 7 1 5 0 100
Var'n % 2009/2010 56 8 7 -46 53 -36 25
MONTHLY SPEND ANALYSIS (MILLIONS US$) 2008 – 2010 90 80 70 60 50 40 30 20 10 0
Month Jan Feb Mar Apr May Jun Total
Jan
Feb
Mar 2010
Apr 2009
May
2009 37 40 46 43 43 42 252
2010 42 40 47 51 62 73 314
Var’n % Y10/09 14 0 2 17 43 73 25
Jun
2008
Overall Media Split 2008 – 2010 160000 140000 120000 100000 80000 60000 40000 20000 0
2008 36 34 45 46 47 54 262
Total Category – Media Split %
(000 US$ - Semi Logarithmic)
45%
8%
41% 5%
2008
2009
Newspapers Television Magazines Outdoor Radio Cinema
1%
2010 Television
Newspapers
Magazines
Outdoor
Television Top Spenders Rank Brand 1 Chevrolet 2 Hyundai 3 Kia 4 Ford 5 Nissan 6 Toyota 7 Castrol 8 Cadillac 9 BMW 10 Qatar Petroleum
2010 29,607 15,518 12,835 9,045 6,961 6,169 5,940 5,490 4,279 3,061
Newspapers Top Spenders Rank Brand 1 Toyota 2 Nissan 3 Chevrolet 4 Hyundai 5 Kia 6 Ford 7 BMW 8 Mitsubishi 9 Lexus 10 Honda
2010 12,275 11,142 10,498 7,650 5,950 5,925 4,942 4,187 3,518 3,214
Magazines Top Spenders Rank Brand 1 BMW 2 Audi 3 Porsche 4 Mercedes 5 Chevrolet 6 Ford 7 Hyundai 8 Toyota 9 Kia 10 Nissan
2010 1,944 1,892 1,444 1,418 1,265 1,114 972 963 738 654
Radio Top Spenders Rank Brand 1 Toyota 2 Chevrolet 3 Hyundai 4 Kia 5 Maxxis 6 Daihatsu 7 Mahindra 8 Nissan 9 Mobil 10 Al Mulla
2010 262 183 134 131 83 72 63 56 55 52
Outdoor Top Spenders Rank Brand 1 Nissan 2 Toyota 3 Chevrolet 4 Fuchs 5 BMW 6 Hyundai 7 Mobil 8 Petromin 9 Kahrama 10 Kia
2010 4,625 1,202 742 738 645 581 496 492 475 406
November 2010 Gulf Marketing Review 95
Source: PARC *Please note figures throughout this section are rounded up.
Product & Abbreviation
+25%
UAE
SAUDI ARABIA
KUWAIT
OTHERS
HEAD OF MARKETING
MARKETING MANAGER
BRAND MANAGER
MARKET RESEARCH LEADER
Qualification: Degree in Business Administration Experience: 5+ years Experience Skills: Strong analytical skills Excellent brand management skills Strong interpersonal
Qualification: Degree in Marketing Experience: 5+ years Experience Skills: Proficient in MS-Office Strong interpersonal skills Excellent communication skills
Qualification: Degree in Business Management Experience: 2+ years Experience Skills: Experience in a similar role Strong leadership skills Strong command of English & Arabic
Qualification: Degree in relevant discipline Experience: 8+ years Experience Skills: Strong organizational skills Strong analytical skills Strong computer skills
Job Reference:JB1572133
Job Reference:JB1511023
Job Reference:JB1571753
Job Reference:JB1573855
MARKETING EXECUTIVE
CATEGORY MANAGER
MARKETING MANAGER
MARKETING ACCOUNT MANAGER
Qualification: Degree in Marketing Experience: 2+ years Experience Skills: Excellent communication skills Strong analytical skills Strong command of English
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Strong command of English Excellent leadership skills Excellent analytical skills
Qualification: Degree in Marketing Management Experience: 5+ year Experience Skills: Proficient in MS-Office Good communication skills Excellent command of English & Arabic
Qualification: Degree in relevant discipline Experience: 4+ year Experience Skills: Excellent communication skills Strong interpersonal skills Proficient in MS-Office
Job Reference:JB1568293
Job Reference:JB1278916
Job Reference:JB1566743
Job Reference:JB1550615
