GMR | September 2011 by MediaquestCorp.

GULF MARKETING REVIEW

18 SEPTEMBER 2011 - NO 200

SECTOR ANALYSIS REGION’S THIRST FOR COLD DRINKS PRESENTS CHALLENGING MARKET A MediaquestCorp Publication

SEPTEMBER 2011 - NO 200

MILLION DOLLAR BABES UAE AND KSA TEENS: HOW THEY SPEND

Q&A BRAND ANALYSIS TALKING OMANI YOUTH THE MAKING OF ENTREPRENEURSHIP A BRAND ICON

MEDIA SOCIAL NETWORKING IN SAUDI ARABIA

Registered in Dubai Media City

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The new Audi A6. Calculated Perfection. It is the perfect combination of innovation and design that raises your heart rate and excites you when you notice the new Audi A6. With optional full LED headlights, the intuitive MMI touch, infotainment system, as well as the aluminium hybrid body which contributes to unparalleled handling, and the powerful 3.0 TFSI quattro (300hp) and 2.8 FSI quattro (204hp) engines operating from below, the Audi A6 makes for a compelling testament to the reward of perfectionism.

quattro | 7-speed S tronic | aluminium hybrid body | optional full LED headlights | MMI touch For more information visit www.audi-me.com/A6 or your local dealer.

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Audi Vorsprung durch Technik

profile

Yasser Joharji in Jeddah, the first Saudi to be named Unilever MD

www.GMR-Online.com

September – Issue No. 200

NEWS

World News

A sour summer for Almarai. Major research initiatives from SMG’S Business Compass. Qtel reconnects with dissident users. Al Ahli FC scores with loyalty card. MENA brides want more control. Aswan to host World Tourism Day. Samsung buys into Emaar Retail for a second year. NADEC goes back to basics. Masafi names new CEO. Tiffany biscuits moves to premium. Marmum rebrands. Google launches MENA research tool. Mobile usage habits confirmed and more from around the region.

Omega tees off five-year sponsorship with PGA of America. Ford Fiesta celebrates 35 years. Kellogg’s and Augeme collaborate on QR packs. Lifebuoy tackles infant mortality in developing countries. US discount stores woo HNWI. mp3.walmart.com hits bum note. Riots cost UK retailers $228m. USA gets first halal online store. Tablets better than eReaders for magazine ads. MediaCom launches sports division. Sony switches Asia Pacific media to OMD. M&C Saatchi creates first ad break for puppet show.

News Plus

Consumer confidence bounces back across the UAE and the rest of the Middle East...except Lebanon.

Social Media

Saudi Arabia hosted three media and marketing events just before the summer. We report back from Riyadh.

Q&A

We discuss the importance of innovation and entrepreneurship among Oman’s youth with His Highness Sayyid Faisal

bin Turki Al Said COO, Brand Oman Management Unit.

Cover story

Are the UAE and Saudi teens the most indulged kids on the planet? According to the Tru AMRB Global Teen Study they may just be... which is great news for brands and retailers. And then there’s the much less indulged Egyptian teens...

Brand Analysis 100 years of Nivea

The crème de la crème of FMCG skincare celebrates 100 years... but Nivea Beauty Is tagline fades away.

Sector Analysis Cold Beverages

Maybe the most dynamic of all categories our annual examination of beverages is brimming with issues, innovation and insight. We look at the future of commercial bottled water sector in the severely waterdepressed MENA region and assess the implications for future companies. Would consumers rather pay a premium for global-imported brands and preserve the region’s most valuable resource? What are water companies – regional and global – doing to reassure consumers that they take resource stewardship seriously. Do consumers really care? The vibrant energy sector continues to captivate the region’s youth, vitaminadded water takes on juices, while packaging innovation moves the needle into the music sector and takes branded chilled drinks into new, rural markets. Reports includes: latest Kantar World Drinks data plus SEO search terms and latest PARC stats and analysis.

