GMR SEPT 2010 pdf by MediaquestCorp.

GULF MARKETING REVIEW

SECTOR ANALYSIS MASS MEETS CLASS IN THE REGION’S PERSONAL CARE SECTOR A MediaquestCorp Publication

SEPTEMBER 2010 - NO 190

FEBRUARY 2010 SEPTEMBER 2010 - NO - NO 190 190

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BRAND CHECK WHY AL RAWABI LOST ITS BOTTLE

CLIENT SERVICING SHOW ME THE MONEY: CLIENTS VS AGENCIES

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PROFILE

Local brand hero: Creator of Mikyajy and Nayomi, KOJ’s CEO Kamal Osman Jamjoom

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SEPTEMBER 2010 – ISSUE NO. 190

NEWS

Saudi TV enters Dragon’s Den format. Bahrain’s Brainsell expands into Saudi Arabia. Riyadh’s muttawas slap down Lush activation. Al Rawabi drops new milk bottle. Al Islami launches halal authentication campaign. Management changes at OMD Cairo and more from around the region.

WORLD NEWS

Kellogg’s UK reformats for ‘healthier’ Coco Pops. Nestlé debuts in global clinical nutrition sector through Vitaflo acquisition. McDonald’s tops fast food breakfast league in US. Coca-Cola India drops Madison for UM Lodestar. South Africa’s SuperSport switches to HD for sub Saharan coverage.

NEWS PLUS

Social media analysis of reaction to the pending Blackberry bans.

CRITIQUE

Landor’s Benjamin Fujitas Summers laments the sudden passing of the ‘what-might-have-become-alocal-FMCG-icon’ Al Rawabi bovine shaped milk bottle... taken from us all too soon.

Q&A

The man behind the region’s biggest media budget, Unilever NAME’s new media director David Porter, drops some not so subtle clues on how he intends to spend it.

MEDIA

We report from Jeddah on the BPA’s efforts to promote the benefits of print auditing and talk to the Abdullatif Al-Ateeq, GMR of Al Jazirah news

paper. The recent World Cup saw social media intensify fan fervour like never before, what does that mean for brands and their planners?

COVER STORY TOP AD SPENDERS IN H1

Parc reveals the top ad spenders so far this year with a surprising new entrant in at number one.

CLIENT SERVICING

Show me the money: The contractual and empathetic bonds between client and agency have, this year, dissolved into a financial morass of debt, delayed payments and downward pressure on fees. Clients want clearer evidence of ROI while agencies say they are under increasing pressure to deliver more for less. Who’s right?

TRADING PLACES

Security concerns aside, Iraq – especially Kurdistan – continues to attract major brand’s investment.

SECTOR ANALYSIS: PERSONAL CARE

Mass-tige brands emerge as the clear winner in the battle to woo recession-weary consumers. UAE looks to a lacklustre year ahead while Saudi Arabia seems to be moving towards more niche products. Beiersdorf shares the strategy behind the launch of its teen deo range and Clarins discusses the importance of the retail environment to luxury brands. Online takes a greater role in the media strategy plus Parc ad spend and analysis while Sekari throws the spotlight on the category’s top 10 word search words in UAE and Saudi Arabia.

September 2010 Gulf Marketing Review 3

70 SECTOR ANALYSIS: PERSONAL CARE 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

MANAGING EDITOR Siobhán Adams siobhan@mediaquestcorp.com DEPUTY EDITOR Precious Jasper de Leon precious@mediaquestcorp.com

AUDITED BY ART DIRECTORS Sheela Jeevan, Alvin Cha, Aya Farhat

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

4 Gulf Marketing Review September 2010

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

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NEWS

Al Rawabi drops new milk bottle UAE Al Rawabi has withdrawn its controversial, cow-inspired shaped milk bottles, just four months after their official debut to celebrate the dairy company’s 20th anniversary. The move was due to consumer “handling” issues, especially with the larger bottles, sales & marketing supervisor Abyson Jacob, told GMR.

Turning sour: design rethink underway

Announcements about the return of the old bottle coincided with the brand’s Ramadan campaign. The cow-shaped bottles were naturally phased out as the milk gets replaced every three days. Al Rawabi is already working with Swedish branding firm Packlab Partners on a solution to the functionality issue. Packlab is the agency behind the bottle. (Please see Brand Check pages 22-23.)

$7.06 BILLION

Confectionery sales in the MENA region are expected to rise 16 per cent to $7.06 billion by 2014, says Euromonitor.

6 Gulf Marketing Review September 2010

Lush activation irks Riyadh authorities Saudi Arabia Eco-friendly, natural cosmetics maker and retailer Lush has vowed to continue its work to promote green issues in the Kingdom, despite challenges from some of Riyadh’s mutawas. Lush had activated a regional summer campaign to announce the group’s global boycott of palm oil in its products. Using instore activities including wall-painting sessions for children as well as print, the Saudi franchise aimed to educate shoppers on the importance of issues such as deforestation. But according to its Riyadhbased sales manager sales manager, Hazem Al Saati, the capital’s mutawas objected to the promotion forcing a temporary halt to the proceedings. Al Saati reports that the first day of the campaign saw many adults and children participating in instore activities, the highlight of which was covering the chain’s Faisaliyah branch glass facia in

Hands on: Hazem Al Saati at Faisaliyah’s Lush outlet

Riyadh with hand prints from soap and paint made without palm oil. Issues with the Kingdom’s religious police, however, put a temporary halt to the activity. “We’re committed to causes such as stopping the destruction of the rainforests. It seemed to Lush globally that the only way to really tackle this problem is if palm oil becomes less popular. Because so many people want to use palm oil, it simply cannot be produced in a truly

sustainable manner. In Lush in Saudi we are proud of our new formula for our palm-free soap base, which is why we want to educate consumers especially because these subjects are not discussed as much as they should be here.” Undeterred Al Saati plans to roll out additional campaigns focusing on recycling between now and the end of the year. These will be supported by an Arabic-language website as well as offers and incentives he told GMR.

Bahrain’s Brainsell opens in Riyadh Bahrain Indy creative shop, Bahrain-based Brainsell, opened a client service operation in Riyadh last month. The f ledgling agency, which launched late last year is headed Ridha Salman as CEO and regional partner, Riyadh-based Khalid Alkhudair. Clients include the Bahraini labour fund Tamkeen and Manama’s City Centre shopping mall along with Saudi companies Alturki Group,

Brainbox: Ridha Salman

King Faisal Hospital and the Saudi Professional Football League.

The agency says it will cater directly with local Saudi clients while providing creative support from Bahrain. Keeping the creative in Bahrain rather than in Saudi Arabia will have a positive impact on results, Alkhudair told GMR. “Saudi needs fresh creativity in the market to rejuvenate the ad industry,” he said. Brainsell also provides event management services.

NEWS

STV enters UK’s dragon’s den with localised format Budding entrepreneurs pitch to Kingdom’s business veterans for real investment UAE Jeddah-based Media House CE International (CEI)is in the advanced stages of production for an Arabic language adaptation of the hugely popular UK BBC 2 reality series, The Dragon’s Den. Called Al Tujjar – The Traders – the series will begin airing on Saudi TV’s STV1 sometime before Eid Al Adha in mid-November CE’s head of marketing, Wesam Kattan, told GMR. Featuring budding entrepreneurs pitching business ideas to a team of venture capitalists – the “dragons” – in the hope of securing i nvest ment s, t he show regularly draws some 3 million viewers. The “dragons” for the Saudi version are: Dr Nasir Al Tayar, founder of the Al Tayer Travel Group, and the Medina Printing Press, Al Mussafir magazine; Ahmed

POLAR OPPOSITES

8 Gulf Marketing Review September 2010

Trading formats: Al Tujjar will air on STV1 before Eid Al Adha

H. Fitaihi, founder and chairman of the Fitaihi Holding Group; Abdurrahman Al Halafi, Saudi businessman and VP of the Saudi Hand Ball Federation; Nashwa Abdulhadi Tahir, CEO of Thair Group; and Saleh Abdulla Kamil, founder of Dallah Baraka and current president of the Jeddah Chamber of Commerce.

At time of writing, Kattan was in discussion with an as yet unnamed sponsor. The initiative follows STV’s earlier success with UK reality format, The Cube. The programme features members of the public performing seemingly simple tasks in a large Perspex cube within a 10-second time frame while filming picks up the

intense pressure they feel as each test unfolds. “We were very happy with our first experience last March when we launched The Cube, which became the highest rated show on Saudi TV in the last three years,” said Kattan. “If everything goes to plan with Al Tujjar, we should expect similar results. For the first time the audience will a see a one-to-one interaction between the older generation of businessmen and women and the ones that are up and coming. It should be interesting to watch.” According to Wikipedia, Dragon’s Den originated in Japan, where the format is owned by Sony.

Wesam Kattan CEI’s head of marketing

Canon Europe and the WWF have launched an online competition for children in the Middle East, giving them the opportunity to name a real polar bear. The dual language WWF-Canon Kids’ Zone website helps inform children about climate change and how they can reduce their impact on the environment. As part of its conservation partnership with WWF, Canon supports WWF’s Artic Polar Bear Tracker programme. Radio collars are used to track their movements which helps the WWF to understand how they travel.

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NEWS

Al Islami launches new ‘real’ halal awareness drive Muta’aked campaign re-assuring consumers of halal provenance runs ‘till year end GCC Halal food company Al Islami is running campaign for the rest of year encouraging consumers to question whether some brands are “Real Halal” products, GMR can reveal. The Muta’aked campaign communicates the value of halal to consumers by posing the question “Are you sure? (about Real Halal)” across all of its marketing collateral, including TVCs, online, PoS and radio. Marketing budget for the campaign is up to $545,000. The development of the campaign is a collaboration between an in-house team and Publicis Graphics. Complementing the are stickers with the statement

Keepin’ it real: Al Islami’s halal authentication campaign

“Akeed!” (Arabic for “for sure”) will be placed on all the company’s products. Al Islami is hoping that term will eventually become synonymous with Al Islami as a leading “Real Halal” brand. The campaign is running across UAE, Bahrain, Kuwait, Oman and Qatar.

When asked about losing campaign impact in a region where consumers assume everything is halal, especially with food, an Al Islami representative said, “By law, all products have to be processed in the Halal method. But all are not real halal. Most companies use ‘stun-

ning’ (machine slaughter), which is not the Islamic way of slaughtering. Slaughter by hand, by a Muslim, facing Qibla, reciting Tasmiyah (Allahu Akbar); chicken that’s bred with natural feed and business run by Islamic investment are all “Real Halal” that Al Islami practices. There are no global halal accreditation standards that are set in place yet. However, the members of the World Halal Forum (WHF) have been working on finalising one since 2008. Batches of modules for International Halal Standards are being released into the public for review since 2009. The last batch was released during the WHF 2010 in June.

Koukjian takes new media direction at OMD Cairo Egypt Omnicom Media Group (OMG) owned OMD Cairo has announced a new management team. Media veteran of 15 years Ronald Koukjian is named general manager of Media Direction OMD Cairo succeeding Wassim Hmaidan who returns to OMD in Dubai in another management role said OMG. Koukjian has worked at MCN company Initiative Media where in Cairo while opening and managing the network’s operations in Algeria and Tunisia according. He also worked at MCN’S

Pyramid-selling: Ronald Koukjian

10 Gulf Marketing Review September 2010

UM office in Dubai as head aof trade and new business. Previously he held senior sales positions at Abu Dhabi Media Company and CNBC Arabiya. He is joined by Passent

Hamed as deputy GM. Hamed brings 10 years of experience at Procter & Gamble including media management in Egypt, the Levant and Iraq, as well as overlooking its research functiom. In relate news OMG has expanded its two year old social media unit from one man to an eight-strong team. The unit specialises in sustainable projects that it maintains over a long period of time, such as UAE telco brand’s Twitter account @ dutweets and PepsiCo’s online community, which is currently at 175,000 users.

The team currently handles up to 20 active accounts, including WWF, ADMC and Wrigley’s (Aqua Chase campaign). At time of writing, OMG’s accounts collectively have 437,106 fans and 83,179 interactions across all the running campaigns. OMG declined to list the team members but confirmed that the Social Media team runs as a separate unit within OMG’s Digital unit “under the guidance” of Dimitri Metaxas, regional executive director – digital and Jassim A li, regional director for digital development.

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NEWS

UAE Media firm UM Dubai has launched Lighthouse, a strategic arm dedicated to developing insights and ‘ideation’ for UM employees. The unit will offer communications solutions “that improve current planning; help produce greater and clearer strategies; and facilitate insight generation,” according to a UM statement. Heading the unit is Denh Dip, who recently moved to Dubai from UM EMEA in London to be Lighthouse director. Lighthouse launched last month with a 2-day workshop in the summer that included case studies, introduction of new proprietary tools and training on Curiousity (UM’s global process). “Ideation” sessions will also be offered to generate creativity. Currently held in UAE, sessions are planned to cover Egypt, Levant and across the GCC by next year.

Need for Islamic mobile content rises Third annual consumer Ramadan survey cites rise in demand Saudi Arabia A majority 75 per cent (up from 73 per cent last year) said they are keen to receive Islamic content on their mobile phones during the month of Ramadan, according to Yahoo! Maktoob. Dua’s, prayer times and Holy Qur’an are the most preferred content choices. This is the third consecutive year that the research firm has conducted a Middle East-wide survey on attitudes and perceptions of people during Ramadan. It discusses traditions and practices; how people perceive Ramadan; and how these perceptions change each year. Interestingly, the survey also found that the number of Muslim Arabs observing the Ramadan fast this year is down 2 per cent from last year’s 98 per cent, according to a Yahoo! Maktoob. In addition, 87 per cent

DRIVE TIME

12 Gulf Marketing Review September 2010

UM lights the way to ‘ideation’

Time for change: Duas and prayer timings are among the most preferred features

preferred to celebrate Iftar with family at home, while the rest preferred to break the fast with friends. Meanwhile, 56 per cent relied on the call to prayer for Ramadan timings while 9 per cent relied on Mosques. Other sources were TV, newspapers, internet and radio. When it came to ways of determining the start of

the Holy Month, 62 per cent favoured the time-honoured tradition of moon-sighting by the naked eye, while 49 per cent approved of declaration by scholars. The survey was conducted in July across 1,446 adult Muslims from across the Arab world, 36-45 years, in the GCC, Egypt, Jordan, Lebanon and Morocco.

MENA McLaren Automotive has signed exclusive dealers in Kuwait and Qatar, putting its global network of partners to 37. Ali Alghanim & Sons Automotive in Kuwait and Dana Motors in Qatar will represent the UK-based sports car company, in a full sales and service capacity, starting with its first car, the MP4-12C (pictured). The company is set to announce the name of its Bahraini dealer after Ramadan, completing its Middle East network. McLaren Automotive also recently announced its dealers in Saudi Arabia and the UAE – Al Ghassan Motors and Al Habtoor Motors respectively – as well as its local partner in Lebanon, Saad & Trad. The MP4-12C, is expected to enter the region in early summer 2011. Globally, the car has received more than 2,700 expressions of interest on its website, exceeding expectations of selling 1,000 units worldwide in the first year. Up to 20 per cent of this production run is set to come to the Middle East. The company plans to introduce a full range of highperformance, two-seat, mid-engine sports cars. The aim then is to sell around 4,000 cars annually by the middle of the decade, said the firm.

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NEWS

LG opens $15m Learning Centre UAE LG Electronics MEA has opened a new training facility in Dubai’s Jebel Ali Free Zone. The $15 million purposebuilt, three storey, 120,760 square feet training facility is the company’s sixth Learning Centre in the world, and represents a major step forward in the development of industry standards in the Middle East, says LG.

Toshiba’s $1.3 million ‘Masterpiece’ MENA Toshiba Computer Systems Division has unveiled its latest TVC ‘Masterpiece’. The company is spending $1.3 million across the MENA region although the campaign – created by Toshiba agency Octopus – will also roll out across CIS, Africa and Turkey. Selected channels include B B C , M B C , O S N , S o n y, Zee, Al Jazeera, NDTV and Star TV. The creative places a laptop within some of the world’s most famous paintings and sculptures, as well as other artistic displays including the creation of Samurai swords and the art of Bonsai. The ad communicates the importance of inspiration,

Artful: Toshiba’s new campaign drraws on famous paintings

innovation and craftsmanship in delivering a true masterpiece said a company press release. The integrated ‘Masterpiece’ campaign includes television, press, online, tactical and POS

in support of its channel partners across the region along with the recent Masterpiece Exhibition Tour, in Dubai, Istanbul, Beirut, Johannesburg and Nairobi.

Taking lessons: LG learning centre

“At LG, we seek to inspire our colleagues and partners to achieve the best of their potential and with a dedicated Learning Centre in the Middle East we will help them achieve that more efficiently than before,” said KW. Kim, CEO LG Electronics MEA. At full capacity the centre can facilitate up to 175 people and projected to train 3,0005,000 people a year. “This new centre will help to bring best practice training and international standards to all our partners and employees enhancing leadership skills and raising the levels of knowledge and customer service across the region,” he added. Earlier this year LG opened a new 33,000 square feet regional office, again in Dubai.

Kaif lands as new brand ambassador

Take off: Left to right: Andrew Ward - Etihad Airways VP marketing, Katrina Kaif, Neerja Bhatia - Etihad Airways country manager India

UAE Etihad Airways has signed Indian actress Katrina Kaif as its latest brand ambassador. The UAE’s national carrier said that it will work on a series of initiatives to promote the airline across India while addressing the Indian communities in key markets such as the UAE, the USA and the UK.

14 Gulf Marketing Review September 2010

An internet video of Kaif dancing in the First class lounge in Abu Dhabi directed by award winning director Farah Khan is running on YouTube and various social networking sites as part of the campaign. Etihad has been servicing India since its inaugural

Mumbai flight in 2004. Today it flies to seven cities, the latest being Hyderabad which it added in 2009 bringing the number of flights to 45 a week. Passenger loads average at 80-85 per cent throughout the year the airline told GMR. Strings from Pakistan is its other brand ambassador.

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4/27/10

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WORLD NEWS

Gen Y are fast food breakfast diners USA McDonald’s is the top fast food breakfast outlet in the US, according to Scarborough Research. Findings reveal that 37 per cent of adults ate breakfast at fast food diners during the past month, with 46 per cent of them opting for McDonald’s and 19 per cent for Dunkin’ Donuts and Starbucks. Burger King lagged behind at 12 per cent.

Lovin’ it: McDonald’s tops diners’ choice

Among those who regularly eat fast food breakfast, 16 per cent are likely to be 18-29-year-olds (Gen Y), college-educated adults who live in households with annual incomes of more than $100,000. They are also 13 per cent more likely to be African American and 11 per cent more likely to be Hispanic. Quick service breakfast diners are also heavy internet users and are 18 per cent more likely than the average adult to: spend more than 20 hours online a week; engage in social networking; 21 per cent more likely to blog; 22 per cent more likely to have downloaded an online coupon; and 29 per cent more likely to receive coupons via email or text message.

$4.7m drives ‘healthier’ Coco Pops New low sugar, high fibre variant launched UK The Kellogg Company UK has succumbed to pressure from parents and the Food Standards Agency (FSA) to reduce the sugar and salt content of its kids’ cereal brand Coco Pops. By mid-2011, the cereal giant will have cut the sugar content by 15 per cent, reduced salt and added vitamin D. The sugar will be replaced with starch from grains and glucose syrup; no artificial sweeteners will be used, said the company. The company has also launched Coco Pops Choc N’ Roll, which it describes as a lower salt, lower sugar, low saturated fat, high fibre wholegrain and fortified chocolate cereal. A $4.7 million advertising campaign targeting mums supported the launch. The initiatives are part of an ongoing programme to improve the nutrition profile

Sweet endings: Coco Pops will reduce sugar content by 15 per cent by mid-2011

of the entire Coco Pops cereal line, said a press release, adding that it aims to further reduce the sugar content in Coco Pops if they pass consumer taste tests. “We’ve listened to what mums have been saying and we’re responding. They want a balance: lower sugar cere-

als that children will still eat,” said Greg Peterson, Kellogg UK managing director. Britons eat 29 million boxes of Kellogg’s Coco Pops cereal each year and 40 per cent of UK households with children have Coco Pops in their kitchen cupboard, Kellogg’s added.