SENIOR MARKETING ASSISTANT
MARKETING SPECIALIST
MARKETING MANAGER
RESEARCH DIRECTOR
Qualification: Degree in Marketing Experience: 0-2 years Experience Skills: Excellent analytical skills Excellent command of English & Arabic Strong time management skills
Qualification: Degree in Marketing Experience: 3+ years Experience Skills: Strong command of English Strong computer skills Strong interpersonal skills
Qualification: Masters in Marketing Experience: 5+ years Experience Skills: Excellent command of English & Arabic Strong communication skills Proficient in MS-Office
Qualification: Degree in relevant discipline Experience: 8+ years Experience Skills: Strong negotiation skills Good presentation skills Excellent communication skills
Job Reference:JB1574842
Job Reference:JB1136931
Job Reference:JB1562556
Job Reference:JB1481375
BRAND MANAGEMENT OFFICER
MARKETING MANAGER
MARKETING OFFICER
BRAND MANAGER
Qualification: Degree in Marketing Experience: 5 - 8 years Experience Skills: Proficient in MS-Office Excellent command of English & Arabic Strong experience in a similar role
Qualification: Degree in Business Administration Experience: 3 - 5 years Experience Skills: Excellent command of English & Arabic Excellent presentation skills Strong analytical skills
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Proficient in MS-Office Excellent marketing skills Strong communication skills
Qualification: Degree in Marketing Experience: 3+ years Experience Skills: Proficient in MS-Office Strong motivational skills Excellent communication skills
Job Reference:JB1556560
Job Reference:JB1570613
Job Reference:JB1345738
Job Reference:JB1573504
MARKETING MANAGER
MARKETING MANAGER
BRAND MANAGER
MARKETING MANAGER
Qualification: Degree in relevant discipline Experience: 5 - 7 years Experience Skills: Effective negotiation skills Strong decision making skills Creative thinking skills
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Strong technical marketing skills Strong sales skills Strong negotiation skills
Qualification: Degree in Business Management Experience: 2+ years Experience Skills: Excellent command of English Strong communication skills Excellent management skills
Qualification: Degree in Marketing Experience: 2+ years Experience Skills: Strong negotiation skills Strong analytical skills Excellent communication skills
Job Reference:JB1573796
Job Reference:JB1543319
Job Reference:JB1573818
ND & Associates
Marriott Vacation Club International
Abu Dhabi University
Daman-National Health Insurance Company
IIR Middle East
Job Reference:JB1521016
SAB Holding
Kuwait food company ( Americana )
E-Government Program
Flawless Consulting
SEDCO
Ali Abdulwahab Sons & Co
The Nielsen Company (Philippines)
Al Thekair Trading & Contracting Co. W.L.L
Cinnabon, SBC& Schlotzsky's Kuwait Group
SADDA Marketing & Business Solutions(Jordan)
TNS (Egypt)
Retail Group (Lebanon)
Specialist Oilfield Services Co.
Ali Abdulwahab Sons & Co
CopyTech (Lebanon)
How to apply to jobs on Bayt.com 1. 2. 3. 4.
Visit our website at www.bayt.com If you are a new visitor, click on ‘Post a CV’ to create your Bayt.com CV Enter the job reference in the Search box on the homepage. Example, enter JB123456 When you view the job posting, click on “Apply to this job” and attach your Bayt.com CV.