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

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

GROUP MANAGING EDITOR Siobhรกn Adams siobhan@mediaquestcorp.com SENIOR SUB EDITOR Elizabeth McGlynn e.mcglynn@mediaquestcorp.com ART DIRECTORS Sheela Jeevan, Aya Farhat CONTRIBUTORS Alex Malouf ADVERTISING: MEDIALEADER United Arab Emirates sales@mediaquestcorp.com Tel: +(971) 4 391 0760 Saudi Arabia: Ghassan A. Rbeiz ghassan@mediaquestcorp.com Europe: S.C.C Arabies 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62

Lebanon: Beirut, Lebanon Tel: +(961) 1 202 369 Fax: +(961) 1 202 369

PUBLISHED BY: Medialeader FZ/MediaquestCorp FZ Europe: S.C.C Arabies, 18 rue de Varize 75016 Paris, France Tel: +(33) 01 47 66 46 00 Fax: +(33) 01 43 80 73 62 CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman Haydar Regional Director for business development Bassel Komaty Creative Director Aziz Kamel

Head of Circulation Haries Raghavan h.raghavan@mediaquestcorp.com Marketing Manager Maya Kerbage m.kerbage@mediaquestcorp.com Tel: +971 4 3757527 KSA GM Walid Ramadan walid@mediaquestcorp.com Tel: +966 1 4194061 Lebanon GM Nathalie Bontems Nathalie@mediaquestcorp.com Tel: +961 1 492801 North Africa GM Adil Hamed-Abdelouahab 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

Street-wise SMG explores new avenues of research

In the fast lane: A real-time snap shot of consumer insight

MENA SMG MENA has launched a new real-time, online, community-based research offering called The Street. Managed by SMG’s research division, Business Compass, it comprises comments from an online community of amateur trend commentators representing youth with a ‘progressive mainstream’ mindset, Racha Makarem, general manager, Business Compass, told GMR. “The consumer landscape changed and the way we research them needed to evolve.

The Street is one way that we do this by shifting from ‘panels’ to research ‘communities’, from waiting two weeks to generate insights from groups to doing so in two days. “This is not to say that we don’t also rely on other traditional approaches, it simply complements them,” she adds. The inaugural Street is youthfocused, comprising 80 15 to 22 year olds – 60 per cent are male nationals from Saudi Arabia, Egypt and the UAE. The latter will also gather

New avenues: Racha Makarem

insight from non-nationals, g iven t he demog raph ic s of the UAE. Contributors – from universities, referrals and other Arabic-language online communities – are financially incentivised. In separate, but related news, Business Compass has entered into a exclusive partnership with GlobalWebIndex (GWI) to launch what they claim is the world’s most detailed internet research project – the GWI in the Saudi market.

To mark the initiative they have developed an infographic that explores the behaviour of Saudi Arabia’s nine million internet users. With access to the corresponding data from other regions, GWI and Business Compass are able to make global comparisons in areas such as social network growth and network behaviour. Several differences stand out when comparing Saudi Arabia’s data to the rest of the world, says Makarem. They are, for example, twice as likely to upload videos online than the global average. She added that the most interesting facet was internet consumption where nearly twice as many users are online for more than three hours when compared to those that watch TV.

MMA launches Egypt and Middle East Local Council Egypt The Mobile Marketing Association – MMA – has set up an Egypt and Middle East Local Council. Karim Khalifa, CEO and co-founder of Digital Republic, is named co-chairman. The initiative is in response to the increased interest and investment in mobile marketing, and the need for industry support and guidance within the region, read an MMA press release. The MMA Egypt and Middle East will encourage brands and marketers to adopt the mobile channel

Upwardly mobile: Karim Khalifa

as a key part of the marketing mix and engage with their target audience in an interactive and compelling way. “I am delighted to have been appointed co-chairman for the MMA Egypt & Middle East,” Khalifa says.

“Mobile marketing in this region has evolved considerably and moved on from traditional SMS campaigns. With all the changes taking place in the market, it is the perfect time for marketers in Egypt and the Middle East to gain an understanding of the MMA guidelines and best practices.” Paul Berney, CMO and managing director for EMEA, adds that local MMA will enable the industry to work together to drive mobile marketing in the region forward, allowing brands to establish

a key one-on-one relationship with their customers. “Mobile users in Egypt have exceeded 70 million, while users in the Middle East are now in the range of 500 million,” he says. The MMA is a global, nonprofit trade association with more than 700 member companies. Its primary focus is to establish mobile as an indispensable part of the marketing mix, it says. Regional chapters are based in North America, EMEA, APAC and Latin America, with HQ in the USA.