Nestlé buys into clinical nutrition sector Switzerland/UK Nestlé SA has entered the global clinical nutrition sector through the acquisition of UK company Vitaflo, which specialises in food production for people with Inherited Metabolic Disorder Foods and Disease Related Malnutrition. Financials were not disclosed although Vitaflo posted double-digit growth of 30 per cent in the last three years, and generates annual sales of $38 million, said Nestlé.

16 Gulf Marketing Review September 2010

Nestling in: Nestlé enters new markets

Vitaflo’s target market consists of those with genetic disorders, which affect how

food is processed by the body. An estimated one in 2,500 to 50,000 babies are born with such problems, which persist into adulthood, Nestlé said. In separate but related news, Nestlé has acquired the majority stakeholding in Guatemalan powdered beverages firm Malher, which has two factories, four distribution centres and is present in other Central American countries, the Caribbean and North America.

WORLD NEWS

Halalfire spreads the marketing word Ready-to-eat gourmet brand and promotional coupons debut USA Austin-based media and consulting firm Halalfire will provide marketing data, research and promotion for a new range of ready-to-eat Halal meals from Connecticut company American Halal. The range, Saffron Road, is expected to go into national distribution by yearend. Halalfire’s iPhone app, which has been downloaded more than 30,000 times to date, will provide additional insight on the location and frequency of demand for Halal food, said a joint statement. Halalfire will also distribute mobile coupons for American Halal products and create promotions tailored to Muslim American consumers. “The decision to have Halalfire help with this crucial product launch was a no-

Ready, aim...: American Halal’s venture with Halalfire targets growing Halal market

brainer,” said Adnan Durrani, chief halal officer, American Halal. “The hard market data and access to American Muslim consumers that Halalfire provides can’t be found anywhere else, at any price.” American Halal markets natural, Halal-certified food under the Saffron Road brand targeting select natural, specialty, and gourmet retail channels across the US. Halalfire was founded in Silicon Valley in 1998 to cre-

ate online content that targeting Muslim communities in the West. Traffic exceeds 36 million page views a year which has been growing by 50 per cent a year for much of the past decade, says the company. “Halalfire is uniquely situated to provide innovative analysis and marketing expertise for a misunderstood and often misrepresented segment of the global consumer market,” said founder Shahed Amanullah.

Coca-Cola India opts for Lodestar UM India The hotly contested media pitch for Coca-Cola India’s account has ended in victory for Lodestar Universal McCann. Lodestar’s appointment as media AOR ends the 11-year relationship with previous incumbent Madison Media. The account is reputeduly worth $44 million and covers the Coca-Cola Company’s brands across the board. Other agencies in the fray included Starcom Worldwide, Carat, TME and Madison. A spokesman for the CSD giant said: “Coca-Cola India,

Starring role: Lodestar UM takes over Madison Media as Coca-Cola’s AOR

as part of a global process, has been looking at optimising its marketing capabilities.

18 Gulf Marketing Review September 2010

“As part of this process, the company conducted an evaluation of leading media agencies to see which one could provide integrated communication planning, media execution, strategic analysis and media tracking capabilities for its entire portfolio of beverages. “This had become all the more necessary with the rapidly evolving media landscape in the country.” Late last year Coca-Cola Middle East awarded its regional media account to UM7.

SuperSport turns into HD for SA South Africa Johannesburgbased SuperSport channel has begun airing the English Premier League (EPL) in High Definition. The channel is broadcasting the league 24 hours a day across sub-Saharan Africa with live commentary in English and Portuguese as part of a three-year deal. SuperSport will offer the EPL HD 24 hours per day and will broadcast across subSaharan Africa excluding Africa, with live commentary in English and Portuguese. “South Africa will be one of the very first countries to receive the 24-hour channel,” said Imtiaz Patel, CEO of SuperSport. “HD is the way to go for sports viewing and we are delighted to be leading the way with our partners in England.” Apart from eight live matches a week, there will be four weekly magazine shows, 400 classic matches, plus a review of the past decade and the best goals from the past 10 seasons. In addition, there will be a Fan Zone to field international calls, daily news shows and a news ticker on non-live. Programming will continue in the 12-week off-season.

$153 BILLION Consumers are forecast to spend $153 billion on wellness foods and beverages 2009-2010: Euromonitor International.

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NEWS PLUS

FEELING DISCONNECTED

GMR Exclusive: Report reveals consumers’ reaction to the pending BlackBerry ban in the UAE and Saudi Arabia.

20 Gulf Marketing Review September 2010

more than 11,000 online messages from August 1 to 6. It was compiled from various discussions, blogs, Twitter and news websites. While users agreed security could be an issue, most were hesitant about switching to other devices. Some users referred to the ban as a “threat”, while others said it was a rumour, despite statements from the UAE Telecommunications Regulatory Authority and telcos in the country. Most people were, however, sharing news and update links about the ban. The chatter increased along with news coverage. The last update was Saudi Arabia imposing a fine on telcos

providing BlackBerry services after August 6. Besides talk of switching to other phones and statements against the ban, there were also other discussions. Some saw a pattern in the way BlackBerry services were being banned in the region. Various theories were mooted: One person said the ban was a result of a protest being planned via BlackBerry against rising fuel prices. At the height of the buzz, a spoof news story went viral on several social network platforms, titled “Gulf states order BB users to cover their phones with a tiny burqa.” The number of posts fell significantly

WITHIN A week of the announcement that BlackBerry services were to be suspended in the UAE and Saudi Arabia, 1.8 per cent of total online conversations in the two countries showed “loss of intent” in continuing the use of the product, according to an online media report from Clique Media. This was evident among users talking about “selling”, “trashing” or “recycling” their devices. But 2.96 per cent of the conversations showed a strong emotional connection to BlackBerry, reflecting high brand preference. The report, titled Blackberry Ban: Initial Buzz, provides an analysis of

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TI-1 GMR 28x21.5 cm Sep 10

NEWS PLUS

A TECH NATION DIVIDED? Two in five residents (41 per cent) in the UAE support the BlackBerry service ban while 25 per cent are opposed, according to a YouGov Siraj Omnibus poll last month. Opposition to the ban is particularly strong among Western expatriates, with 60 per cent expressing opposition to the move. The poll also found that 47 per cent think BlackBerry makers Research in Motion (RIM) and the Telecommunications Regulatory Authority (TRA) should find a compromise to avoid disruption of in October. (At time of writing Yousef Al Otaiba, the UAE ambassador to the US reported positive talks between RIM and the UAE goverment and was hopeful of a resolution before the October deadline.) More than a third (37 per cent) think RIM should act immediately to comply with the TRA’s requirements while only 15 per cent think RIM should stand its ground and make no changes. The latter doubles among Westerners, at 33 per cent. Of the 750 residents that were polled during August 3-8, 184 are current BlackBerry users. The study also found out that 66 per cent think the cut off is likely to go ahead. At 80 per cent Arab expats are twice as likely as Westerners to believe the ban will occur. Overall, 34 per cent of current users plan to continue using the device without the banned services and applications if the ban goes ahead while 8 per cent said they would switch to another smartphone with similar capabilities. “Overall, the survey uncovers a largely divided public opinion on the issue with the largest proportion of consumers hoping a compromise can be found which will avoid the planned service disruptions,” says Scott Booth, research manager, YouGov Siraj. “The population seems to grasp that there is a legitimate desire on behalf of the TRA to eliminate security concerns posed by the service. At the same time, many consumers fear being left with an expensive paperweight if their service is cut off.”

22 Gulf Marketing Review September 2010

on August 6, when the last update was sent out. What conversations remain are those of users considering switching to other models, particularly the iPhone. “A majority of the conversation came from Twitter, where users discussed the ban endlessly, from both local and international perspective” said Ashwin Salian, director, Clique Social. “Twitter users showed the most exaggerated reactions. One user even compared the ban to the floods in Pakistan.” Of the 11,615 conversations monitored, 95 per cent were on Twitter, two per cent each on discussion boards and blogs, and one per cent on news websites. Parents of teens and iPhone loyalists were happy with the ban.

AUDIENCE ENGAGEMENT

11,615

AWARENESS OF BAN ‘UAE Provider decides to ban Blackberry services from October 11.’ In a country where one out of every four people has at least one Blackberry phone, this was nothing short of a shocking announcement.

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BRAND PREFERENCE (2.96%) Nooooo :’( poor thing! Haha I’m so scared of that!RT @Sarahbrown_: Ahhh just dropped my BB:( scratches everywere noooo I still love you.

LOSS INTENT (1.8%) It’s not berry popular now - http://bit.ly/cMKrxu via @addthis don’t bin that BlackBerry - recycle for cash www.cashformobiles.me”

EMOTIONAL CONTEXT

SURROUNDING ACTIONS

556

110

186

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GOOD (KEYWORDS: NICE, GREAT, AWESOME) The new #blackberry torch 9800 looks awesome, just like the form factor of Palm Pre with awesome blackberry keyboard LOVE Me too, but I am still keeping my fingers cross & being optimistic RT @Dubai_Ladies: I love my BB but sick of talking about #BBBan HATE (KEYWORDS: STUPID, CONCERNED, SAD) Although I hate the blackberry device and couldn’t figure it out, stopping the service this way is totally WRONG

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SECURITY (KEYWORD: LOYALTY) @carlento RIM: your BlackBerry data is secure, even from governments http://goo.gl/fb/fXWxL

MONITOR RT @REUTERSFLASH: Research In Motion agrees to allow Indian security agencies to monitor Blackberry services – Economic Times ORDER Ha ha haa... “Gulf states order BB users to cover their phones with a tiny burqa” http://bit.ly/9IUo3I USE @Mss_teemah @Usi14 dnt thnk thy will, 500,000 ppl in uae use bb, and its the highest income the market is makin now, Dubai depends on wht? $

1230

BAN (KEYWORDS: BLOCK, SUSPEND) BlackBerry ban includes roaming http://bit.ly/dxINgA

Source: Clique Media

Parents of teens and iPhone loyalists were happy with the ban. Bankers and corporate executives dependent on BlackBerrys were among the most affected. Interestingly, there was also talk that the ban would help many people break their BlackBerry addiction and improve their personal lives. In the middle of August, makers Research in Motion (RIM) also launched the Blackberry Torch, and some Web users in the region moaned that they would not be able to own the device. The launch, however, also led to positive conversations about the brand, with many remaining hopeful the situ-

ation would be resolved by October 11. Comparisons to the iPhone, loyalty towards BlackBerry and the launch and review of Torch were among the most common topics of discussion during the week. There were four major emotions evident in the discussions: Good, Love, Security and Hate. Positive comments about the device, particularly fuelled by the launch of Torch, fell under the Good and Love category. Statements under Hate covered feelings against the ban, while those under Security showed loyalty towards RIM

and appreciation of its decision not to share its customers’ personal information with governments. The UAE said on August 1 that it would suspend BlackBerry services with effect from October 11. This was followed by pressure from Saudi Arabia on RIM to allow access to messages sent through its devices. There are reportedly around 500,000 and 400,000 BlackBerry users in the UAE and Saudi Arabia, respectively.n

Ashwin Salian director Clique Media

September 2010 Gulf Marketing Review 23

CRITIQUE

TOO TOUGH TO HANDLE

Al Rawabi’s bovine-inspired milk bottle may have turned consumers a little sour, but it raised the bar for regional design. IT’S FAIRLY regular for a new piece of packaging to provoke a debate in the Landor studio. However, these are generally concerning subtle nuances that consumers may not be consciously aware of, even if they are helping create a purchase decision. I expect 10 minutes by the water cooler every so often animatedly discussing the system merits of a particular product range. What can I say – we have no gossip. What I wasn’t expecting four months ago on a trip to Spinneys was a debate on product design first in the chiller aisle,

24 Gulf Marketing Review September 2010

and then again with the checkout girl. Causing the commotion was the recently launched Al Rawabi milk bottle. The last time I remember talking this much about milk was in the 1980s, when the first milk tetrapacks were adopted in the UK – the ones that could only be LESS IS ‘MOORE’ Rating: Benjamin FujitaSummers, design director, Brand Environments, Landor

opened with a sledgehammer. For its 20th anniversary, Al Rawabi created a new bottle, a genre-defying design with an organic familiarity, inspired by the shape of a cow (really?) in which, for once, pure aesthetics won against pure practicality. It’s not that the bottle didn’t work – it did, but just not as easily or, necessarily, how you’d think. On the shelf, the front face used traditional bottle shaped cues, with softer lines reminiscent of the iconic Coke bottle. But it was the side profile that polarised opinion and also tempted supermarkets to stack it sideways.

ATTENTION GRABBING OLD

… it was certainly an innovative design for this region, which usually likes to play safe when it comes to mass market products. Personally, I was immediately drawn to its Henry Moore-like quality. It was adorned with a peculiar central thumb/finger hole (I never officially nominated a digit), which invited you to pick it up – that is if you, like me, had big hands and didn’t have to resort to an eight-year-old’s “double-handed bottle grip”. What Al Rawabi had created was not just a system, but differentiation within its sector. As a packaging design it was certainly an innovative one for this region, which usually likes to play safe when it comes to mass market products. The design was also a potential icon

for its brand and the dairy sector as a whole. Most importantly, it had that rare thing in FMCGs: Immense character – and it was this that allowed me to forgive its peculiarities. Al Rawabi, however, has withdrawn the bottle for the time being to tweak the design once again. I just hope that when it returns it does so with the same amount of personality as before. This is the bottle I want to see at the breakfast table. Obviously, I don’t mind having breakfast with Joan “reinvented and totally plastic” Rivers. Now there’s some gossip. n

NEW

Al Rawabi celebrated its 20th anniversary with the launch of new products and a revamp of its milk bottle. The concept behind the new packaging was not just appearance-focused – it had been conceptualised keeping in mind various functional aspects, said the company. Designed with the brand philosophy of “Pure freshness quality everyday”, the bottle offered “a more stable grip, giving customers the option of using just one hand to effortlessly handle even the large two-litre ones”, it said. “Created by Swedish branding firm Packlab Partners, the bottle allowed for a more universal approach to pouring with two hands that would suit people of all abilities and ages. The innovation and flexibility behind the design concept allows everyone to have their own personal way of using the bottle.” (Editor’s note: Well clearly that didn’t happen, but Al Rawabi still deserves full credit for its bravery in breaking the regional design mould.)

September 2010 Gulf Marketing Review 25

Q&A

FAST MOVING CONSUMER MEDIA

In his first major interview since being handed the region’s largest media budget, Unilever NAME’s new media director David Porter talks us through his top priorities… which don’t seem to include much print.

A MEDIA veteran of 25 years, UK national David Porter has worked for a number of full-service and media agencies, including Yellowhammer and MediaCom, where he was director responsible for Volkswagen, Shell’s global corporate affairs team and Mars’ European communications strategy. In 2004 he moved to Singapore with Mindshare as managing partner responsible for Unilever, Asia AMET. He switched completely to the client side when he joined Unilever NAME in May 2010. Let’s begin by looking at the media planning model you use for the Middle East. We work with Magna across the whole region. That was reconfirmed recently in the global pitch. In Mashreq and Maghreb it is a classic full media serv-

26 Gulf Marketing Review September 2010

ice one. In the GCC, the agency works with us locally and coordinates across the region for us. And the point of difference here is that the actual trading with the media owners is dealt directly by us inhouse. It’s one of the few places in the world where we actually have an inhouse media department rather than a small core team that manages the agency relationship. What is the advantage of that? Well, since I have been here I’ve heard very little – outside of here – other than what seems to be a long-term conversation about transparency, about accountability and measurement, and this approach simply improves our ability to achieve as much transparency as is possible in the current industry set-up.

So you have closer control on the money? Yes. It removes the conflicts of interests that people have brought up in other parts of the industry. Such as? Well, simply that it gives us absolute control over that spending, and over the choice of suppliers and media owners with whom we trade and the extent to which we trade. You mentioned transparency, so we may as well cut to the chase. MENA is not known for being the most transparent region. I know you have only been here for six weeks [at time of writing], but what are your impressions? To some extent we’re removed because the business is inhouse, so we have very stringent audit policy ourselves internally.

So we regularly audit our own processes. We regularly run very professional financial audits as well. In that regard we can trade with a lot more confidence. For me the real purpose of media auditors, certainly in wellresearched markets, is not to establish whether the buyers were bought, but whether the money has been spent in the best possible way. In the past – going back 20 years – wherever we’ve worked we’ve actually enjoyed very good relationship with auditors, because they are offering a third opinion and guidance as to how we can improve things. It would be fantastic if at some point in the next few years we can get that kind of level of service into Middle East, but at the moment the focus of most audit companies would be on verifying that the buys take place in the way they were intended. And I certainly think we need to move that on, so it’s more about raising the general quality of planning. But can you plan effectively without the information that audits provide? You plan as well as you can with the tools available to you in any market. And they vary tremendously, and that’s not an issue that’s unique to the Middle East. So, for example, in other markets where there are media dark areas, where audience research and things like that aren’t available industry-wide, our agencies commission their own research. So yes, you can plan effectively. You may need occasionally to take steps on your own or to find more creative solutions to the absence of information, but it can be done.

…our real focus will be on achieving an industry standard and a level of accuracy in audience measurement on TV… be a genuine willingness to move that way. All the conversations I’ve heard so far about circulations audits, TV audience data… everybody certainly seems keen to see an improvement and greater transparency. Then, almost to a man or woman, they then throw up a long list of reasons as to why it’s not going to happen in their or their children’s lifetime. How? A few years ago CASTOR declared an amnesty for unaudited titles to get their house in order, otherwise it would be harder to get onto the plan. But it never really happened, especially among Arabic language titles. Quite frankly, the issue of circulation auditing is probably of a lot more interest to you than it is to me, in the sense that this isn’t a region with huge, huge readership levels for a lot of consumer magazines, from what we can see, and so it’s really incumbent on publishers to make their case.

So it’s down to the publishers? To a very large extent, yes – particularly in the FMCG sector. If there’s a desire to attract that revenue, then they need to make the strongest pitch possible, and being able to demonstrate exactly how many copies you produce and how many readers you have is a vital part of that. Our real focus will be on achieving an industry standard and a level of accuracy in audience measurement on TV and in the new digital world, as that develops. As you know the people meters installation has still not happened, although in the UAE we are getting a step closer. But it’s widely held, however, that by the time all this happens – especially in Saudi Arabia – the technology will be obsolete. What do you think? That’s a good point. If it takes a generation to do this there’s every chance that that generation will be watching an awful lot of their TV streamed on the internet, in

September 2010 Gulf Marketing Review 27

Would you counsel your team to choose audited titles over non-audited. Oh, I see. In terms of things like verified circulations? We’d certainly encourage it. I am not going to say that we will never use a non-audited title, but I think it’s certainly incumbent on us, as the biggest advertiser in the region, to encourage a raising of standards. And there seems to

Lucrative segment: Many major FMCG brands are increasingly focusing on male category NPD

Q&A

But if there is an unaudited title that reaches your target then you would have to use it, you wouldn’t have the choice. That argument can only be made for certain titles in niche categories, but in the big picture, as a rule, industry money follows accurate numbers.

Full circle: 360 strategies call for a greater convergence of marketing roles

which case it will be academic because we will have second-by-second ratings from unimpeachable, third party sources that can be based anywhere on the planet. That said, there are some fairly big names weighing in on this: One by AT Kearney suggesting that TV ad revenues could increase by $2 billion as a result of people meters; at the same time a Saudi official suggesting that a move towards privatisation of TV channels could be a good thing for them. Those kinds of developments, if there were more of them, could create an impetus to get this moving. We’ll see. There is some dispute about the AT Kearney theory. I’m sure there’ll always be disputes, but the more voices there are adding credence to the argument, the better.