Your CV will go directly to the employer and they will contact you if you fit their job requirements
UAE
SAUDI ARABIA
KUWAIT
OTHERS
HEAD OF MARKETING
MARKETING MANAGER
BRAND MANAGER
MARKET RESEARCH LEADER
Qualification: Degree in Business Administration Experience: 5+ years Experience Skills: Strong analytical skills Excellent brand management skills Strong interpersonal
Qualification: Degree in Marketing Experience: 5+ years Experience Skills: Proficient in MS-Office Strong interpersonal skills Excellent communication skills
Qualification: Degree in Business Management Experience: 2+ years Experience Skills: Experience in a similar role Strong leadership skills Strong command of English & Arabic
Qualification: Degree in relevant discipline Experience: 8+ years Experience Skills: Strong organizational skills Strong analytical skills Strong computer skills
Job Reference:JB1572133
Job Reference:JB1511023
Job Reference:JB1571753
Job Reference:JB1573855
MARKETING EXECUTIVE
CATEGORY MANAGER
MARKETING MANAGER
MARKETING ACCOUNT MANAGER
Qualification: Degree in Marketing Experience: 2+ years Experience Skills: Excellent communication skills Strong analytical skills Strong command of English
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Strong command of English Excellent leadership skills Excellent analytical skills
Qualification: Degree in Marketing Management Experience: 5+ year Experience Skills: Proficient in MS-Office Good communication skills Excellent command of English & Arabic
Qualification: Degree in relevant discipline Experience: 4+ year Experience Skills: Excellent communication skills Strong interpersonal skills Proficient in MS-Office
Job Reference:JB1568293
Job Reference:JB1278916
Job Reference:JB1566743
Job Reference:JB1550615
SENIOR MARKETING ASSISTANT
MARKETING SPECIALIST
MARKETING MANAGER
RESEARCH DIRECTOR
Qualification: Degree in Marketing Experience: 0-2 years Experience Skills: Excellent analytical skills Excellent command of English & Arabic Strong time management skills
Qualification: Degree in Marketing Experience: 3+ years Experience Skills: Strong command of English Strong computer skills Strong interpersonal skills
Qualification: Masters in Marketing Experience: 5+ years Experience Skills: Excellent command of English & Arabic Strong communication skills Proficient in MS-Office
Qualification: Degree in relevant discipline Experience: 8+ years Experience Skills: Strong negotiation skills Good presentation skills Excellent communication skills
Job Reference:JB1574842
Job Reference:JB1136931
Job Reference:JB1562556
Job Reference:JB1481375
BRAND MANAGEMENT OFFICER
MARKETING MANAGER
MARKETING OFFICER
BRAND MANAGER
Qualification: Degree in Marketing Experience: 5 - 8 years Experience Skills: Proficient in MS-Office Excellent command of English & Arabic Strong experience in a similar role
Qualification: Degree in Business Administration Experience: 3 - 5 years Experience Skills: Excellent command of English & Arabic Excellent presentation skills Strong analytical skills
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Proficient in MS-Office Excellent marketing skills Strong communication skills
Qualification: Degree in Marketing Experience: 3+ years Experience Skills: Proficient in MS-Office Strong motivational skills Excellent communication skills
Job Reference:JB1556560
Job Reference:JB1570613
Job Reference:JB1345738
Job Reference:JB1573504
MARKETING MANAGER
MARKETING MANAGER
BRAND MANAGER
MARKETING MANAGER
Qualification: Degree in relevant discipline Experience: 5 - 7 years Experience Skills: Effective negotiation skills Strong decision making skills Creative thinking skills
Qualification: Degree in relevant discipline Experience: 5+ years Experience Skills: Strong technical marketing skills Strong sales skills Strong negotiation skills
Qualification: Degree in Business Management Experience: 2+ years Experience Skills: Excellent command of English Strong communication skills Excellent management skills
Qualification: Degree in Marketing Experience: 2+ years Experience Skills: Strong negotiation skills Strong analytical skills Excellent communication skills
Job Reference:JB1573796
Job Reference:JB1543319
Job Reference:JB1573818
ND & Associates
Marriott Vacation Club International
Abu Dhabi University
Daman-National Health Insurance Company
IIR Middle East
Job Reference:JB1521016
SAB Holding
Kuwait food company ( Americana )
E-Government Program
Flawless Consulting
SEDCO
Ali Abdulwahab Sons & Co
The Nielsen Company (Philippines)
Al Thekair Trading & Contracting Co. W.L.L
Cinnabon, SBC& Schlotzsky's Kuwait Group
SADDA Marketing & Business Solutions(Jordan)
TNS (Egypt)
Retail Group (Lebanon)
Specialist Oilfield Services Co.
Ali Abdulwahab Sons & Co
CopyTech (Lebanon)
How to apply to jobs on Bayt.com 1. 2. 3. 4.
Visit our website at www.bayt.com If you are a new visitor, click on ‘Post a CV’ to create your Bayt.com CV Enter the job reference in the Search box on the homepage. Example, enter JB123456 When you view the job posting, click on “Apply to this job” and attach your Bayt.com CV.