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News

Qtel reconnects with dissident users following protest Qatar’s ‘first civil society campaign’ highlights pricing and service quality concerns Qatar Qtel is using social media to reconnect with dissident users following an online protest over service and pricing. In what has since been dubbed Qatar’s first civil society campaign, Qataris and expats alike launched a social media drive as a symbolic protest over pricing and service quality. Using Facebook and Twitter, campaigners urged users to switch off their mobile phones and boycott services for one hour on July 7. Lead activist Qatari Raed alEmadi, 32, used the hashtag #qtelfail to garner support, going so far as to create Qtelfail ribbons on Twibbon.com for users to post on their Twitter profile pictures. ”This is the country associated with the Arab revolts and Al-Jazeera,” al-Emadi told the UK’s Financial Times. “The company cannot stop us from demanding a better service because it bears Qatar’s

Let’s talk: Qtel’s Adel Al Mutawa

Stamp of disapproval: Qtel critiqued

name. We are happy with the political setup, we are not happy with the service. After the boycott the youth were cheering because they felt empowered.” “We wanted to change the mindset of these companies,” said el-Emadi. “They are not used to criticism. They say ‘be grateful, look what Somalia looks like’. That is not acceptable, we compare ourselves to the US.’’ Qtel has since met with the activitsts and organised an independently-moderated focus group to understand how it could improve its service.

“We are incorporating some of the comments raised into our plans for development, and we are actively engaging through social media to sharpen our understanding of how we can serve all our customers better,” said Adel Al Mutawa, executive director, Group Communications, Qtel, in a prepared statement. “Some of the participants have changed their hashtag from #Qtelfail to #QtelBravo, in recognition of some of the steps we have taken.” He added that a range of Ramadan special offers had been very well received. Additional initiatives in-

cluded: wider broadband capacity and additional resources in the call centre. “We are also addressing more questions and concerns through social media, with special sections on our Facebook page and a permanent presence on Twitter to discuss issues with our customers,” he adds. In separate news Qtel posted a 16.2 per cent hike in revenues to QAR15.4bn ($4.2bn) for H1. A user backlash also greeted Vodafone Egypt’s ‘Shokran’ Ramadan campaign. Users still angry about the telco’s shutdown during the uprising retweeted messages such as :“Thanks for cutting off communications during the revolution, I was dead worried about my family and friends.” “People see this hashtag as the chance to blame Vodafone for cutting telecommunications during the revolution,” Wael Abbas, Egyptian blogger told the UK’s Channel 4 News.

Loyalty card scheme sees net gains for Al Ahli FC fans Dubai Al Ahli Football Club in Dubai is launching a loyalty card scheme for supporters. The card entitles supporters a host of benefits, including a free personalised replica first team Al Ahli shirt with either their name or that of their favourite player on the back. It also allows free entry into all Al Ahli’s home

Marketing support: Al Ahli loyalty card

games and discounts from preferred partners in F&B and retail and leisure

outlets inside and outside of the stadium. “It’s a card for everyone – family, friends, individuals, school children and college students. We want fans of Al Ahli to gain benefits not just inside the stadium but throughout the region,” says Al Ahli CEO Ahmed Khalifa Bin Hammad. “The overall aim is to bring more supporters to watch

our great team and this is our commitment towards t h is goa l. It’s i mpor ta nt for suppor ters to at tend matches and get behind the team. “The more games supporters attend the more benefits they will receive from their loyalty card. Rival Dubai Club Al-Wasl re c e nt ly s i g ne d D ie go Maradona as manager.

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NEWS

Samsung buys into Emaar retail UAE Samsung Electronics has renewed its sponsorship of Dubai Malls Ice Rink and Reel Cinemas for a further 12 months. The Olympic-size rink receives more than 300,000 visitors a year and is growing Arif Amiri, CEO, Emaar Retail told GMR. “This growth is evident with the introduction of various initiatives such as Learn-to-Skate programmes

HTC unveils its biggest regional campaign Like it. Push it. HTC ChaCha smartphone

Tech-savvy: HTC’s ChaCha

Lifestyle: Neeraj Seth

MENA The campaign for HTC’s new ChaCha smartphone breaks this month and is the biggest since the company launched in the region in 2006. The dual-language, Pan Arab, 360° campaign will run for six weeks, mainly in the UAE, KSA and Egypt. Creative is handled by Dubai-based Eq-

uity Advertising and media by Initiative. The social networking– model is geared towards the youth “who need to be ‘connected’ 24/7, said Mohamed Kais Zribi, regional manager, HTC MENA. ChaCha is also expected to appeal to women who are

One touch to Facebook®

particularly appreciative of its sharing capabilities, Neeraj Seth, MENA marketing manager, HTC MENA, told GMR. The ﬁrst 10 seconds of the 45-second TVC is aimed exclusively at women he said, adding that women have become a key focus for HTC as it moves from a technical platform more into lifestyle. Recruitment of female brand ambassadors, along with activation on female university campuses in Saudi Arabia and universities in the UAE and Egypt, is key to the campaign. HTC may also associate with fashion events in the future.