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DIGITAL SPACE

Stepchange: Unilever’s CMO Keith Weed

I say that because that was the original print audit argument, but it didn’t prove to be the case so some may think that it wouldn’t nec-

essarily to be the case with TV either. At its most fundamental level, I think it is the case for TV and for print as well. There will always be markets where certain categories, perhaps like property, will boom and media owners will benefit from that in the short term. But in the long term, money that comes from FMCG and from some other categories will follow the strongest case that can be made by the media owners, and that does need supplier verification. There’ll always be exceptions, but if we look at it over time audited and accountable media do benefit.

Your CMO Keith Weed said he wants to increase digital from 4 per cent of Unilever’s measured media spend of $864 million (source: Kantar Media) to 20 per cent in some markets. Will you follow suit? We’ve seen a real stepchange in the senior global management of Unilever in terms of the importance that it rightly places on digital. Recently, the global leadership of our media function took our senior management to Silicon Valley, where they met with a number of industry leaders and really got a much crisper vision of what the future holds. And I think we’ll see that change in Unilever around the world. The pace of that change and the absolute direction of it will vary market by market. I say that because the rate of growth in digital channels is not consistent marketby-market. It’s not like we’re on the same path as Europe was 10 years ago. We may choose a very different path, and that’s very largely consumer-led. So for example, in the West most young people’s first contact with the internet came on a PC. Most young Asians and Middle Eastern consumers’ first experience of digital media was through their mobiles. So this isn’t a question of following a blueprint from other parts of the world, but of charting our own course. But there is no doubt that the consumer will accelerate change both in behaviour but, more importantly for me, in how we spend our money. This doesn’t have to mean changing from traditional to the new media because, in the end, digital simply becomes a distribution channel for content and that content can come from the old media world as [well as] the new.

Q&A

Have you noticed any emergent trends that would reshape media strategy? Yes, it comes back to the digital argument. As broadband, in particular, whether it’s mobile or at home, develops in a market, it can have a dramatic effect on the way consumers consume media. Particularly when you get to the stage of always-on broadband. More and more in Asia we’ve seen mobile phone packages that make that a real possibility. The big issue I see here is the absolute cost of entry. The consumer price points are relatively high. And as the price of broadband comes down I think we’ll see consumption rocket and grow exponentially.

Totally transparent: The Middle East is a media dark area regarding data and research, says Porter

… frankly the issue of circulation auditing is probably of more interest to you than to me There’s no reason why search needs to be bought here. Those trades can be done anywhere on the planet. But certainly that’s at the front of my mission here, to develop digital spending in a way that reflects what consumers in this market are doing and in a way that drives success for our brands.

Would you consider appointing a digital media specialist? I wouldn’t rule it out, but at this stage it’s more about developing marketing plans that embrace digital channels. We have relationships with digital specialists through our creative agencies in any case. And we have capability inhouse. One of the great strengths of a lot of the digital work we do is that it doesn’t’ always have to be sourced inmarket. We don’t have to have the entire supply chain for this based in Dubai, so we’ll see that evolve over time.

I was surprised when I read that 4 per cent figure. Isn’t that quite low? No. I don’t think it’s a standout number when you look at the whole of the FMCG category. I think we’ve been pretty competitive and ahead of the game in a lot of markets, certainly in the developing world. We’d all like to see that increase but it’s a relatively strong position for an FMCG advertiser globally. And, of course, it’s far, far higher in the most mature digital markets. But expect to see that number change significantly.

30 Gulf Marketing Review September 2010

Afforability? Yes. And once we have that then we’ve really got a viewer’s and an advertiser’s nirvana. The viewer gets a huge choice and it gives us opportunities to move from broadcast to more addressable campaigns, so we can be much more specific about serving messages to consumers that they want to receive. And, of course, with digital we’ve got a great opportunity to build closer relationships with them through social media.

I’m loath to talk about it as a channel in its own right like TV or newspapers. It’s a means of distributing content in a more modern environment, so we’ll be buying our TV airtime online, for example. Some of that change in spending pattern will happen organically as media owners change the way they distribute content.

Is that based on your experience in Singapore? As a local market, Singapore is almost entirely digital now. Technically it’s possible to reach 90 per cent of the population there in a week on the internet, which is the kind of number you would expect in a heavy, heavy TV campaign in most markets. So I hope the phone operators and ISP will open up the markets in terms of pricing and when that happens, it will have a dramatic effect. Not just in terms of ad dollars, but with always-on broadband. For example, we’ll see a huge increase in streaming video and a shift in the way that people watch TV. I’m not just talking about YouTube but sites like the BBC iPlayer, which become an alternative to watching traditional TV. That’s the big, big change that we see coming, but it’s all down to price.

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Q&A

the kind of relationship they want with our brands and reflecting that in how you serve content. So it may be true that there aren’t many 19-year-old men who want to have a close, personable relationship with a detergent through Facebook, and we’re not going to give them that. But giving them the Axe Wakeup call service, for example – then we are actually fulfilling a need. We’re entertaining them. We’re engaging with them and giving them something they will be keen to share with their friends, which is really what this is all about. It’s about advocacy and having fans for brands. It’s about tailoring it to the needs of our consumers. And there are enough brands with enough opportunities to keep us busy for the next few years. Activation: Brands are no longer just pushing messages at consumers, but engaging them

We’re moving away on online from click-towin to always-on campaigns…

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run in the Middle East, but I see a lot of that work happening in retail because we have an awful lot of retail square footage, I guess. [Laughs.] I think you’ve written about that recently. Yes, we did. The difference I’ve noticed in my five years here is that it’s evolved from being mostly tactical, discount promotions instore much more to brand engagement. That‘s a shift we’re seeing in all the 360-degree work, whether it’s online or instore. We’re moving away on online from click-to-win to always-on campaigns, and to actually building relationships with consumers rather than just giving them a short-term offer. I think that’s much harder for FMCG than other categories because they can often be a low involvement purchase. It can be harder. I think we need to be more grounded and sensible about understanding the consumer and understanding

According to IPSOS’ rate card, Unilever NAME spent $515 million year ending June-May 2010. Will that increase going forward? I wouldn’t want to predict at the moment. Well, in proportional terms? I imagine you are going to increase digital… but having said that we are still a mass TV market. Yes, in terms of our spending next year I think we may see some changes to the shape of how that money is spent. That doesn’t necessarily mean dramatic shifts to new channels out of old. What it will mean is changing the nature of the conversations we have with some TV stations, for example, where we’ve just had a first wave of meetings and I think there’s a shared interest in the areas like content development, where we may also take their content and ours online. That’s an example where a long-term business partner of ours might see no shift of budget but might actually move with us on our journey into new areas of the media.

What about brand activation? Well, I’ve come from an Asian culture where there’s an awful lot more activation than I’ve seen here. Partly it’s forced upon brands in some markets where there’s a large rural population – it’s the only way to reach out to them. But also largely because it’s about the change of relationship with consumers where we are no longer just pushing messages at them, but we’re actually engaging them. We’ve been very successful around the region, working in partnership with media owners to use their talent to attract people to events, and to then work with them to turn those events back into content that can be put into the media to amplify the whole occasion. So an event that attracts 2,000-3,000 people can then reached out to several million through traditional media. I’ve yet to learn enough to comment intelligently about how activations are

Yes, you’ve got plenty of them. And particularly as a lot of major FMCG have developed male lines. That’s increased the frequency with which we’ll see this work.

3048_Yahoo_28x21.5_LaunchCampaign.pdf

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5:25 PM

Q&A

of ambition we have. In a great deal of markets, advertiser- funded content tends to mean a signboard swinging in the breeze behind a live concert or on a game show. If we are going to move in this direction we’d be looking for a far more integrated and sophisticated approach. I think Pepsi paved the way in this region with its Sea of Stars movie two years ago. Yes, and that’s what we mean by integration, rather than just furnishing product for events or for TV shows. The important thing to be successful is to make sure it’s integrated all the way through. So it’s not about all the work that surrounds it. In the most successful cases it’s the non-TV element that takes the vast majority of effort and money. We’ve had good early conversations with people about that.

Pretty good deal: Unilever’s partnership with Ugly Betty in China proved to be hugely successful, says Porter

There’s no reason why search needs to be bought here. That can be done anywhere… Does that include branded entertainment? Yeah, it could well do where the opportunities are right. I’ve been pleasantly surprised at the extent to which some of the major TV stations here have advertiser-funded content on their agenda, so I am quite optimistic that we could see that develop in the next year or two. There are some restrictions in terms of being a more conservative marketplace. There’s certainly a willingness to bring in international formats and to create new local formats, which could be good opportunities for our brands. Yes, there are cultural sensitivities, but on the other hand we are remarkably free of many of the constraints than say in Europe. We have far more leeway for brands. That’s a fair comment. And I come from

34 Gulf Marketing Review September 2010

the part of the world, Asia, where a typical agency planner or brand manager might make five or six pieces of content in a year, which you would be lucky to do in a lifetime in Europe. So it’s a very different marketplace with huge opportunities. A great example of what we’ve done in other parts of the world – and this is a well-worn example – is where we brought the Chinese production of Ugly Betty. We did that in partnership with the producer, the station and with the format owner. We brought it into the country, integrated brands into the plot lines. Importantly [we] took that collateral online, took it into the aisle, instore, and had hugely successful impact on brand sales. Could you do something similar here? That’s perhaps a statement of the level

I think it’s getting harder to talk about marketing disciplines now that everything is more 360. It’s true we all need to work together much more closely now, but as two jobs or two roles converge into one, then another one fragments into two. Whereas three or four years ago you may have had a handful of people called digital specialists in agencies. You will now find content specialists, search specialists, etc, so it’s just changing shape rather and morphing into one, indistinct role. This first time that you have worked on the client side, what prompted the decision? I was approached and [I was] very happy to say yes. I actually spoke to friends who worked in the business who are not directly related to the media function or even the marketing function, and they had some great things to say from the inside about the company and the dynamism that Pol Polman’s (Unilever CEO) brought to the company, especially in the last few months the way Unilever has embraced the new digital world and sees media at being at the forefront of changing the way it markets to consumers. It’s a very exciting time. Thank you. n

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MEDIA

TALES OF THE UNEXPECTED Did the World Cup stories of Paul the Octopus and vuvuzelas – to name a few – redefine sports marketing WoM? WITH A FIFA projected 26 billion cumulative global viewing audience (covering 64 games) - the World Cup is arguably the biggest sporting event in the world. Even if advertisers can’t afford to be part of it, they can’t afford to miss it, either. Yet, to all you football-phobics and soccer skeptics out there - this World Cup review isn’t about what happened on the pitch. It’s about what happened off it. What’s truly special about the World Cup is that it reminded us of our own humanity. It filled us with memories that we will talk about for years to come. It made us laugh, cry, jump for joy… until it was over then leaving most of us defeated and deflated. The World Cup is one big roller coaster. When it ends, it leaves a gaping hole, as we realise it’s time to return to our normal lives, our

36 Gulf Marketing Review Septemebr 2010

day jobs, our routines. Perhaps that’s why the people in the following stories put so much into ensuring that some part of the World Cup lasts a little bit longer. Football sticker craze captures young and old My first story comes from Sao Paulo, where the value of football stickers in the school yard seems to be considerably higher than it was during my school days in Northern Ireland. Almost 30 years on, football stickers are still going strong. Perhaps too strong, given the lengths people will go to in order to attain them. Treelog, a Sao Paulo-based distribution company, made the national news when it was robbed, twice. What made the theft different was that the thieves left money and equipment but took the boxes of World Cup stickers.

Meanwhile, in Norway, I heard from a teacher friend there that the kids in her school were caught using the stickers to play poker during breaks. Poker with a deck of cards is banned in the school, but by making “Ronaldo=Ace, Robinho=King” etc, the kids were playing while teachers assumed they were innocently trading stickers. Anheuser ambushed What do you do when 36 female fans peel off their red-and-white outfits in the middle of the Holland-Denmark game to reveal bright orange dresses, designed by Dutch beverage company, Bavaria (Anheuser Bush was the official global beer advertiser)? Well, the South African authorities decided the answer was to go in heavy. Creating a

huge scene, the girls were escorted from the stadium and detained by the police. Their activities, meanwhile, made news headlines around the world achieving global notoriety for Bavaria’. The guerilla stunt by a non-World Cup sponsor sent blogs, Twitter, YouTube, social networks and news portals into a frenzy. Luckily for the ladies the charges were dropped. Horn of plenty Be honest, did you know what a vuvuzela was before the World Cup? According to the NY Times when 60,000 are blown in concert they create a sound somewhere between a herd of elephants braying and a swarm of angry bees. Vuvuzela-blowing is what African and South African football is all about: noise, excitement, dancing, shouting and enjoyment. Why give South Africa the World Cup and then make every match feel like it is being played in Paris or Rome? OK, I appreciate that the vuvuzela generated 545 complaints from the great British viewing public to the BBC. Yes, I agree that at times I couldn’t hear the commentator. And yes, I agree that I did reach for the headache tablets a few times – but what a global phenomena it caused. Everyone, everywhere was talking about it; in tweets, blogs, and social networks. Whether you liked it or not the vuvuzela touched all of us in a very human way. It brought South African culture into homes all over the world. I imagine it will be one of this World Cup’s lasting memories which we will talk about for years. It does, however, beg the question: Will this World Cup go down as one of the biggest unrealised branded opportunity for the vuvuzela? Considering 20,000 were sold every day in South Africa and global sales post the tournament are expected to top 2 million, I think so. Interestingly the Brazilians are already negotiating cooperation deals to get the authentic vuvuzela for the 2014 World Cup. So you’ve been warned, go buy your ear plugs now while they are still in stock.

Halo effect: The explosion of social media intensified consumer response during the World Cup

Twitter registered more than 3,000 tweets a second following Spain’s winning goal… Saudi women catch football fever… The World Cup abayas created by Jeddahbased designer Rania Khoger caught the eye of photos editors around the world, even though Saudi Arabia didn’t even qualify. Khoger, who teaches design at King Abdul Aziz University, said that the abayas would allow Saudi women to enjoy the World Cup more. This story grabbed my attention because it crosses cultural and religious boundaries. For sure the World Cup means big business for sports brands and fashion. But this one is different because it has influenced something much bigger – it has influenced societal and cultural norms in filling the desire for individuality and self expression. Paul the Psychic Octopus So how many octopuses have their own Wikipedia entry, a Facebook fan base of almost 80,000 and was viewed by 1.8m

people via YouTube? Who would have thought that the likes of Ronaldo and Messi would be outplayed, up-staged and prove less popular off the pitch? For residents on another planet, Paul had the uncanny psychic abilities to predict the winners from two boxes individually adorned with the national flag of the teams due to play the next match. Both also contained a mussel. The box he chose to eat from turned out to be the winning side. His predictions were 100 per cent correct for the 2010 World Cup. On July 12, 2010, Paul was retired. And he returned to his former job of entertaining kids. As a reward for his predictions however, his owner presented him with his very own replica World Cup Trophy with his favourite food – mussels. While recalling these stories, I was intrigued by the way ‘news’ was reported during the games and by the events that

September 2010 Gulf Marketing Review 37

MEDIA

New dress code: Rania Khoger’s World Cup abayas generated a greater of sense of inclusion for Saudi women fans

Overnight, Facebook became the biggest Sports News Channel in the world. grabbed people’s attention – particularly as they came to life on Facebook. Overnight, Facebook became the biggest Sports News Channel in the world. It was where I found the most entertaining, engaging stories; real human stories from friends letting the world know what they were thinking and feeling right then and there. People sharing their hopes, fears and cheers, along with photos and movies. Facebook was suddenly offering pre-match commentary, live updates as events unfolded and then a final whistle round up – and saying things that the paid pundits could never get away with on live TV. It was simple, meaningful, real time and global – a place where the thread of a story could be played like the spinning marble in a pin ball machine – bouncing from England to America to South Africa in a matter of seconds. This concludes my top five weird and wonderful World Cup stories. But before I sign off and grab a plate of some Pulpo a la Gallega (Galician Octopus) here’s what I think are the real stories behind the stories, for brands and planners.

38 Gulf Marketing Review Septemebr 2010

You don’t have to shell out millions for sponsorships to be effective Adidas pays $20-$40 million/year to be an official FIFA partner, yet according to Nielsen on the day of kick-off, Nike had 30 per cent of all WC buzz online compared to only 14 per cent for Adidas. Chalk that up to savvy marketing and great creative. Recency The speed of social media has left publishers and content providers playing catch-up: Twitter registered more than 3,000 tweets per second following Spain’s winning goal in the final, while immediate reaction to Robert Green’s goalkeeping blunder for England went onto become a Lego recreation. Tips Empower someone who A) understands the new media and B) has the approval to speak on behalf of your brand in real time. Response is expected in seconds or minutes, not when you can get your boss’ approval the next day (he probably

doesn’t know what Twitter is anyways). The fact that these events occurred outside of working hours for most of the world further supports this. And keep some money aside to react to these changes that will inevitably come up over the course of a 4 week tournament. Risks Nike’s Write the Future ad, lauded at the start of the finals for its storyline fell apart over time after its stars were knocked out of the competition after lackluster performances – Rooney, Ronaldo etc. They focused on individual players where it was team effort that dominated this World Cup (Ghana, Uruguay, Spain and Holland). This reminds me of the 2005 US Open when New York City was blanketed with ads of Andy Roddick as the face of American Express and Lexus… only to be knocked out in the first round. Now, there’s a cautionary tale… n

Mark Hamilton integrated Planning Director, Starcom MENA

MEDIA

MAKING IT COUNT

The BPA’s Buy Safe Media Road Show pulled into Saudi Arabia in July but convincing the Kingdom’s print sector of the value of auditing could prove an uphill task reports Siobhan Adams from Jeddah.

40 Gulf Marketing Review September 2010

Worldwide, numbers only audited 89 titles. These are overwhelmingly English language and from the UAE. (BPA figures also reveal that a further 34 titles have been suspended or forfeited.) But, unlike the UAE and the rest of the Gulf, Saudi is home to the vast majority of the GCC’s consumers. Even in the wider geographical context of MENA it is a substantial marketplace, if not in population, MEASURING UP

Essential: Optimedia’s Complex: Brand Connection’s Joseph Rabbat Imad Rihan

then in spending power. Its significance to advertisers and their planners is immense so providing them with robust readership data seems a logical step…but one however that publishers there have been unwilling to take. The question why? Jeddah-based Imad Rihan, media director, Optimedia, doesn’t hold back. “The reluctance to being audited has only one reasonable explanation; they are concealing the truth. If you have a solid medium and you stand behind your figures then you have no reason to avoid auditing which will even boost your reputation and credibility among advertisers and solidify your position in the market. He adds: “Another perspective might be that businesses in Saudi Arabia display a major resistance to standards and quality control and will try to avoid them as much as possible because they require one to make more effort.”