Your CV will go directly to the employer and they will contact you if you fit their job requirements
DIARY
GMR EVENTS
November 2010 GCC Cards Summit Veritas Events Date: November 1-3 Venue: Mövenpick Hotel, Bahrain T: +973 3672 1700 F: +973 3886 1456 W: gulfcardssummit.com The Middle East Online Trading Summit & Awards 2010 Arabcom Group Date: November 9 and 10 Venue: Jumeirah Emirates Towers Hotel T: +971 4 321 1164 W: meotsummit.com
The GEMAS effie Mena Awards were launched to recognise and encourage effectiveness in marketing campaigns industry across the region. They combine the regional marketing effectiveness awards – the GMR Effectiveness in Marketing Awards (GEMAS) – and the internationally renowned Effies. In 2009 the GEMAS and the Effies joined forces as the GEMAS effie Mena Awards. The initiative brings a broader international dimension to the GEMAS and marketing in the Middle East, while launching the Effies into one of the most dynamic, emerging markets in the world. More than anything, the GEMAS effie Mena Awards mark a major milestone in the history of marketing in the Middle East as the sector rapidly matures to take its rightful place on the global stage. The glittering awards presentation ceremony takes place on November 4, 2010, at the Joharah Ballroom, Madinat Jumeirah, Dubai. We look forward to welcoming you there. GEMAS effie Mena Awards 2010 Venue: Madinat Jumeirah, Dubai Date: November 4 Contact: JP Nair, jp@mediaquestcorp.com.com T: +971 4 3910760
98 Gulf Marketing Review November 2010
Bahrain International Property Exhibition Bahrain Society of Engineers Date: November 11-13 Venue: Bahrain Inter Exh & Convention Ctr T: +973 178110724 W: bipex.org Abu Dhabi Chequered Flag Ball Urban Events Date: November 12 Venue: Intercontinental Abu Dhabi T: +971 4 445 6842 W: chequeredflagball.com The World in 2011 Economist Conferences Date: November 22 Location: Beach Rotana, Abu Dhabi T: +44 (0)207 576 8550 F: +44 (0)207 576 8534 W: mea.economistconferences.com The Changing Dynamics of Retail Leasing Mgmt MECSC
Date: November 22 and 23 Venue: BurJuman Arjaan by Rotana, Dubai, UAE T: +971 4 3597909 W: mecsc.org 2nd Annual Women in Leadership Naseba Date: November 23 and 24 Location: Abu Dhabi T: +971 4 367 1376 W: wilforum.com Jordan Motorshow 2010 IFP Expo Date: November 2-6 Venue: Amman Exhibitions Park T: +961 5 959111 F: +961 5 959888 W: ifpexpo.com Diyafa 2010 (5th Intl Hotel, Restaurant and Food Exhibition) IFP Expo Date: November 9-11 Venue: Doha Exhibitions Centre T: +961 5 959111 F: +961 5 959888 W: ifpexpo.com Holiday & Travel Show – Sehaya 2010 Al Hader Exhibitions & Conferences Date: November 11-13 Venue: Adnec, Abu Dhabi T: +971 2 6222733 F: +971 2 6222754 W: sehaya2010.al-hader.com Iraq Medicare 2010 IFP Expo Date: Nov 29-Dec 2 Venue: Erbil International Fair Ground T: +961 5 959111 F: +961 5 959888 W: ifpexpo.com
having options. The New BlackBerry ® Torch ™ Love chatting to your friends on BBM™. Love richer, faster browsing. Love apps that apply to you. Love creating playlists on the go. Love having two ways to type. Love being spoilt for choice.
BBM Web Apps Music Touch & Type
© 2010 Research In Motion Limited. All rights reserved. BlackBerry®, RIM®, Research In Motion® and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world.
BlacberryTorch.Gulf Marketing Review 280X215 E.indd 1
blackberry.com/ae/torch
10/14/10 6:32 PM
www.omegawatches.com
GEORGE CLOONEY’S CHOICE.
More information available at Omega Middle East, Emirates Towers, Dubai, UAE. Tel: +971 4 3300455
GC16_C283_GMR 28X21.5 CM.indd 1
10/21/10 1:11 PM