FROM SATURDAY through Wednesday Saudi Arabian national daily Al Jazirah boasts a total qualified circulation of 146,558. The weekend edition however tells a different story. That’s when circulation dips slightly, to 99,751 to be precise. Similarly, the Kingdom’s Rotana Magazine has a total qualified circulation of 16,314 of which 238 are subscriptions. Single copy sales total 11,436 leaving 4.640 in qualified non-paid distribution to make up the difference. But advertisers and planners hoping to glean such exact specifics from the country’s 13 other – including sports – daily newspapers - and plethora of lifestyle magazines will be disappointed. Al Jazirah and Rotana are the only two Saudi Arabic language publications that are independently audited. In fairness the Saudi media are not alone in their laissez-faire attitude to print auditing. The latest update from the only independent auditor in the region, BPA

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MEDIA

Training day: BPA’s Aspen Aman visited 12 MBUs in Jeddah, including iCom (above)

Brand Connections general managerKSA, Joseph Rabbat is similarly direct. “Print titles try to avoid any other research or survey that competition might use for cross-checking. Some of the media are satisfied with their ratings and/or achievements hence why rock the boat whereas others are afraid to announce their real circulation figures because they might be much lower than their competition and can be used against them. The BPA, however, is determined to make inroads and, supported by audit trailblazer Al Jazirah, is deploying its three-pronged strategy to prod the Kingdom’s media into affirmative action. Aspen Aman, business development manager - Middle East says: “We raise awareness of the agencies to the need for accountability and the availability of the third-party audit data as a way to best serve their client’s interests: we raise awareness with clients as to the existence of the data and third-party verification structure (particularly in markets where media audit has not been a practice) and then with the publishers about how being audited provides them with a strategic, competitive edge.” Aman is recently returned from Jeddah from where she presented to 12 MBUs involving 51 participants. She will repeat the programme in Riyadh later this year. If attendance level is any indication it’s reasonable to assume that the initiative has at least piqued some interest and that MBUs will be more persuasive advocates. But whether or not that is enough to convince

42 Gulf Marketing Review September 2010

the media owners remains to be seen and, as Rabat points out the issue of auditing isn’t always quite as straightforward as it seems. “Auditing importance varies from one medium to another,” he says. “Auditing newspapers in the presence of media consumption studies adopted by all agencies will not be useful. Media planners will have to use ratings rather than circulation. He continues: “However, when it comes to specialised magazines auditing becomes important. Specialised magazines’ ratings are extremely low and it’s normally very difficult to justify their incorporation in media plans despite of their relativity. Auditing becomes a very strong credential for them. Audit will portray trust and credibility. In this specific case, audit becomes important from an advertisers/ROI perspective it doesn’t, however, take into consideration the pass-along readership.” Aman too recognises that the issue can be more complex. “Yes, we had challenges and questions about our basic proposition that audited circulation figures are crucial to buying decisions,” she told GMR. FULLY ACCOUNTABLE

Trailblazers: Al Jazirah (above) and Rotana are the only Arabic language Saudi titles that are audited

“The most common misconception was in how readership numbers are calculated; once we all agreed that readership numbers must be based on a quantity of copies distributed in the marketplace, the buyers and planners understood the importance of having the audited circulation figure as a baseline upon which to build other figures, rankings and ultimately their strategy for the client. “The discussions were lively and very stimulating,’ she adds but I like to be challenged by the media buying community or there is no opportunity to really discuss the tough issues and learn from each other.” Optimedia’s Rihan remains unequivocal. “It is an essential element for print media to adhere to auditing especially in our part of the world due to the lack of ethics and professionalism,” he says. “Print is the only media where it is not feasible to double check circulation figures due to the large quantities and impracticalities. You have no other choice but to trust the media houses and their numbers which is not the wisest choice in the business world since no tangible proof exists. The advertiser is investing huge sums of money and has the right to be informed.” Robust as these points there is another often looked over reason to audit, one that lies purely in the principle of industry best practice. “The success of any industry is determined by the standards under which it operates and auditing is very crucial to setting these standards,” concludes Rihan. Al Jazirah and Rotana then are certainly raising the bar. n

LEADING THE WAY Al Jazirah is the first and, so far, only national newspaper in Saudi Arabia to for audit. Siobhan Adams talks to GM Abdullatif Al-Ateeq. Why did you decide to have Al Jazirah audited? We believe that auditing reflects the actual figures of any newspaper’s circulation and since there is no accurate figures of Saudi papers circulation, we decided to subject our circulation to auditing to help us develop our future distribution strategy and to attract more readers. Moreover, auditing will make us win the trust of advertisers and will give us better ranking among other Saudi papers. We opted to auditing after thorough consideration and it comes in line with our strategy to adopt transparency and clarity towards our readers and to assert our obligation in adopting the best international working practices in the world of media. There does not seem to much willingness among the other print media to audit. Why do you think this is? We think that there are two reasons behind this reluctance of Arabic newspapers to be audited in Saudi Arabia and elsewhere. The first, and may be the most important one, is an unrealistic conviction among Arabic publishers that it is safer for them to provide false and astronomical figures about their circulation, because if they dared to disclose the actual figures of their audited circulation to their readers, advertisers and advertisement agents; their ranking, circulation, readership and status will be affected. As for the second reason, we think that the concept of auditing is relatively new in the Arab world and surely it will take some time until it becomes a common practice among Arabic language newspapers.

Trust issue: Al Jazirah’s general manager, Abdullatif Al-Ateeq.

…unrealistic conviction among Arabic publishers that it is safer for them to provide false and astronomical figures about their circulation… But taking into consideration the major changes of globalisation on the media world, and its effects on the culture of Arab readers in general, we think Arabic newspapers will have no choice in the end but to audit their circulation and to think seriously of becoming members of any international auditing organisation. How useful was the recent Al Jazirah/BPA training initiative in Jeddah? Do you think planners and buyers in the Kingdom fully appreciate the benefits of an audit?

There is no doubt that the recent BPA visit to Al-Jazirah was extremely useful and we did our best to highlight this visit in Al-Jazirah newspaper. We believe we have been successful in our efforts to enlighten our readers about the pivotal role of auditing. We are confident that media planners and buyers in Saudi Arabia are gradually appreciating the benefits of auditing, a feeling we obtained from our readers’ response towards what we have published about BPA’s recent visit to Al-Jazirah. n

September 2010 Gulf Marketing Review 43

ÂŠ Getty/Gallo Images

COVER STORY

44 Gulf Marketing Review September 2010

SILVER LININGS A glimmer of hope returns to the regional ad sector as H1 spend hits $6 billion, but recovery remains patchy, reports Alex Malouf from Riyadh. isn’t just a drain on the bottom line.” But what do the numbers tell us? PARC research covering H1 2010 ad spend shows double-digit growth across the Middle East. In the first half, regional advertising grew 21 per cent year-on-year to $6 billion. After a turbulent 2009, spend in the UAE held firm, but the big surprise was the growth in North Africa. Egypt has replaced UAE as the top spending market, growing 36 per cent over H2 2009. All other markets in the region saw gains over the previous two quarters. Saudi Arabia was up nine per BUCKING THE TREND

Resurgent: Acxiom’s Yousef Hamidaddin

Aware: Google’s Wael Fakharany

cent; Kuwait eight per cent; Qatar 11 per cent; Bahrain 40 per cent; Oman 12 per cent; Lebanon 19 per cent; and Jordan nine per cent. The largest market by population, Egypt’s spend surged thanks mainly to government educational marketing campaigns, says Google’s Egypt country manager, Wael Fakharany. “Egypt has been spending more money on advertising over any other market in the Middle East, including Dubai,” he says. “This is mainly due to government spending on awareness campaigns. The Ministry of Family Planning and Development alone spent $708 million on advertising in the first half, exceeding the $608 million spent in the UAE.” Dissecting the figures by advertising media, PARC’s product manager, M Shaharyar Umar, says that TV continues to claim the largest spend. Conversely, newspapers and other print media have managed to stave off the sharp falls in revenues experienced last year. Pan Arab Media, constituting a 95 per cent TV, shared 47 per cent of the

September 2010 Gulf Marketing Review 45

THERE ARE few adjectives that can adequately describe the economic carnage of 2009, but annus horribilis is one. Few in the advertising sector thought 2010 could be any worse, but it has certainly remained “challenging”, according to David Porter, media director, Unilever NAME, the region’s biggest ad spender. “Our view overall is that 2010 is proving to be a challenging year in the media markets, and that the challenge will continue into 2011,” he says. “Media owners looking for growth may need to reshape what they offer to consumers and advertisers.” The belt-tightening forced onto companies in 2009 has pushed advertisers into looking for more robust, tangible returns, says Scott Feasey, managing partner of indy agency Expression. “Clients are focusing on media and campaigns that can deliver real and measurable ROI,” he says. “They are increasingly looking to partner with third parties to share costs and have a mutually beneficial outcome. They are looking around and making sure that their big ad agency

COVER STORY

MARKET RANKING AND MEDIA CONTRIBUTION (US $ MILLIONS) Rank 1 2 3 4 5 6 7 8 9 10 11

Market name

2008

2009

2010

Pan Arab Media Egypt UAE Saudi Arabia Kuwait Qatar Lebanon Oman Jordan Bahrain Other Markets** Total AGCC & Pan Arab Total Levant markets Total all markets

1,578 538 960 550 353 159 150 120 50 50 71 3,823 756 4,579

2,141 521 712 532 429 197 178 118 64 48 71 4,225 787 5,011

2,869 708 680 581 463 219 212 132 70 67 71 5,057 1,015 6,072

2010 REGIONAL MEDIA SPLIT %, PER SECTOR

% Var’n Y10/09 34 36 -4 9 8 11 19 12 9 40 1 20 29 21 OD

TV 2,731 288 57 25 176 2 138 13 5 20 27 3,047 434 3,481

US$6072

+21%

Media contribution (US $ million) NP MAG Radio Outdoor 6 132 0 0 273 25 36 86 478 89 14 34 445 39 6 66 250 27 4 7 178 7 3 30 28 24 2 20 116 3 0 0 60 4 0 0 32 10 2 0 28 9 6 0 1,518 310 35 138 378 58 38 106 1,895 368 73 244

Cinema 0 0 8 0 0 0 0 0 0 2 0 10 0 10

ANNUAL REGIONAL GROWTH 2008-2010, PER SECTOR 2010

100 (Millions US$ - semi logarithmic)

100 90

0 % TOT CPU THP GOA FBT PUM SMR VAS PRS HTT FS ENT INR HHA BCS CJP SER CPU: Communications & Public Utilities THP: Toiletries Hygiene/ House Care Products GOA: Government/Organisation Advertising FBT: Food Beverages and Tobacco

PUM: Publishing Media SMR: Shopping Malls & Retail Stores VAS: Vehicles, Accessories & Supply PRS: Professional Services

CPU THP GOA FBT PUM SMR VAS PRS HTT HTT: FS: ENT: INR:

Hotel, Travel & Tourism Financial Services Entertainment Insurance & Real Estate & Properties

2009

2008

FS ENT INR HHA BCS CJP SER

HHA: Household Appliances BCS: Business/Construct Equip. & Supply CJP: Clothing, Jewellery & Personal Acs SER: Other Services

Source: PARC 2010, *Egypt spend data reported at current market value, **Other Markets: Combined - Syria, Yemen and Arasian

total regional ad spend in the first half. Advertisers focusing on reaching multimarkets over local markets favoured Pan Arab Media, as the market maintained its healthy growth of 34 per cent in H1 2010 compared to the same period last year. It may be noted that ad spend in Pan Arab Media bucked the trend in 2009 and was instrumental in keeping the total regional spend in the black, as it registered a growth of 9 per cent during the year. “Among major media types, TV continued to follow the upward trajectory with a 39 per cent growth from 2008 to sharing 57 per cent of total ad spend across all measured major media vehicles in 2010. The steep decline in spend in

46 Gulf Marketing Review September 2010

print media in 2009 has been contained as newspapers gained about six per cent spending over the past half year in 2010 and magazines reported no significant variation,” says Umar. There’s little disagreement that volumes are up year-on-year, even for media such as OOH, which used to rely heavily on banking and real estate sectors. Porter suggests, however, that closer scrutiny indicates that it is discounts that are responsible for rise in volumes. Turning to IPSOS figures, he says: “Year-on-year advertising value measured by IPSOS is up five per cent at rate card prices. TV value is up 22 per cent overall, while volume is up 7 per cent. This has been driven by double-digit

increases for three of the largest stations [MBC1, MBC4 and Rotana Cinema]. A key indicator is that the three stations’ volume growth [advertising minutes] is much more modest than their advertising value growth. This implies that much of the advertising value growth is a function of rate card increases, which may not be a fair reflection of real ad revenues. There is a realistic chance that the total media market’s net revenues are flat or even down year-on-year.” “OOH and cinema advertising value are down substantially. OOH has been hit by a decline in property spending and, with a few exceptions, it still has some way to go before it re-bases to realistic, pre-boom, prices,” adds Porter.

TOP 30 LEAGUE OF Y2010 (000 US$) January-June RANK & BRAND 1 Waqfa Masrya 2 Zain 3 Pepsi 4 STC 5 Chevrolet 6 Mobily 7 Head & Shoulders 8 Almarai 9 Dabur 10 Lipton 11 Pantene 12 Etisalat Egypt 13 Coca-Cola 14 Ariel 15 Vodafone 16 Dettol 17 McDonald`s 18 Gillette 19 Dove 20 Pampers 21 Hyundai 22 Du 23 KFC 24 Clear 25 Herbal Essences 26 Mobinil 27 Ponds 28 Nissan 29 Etisalat 30 Lux

2010 74,099 56,283 53,865 46,372 41,835 41,201 38,717 36,434 36,231 32,968 32,372 30,631 30,605 30,314 30,199 28,262 27,701 27,379 26,384 26,254 25,094 25,070 23,951 23,386 23,357 23,332 23,231 22,968 22,531 22,284

2 years

2009 220 37,676 34,700 46,983 12,622 39,145 41,480 18,720 34,877 26,553 28,427 0 22,633 25,219 25,997 19,802 19,484 18,878 28,473 19,747 17,915 26,807 14,730 21,347 12,456 16,888 12,222 10,682 42,754 11,959

TOTAL 74,319 93,959 88,565 93,355 54,457 80,346 80,197 55,154 71,108 59,521 60,799 30,631 53,238 55,533 56,196 48,064 47,185 46,257 54,857 46,001 43,009 51,877 38,681 44,733 35,813 40,220 35,453 33,650 65,285 34,243

AVG 37,160 46,980 44,283 46,678 27,229 40,173 40,099 27,577 35,554 29,761 30,400 15,316 26,619 27,767 28,098 24,032 23,593 23,129 27,429 23,001 21,505 25,939 19,341 22,367 17,907 20,110 17,727 16,825 32,643 17,122

Media split % - Jan-Jun 2010 TV 100.00 73.10 87.72 66.97 70.51 80.77 98.47 88.82 99.94 98.35 96.99 76.40 89.42 97.63 66.79 98.34 63.77 97.75 99.95 97.57 61.60 55.46 68.53 95.12 100.00 53.06 99.98 30.36 61.36 99.64

NP 0.00 16.63 3.69 21.59 25.05 12.02 0.83 3.72 0.00 0.09 0.03 15.38 1.61 0.10 18.78 0.05 15.36 1.18 0.00 0.05 30.85 24.16 13.15 1.02 0.00 30.35 0.02 49.12 27.18 0.03

MAG 0.00 1.26 0.13 1.56 3.06 0.48 0.45 0.48 0.06 0.24 2.76 0.28 0.59 0.64 1.88 0.02 1.86 0.20 0.02 1.38 4.09 4.81 0.32 0.31 0.00 1.45 0.00 2.86 3.58 0.15

OT* 0.00 9.02 8.46 9.88 1.39 6.74 0.25 6.99 0.00 1.31 0.22 7.93 8.37 1.62 12.54 1.60 19.01 0.87 0.03 1.00 3.46 15.56 18.00 3.55 0.00 15.14 0.00 17.66 7.89 0.18

Source: PARC 2010, OT* - Radio + Outdoor + Cinema

Egypt has replaced UAE as the top spending market, growing by 36 per cent… The head of one DM agency with a strong presence in Saudi Arabia maintains that the Kingdom has benefited from both a resurgent economy as well as by leveraging its role in the Islamic world. “We’ve witnessed a dip in real estate [across the region]. Saudi Arabia, however, has bucked the downward trend,” says Yousef Hamidaddin, CEO, Acxiom MENA. “The sectors that have exhibited some growth are travel and hospitality, with seasonality and the trickle-down effect of economic growth and consumer

confidence playing a key role. We are anticipating a solid second half [in Saudi], with Ramadan, Eid and Hajj all on the calendar in that time-frame. Ramadan’s impact is already visible, with retail and FMCG faring well accordingly.” PARC’s own numbers point to increased spending across all sectors except real estate. Umar says: “With the exception of real estate, all other sectors are in black, reporting healthy ad growth. With a jump of 39 per cent, communications and public utilities advertising have re-

September 2010 Gulf Marketing Review 47

What hasn’t changed in 12 months is sector-based sentiment. All the media executives GMR approached tell the same story, namely that industries such as property and banking are still spending less, while FMCG and telcos are spending relatively more. “FMCG has been generally good throughout, especially in South Africa, but across all sectors there is a slight move to invest more into marketing and brands, which we haven’t seen for two years,” says Expression’s Feasey. “Some sectors such as real estate are still affected by negative consumer confidence, and certainly larger ticket items such as the automotive sector are being challenged by ‘delay to purchase’ decision making.”

COVER STORY

TOP BRANDS Y2010 (000 US$) RANK

BRAND

%var’n Y10/09

2009

OUTDOOR TOP SPENDERS

1 2 3 4 5 6 7 8 9 10

Q-Tel McDonald`s Zain Nissan STC KFC Du Nadec Almarai Lusail

10,592 4,661 4,465 4,001 3,896 3,895 3,282 3,050 2,547 2,515

RANK

BRAND

2009

MAGAZINES TOP SPENDERS

1 2 3 4 5 6 7 8 9 10

Rolex Home Center Chanel Cartier BMW Audi Samsung Max Factor Porsche Mercedes

2,410 2,378 2,321 1,985 1,951 1,888 1,498 1,470 1,440 1,417

RANK

BRAND

2009

NEWSPAPER TOP SPENDERS

14 16 7 E 23 6 -55 28 -55 N %var’n Y10/09

1 2 3 4 5 6 7 8 9 10

Toyota Nissan Chevrolet STC Zain Samsung Hyundai Mobinil Nat`l Bank of Egypt Etisalat

12,439 11,281 10,478 10,013 9,358 8,104 7,742 7,081 6,294 6,124

RANK

BRAND

2009

4 73 30 -25 50 38 111 45 20 10

1 2 3 4 5 6 7 8 9 10

RADIO TOP SPENDERS

Vodafone Mobinil Etisalat Egypt Pepsi Etisalat STC Zain Clorets U4 Coca Cola

1,470 1,258 1,170 1,037 879 684 611 535 486 472

%var’n Y10/09 6 71 108 -20 -4 48 12 41 31 -51 %var’n Y10/09 -7 124 N 71 -52 -21 79 155 10 4

Source: PARC 2010 – E: Exceeding the limit > 300%, N - New

There is a realistic chance that the total media market’s net revenues are flat or even down...

48 Gulf Marketing Review September 2010

versed, the change in advertisers’ behaviour because of the recession has not. The prevailing perception is that brands want to realise more value, particularly value that they can measure. “Naturally, advertisers are exercising greater caution due to the global financial climate,” says Porter. “We expect a continuing emphasis on evidence-based planning. This will increase pressure to have accurate verification that campaigns appeared as intended, and sophisticated measurement of audiences and of campaigns’ ability to deliver marketing goals. But a renewed focus on effectiveness brings opportunities to media, which demonstrates the greatest ability to influence behaviour.” (Please see Q&A, pages 26-34.)

placed personal care to head the ranking, with an outlay of $924 million equating to 15 per cent of the total market share for the first half.” Government advertising grew 27 per cent and closely followed personal care to occupy the third place with a 14 per cent share. Food saw promising growth with a 37 per cent rise in spend. Real estate continued its downward slide as spending plunged 16 per cent. Financial services, however, reversed its decline by growing 22 per cent compared to the previous half. The top three spenders in the region for H1 were Waqfa Masriya (an Egyptian government population control campaign), Zain and Pepsi. While the fall in spend has been re-

That drive for results is also leading advertisers to question their agency spend, says Feasey. “Client are still looking to be more effective, still looking to reduce costs. Yet they haven’t really questioned media rates, as much as they have agency fees.” So what else has changed 12 months on? The drive to go online continues unabated. Hamidaddin says: “There is a move in the MENA marketplace towards digital media as a whole, in line with, albeit at a slower pace, than that seen in the global marketplace. There is increasing focus on social networks, particularly given the staggering growth of MENA users [6 million Facebook users are in MENA and Twitter’s year-on-year growth in the region is nearly 1,500 per cent].” For Google’s Fakharany, there is still much work to do to get both businesses and governments to understand the benefits of online advertising. “Online advertising as a percentage of total advertising

COVER STORY

TOP BRANDS Y2010 (000 US$) RANK

BRAND

Y2010

%var’n Y10/09

74,099 47,253 41,142 38,125 36,209 33,278 32,425 32,359 31,397 31,056

E 57 84 -8 4 16 27 176 12 4

TELEVISION TOP SPENDERS

1 2 3 4 5 6 7 8 9 10

Waqfa Masrya (gov’t campaign) Pepsi Zain Head & Shoulders Dabur Mobily Lipton Almarai Pantene Saudi Telecom Company

Source: PARC 2010 – E: Exceeding the limit > 300%

varies quite significantly across markets in the MENA,” he says. “This region saw the fastest growth in internet users in the world during 2000-2008. Our aim is to continue to work with our partners and with local businesses to help unleash this potential, and to encourage the growth and further development of online advertising.” So, what lies in store for the rest of the year, especially since Ramadan has come during the usually quiet month of August? “The timing of Ramadan this year has shifted the classic summer spending model. However, Ramadan spend itself remains consistent,” says Acxiom’s Hamidaddin. “Typically, companies slow their summer spending down, as a significant portion of the consumer base travels. In this case, the bulk of the summer spending will be in the month of Ramadan, which coincides with one of the slowest months historically for advertising spend.”

50 Gulf Marketing Review September 2010

Expression’s Feasey agrees. “Ramadan is Ramadan,” he says. “There may be a drop in spend targeting women and children, as they fear that the target market is travelling, and products and service that are based outdoors will feel a drop in sales. On the whole, there will be the same rubbish ads where the agencies try to fit a crescent moon into a logo or product shot, and there will be promotions and offers galore.” Undoubtedly, many will agree with CHALLENGES

Increases: PARC’s Shaharyar Umar

Focused: Expression’s Scott Feasey

Unilever’s Porter that the timing of Ramadan is secondary compared to the state of the global economy. With the investments being made in the region’s infrastructure and efforts to diversify national economies, PARC’s Umar is confident that the advertising sector will return to health by December. “The region has posted a stable growth even after experiencing some turbulence, unlike significant downfall in ad spending that occurred in European and American markets,” he says. “The massive infrastructure built in the recent years will make room for the service industry to grow. “The implementation of the proposed GCC rail system will also usher in bigger growth. Oil and tourism, two key components of economy in the region, are going strong. The present figures indicate that all the markets in the region will be in the black by year-end and will show healthy growth in ad spend.” The people GMR spoke to agreed that no matter how well the industry recovers, many of the basic advertising tenets have altered irrevocably. Feasey says: “Get focused on adapting your product and service to the new needs and desires of the consumer. Consumers’ perception of brands has changed, their needs have changed and what they now want from brands has changed. You need to build understanding of their new demands and start to lead the new wave in consumerism. Be open to the biggest of changes. “Consumers often fall back to the brands they know, trust and love. If you have positive heritage, use it and build from there. If you don’t, start to offer real value for money. Don’t immediately think this means lower prices. Consumers have got smarter and are able to recognise value for money in more than just pricing.” So will there still be challenges to overcome at the end of the year? Porter believes so. However, by adapting to the economic climate and to the changing habits of consumers, advertisers and their agencies will not just survive, but thrive. n

PROFILE

52 Gulf Marketing Review September 2010

THE GMR INTERVIEW

Kamal Osman Jamjoom, CEO of KOJ Group, shares the ups and downs of of handling two of the biggest regional brands with Precious de Leon. on to work with P&G in Saudi Arabia, where the FMCG giant was opening a factory. In preparation for running the plant, SHORT BIO Status: Married, with five children. (His oldest son works at KOJ Group, daughter works at Deloitte & Touche in London. Another son is studying philosophy in London while two of his children are in Dubai). Hobbies: Fishing. First job: P&G’s engineering department in Jeddah. Career high: Having survived several economic downturns and celebrating 20 years on. Career low: Maybe I should’ve studied business. Education is the thing that one realises is essential if you plan to create your own business. Fantasy job: Either a teacher or a fisherman.

P&G sent Jamjoom with a group of 20 engineers to the US in 1982 for a yearlong training and development programme. After the training, the group returned to Jeddah and worked together for the next three years. Jamjoom describes this period as “exhausting but interesting”. After a while, he moved from the engineering unit to the marketing department and began to learn about brand management. He handled Ariel and Fairy. This was around the time when he started to consider running his own business. Jamjoom knew he needed to act on his instinct, so he started to look into manufacturing, packaging and even manpower services. “I kept trying different things. I wasn’t sure why, but I knew I just had to start my own business,” he says. The idea for retail started with a simple franchise application to bring The Body Shop to Jeddah. On a trip to the UK, he had seen a Body Shop store and it prompted an idea. “I had no business experience, but I made them a good

September 2010 Gulf Marketing Review 53

A BARRAGE of questions during an interview is a given. It’s unusual, however, if the questions are directed at the journalist. But that’s exactly how my interview with the CEO of the KOJ Group starts. Kamal Osman Jamjoom says he’s always been interested in people and about the lives they lead. That personable character and strong business instincts are two reasons why the KOJ Group has grown rapidly for more than two decades, with two of the most enduring regional brands in its portfolio. Jamjoom’s business instincts are no surprise, as he hails from a long line of merchants and traders from Saudi Arabia. One could say business is in his blood. This isn’t a straightforward case of entrepreneurship or success, however. The company went through its fair share of highs and lows enroute to becoming one of the leading regional retail companies in the Gulf. After receiving his combined engineering degree in the UK in 1982, with a focus on electrical engineering, Jamjoom went

PROFILE

Soft sell: “Nayomi” means soft and delicate in Arabic. The brand currently has 120 stores in 40 cities

presentation and a good study and we got the franchise,” he says. And that was his first venture into the world of retail. The Kamal Osman Jamjoom Establishment (KOJ Est) was launched with the opening of its first Body Shop in 1987. The capital came from Jamjoom Consulting, a business venture by his engineer uncle and his father – who is one of the first UK-educated Saudi architects. They were the only two brothers who deviated from the long family line of traders. Jamjoom, however, continued to work full-time at P&G. “When you open one shop, you realise that one shop is not going to feed the kids or get them to school. So I had to keep my day job.” Taking root Jamjoom became a full-fledged entrepreneur only when the company opened its 10th shop, when he said it became too much to juggle working full-time and handling a business. This was around the first Gulf War (1990). A few years went by and KOJ’s territory was saturated. It opened 50 stores

54 Gulf Marketing Review September 2010

all over Jeddah. Jamjoom wanted to expand KOJ’s reach but all the territories in the region were already assigned. So KOJ ventured out into other franchise brands. This is how the company began its own brand collection, starting with Nayomi in 1992. When the company decided to introduce a lingerie brand to the Kingdom, it went for a franchise. But the results weren’t good and the relationship with the global brand office went sour. The product didn’t meet customer HIGH NOTE

In accord: For Nayomi, the company has enlisted singer and TV show presenter Razan as its brand spokesperson.

needs, Jamjoom says, and the brand owners were not easy to deal with. “We had a clash of cultures and ideas,” he says. The partnership was severed and Jamjoom was left with a milliondirham investment on a shop. “I had a choice of either to go in debt or try and do something with the unit.” The company sourced different brands that he felt suited the community and the geography of the shop. Sales went up to as much as six times what the franchise garnered. “As a company, we realised that we understood our customers more than we thought and that we could do more than just bring in international brands to them. And that’s how Nayomi was born,” he said. “Nayomi” means soft and delicate in Arabic. The brand currently has 120 stores in 40 cities. Then, in 1999, the company looked at creating a cosmetics and fragrance store that had a younger feel. Enter Mikyajy, which is Arabic slang for “my make up”. Almost similar to the path Nayomi took, Mikyajy was initially launched carrying

a variety of international products. Then it decided to create its own collection, starting with fragrances. “We didn’t know how to develop fragrances, so we spoke to suppliers about it. A UK-based agency offered to develop the fragrance but botched the packaging and label. It was a disaster. They put a terrible label on the product and we didn’t want to work with them again. We sent all our orders back for them to fix,” Jamjoom says. With the crisis eventually averted and the fragrance finally hit the shelves in 1992 and got some traction. So the company decided to exclusively house only Mikyajy-branded products, all of them designed to reflect the needs of women in the Gulf. The growth of the brands also meant an expanding team, which partly prompted the decision to move headquarters to Dubai. “A lot of the team members were women. As it’s a woman’s product, you need women to work on the brand because they understand the product. And because it’s easier to employ women and run a business with the connections and infrastructure, we moved the headquarters to the Dubai.” Jamjoom himself designed the first Mikyajy store. “We tried to design something young and interesting. When we opened it, we got a good response from sales. It was an amateurish design but our service and product quality were consistent,” he says. “Over the years, we got a branding agency involved and the brand evolved.” There are about 170 Mikyajy stores across the region today and it is still one of only a handful of regionally developed cosmetics brands.

A UK-based agency offered to develop the fragrance but botched the packaging and label. something for the KOJ staff to use to learn how to use makeup. To distribute it to their other offices in the region, they uploaded it online. Later it evolved into something specifically for customers. For both Nayomi and Mikyajy, most of the marketing is done through catalogues, in-store, word-of-mouth and magazine ads. The latter is particularly interesting in Saudi, where advertising women’s products is tricky. “Saudi has rules and regulations that are in place to preserve the culture and society, but it doesn’t stop us from communicating the nightwear to our customers,” Jamjoom says. “We have to communicate through our core customers, but follow the rules and regulations in any country in which we operate.” For Nayomi, the company has enlisted

singer and TV show presenter Razan as its brand spokesperson. She is present on ads and in catalogues, with her hair covering her shoulders and wearing conservative clothes from the collection. For any revealing clothes, only the product is showcased; no model is used. Marketing spend for this year and the next will stay consistent, says Jamjoom. The group spends about Dh7 million ($1.9 million) a year on marketing. Customers for Mikyajy and Nayomi are fairly similar, says Jamjoom. She is around 28 years old, married, lives in an apartment and has two or three children. She has a disposable income of less than Dh10,000 ($2700) per month and prefers to travel within the region. She is generally of Arab nationality – either Gulf Arab or Arab expatriate.

September 2010 Gulf Marketing Review 55

Communications As part of its marketing, Mikyajy has a Youtube channel, launched about a year ago. Videos sharing makeup tips and showcasing the latest collections are uploaded regularly. The channel has logged nearly 500,000 visitors at the time of writing. It was primarily intended as

Lip service: The Body Shop marked KOJ’s foray into retail

PROFILE

For internal branding, the group holds bi-annual meetings for all its employees, a time when anyone can ask questions about the company and the direction it is taking. Anonymous queries are dropped into a box. Jamjoom goes through the questions and tries to answer them all. “If you tell people where the business is going, then they can work towards that same goal,” he says. “But if you give people a limited amount of information, then they don’t know how their actions are affecting the business,” he says. Support system: Jamjoom (left) hands a recognition award to one of KOJ Group’s employees

AGENCIES PR: Pencell Advertising, branding, media buying : AGA ADK COMPANY CREDS The Kamal Osman Jamjoom Group (KOJ) handles brands in the beauty, fashion, healthcare and children’s learning and development sectors. Established in 1987, KOJ Group has grown to a network of more than 400 stores with its headquarters based in Dubai and a financial regional office in Jeddah. The company currently operates eight regional and international brands: Mikyajy, Nayomi, Nayomi Beauty, The Body Shop, Early Learning Centre, Bebe, List and Ulla Popken . All the brands have a presence in Saudi Arabia, the UAE, Bahrain, Kuwait, Qatar and Oman. The company is also planning to enter markets like Egypt, Jordan and India in the near future.

For Mikyajy, the brand feel is targeted toward the 18-24-year-old bracket but the average age of its customer is 28 years old, while Nayomi has a slightly older audience. Hindsight “Would we have made the journey [into own brands] looking back? I don’t think it’s an easy journey; but it’s an interesting journey. It’s far more interesting to develop a brand than work on existing ones,” Jamjoom says. He also keenly talks about the transition he’s made as an entrepreneur. “You start with these brands with the creative input. Then when you see people buy it you start to think you can do no wrong. And as a founder or CEO you start to

56 Gulf Marketing Review September 2010

think that you can make anything and people will like it. “But there’s a transition point between starting a business to it becoming about the customer. As a business founder, you have to give up thinking that you know everything and you will create the best. “When you have one shop and get 10 customers a day, it’s not as evident, but when you start to have 250 shops and a million customers, suddenly it’s about those customers and no longer about you. “When God favours you and your work and you’re lucky enough to survive, you build something. There has to come a time when it’s no longer about you and you realise you are serving people, and you have to work to meet their needs.

Still learning As it grows, the company continues learning. It ventured into Greece, opening a MIkyajy store unsuccessfully. While it could have closed down anyway with the declining Greek economy, the product just didn’t take off as expected. It was an eye-opener for Jamjoom, who decided to directly operate in Greece while granting franchise in Libya. The Libyan branch is thriving. So far KOJ is yet to create a full-fledged franchise model. Its focus is remains on expanding its own stores regionally. Last year, 40 stores were opened and the year before that 80 stores were unveiled. Franchise inquiries, however, are constantly coming pouring. One of the most recent applications that is in its early stages is a franchise in Yemen. The company became the KOJ Group in March 2010 and it continues to franchise international brands in the region. Its most recent portfolio additions include German plus-size brand Ulla Popkin, babywear Lief, with up to three more brands to be introduced next year. Twenty-three years on, Jamjoom is still looking at the next big thing for the KOJ Group. In terms of developing original brands, he hints at one particular brand in the “planning stages”, which will be “in the area where we have experience”. He has also looked at the possibility of acquiring regional brands, but nothing has caught his eye yet. The possibilities, he says, are endless. n

CLIENT SERVICING

PAY BACK TIME The thorny issue of money – or lack of it – is wreaking havoc on agency-client relationships. Rania Habib tries to mediate. “OF ALL THE myriad problems that clients and agencies find in hitting it off in a long-term relationship, money is the most intractable and frustrating,” says Toby Butterwick, general manager of Gulf Marcom in Bahrain. With the added pressure of the financial crisis, the bond between clients and agencies has become even more strained, as debts, delayed payments and downward pressure on fees wreak havoc on longstanding ties. Complaints abound on both sides. Agencies say they are under pressure from clients demanding much more for less, while clients insist on ROI more than ever. Who is right? Who is wrong? Are agencies not stepping up to the challenge, or are clients being unreasonable?

58 Gulf Marketing Review September 2010

Mark Bibbings, partner at Aprais ME, says marketing-communications relationships have never been more complex. “The reason is, at the moment people are getting squeezed financially. So what are they doing as a result? More clients are increasingly doing things on a project basis,” he says. “In the good old days, clients would SMART THINKING

Multi-channel: MAC DDB’s Hubert Boulos

go to a full service agency and basically throw money at them and ask them to do everything, including taking them to the lavatory. Now it isn’t like that. Rather than full service agencies, clients are splitting everything up. If they want a live event, they’ll go with this agency, if they want ATL, they’ll go with that agency. So for one product, you might have five or six different agencies used for different purposes.” The trend of smaller, independent agencies setting up shop with a strong focus on creativity may have swept the international advertising industry, but Hubert Boulos, regional managing director of MAC DDB in Qatar, says the region hasn’t reached that stage yet.

He, however, says smaller agencies that have set up in the region on the basis of price will attract clients. “Some work does not need an agency, but more of a graphic design set-up,” says Boulos. “But this is not a long-term solution and this type of organisation will not build brands. When it comes to delivering 360-degree solutions – which is becoming the key client expectation – I am not aware of small, independent shops that can go across all disciplines.” And Boulos believes that this is the direction in which the industry is headed. “More than ever, clients are really seeking agencies to deliver in as many communications channels as possible. This is where agencies are really expected to deliver, as they will get a bigger part of the pie against a more competitive price offer for the whole package,” he says. “Handled properly, this is clearly a winwin situation for both parties, but agencies really need to gear up for 360-degree communications, because it’s a matter of survival. Creatively and strategically, we need to become smart integrators; the time is ripe.” Missing component Kamal Dimachkie, managing director of Leo Burnett Dubai, Kuwait and the Lower Gulf, believes strategy is what is currently missing from the communications industry. “It’s become much more consumerist,” says Dimachkie. “Clients have generally adopted a trading approach to developing their brands, as opposed to one that is focused on cultivation. When you trade, it’s all about the speed of the transaction and finishing it as quickly as possible. By contrast, cultivation features many different factors such as the quality, durability, performance and wholesomeness of the product. We often see in the region that the focus has tended to be on the transaction and not the cultivation, and that is especially true of the boom years.” The boom years have solidified the trend of clients demanding much more

Done deal? Clients are asking agencies to deliver through as many communications channels as possible

…it is very rare to come across clients who are genuinely interested in investing in talent… from agencies for much less, says Edmond Moutran, CEO and chairman of Memac Ogilvy. “More for less has become like saying ‘good morning’ to us,” he says. “If an agency doesn’t stand by its client in times of trouble, that client shouldn’t have that agency. But if a client takes advantage of that agency and does not protect its profitability, that client should rethink its relationship with the agency as well, or vice-versa, because it’s supposed to be a partnership. I stand by you, you stand by me. I protect your brand and you protect mine, otherwise it’s not a partnership. It MASTERFUL

Shoulder to shoulder: Memac Ogilvy’s Edmond Moutran

becomes a slave-master relationship, or a supplier-client relationship.” Butterwick says agencies have tried to persuade clients that they are as deserving of making profit as other businesses, to no avail. “For many years, agencies have lamented the fact that they don’t seem to be able to persuade clients that they are essentially no different from lawyers or management consultants, or even doctors for that matter,” says Butterwick. “You don’t debate rates with that lot, do you? So why does it sometimes seem like endless haggling and chopping down to the bone with us?” Butterwick believes the problem boils down to expertise and perceived value.“Clients know that they know nothing about the law, so they assume the lawyer does. Their ignorance makes them value the advice more, so they are willing to pay through the nose for it,” he says.

September Gulf Marketing Review 59

CLIENT SERVICING

Teamwork: Clients must ensure people in their agency understand their brand

Why is it not permissible – and is in fact almost disdainful – for agencies to make profit? “Communications clients, on the other hand, are not ignorant, since they are in the same field of work as their agency, so they don’t feel in such a position of helplessness that a patient does with a doctor.” Responsibility Peter Debenedictis, area marketing officer for Philips in the Middle East, says any agency-client relationship should be treated like a partnership. “As the client, you have a certain responsibility to ensure that the people in the agency understand your brand and are aligned with what you are trying to achieve – just as you would do with an employee who actually works for the company,” he says. “We are not demanding ‘more for less’, but just as we do with our own teams, we are challenging them to stay current with global industry trends.”

60 Gulf Marketing Review September 2010

Butterwick adds that while it is perfectly natural for a client to want more out of an agency, and for an agency to look for as much revenue for the least amount of work, clients need to realise that driving agencies to the ground on costs is ultimately counter-productive to an energetic and creative relationship that pays dividends to the client’s business. Moutran believes it is not the upper management on the client side that is exacerbating the problem, but that juniors have been perpetrating a haggling trend. LONG-TERM VIEW

Commercial objections: Leo Burnett’s Kamal Dimachkie

“Day after day, juniors want to play the ‘cut the price’ game because it’s fun, it’s negotiations, and it’s fun especially when they win all the time because our people cannot stand up to them,” says Moutran. “Upper management has got the maturity and the professional and human common sense to know that this is not the time to start being clever with your agency,” continues Moutran. “But the juniors are doing it, and that’s the danger. Clients are getting what they want from agencies, so why would they go to smaller agencies?” But this attitude is harming agencies, says Dimachkie, who believes the trend is “bad and counterproductive”, and is sending the industry on a “downward spiral”. “Since when is it wrong for advertising agencies to have commercial objectives, while marketers and manufacturers, for example, are allowed to make profit?” says Dimachkie. “Why is it not permissible – and is in fact almost disdainful – for agencies to make profit, to do well, to thrive, to invest, to help grow their people and create

CLIENT SERVICING

Shopping around: This is a good opportunity for boutique or local agencies to grow, say some clients

Clients have generally adopted a trading approach to developing their brand… success all round? Isn’t it time to rethink this mindset? It is in the clients’ interest to help create a circle where agencies make money, because enabling agencies to become healthily profitable is actually a wonderful thing for the marketing and communications industry.” Ahmed Shaboury, head of brands at Saudi conglomerate Aujan Industries, agrees. But he has some reservations. “At the end of the day, to produce great work for clients, agencies need great creative people,” he says. “These resources are scarce and expensive, but it’s an investment that’s worthwhile. However, getting into details, we will find some areas that are difficult for a client to justify paying a premium as they are not directly related to creative output, hence the continuous push for cutting fees.” Shaboury believes that many agencies operating in the region are located in

62 Gulf Marketing Review September 2010

what he calls “prestigious” commercial areas with high rental costs, and wonders if location has an impact on the quality of work. “The answer is no; creative talent does.” He also questions whether paying an “exaggerated amount of money to recover the overheads or meet the commercial objectives” of an agency’s holding group will make a client sell more. OVERHEADS

Exaggeration: Aujan’s Project basis: Mark Bibbings, partner at Ahmad Shaboury Aprais ME

“This is a good opportunity for boutique or local agencies to grow, as they’re not carrying that burden,” he says. Stefan Mecha, managing director of Volkswagen Middle East, says that smaller, independent agencies are not a solution for everyone. “They may be more budget-friendly, but they don’t have the full infrastructure,” says Mecha. “They may be more dedicated to servicing a big account, but don’t have the regional connections you sometimes need. So you have to make a very thorough evaluation and decide what works best for your business.” Imported talent Dimachkie stresses that an “overwhelming majority” of an agency’s talent is imported, which he says has a premium associated with it. But he says it is very rare to come across clients who are genuinely interested in investing in talent and taking the decisions that produce longer term dividends. “By not investing in talent, very often it means brands are supported by a lot of

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CLIENT SERVICING

Right direction: More should be done to educate clients about the value of the ‘big’ idea

…if the relationship is fizzling out, you can always re-pitch. presence, but have very little connection to people,” he says. “Today, I personally think not many brands can actually stand up and say that they have successfully weaved themselves into people’s lives. We have to remember that a brand is about continued relevance to the target audience, and that happens through building relationships.” Building relationships between brands and consumers comes from a healthy relationship between agencies and clients, according to Dimachkie. And Mecha agrees that an agency-client relationship should always be a win-win situation. “Through pitches, you try to find the best agency that suits your business and matches you expectations,” he says. “But this does not mean that you are married to them; if the relationship is fizzling out, you can always re-pitch.” Debenedictis agrees that agencies and

64 Gulf Marketing Review September 2010

clients don’t stick together just because the partnership was once successful. “Just like in any relationship, friendship, marriage, or business relationship, if tensions are ongoing and the core issues that are causing tension are not resolved, then a slow drift or parting of ways can be inevitable,” he says. The bottom line for agencies and clients is the idea, according to both. “What does or should matter more, and what should be charged for more, is the idea, the creative spark of excellence that’s built on a clear understanding WIN-WIN

Match-making: Volkswagen ME’s Stefan Mecha

of the problem, and an insight into the behaviour and mindset of consumers,” says Butterwick. “We all need to do more to educate and persuade clients of the value of a good, effective idea that helps them sell their brand. Deciding on what to charge is another matter, but it would certainly be a good starting point if clients took a more sympathetic and realistic view of the commercial realities of running a business, paying staff, and making a fair profit.” With an unfriendly global economy and marcomm budgets reduced severely, Bibbings says that while negotiations may take place over payments between agencies and clients, successful agencies have realised the primary importance of their relationships with clients. “We like to emphasise that in this environment, a strong relationship has been proven to be simpler and easier to manage, delivering better value,” says Bibbings. “It saves time, effort and money for both the agency and the client, and better relationships lead to better work, which leads to better business results. n

TRADING PLACES

SAFETY FIRST Despite concerns over security, business prospect in Iraq continue to improve, says study. INVESTOR PERCEPTIONS of Iraq are slowly improving despite the country’s many problems, a recent study reveals. Preliminary results from an Economist Intelligence Unit (EUI) survey of 300 Middle East-based executives show that the security situation in the country is the single major deterrent to business. Some 64 per cent said it is still too dangerous to do business there. But more than half added that their view of Iraq has become more positive during the past two years. Most respondents, moreover, expect the security situation for foreign executives and employees to improve during the next two years, with 46 per cent saying it would improve somewhat and 9 per cent saying it would improve significantly, despite the drawdown of Western troops.Just 10 per cent expected it to

worsen. Key findings include: • Northern Iraq ‘safest’ Northern Iraq, where violence has been limited, is the region that investors view the most favourably, with 46 per cent of respondents viewing it either highly favourably or somewhat favourably, while 20 per cent viewing it unfavourably. Baghdad, however, which has suffered the most violence in the past, is viewed almost as favourably by our respondents, 46 per cent of whom said they viewed it either highly favourably or somewhat favourably – illustrating the economic importance of the capital city. • Media ‘least promising’ Some 43 per cent saw construction and real estate as the country’s most promising non-hydrocarbon sector, fol-

lowed by consumer goods (23 per cent), with healthcare and pharmaceuticals tying with chemicals for third place (18 per cent). Media (4 per cent) and retail (6 per cent) were seen as the least promising sectors. • Significant opportunities Forty-five per cent of respondents said: “The ongoing violence means doing business in Iraq will remain too risky for some time.” But nearly as many – 38 per cent – see it as “a country with significant opportunities for those who are willing to accept risks in the short-term”. • Increased business dependant on security: Forty per cent of respondents are not currently considering doing business in Iraq but would if circumstances change. Those who are not doing business in the country listed security as the main reason.

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XC-ISM-A

• ‘Violence’ tops risk list The top three risks to business were judged to be violence (67 per cent), corruption (44 per cent) and the lack of infrastructure (35 per cent). The next three were bureaucracy, lack of contract protection and credit risk. • Natural resource The most attractive aspect of Iraq as perceived by these executives was – unsurprisingly – the country’s oil and gas resources (cited by 56 per cent as one of the top three attractions). Eighteen per cent also cited other natural resources such as phosphates. The second and third biggest draws were the prospects of the untapped consumer markets and early-mover advantage. • High returns Among the 175 respondents who

AUDI VW ME SIGNS DEALER IN N. IRAQ

Ignition: Erbil-based National Automotive Trading Co., owned by the Moin Behbahani Group, is named the official partner dealership for the Audi and Volkswagen in Iraq. The first dealership is due to open this month. Construction of the showrooms and service facilities has begun. Plans include full service Audi and VW facilities in Erbil and Baghdad. Left to Right: Stefan Mecha, managing director, VW ME; Moin Behbehani and Jeff Mannering, managing directors Audi ME.

are doing or considering doing business in Iraq, the top reason cited was the opportunity to make high returns (49 per cent), fol-

lowed by the opportunity to reach a largely untapped consumer market (38 per cent). • Oil and gas Twenty-five per cent were attracted by oil and gas, while another 25 per cent believed their company was wellplaced to take part in reconstruction efforts; 23 per cent cited strategic reasons while 17 per cent emphasised a desire to participate in Iraq’s renewal. • Desire to renew Among executives based in the Middle East, 27 per cent cited a desire to participate in Iraq’s renewal – although the opportunities for returns and for reaching untapped consumers remained the first and second most important reasons, respectively. n

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

PERSONAL CARE Innovation & masstige proves a winning formula in the personal care sector. Mass class Skincare Teen deos Euromonitor Kantar Analysis Make up games top search PARC analysis PARC data

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70 Gulf Marketing Review September 2010

THE SPREAD OF MASSTIGE How mass and class joined forces within the personal care category to fight the signs of recession.

THE CATEGORY that represents a halfway point between mass and class has been the biggest winner in the shift in customer shopping habits. According to Euromonitor International’s Global Beauty and Personal Care: State of the Industry 2010 report, published in May: “The majority of consumers cut back on spending on beauty, opting for cheaper alternatives in essential sectors such as haircare, and cutting out products altogether in discretionary sectors. This resulted in a shift from premium to masstige/mass and from mass to budget products.” Predictably, the biggest shifts are in categories where technological superiority and noticeable positive effects are closely watched by consumers, like haircare and anti-ageing, and masstige brands have not let the opportunity pass them by. “Consumers have ascertained in the last years that the difference between mass market a.=nd selective brands became

narrower in terms of product concepts, formulas, texture, results, performance and packaging,” says Jean-Manuel Canga-Valles, marketing director, Beiersdorf Middle East FZCO. “Consumers are sophisticated, savvy, well-informed, and have moved away from the simple idea that if something is expensive it is effective and delivers results. Consumers are looking for trusted brands like Nivea that can offer true innovations with products that deliver what they stand for at a reasonable price,” he adds. But masstige product lines such as Nivea Visage Q10, DNAge and Expert Lift, the Olay Total Effects and Regenerist ranges, and Pond’s Age Miracle and Age Defense ranges aren’t exactly cheap, especially compared to their fellow shelfmates in supermarkets. And while their price points may still be a lot lower than premium brands like La Prarie and Lancome, these

products strongly resemble luxury skincare products in terms of claims, packaging and advertising. “The positioning of the product, including price, reflects its quality,” says Iain Potter, VP for marketing at Unilever NAME. “Moreover, the superior pricing, packaging and marketing of anti-ageing ranges are reflective of the superior technology that goes into ensuring the delivery of their performance.” It’s true that it’s not just constricted budgets pushing consumers in the direction of masstige. With long legacies in skincare research and development, many of these brands have managed to deliver successful results. “With the launch of the Q10 line, Nivea made a decisive breakthrough with the co-enzyme Q10 that turned its cream into the first product offering sustained anti-ageing effects. To this day, one jar of Nivea Visage Q10+ is sold every two

September 2010 Gulf Marketing Review 71

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

Hair today: While salon haircare products are seen to set the trend, brands such as Sunsilk with its Co-Creations range have been repositioning at a more premium level

seconds globally. A huge success indeed,” says Canga-Valles. “Independent studies have shown that Olay Regenerist Microsculpting super cream outperforms the $700 creams. We believe we provide products with the best technology at affordable prices,” says Saqib Zia, brand manager at Olay. The strength of the masstige category is also well demonstrated in the haircare category, where despite mid-market salon brands facing pressure at both ends – from well-entrenched, lower priced mass brands and from upmarket “professional” ranges that can be perceived as more effective – brands in this category are increasingly doing well. “Despite the strength of the competition, Tresemmé has succeeded in becoming a Top 10 haircare brand in the UAE and is still growing,” says Chris Roberts, director, Middle East, Alberto Culver, quoting MEMRB data (September-October 2009, total haircare category, excluding colourants). “Tresemmé has a salon heritage and was introduced as a retail brand in the United States in the early 1990s, creating a new category segment of salon quality formulation at mass retail prices – professional, affordable. We not only target the mass haircare brand users who are

72 Gulf Marketing Review September 2010

interested in more professional quality products, but also the salon brand users who would like to have the same quality products but at a better price,” he says. Superior technology at affordable prices is where masstige brands have managed to score brownie points with consumers – not just from those trading down, but also from those trading up. Closely reflecting the evolution of mass skincare brands like Nivea, Pond’s and Olay into masstige skincare brands, mass haircare is also going down the expertise route, meeting salon brands halfway. “While salon haircare products are seen to set the trend, brands such as Sunsilk have been upgrading their image, with the all-new re-launched Sunsilk Co-Creations CLASS ACT

Strong footing: Alberto Culver’s Chris Roberts

Upgraded: Proctar & Gamble’s Saqib Zia

being a perfect example,” says Unilever’s Potter. “Not only has Sunsilk upgraded its image, but also the benefits the product delivers, by co-creating the formulations with hair experts and thus bringing its performance to par with ‘professional’ brands.” The Co-Creations range includes shampoos and conditioners co-created with seven global experts addressing different benefits and requirements of colour, volume, damage, hair fall, dandruff-free and so on. According to Sami Ahmed, marketing manager, Female Beauty, P&G – whose haircare brands span the entire gamut of mass to class – for companies that cover a large range of offerings, meeting consumers’ needs still comes first. “Our marketing is not tailored to shift consumers from one channel to another,” he says. “We help consumers make a decision based on the product offering, their needs and wants. Our aim is to serve consumers in the best way possible so that they continue to enjoy the benefits that our brands offer them. “We see a common trend across the globe. There is an overlap between salon professional brands and mass brands. Both serve a purpose and both provide cutting-edge technology,” he says. n

MARKET SIZES • HISTORIC • RETAIL VALUE RSP • US$ MN • CURRENT PRICES • FIXED 2009 EXCHANGE RATES Country 2-IN-1 PRODUCTS Saudi Arabia Iran -modelled Egypt Syria -modelled United Arab Emirates -modelled Oman -modelled Lebanon -modelled Yemen -modelled Jordan -modelled Iraq -modelled Bahrain -modelled Kuwait -modelled Qatar -modelled COLOURANTS Iran -modelled Saudi Arabia Egypt United Arab Emirates -modelled Jordan -modelled Syria -modelled Kuwait -modelled Oman -modelled Lebanon -modelled Yemen -modelled Qatar -modelled Iraq -modelled Bahrain -modelled CONDITIONERS Iran -modelled Saudi Arabia United Arab Emirates -modelled Egypt Syria -modelled Lebanon -modelled Oman -modelled Kuwait -modelled Yemen -modelled Iraq -modelled Bahrain -modelled Qatar -modelled Jordan -modelled SALON HAIR CARE Saudi Arabia United Arab Emirates Kuwait -modelled Qatar -modelled

2007

2008

2009

86.1 43.8 16.9 14.1 11.8 11.8 9.2 6.8 3.3 3 2.2 0.8 0.2

87.3 58.4 18.9 14.3 13.2 11.9 9.2 6.9 3.6 3 2.3 0.7 0.1

88.2 73.5 21.6 14.6 14.3 12.1 9.2 7.1 4.2 3.1 2.4 0.7 0.2

44.5 31.6 12.6 8 4.6 4.7 5.2 3.9 3 2.2 1.1 0.9 0.7

59.6 35 14.5 9.5 5 5.2 4.8 4.3 3.3 2.5 1 1 0.8

76.9 38.9 17 10.7 5.9 5.8 5.6 4.8 3.6 2.8 1.3 1.1 1

60 73.8 20.6 21.2 12.1 7.9 7.1 8 5.8 2.5 1.9 1.7 1.2

79.8 83 24.3 23.6 13.6 8.8 7.9 7.3 6.6 2.8 2.1 1.5 1.4

99.7 93 27.7 26.8 15.4 9.7 8.9 8.1 7.5 3.1 2.5 1.9 1.6

6.4 1.5 0.5 0.1

7.4 1.7 0.4 0.1

8.5 1.8 0.4 0.1

Country PERMS AND RELAXANTS Saudi Arabia Syria -modelled Oman -modelled Lebanon -modelled Yemen -modelled Kuwait -modelled Bahrain -modelled Iraq -modelled United Arab Emirates Qatar -modelled Egypt Iran Jordan SHAMPOOS Iran -modelled Saudi Arabia United Arab Emirates -modelled Egypt Syria -modelled Kuwait -modelled Oman -modelled Lebanon -modelled Yemen -modelled Jordan -modelled Qatar -modelled Iraq -modelled Bahrain -modelled STYLING AGENTS Egypt Iran -modelled Saudi Arabia United Arab Emirates -modelled Syria -modelled Oman -modelled Kuwait -modelled Lebanon -modelled Yemen -modelled Jordan -modelled Bahrain -modelled Iraq -modelled Qatar -modelled

2007

2008

2009

5.5 0.7 0.6 0.4 0.3 0.2 0.2 0.1 0 0 -

6 0.7 0.6 0.5 0.4 0.2 0.2 0.1 0.1 0 -

6.5 0.8 0.7 0.5 0.4 0.2 0.2 0.2 0.1 0 -

151.2 78.8 33.7 34.2 12.5 14.7 10.3 8.1 5.9 4.6 3 2.7 2.2

198.3 86.5 39.6 37.2 13.9 13.2 11.5 8.9 6.7 4.9 2.7 2.9 2.5

247.2 96 42.1 41.1 15.6 14.8 12.8 9.7 7.5 5.4 3.4 3.2 2.9

49.1 36.8 24.2 8.4 4 3.3 4.2 2.6 1.9 1.3 0.9 0.8 0.9

55.6 49 27 10 4.4 3.7 3.2 2.9 2.1 1.5 1 0.9 0.7

65 62.7 29.2 11.4 4.8 4 3.6 3 2.3 1.8 1.1 1 0.8

Source: Beauty and Personal Care: Euromonitor from trade sources/ national statistics

September 2010 Gulf Marketing Review 73

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

THE PERSONAL TOUCH

Personalised activation enhances Clarins’ premium positioning

74 Gulf Marketing Review September 2010

free skin consultations, complimentary samples of expensive goodies with exotic ingredients like pearls, caviar and diamonds, and a smiling beauty advisor in a pristine white coat handing you a skincare plan created “just for you”. According to Osama Rinno, president JUST FOR YOU

Self expression: Luxury retail formats underpin the value proposition for Clarins

of Clarins Group Middle East, the retail experience offered by department stores to premium skincare brands is vital. “With a proper retail environment, luxury brands are able to express themselves better,” he says. “They can attract, engage, serve and offer customers better service, which ensures more satisfaction among customers. Therefore, the value proposition that luxury brands such as Clarins offer is much higher when we have a better retail environment.” Department stores offer luxury brands the opportunity to create personalised display counters that reflect their unique brand identities, people them with trained advisors who can identify individual skincare needs and recom-

IN A world where higher prices are often equated with exclusivity and higher quality, how do prestige skincare brands offer their customers higher value without resorting to price-offs or 20 per cent-more-product offers and their ilk – tactics that go against their premium image and risk diluting the essence of their brands? For luxury skincare brands – like luxury brands in other categories such as hospitality and bespoke tailoring – the extra value often comes in the form of individual attention and experiential elements. In personal care this translates into all the niceties found in upscale department stores and skincare boutiques that one would never find in a supermarket or drugstore – things like

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mend the best-suited products, and offer just the sort of perks that help build stronger customer relationships, relationships even more vital at the higher end of the brand spectrum. “Clarins beauty advisors offer complimentary services such as Clarins Time, which is a mini-facial or a makeover, so that each person has the chance to try the products before they purchase. They also give samples based on the consultation,” says Rinno. And similar to the experience of visiting a designer’s own atelier, customers who visit luxury skincare brands in their own exclusive domains have even more to look forward to. Rinno says that at the Clarins Boutique in Dubai Mall – the first in the Middle East – the opportunity to showcase the brand’s exclusive offering is even further enhanced. “We offer

CUSTOMER-ORIENTED

Interaction: Osama Rinno, president of Clarins Group Middle East

a wide variety of Clarins treatments with therapists who are experts and undergo a lot of training. In addition, our merchandizing is done to reflect the best atmosphere to link product display, customer service, makeovers and treatments. We also have exclusive products available only in the boutique such as the Clarins Home Range.”

Several luxury skincare brands have very successfully taken their brands out of the traditional retail landscape to that of a dedicated boutique or clinic, or tied up with hotel spas to offer signature treatments, as Pevonia Botanica does with spas at Kempinski Hotel Mall of the Emirates and Le Meridien Dubai, as well as others across the world. Rinno says the interaction with the customer at a more direct, individual level in such environments benefits the brand not just from a customer-relationship point of view, but from that of product development. “The boutique is the opportunity to engage, serve and learn from our customers. By listening to them, we learn about their needs and how to develop new products or improve existing ones,” he says. n

A GLOWING YEAR FOR SAUDI ARABIA

• The main trends in launches and relaunches included innovations on added-value features and tangible endconsumer benefits, for example Pond’s Age Miracle, Pond’s Age Defence, Nivea Visage DNAge in skin care; Max Factor Second Skin in colour cosmetics; and Aquafresh Between Teeth and Oral-B Expert in oral care. • Other trends included brand extensions, as was the case in premium fragrances and hair shampoos; natural ingredients, such as Dettol Naturals; and Aloe Dent in oral care. There was also innovation in packaging, such as Sensodyne IsoActive in toothpaste (the first toothpaste in aerosol packaging). • Product launches also contributed to a 12 per cent sales growth in men’s

76 Gulf Marketing Review September 2010

Beauté et Cie and Givenchy SA, Christian Dior SA and Chanel SA.

• In 2009, sales of beauty & personal care in Saudi Arabia saw a growth of 10 per cent to $2.47 billion.

grooming in 2009. This year saw several key launches: Nivea Sport For Men, Rexona V8, Nivea Silver Protect, Vaseline for Men and Gillette Blue III. • The most notable trend in terms of share movement was the strong gains seen by companies with mass/masstige brands at the expense of those with premium offerings, such as Lancôme Parfums

• In 2009 the beauty specialist retailers channel maintained its position as the leading distribution channel for beauty and personal care products, capturing a share of almost 40 per cent. Beauty specialist retailers were the dominant channel for colour cosmetics, fragrances and skin care. • Supermarkets and hypermarkets were dominant in many other product groups, such as baby care, bath and shower products, and hair care. They held second position with a value share approaching 27 per cent. Due to the strong gains made by both channels over the review period, the share held by chemists/ pharmacies and small grocery retailers continued to decline, and both were the main losers in 2009. Source: Beauty and Personal Care - Euromonitor International Country Market Insight, June 2010

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

ROLL ON Case study: How Nivea got up, close and personal with the ‘digital native’ generation when it launched its new deodorants for teens.

Heavenly scent: Rita Hayek fronts the Angel Star marketing communications strategy

IN THE personal care sector, nowhere has the impact of digital media been as dramatic as in the world of teens. But where does digital fit in? And what are teen brands talking about online? According to Jean-Manuel Canga-Valles, marketing director, Beiersdorf Middle East FZCO, whose hero brand Nivea has entered the teen market in a big way – most recently with Menenergy deodorant for boys and Angel Star range for girls – internet and social networking sites are a key focus within the brand’s holistic marketing plan, with online feeding into a much bigger picture. “Being the ‘digital natives’ generation, internet plays a great role in our

78 Gulf Marketing Review September 2010

marketing strategies to target teenagers,” says Canga-Valles. “We also intend to make the best possible use of the potential of social media networks. However, digital communications are complementary to ATL advertising like TV and outdoor, and to reach teenagers efficiently it requires the right balance of fully-integrated touch points.” “Fully-integrated touch points” were definitely a feature in the search launched by the brand for the next face of the Nivea Angel Star campaign, with digital playing a starring role. “We used multimedia platforms like TV, cinema, targeted outdoor in schools and universities, in-mall and in-store activations

and, of course, digital touch points, including a Facebook fanpage,” says Canga-Valles. “The response was overwhelming. Within only 10 days we received over 1,000 photos from girls across the region who wanted to participate in the Angel Star competition.” The campaign saw Nivea Angel Star spokesperson, Lebanese actress Rita Hayek, and five contestants undergo style makeovers, which were filmed and uploaded as webisodes on a microsite, for consumers to vote for their favourite contestant. The contestant voted for by the public will front the next Angel Star campaign when it airs this month. But while reaching out to wannabe models may lend itself well to the whole idea of interactive and integrated campaigns, how does the brand engage the majority of its target audience? Is creating ads that speak to teens a challenge in the Middle East? After all, you can’t really go down the route of “boy/girl needs to smell/look nice for that first close encounter” that tends to dominate most teen-targeted ads elsewhere in the world. “The ‘boy gets girl’ approach would have been an easy route, which we didn’t want to take as there are many other topics that teenagers are interested in,” says Canga-Valles. “In the Middle East, girls are extremely interested in beauty, fashion and style. As a matter of fact, they are more aware of these topics than in many European countries. For boys – the guys – friends, action and fun are the most important elements.”n

MARKET SIZES • HISTORIC/FORECAST • RETAIL VALUE RSP • US$ MN • CONSTANT 2009 PRICES • FIXED 2009 EXCHANGE RATES Country DEODORANT CREAMS Saudi Arabia UAE - modelled Syria - modelled Oman - modelled Lebanon - modelled Egypt Yemen - modelled Bahrain - modelled Kuwait - modelled Iraq - modelled Qatar - modelled Jordan - modelled Iran - modelled DEODORANT ROLL-ONS Iran - modelled Saudi Arabia UAE - modelled Syria - modelled Kuwait - modelled Lebanon - modelled Oman - modelled Egypt Yemen - modelled Qatar - modelled Iraq - modelled Bahrain - modelled Jordan - modelled

2009

2010

2011

2012

3.1 1.2 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0 0 0 -

3.2 1.2 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0 0 -

3.4 1.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0 0 -

3.5 1.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0 0 -

32.2 18.1 15.1 3 2.6 1.9 1.7 1.8 1.4 0.6 0.6 0.5 0.1

34.7 18.7 15.7 3.1 2.7 1.9 1.8 1.7 1.5 0.7 0.6 0.5 0.1

37.6 19.3 16.4 3.2 2.7 2 1.8 1.7 1.6 0.7 0.6 0.6 0.1

40.7 19.9 17.2 3.3 2.8 2 1.9 1.7 1.6 0.7 0.6 0.6 0.1

Country DEODORANT SPRAYS Iran - modelled Saudi Arabia UAE - modelled Egypt Syria - modelled Kuwait - modelled Oman - modelled Lebanon - modelled Yemen - modelled Jordan - modelled Bahrain - modelled Iraq - modelled Qatar - modelled DEODORANT STICKS Iran - modelled Saudi Arabia UAE - modelled Kuwait - modelled Syria - modelled Oman - modelled Lebanon - modelled Yemen - modelled Qatar - modelled Bahrain - modelled Iraq - modelled Egypt Jordan - modelled

2009

2010

2011

2012

63.2 39.2 31.6 25.2 6.5 5 5.4 4.1 3.1 2.5 1.5 1.3 1.1

67.7 40.9 34.1 24.4 6.8 5.2 5.6 4.2 3.3 2.4 1.7 1.4 1.3

72.7 42.8 36.8 23.9 7.2 5.5 5.9 4.4 3.5 2.4 1.8 1.5 1.4

78.2 44.7 39.4 23.7 7.5 5.9 6.1 4.5 3.7 2.4 2 1.6 1.5

10.9 12.9 4.7 1.4 1.1 0.9 0.7 0.5 0.3 0.3 0.2 0.1 0

11.8 13.3 4.9 1.5 1.1 0.9 0.7 0.5 0.4 0.3 0.2 0.1 0

12.8 13.7 5.1 1.5 1.2 0.9 0.7 0.6 0.4 0.3 0.2 0.1 0

13.9 14.2 5.3 1.6 1.2 1 0.7 0.6 0.4 0.3 0.2 0.1 0

Source: Beauty and Personal Care: Euromonitor from trade sources/national statistics

FORECAST SALES OF DEODORANTS BY SUBSECTOR

Category Deodorant sprays Deodorant pumps Deodorant roll-ons Deodorant sticks Deodorant creams Deodorant wipes Deodorants

2008 104.6 50.9 16 4 175.5

Value 2008-2013 (AED million) 2009 2010 2011 2012 112 119.8 129 141.3 54.5 60 67.3 77 16.6 17.5 18.8 20.2 4.1 4.2 4.4 4.6 187.1 201.4 219.4 242.9

2013 148 85 21 4.7 258.7

% constant value growth 2008-2013 2008-13 CAGR 2008/13 Total 7.2 41.5 10.8 67 5.5 30.9 3.4 18.2 8.1 47.4

FORECAST DEODORANTS PREMIUM VS MASS % ANALYSIS 2008-2013 % retail value rsp Premium Mass Total

2008 2 98 100

2009 1.9 98.1 100

2010 1.9 98.1 100

2011 1.8 98.2 100

2012 1.8 98.2 100

2013 1.7 98.3 100

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

September 2010 Gulf Marketing Review 79

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

TOTAL ENGAGEMENT

Brands are looking for better ways to connect with consumers, and social and interactive media are allowing them to do just that. LAST YEAR forced marketers and advertisers across the board to pause, think and intelligently divvy up their budgets to get the most bang for their buck, instead of carrying on down the same old tried and tested route. In the personal care sector, this saw major brands moving from mupis to big format billboards as outdoor media prices plummeted, going hard-sell with promotional activities to coax consumers into spending, and looking online to channels that offered greater measurability. But how has the intermittent period shaped this year’s plans? According to some of the region’s biggest players, although TV remains a staple, and promotional activity continues, channels that help build closer, one-on-one customer

80 Gulf Marketing Review September 2010

relationships are coming to the fore as part of the overall media mix. “TV is still king in the personal care market, not only in the Middle East but globally, and I don’t see this changing any time soon,” says Margie Gilbride, HOLISTIC APPROACH

Focused: Johnson & On the ball: Johnson Middle East’s Beiersdorf Middle East’s Margie Gilbride Moritz Bleil

marketing communications manager, Beiersdorf Middle East. “In our category you are just not a player if you are not on TV.” Moritz Bleil, senior brand manager, Johnson & Johnson Middle East, agrees: “TV was and will be an important media in the Middle East for our categories. We are, however, increasingly spending on alternative media like social networking and internet to complement our 360-degree communication approaches. Also, we are focusing a lot of energy on activating BTL consumer touch points through value-added campaigns on the ground, in order to build a direct relationship with our consumers.” Bleil adds that for J&J brands such as Neutrogena, factors such as direct

recommendation from medical experts play a bigger role than celebrity endorsements. “We want our consumers to see the value in the skincare benefits of the products, rather than in the pure image of the brand,” he says. “This is proven by the fact that a lot of Neutrogena products are dermatologist-recommended. We’ve managed to reach out to our target group using a smart mix of ATL media, with an increasing share of online and social media, and BTL activities across the region.” Brands are definitely looking for better ways to connect and get closer to the consumer, and social and interactive media within the digital sphere are allowing them to do just that. “We recently ran a competition to choose the next ‘face’ of the Nivea Angel Star campaign. While the activity ran on our website, the conversation that occurred on our Facebook page was fantastic, providing a forum for real dialogue with our consumers,” says Gilbride, adding that interactive games and competitions are also regularly developed on the Nivea website and prove very popular. “Our product pages get a steady traffic flow every month, but it is specific competitions and activations that provide the spikes in page traffic. Traffic increases up to 800 per cent above normal levels depending on how heavily it is promoted on- and offline,” she says. According to David Porter, media director, Unilever NAME, digital activity is increasing throughout Unilever worldwide, with teams more connected than ever in terms of sharing best practice. “There’s nothing done on TV that cannot be done on digital, with the added benefit of a return patch. So this isn’t an issue, it is an opportunity. That opportunity would be far richer for viewers and more lucrative for media owners if viewers in the region were given access to affordable broadband and mobile internet.” But Porter adds that while increased interactivity and dynamicity is all well and good, when it comes to social media

Big role: For Neutrogena, factors such as direct recommendation from medical experts plays a big role

Engaging with consumers through social media is like walking into their homes. You better make sure you have an invitation first. sites, anyone assuming it is an easier medium to work with would be doing so at their peril. “Social media require sensitive handling and constant attention,” he says. “So this is a far more demanding space in which to work. Engaging with consumers through social media is like walking into their homes. You better make sure you have an invitation first. But there is no ‘one size fits all’ solution – our approach should vary by channel, market and brand.” When it comes to reaching out to customers in the non-virtual world, brands are also working the two-way relationship. In-store promotions are getting smarter by moving away from simple discounted offers to an approach that offers value, and is likely to make more sense to the consumer. “We prefer to give consumers incentives to try out new products and

educate them about regime usage. So we always prefer to give away a bonus product with purchase of one of our products or incentivize regime purchase,” says Bleil. “One example of this was our Thematic Key Account Promotion in beauty care, where we combined the portfolios of Neutrogena, Clean&Clear and Johnson’s to give our consumers the best regime possible for thorough facial skincare, following the steps cleanse, tone, moisturise and protect.” Gilbride says that while promotional activity has risen, it’s a channel that needs to be approached intelligently. “Our promotional activity has increased from 2008 levels as consumers seek value for money. Promotions deliver quick sales, but too much promotional activity lowers profitability and ultimately devalues your brand equity,” she says. n

September 2010 Gulf Marketing Review 81

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

LACKLUSTRE UNTIL 2011 From sluggish spending to more distribution control for hypermarkets, Euromonitor gauges the UAE’s personal care summer performance.

Gamble Gulf, LOréal Middle East and Beiersdorf Middle East – collectively accounted for nearly half the market’s value sales. Domestic manufacturers, on the other hand, are notably present in fragrances in light of sustainable demand for Arabian perfumes among the local population. Rasasi, Ajmal and Designer Shaik top the list of major domestic manufacturers in the Emirates.

Negative impact The low consumer confidence had a negative impact on volume and value growth rates in 2009, which were lower than their corresponding review period levels. Volume growth in the beauty and personal care market reflected slower population growth in the UAE as well as an outflow of expatriates back to their home countries in July. In addition, shrinking consumer confidence saw overall value growth slightly impacted by some consumers trading down to cheaper brands. This slow growth also reflected the maturing stage of some categories in which the novelty factor had started to wane. Greater efforts In spite of the slower growth in 2009,

82 Gulf Marketing Review September 2010

corporate activity increased in terms of awareness campaigns and new product developments. Firstly, some categories saw a number of awareness and promotional campaigns. These were particularly evident in sun care, skin care and oral care. Secondly, various new product developments were launched last year, mostly catering to both middle-income earners trading down and high-income earners trading up. Wider gaps Multinational manufacturers remained at the head of beauty and personal care sector. This lead is benefiting from longestablished customer loyalty as well as a lacklustre domestic manufacturing environment. The largest four multinationals – Unilever NAME, Procter &

Power shifts In addition to being positioned as the domain of weekly shopping, supermarkets and hypermarkets are reinforcing their lead even more in the distribution of beauty and personal care products. Low consumer confidence has undeniably benefited these channels. This is mainly due to their own regular promotions and, interestingly, a growing interest in their private label beauty and personal care lines. Delayed recovery Although the global economy started recovering by the second half of 2009, the UAE remained mired in recession. The Dubai debt crisis, which erupted in November 2009, is expected to continue to slow down economic recovery. This will, accordingly, feed through across all sectors, including the beauty and personal care industry. Analysis of long-term growth, however, shows expectations for this sector to record accelerating growth rates again from 2011. Growth will be particularly driven by the expanding retail landscape and the novelty of some categories such as men’s grooming products. n

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SECTOR ANALYSIS

A MOVE TOWARDS NICHE

Saudi consumers are seeking higher order relationship with their brands. MASLOWâ&#x20AC;&#x2122;S THEORY, applied to marketing, describes the evolution of the discipline and as well as markets â&#x20AC;&#x201C; from commodities to brands, from a situation where the manufacturer is in control to one where, as we progress through the stages, the consumer in effect owns the brand and has clear expectations from not only the brand, but also from the company supplying it. Having applied this model to Saudi Arabia through many research programmes (and there are some variations by category studied), the market is going through Stage 3 â&#x20AC;&#x201C; Brand as a Personality. Stage 3 is crucial, as it marks the transition away from rational,

84 Gulf Marketing Review September 2010

feature-based product marketing to emotional brand-benefit marketing, where brands have increasingly higher levels of dialogue with consumers. Put simply, consumers are seeking higher order relationships with brands (ie if I use this brand it says something about who I am). And this is often characterised with an increase in niche brands, accompanied by increased mass affluence. The evolution described above is evident in the Personal Care category, where Saudi consumers are moving to niche variants to satisfy their higher order needs. Take Toothpaste as an example: An average Saudi household purchases

three to four variants of toothpastes a year. Niche variants, such as for sensitive teeth and for children, are growing at a healthy rate in the country. Although sensitive variants are three times more expensive than regular ones, more consumers are purchasing them now than before. Regular variants of toothpaste witnessed decline in the past one year. Purchase patterns in the Shampoos and Personal Wash category also show a similar trend. Saudi consumers are switching from regular variants of shampoos to anti-dandruff variants, and from beauty brands of Personal

High Information

MASLOWâ&#x20AC;&#x2122;S THEORY APPLIED TO BRANDS

TOOTHPASTE VARIANTS: % VOLUME GROWTH - LAST YEAR OVER PREVIOUS YEAR

From basics ...higher order needs ...self actualization

Stage 1: Commodity

Stage 3: Brand as personality

Stage 2: Brand as reference

Stage 5: Brand as company

Stage 4: Brand as icon

6.1

4.9 2.5

Others Freshness

Kids

Sensitive

From product era to benefit era

Manufacturer in control

Consumer in control

-7.8

High competition

ANTI BACTERIAL PERSONAL WASH 200 180 160 140 120 Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

Jul 09

June 09

May 09

Apr 09

Mar 09

Feb 09

Jan 09

Dec 08

Nov 08

Oct 08

Sept 08

Aug 08

July 08

June 08

May 08

100

40 20

Volume

Penetration

Average volume per buyer

0 PENETRATION % 51 53

59 61

60 63

54 56

50 49

49 51

52 52

30-39 years

40+ years

38 38 11 13 All households

2010

Saudis

Expat arabs

Asians

2009

Upto 29 years

Source: Kantar Worldpanel 2010

The findings suggest that a shift to niche variants is influenced more by purchasing power than family life stage sensitive variants increased significantly in the past one year. The number of consumers who purchased sensitive variants increased by +4.3 per cent, while there was a fall of -1.5 per cent for regular variants. These recent trends portray a market that is moving towards personal choice. In line with the recently published TNS Arab As Consumer: Woman Research Programme, while family remains the core identity of Saudi women, they aspire to equal partnership with their husbands and think career is important. With a growing need to express individuality among Saudi women, it is important to establish long-lasting bonds aligned with

their emotions and expectations. It is moving from a scenario where women used to buy variants that suited the whole family to specific products that suit their personal or individual needs. Therefore, it is important to connect with them more at a personal level and consider need gaps to rightly tap communication opportunities. Which consumer segments are driving change? This shift in behaviour is primarily driven by upper- and middle-class consumers. Growth of sensitive variants of toothpaste was mainly observed among these consumer groups and younger housewives. While close to half of

September 2010 Gulf Marketing Review 85

Wash to brands based on a health platform. Anti-bacterial brands of Personal Wash witnessed high growth from early 2009. The trend gathered pace with the outbreak of swine flu later in the year. About three-fourth of this growth came from consumers who switched or replaced beauty soaps with anti-bacterial ones. So a combination of market evolution and global events (ie swine flu) led to a change in purchase behaviour in this category. The highest growth in penetration for anti-bacterial brands was in the Hand Wash segment, due to the emphasis placed on cleaning hands following the outbreak of swine flu. A new concept of Hand Sanitisers entered the market, and it showed robust growth, with most of the big players having already entered the segment. Saudi women are also moving to niche variants in Feminine Care. Purchase of

SECTOR ANALYSIS

Anti dandruff shampoos: last year over previous year 120

Penetration % - Index to total market Change in penetration over previous year

110 100

106 (9.7) 100 (4.6)

104 (11.6)

102 (-5.8)

104 (4.1)

101 (5.7)

99 (1.1)

99 (4.0)

101 (4.4)

93 (2.4)

90 80

73 (8.1)

70 60 All households

Local arabs

Expat arabs

Asians

Upto 29 years

30-39 years

40+ years

Source: Kantar Worldpanel 2010

Consumers trying sensitive variants of Feminine Care are younger housewives. upper-class consumers and one-third of middle-class consumers purchased sensitive variants in the last one year, less than a quarter were bought by the D/E class. Kidsâ&#x20AC;&#x2122; variants are in a nascent stage and have relatively higher penetration among middle-aged housewives. Growth of anti-dandruff shampoos and sensitive variants of Feminine Care is also driven by the ABC1 social classes. Penetration of anti-dandruff shampoos is almost similar among both young and older housewives, while the new consumers who are trying sensitive variants of Feminine Care are mainly younger housewives. Unlike other niche segments, the antibacterial segment in Personal Wash saw almost similar growth across all social classes. The penetration of Anti-Bacterial Personal Wash touched 66 per cent in the past year across most social classes, except the D/E. The highest growth rate during the swine flu period was among lower social classes, highlighting that â&#x20AC;&#x153;germ

86 Gulf Marketing Review September 2010

killâ&#x20AC;? messaging worked to encourage increased hygiene. The findings suggest that a shift to niche variants is influenced more by purchasing power than family life stage. While the shift was noted among housewives in all age groups, the trend was seen more among upper middle classes, hardly surprising given the higher price points of niche variants versus regular ones. It might be worth, however, assessing if there is an opportunity to tap aspirations of lower SECs with a lower price point. Are niche variants here to stay? Consumers who buy sensitive variants of toothpastes spend about 40 per cent of their total Toothpaste spend on sensitive variants. Similarly, an average household that purchases anti-dandruff shampoo spends about one-third of its Shampoo spend on these variants. Substantial share for niche variants among buying households indicates significant

loyalty to these variants. Higher loyalty also indicates higher potential to grow at a given level of trial. The average consumption of anti-dandruff variants has also gone up over the years. The average purchase quantity per family has increased by more than 20 per cent in the past two years. It is also worth noting that buyers of anti-bacterial brands are becoming increasingly loyal. The volume share of these brands among their buyers rose from 16 per cent in 2008 to 24 per cent in 2010. As an increase in loyalty is more sustainable than an increase in trial, this segment is expected to grow further in the kingdom. The evolving Personal Care market presents immense opportunities. It is moving towards high consumerism, where communication needs to be focused more on emotional product benefits rather than product attributes alone.n

Ranjitha Subash Account manager Kantar Worldpanel

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

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Beauty brands need to provide more localised online content. THE TOP 10 searches in July are displayed for both the UAE and Saudi Arabia. Even though Google’s figures are usually less than accurate, they provide a comparison of the frequency of searches. In both the UAE and Saudi Arabia, the phrase “make-up games” is the most searched term. When one looks up the phrase, one finds online games for young girls, suggesting there is a captive audience, and proving that this could be great space for advertisers. A couple of brands stand out, such as Mac Cosmetics – in both nations – and Max Factor – in the kingdom alone. The sites that had the most visibility across all Top 10 search terms were varied between both country Google domains.

Women in the UAE were, it seems, particularly interested in waxing. Only a couple of local websites, Expatwomen.com and Souq.com, were in the Top 10 in the UAE, and in Saudi none at all. Maybe there is an opportunity for personal care or make-up brands to capture the Saudi market with localised content. From an SEO perspective, it is always difficult to compete with global sites such as Wikipedia and Amazon, for example. However, there is an opportunity for local content to shine through if websites are search-optimised. Google and other such engines now provide ever-more localised results and are begging for more regional content. This can be done through localised linkbuilding campaigns, syndication of local

TOP10 10KEYWORDS SEARCH RESULTS TOP – UAE GOOGLE.AE (GLOBAL) # 1 2 3 4 5 6 7 8 9 10

Keyword Make-up games Mac Cosmetics Beauty tips Haircuts Body Shop Make-up Aloe Vera Skin care Keratin hair treatment Brazilian wax

Estimated searches 1,900 390 390 320 320 260 260 260 170 170

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 below Google.com.sa

TOP 10 KEYWORDS – SAUDI ARABIA 1 2 3 4 5 6 7 8 9 10

Make-up games Hair Make-up Beauty tips Max Factor Haircuts Soap Mac Cosmetics Aloe Vera Cellulite

Lee Mancini head of Sekari Dubai

TOP10 10SEARCH SEARCHRESULTS RESULTS–GOOGLE.AE (GLOBAL) TOP UAE # 1 2 3 4 5 6 7 8 9 10

Coverage 80% 60% 50% 50% 40% 40% 30% 30% 30% 30%

Average rank 5.25 28.67 13.40 38.00 23.00 24.50 5.33 11.33 21.33 31.00

Domain En.wikipedia.org Ehow.com Beauty.about.com Buzzle.com Books.google.ae Youtube.com Expatwoman.com Sokissandmakeup.com Souq.com Ivillage.com

Performance data based on Google.ae. Results show the top 10 performing websites which on average have the highest rank and the most coverage in natural search results in Google.ae and below on google.com.sa

TOP 10 SEARCH RESULTS – SAUDI ARABIA 1,900 390 320 260 170 170 140 110 110 110

Search Engine Results Pages (SERPS) Research conducted on Google.com.sa

88 Gulf Marketing Review September 2010

PR releases targeting news providers and, as always from a technical point of view, by ensuring that the website is developed in such a way as to remove any barriers to the way search engines read it. A final observation: YouTube ranks high in both countries; and in Saudi a movie website is quite popular. This again proves the importance of video content. Brands targeting this space can drive traffic to their sites by developing video content. This could be done by providing make-up tips, for example. n

1 2 3 4 5 6 7 8 9 10

80% 70% 60% 50% 40% 30% 30% 30% 30% 20%

6.13 16.29 32.33 36.40 25.25 13.33 20.67 25.67 33.33 6.00

En.wikipedia.org Youtube.com Amazon.com Ehow.com Ivillage.com Sokissandmakeup.com Beauty.about.com Books.google.com.sa Stylelist.com Imdb.com

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Omar Chaoui Regional Brand Manager Roger Dubuis

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Dawser Al Hadidi Co-Founder Stylendubai.com

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

FACE VALUE Lebanon remains top spending market in Personal Care sector. MAJOR ADVERTISERS in the Personal Care sector continued to invest heavily in television, as they sought to leverage the medium’s unparalleled reach to connect with targeted consumers. The sector gained 19 per cent in the first half of this year, compared to the same period in 2009. Pan Arab Media, with an outlay of $546 million, gained 22 per cent in the first half, over the corresponding period in 2009. This represented a 76 per cent share of the total advertising market of $728 million. Lebanon was the top spending market in the region. The country maintained its position by gaining 17 per cent, as advertisers spent nearly $86 million in the first half. Kuwait, ranked second, gained 3 per cent. The UAE replaced Saudi Arabia to take the third spot, as ad spend in the market rose 8 per cent.

90 Gulf Marketing Review September 2010

Saudi Arabia saw a decline of 18 per cent. Marketers were also focusing on Egypt, as spending in the country surged 75 per cent. Smaller markets saw big fluctuations, with Jordan gaining 106 per cent, and Bahrain and Oman falling 32 per cent and 8 per cent, respectively. Among major media types, TV’s share increased to 93 per cent in the first half compared to 85 per cent in 2008 [CHECK WITH AUTHOR] for the same period. TV gained 20 per cent over the last two quarters while magazines gained 2 per cent and newspaper gained 6 per cent. The top three brands in the sector in the region are Dabur, Head & Shoulders and Pantene ranked by ad spends in the first two quarters of 2010. Under TV the top 3 spenders are Head & Shoulders, Dabur and Pantene. The top spenders in magazines are

Max Factor, Lancome and Pantene. Silver Care, Play and Manadeel are top spenders in newspaper. The consumption of cosmetics is high in the region and it has been aided by large influx of tourists. The retail space in the region is growing. These factors combine to keep the momentum of growth in the sector going and it is likely that spend will show a healthy double digit increase. n – Ad spend is calculated on the media rate cards and does not account for incentives and discounts that advertisers may avail from media owners.

Shaharyar Umar product manager Pan Arab Research Centre, UAE

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SECTOR ANALYSIS

CATEGORY: PERSONAL CARE - ARAB ADVERTISING MARKETS - Y2010 MILLIONS US$728

MARKETS RANKING & MEDIA SPLIT (000 US$) Television Rank Market Name & Abbreviation Y2008 1 2 3 4 5 6 7 8 9 10 11

Pan Arab Media Lebanon Kuwait United Arab Emirates Kindom Of Saudi Arabia Egypt Oman Jordan Qatar Bahrain Other Markets** Total all markets

PAN LEB KWT UAE KSA EGY OMN JOR QTR BAH OTH

Y2009

%Var’n Y2010 YTD

312,180 456,759 555,941 43,228 73,302 85,596 17,514 21,169 21,906 21,500 18,885 20,382 22,933 23,795 19,468 9,326 6,527 11,454 1,935 1,234 1,201 977 576 1,186 922 749 692 612 575 390 9,280 9,928 9,835 440,407 613,499 728,051

22 17 3 8 -18 75 -3 106 -8 -32 -1 19

2010

%Var’n YTD

546,937 22 82,736 16 17,492 14 9,196 16 2,830 -66 8,040 288 31 29 170 53 0 0 -100 7,598 0 675,030 20

Media Split (Millions US$) Magazines Radio

Newspapers Y2010 0 161 1,278 1,054 4,835 674 999 842 379 97 904 11,223

%Var’n YTD

2010

%Var’n YTD

-100 9,004 148 1,561 -17 3,036 -13 7,734 16 6,969 21 759 0 171 325 174 -14 248 -40 224 -26 1,274 6 31,154

2010

5 1 -17 2 8 -7 -18 -34 -14 -1 20 2

0 37 39 17 208 772 0 0 0 0 59 1,132

+19%

Outdoor

%Var’n YTD -71 44 183 28 -10 -100 18 -8

2010

Cinema

%Var’n YTD

0 1,101 61 2,272 4,626 1,209 0 0 65 1 0 9,335

2010

151 -89 57 -3 -46 -100 210 -1

%Var’n YTD

0 0 0 109 0 0 0 0 0 68 0 177

-85 -50 -79

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

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

Category Split by Market Pan Arab Media

76%

75%

25% 0%

3% 3%

3% 2% 1%

50%

Total GCC LEV PAN LEB KWT UAE KSA EGY OMN JOR 728051 629317 98734 555941 85596 21906 20382 19468 11454 1201 1186

Television

Newspapers

Magazines

QTR 692

Outdoor

Radio

12%

Lebanon Kuwait UAE Kingdom of Saudi Arabia

BAH OTH 390 9835

Egypt

Cinema

Other markets

SPLIT BY PRODUCTS (000 US$) - Y2009 GCC & Levant Markets 36%

Pan Arab Media 9%

36%

8% 8%

Hair care product Scents & Fragrances Skin care

30%

GCC Markets 31%

35%

Hair care products Cmb cosmetics Soap & liquid

30%

28%

Skin care cream Tooth paste Others

Hair care products Skin care cream Tooth paste

Levant Markets

Scents & Fragrances Cmb cosmetics Others

Hair care products Tooth paste Baby diapers

32% 11%

11%

Cmb cosmetics Tooth paste Others

Cmb cosmetics Hair colouring Others

TOP BRANDS - ALL MEDIA (000 US$) - Y2009 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand Head & Shoulders Dabur Pantene Gillette Dove Pampers Clear Herbal Essences Ponds Sunsilk Olay Garnier Dettol Lux Signal Close-up Fair & Lovely Always Lifebuoy Koleston

PAN ARAB MEDIA Value 38,717 36,230 32,785 27,041 26,383 26,219 23,395 23,357 23,231 22,085 21,347 20,452 18,071 17,652 15,679 13,559 13,143 12,016 11,236 10,804

94 Gulf Marketing Review September 2010

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

Brand Dabur Head & Shoulders Dove Pantene Ponds Sunsilk Clear Olay Gillette Pampers Herbal Essences Lux Dettol Signal Close-up Garnier Fair & Lovely Lifebuoy Always Rexona

GCC Value 32,881 28,971 24,327 22,162 21,426 19,977 19,285 18,427 18,004 17,671 17,429 16,415 16,018 14,513 12,683 12,140 12,054 10,308 8,582 8,452

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

LEVANT Brand Dabur Head & Shoulders Dove Pantene Ponds Olay Sunsilk Clear Pampers Gillette Herbal Essences Dettol Lux Signal Close-up Fair & Lovely Garnier Lifebuoy Always Rexona

Value 35,968 31,592 26,383 24,678 23,231 21,345 21,320 20,827 18,980 18,912 18,404 17,788 17,409 15,452 13,293 12,952 12,573 11,033 9,036 8,919

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

Brand Gillette Pantene Garnier Pampers Head & Shoulders Herbal Essences Koleston Always Oral-B Crest Clear Ultra Doux Vichy Crest_Oral-B Camay Mohsense Colgate Dermo-expertise Maybelline Baby Joy

Value 8,129 8,107 7,879 7,239 7,125 4,953 4,001 2,980 2,711 2,646 2,568 2,498 2,455 2,295 2,208 2,208 1,979 1,881 1,457 1,251

Source: PARC

GCC & LEVANT

TM Ad-GMR.pdf

CMY

8/17/10

1:31 PM

SECTOR ANALYSIS

CATEGORY: PERSONAL CARE - Y2009 AGCC, LEVANT, PAN ARAB & ARASIAN MEDIA MARKET ADVERTISING EXPENDITURE FOR TOP PRODUCTS (000 US$) 2007 - 2009 (JAN-DEC)

MILLIONS US$728

Media Split %

2008 2009 Hair Care Products (HCP) 125,974 191,241 Cmb Cosm & Beauty Aids (CBA) 34,869 57,053 Scents And Fragrances (SAF) 60,824 44,819 Tooth Paste-dental Sup (TDS) 38,411 44,692 Skin Care Cream-lotion-oil (SCL) 39,939 50,472 Others (OTH) 140,390 225,222 Total 440,407 613,499

2010 219,838 64,439 62,034 59,679 57,692 264,369 728,051

%Var’n Y10/09 15 13 38 34 14 17 19

Sh% 30 9 9 8 8 36 100

2010 Media Split %

TV 97 85 68 97 94 95 93

NP 1 1 7 1 1 1 2

MG 1 13 19 1 5 2 4

RD 0 0 0 0 0 0 0

OD 1 1 5 1 0 1 1

CN 0 0 0 0 0 0 0

Product Growth 2008 - 2010 (000 US$) 300000

HCP

250000

CBA

200000

SAF

150000

TDS

100000

SCL

50000

OTH 0%

20%

40%

60%

80%

100%

HCP

Newspapers Television Magazines Outdoor Radio Cinema

CBA

SAF

2009

2010

TDS

SCL

OTH

2008

OVERALL MEDIA SPLIT ANALYSIS (000 US$) Media Television Newspaper Magazine Radio Outdoor Cinema Total

Value 375,858 12,557 39,701 1,825 10,045 421 440,407

2008

Sh% 85 3 9 0 2 0 100

Value 560,724 10,585 30,670 1,233 9,429 858 613,499

2009

Sh% 91 2 5 0 2 0 100

Value 675,030 11,223 31,154 1,132 9,335 177 728,051

2010

Sh% 93 2 4 0 1 0 100

Var'n % 2009/2010 20 6 2 -8 -1 -79 19

MONTHLY SPEND ANALYSIS (MILLIONS US$) 2008 - 2010 Period Jan Feb Mar Apr May Jun Total

35 30 25 20 15 10

2008 65 77 81 77 66 75 440

2009 72 84 100 103 136 118 613

2010 90 93 124 123 150 148 728

Var’n % Y10/09 24 10 24 20 10 26 19

5 0

Jan

Feb

Mar 2010

Apr 2009

Jun

May 2008

Overall Media Split 2008 - 2010

Total Category - Media Split %

(000 US$ - Semi Logarithmic)

800000

93%

600000

400000

200000 0

2008

2009

Newspapers Television Magazines Outdoor Radio Cinema

96 Gulf Marketing Review September 2010

2010 Television

Outdoor

Magazines

Outdoor

Television Top Spenders Rank Brand 1 Head & Shoulders 2 Dabur 3 Pantene 4 Gillette 5 Dove 6 Pampers 7 Herbal Essences 8 Ponds 9 Clear 10 Sunsilk

2010 38,126 36,208 31,399 26,423 26,370 25,615 23,357 23,227 22,497 21,914

Newspapers Top Spenders Rank Brand 1 Silver Care 2 Play 3 Manadeel 4 Gillette 5 Head & Shoulders 6 Clear 7 Apollo 8 Burberry Sport 9 Lord 10 Nivea

2010 502 359 338 324 320 236 228 223 221 156

Magazines Top Spenders Rank Brand 1 Max Factor 2 Lancome 3 Pantene 4 Olay 5 Idylle 6 Yves St. Laurent 7 Nivea 8 Dior 9 Chanel 10 Ange Ou Etrange

2010 1,469 1,272 894 762 756 730 647 637 564 554

Radio Top Spenders Rank Brand 1 Gillette 2 Signal 3 Clear 4 Lana 5 Close-up 6 Fine 7 Shave Code 8 Vatika 9 B-white 10 Hair Code

2010 149 82 80 68 66 64 63 58 56 55

Outdoor Top Spenders Rank Brand 1 Pigeon 2 Euphoria 3 Clear 4 Pantene 5 Nair 6 Sensodyne 7 Garnier 8 Nivea 9 Cartier 10 Cage

2010 1,224 948 510 463 432 296 290 278 254 243

Source: PARC

Product & Abbreviation

+19%

Top Brands Y2010 (000 US$)

DIARY

T: +971 4 282 4737 W: privatelabelmiddleeast. com

EVENT OF THE MONTH

MidEast Watch & Jewellery Show Expo Centre Sharjah Date: September 28-October 2 Venue: Expo Centre Sharjah, UAE T: +971 6 577 0000 F: +971 6 577 0111 W: mideastjewellery.com The Internet Show is a series of seminars and an exhibition. The event is designed to bring together SMEs, MNCs and government units to find new ways of doing business online. â&#x20AC;&#x153;It is a business not a technology show,â&#x20AC;? according to the event description on its website. While the exhibition will be showcasing the latest technology and internet business solutions, more than 40 seminars will be running throughout the two-day event. These will cover an array of topics including digital advertising and marketing, Web2.0 and social networking, e-commerce and payments, content management and streaming, as well as a full session on Google\s advertising solutions. Global best practices, case studies and panel sessions will also be held. Access to these seminars is free to visitors who register online before the show. The Internet Show Terrapinn, Date: September 21-22, Location: Abu Dhabi T: +971 4 709 4500, F: +971 4 3473889 W: terrapinn.com/2010/middleeast

September mHealth Conf. & Expo Clarion Events Date: September 14-15 Venue: Movenpick Hotel Jumeirah Beach T: +44 (0)207 067 1827 W: m-healthconference.com The Emerging Markets Summit Economist Conferences Date: September 15-16 Venue: The Grand Connaught Rooms, London T: +44 (0)207 576 8118

98 Gulf Marketing Review September 2010

F: +44 (0)207 576 8472 W: economistconferences. co.uk Beauty & Wedding Expo Kuwait International Fair Co. Date: Sept 23-October 2 Venue: Kuwait Intl Fair T: +965 538 7100 W: kif.net Private Label Middle East Channels Exhibitions Date: September 26-29 Venue: Dubai Intl Convention & Exh Ctr

Iraq Business and Investment Summit Economist Conferences Date: September 29 Venue: Ritz-Carlton, Bahrain T: +44 (0)207 576 8550 F: +44 (0)207 576 8534 W: mea.economistconferences.com Chic Lady Show 2010 Al Hader Exhibitions & Conference Date: September 30-October 4 Venue: ADNEC, Abu Dhabi T: +971 2 622 2733 F: +971 2 622 2754 W: chiclady.al-hader.com October Cityscape Global IIIR ME Date: October 4-7 Venue: Dubai Intl Exhibition Ctr T: +971 4 335 2437 F: +971 4 335 1891 W: cityscapeglobal.com 3rd Saudi Media Show 2010 Batola Date: October 11-13 Venue: Riyadh Intl Exh Ctr T: +966 1 470 3844

F: +966 1 470 3855 W: saudimediashow.com 10th International Automobile Show Expo Centre Sharjah Date: October 14-18 Venue: Expo Centre Sharjah, UAE T: +971 6 577 0000 F: +971 6 577 0111 W: www.int-autoshow.com Abu Dhabi Medical Congress IIR ME Date: October 17-19 Venue: Abu Dhabi Natl Exh Ctr T: +971 4 336 5161 F: +971 4 336 4021 W: abudhabimed.com Gitex Technology Week Dubai World Trade Centre Date: October 17-21 Venue: Dubai Intl Exhibition Ctr T: +971 4 308 6124 F: +971 4 318 8607 W: gitex.com Erbil International Fair 2010 IFP Expo Date: October 18-21 Location: Erbil International Fair Ground T: +961 5 959 111 F: +961 5 959 888 W: ifpexpo.com GMR EVENTS 2010 GEMAS effie Mena Awards 2010 Venue: Madinat Jumeirah, Dubai Date: November 4 T: +971 4 3910760 F: +971 4 3908737

More information available at Omega Middle East, Emirates Towers, Dubai, UAE. Tel: +971 4 3300455

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