Consumers turn sour on Almarai prices Cool: Young Soo Kim and Arif Amiri

and the use of Dubai Ice Rink as a multi-purpose venue for private and public functions, as well as corporate events.” Reel Cinemas are the UAE’s largest megaplex with 22-screens at The Dubai Mall. President of Samsung Gulf Electronics, Young Soo Kim added: “Dubai Ice Rink and Reel Cinemas are popular destinations for the youth and families in the region, and our brand presence will help us connect instantly with our core target groups.” Both properties are owned a nd ma na ged by E maa r Retail LLC. In related news Samsung Electronics Co. Ltd has posted Q2 revenues of $37.48bn, a four per cent increase yearon-year.

Saudi Arabia Almarai has joined a small but signiﬁcant list of brands to become engulfed in a surge of Arab consumer protests this summer. Following in the footsteps of Qtel and Vodafone Egypt – see page 12 – the dairy has been forced to reduce its milk and laban prices after a call for a Gulf-wide boycott of products. On July 3 Almarai raised the price of a two-litre bottle of fresh milk from SAR7 to SAR8. Saudi’s largest dairy also reduced its SAR1 200ml laban to 180ml, citing rising costs of materials, packaging and higher wages as the reason. Saudi consumers, however, went online to protest. Many used hash tags #mara3i, #StopMara3i to protest, noting that other dairies had not raised their prices.

Boiling point: Almarai

Boycott-related images posted on Twitter and the internet included a photo of branded laban bottles in a store overlaid with text reading “Let it rot.” Another image, from a Saudi Tweeter, featured a bottle of Almarai laban with the caption “Go to Hell My Friend – Saudi Citizens.” A Facebook page calling for a Gulf-wide boycott also attracted hundreds of followers. In response, and following a decree by the ministry of commerce, Almarai revoked its price rises on July 11.

“In compliance with the resolution issued by the ministry … Almarai is taking the price of its two-litre fresh milk and laban pack sizes in the kingdom to the level that prevailed with immediate effect,” the company said on its site. “However, Almarai believes the rationale and justiﬁcation for the price increase is still valid. “We will continue to work with the relevant government authorities to address this issue.” The episode may have done more damage than Almarai may admit to, however, with one analyst saying that poor consumer perception may have a knock-on effect on earnings. “This harmed Almarai’s image as we have seen online campaigns urging boycotts,” said Khalid Alruwaigh, acting head of equity research, Al Rajhi Capital.

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YOUR STORY IS OUR HISTORY Share a story of how NIVEA has touched your life to win one of 100 prizes. NIVEAMiddleEast www.NIVEA-me.com/100years

News

Correction UAE In A&C 2011 we mistakenly listed AGA-adk under nonnetworked agencies even though it is part of WPP. Details regarding Aegis Media Mena were also incorrect and should have read: AEGIS MEDIA MENA Former Name: AE MEDIA Country: UAE Ownership: Powered by Aegis Media Company Type:FZ LLC Sector: Marketing Communications Secondary Industry: Marketing and Communications Insights Principal Activities: Advertising, media planning, media investment, PR, activation, digital, marketing consultancy Date of Establishment: 2003 Number of Employees: 101 to 500 Offices/Branches: Saudi Arabia, UAE, Egypt, Kuwait, Lebanon, Jordan, Syria, Morocco, Algeria, Tunisia, Libya, Sudan, Yemen, Iran Principal Officers: Michael Nederlof, Antonio Chedrawy, Duncan James Ownership Structure: Wholly Owned, JV and Affiliates Sister Company: Carat, Isobar Major Clients: Nokia, Kellogg’s, Philips, Total, Bavaria Head Office Address: Dubai Media City, Loft Offices, Building 3, Entrance B, Office 208 & 209, PO Box 502177 Phone: +971 4 4474996 Fax:+971 4 4474995 E m a i l : M ic h ae l.ne de rlof @aemedia.com Web: www.carat.com

GMR is happy to put the record straight and apologises for the errors and any confusion caused.

Region’s bridezillas want more control MENA Most Arab brides – 70 per cent – prefer to manage their wedding rather than engage a planner. Some 58 per cent said that “budget” was their main priority, although 26 per cent admitted achieving their dream wedding was more important than sticking to their budget. These were a mon g the key findings from a survey earlier this year by anaZahra.com. The majority prefer to select their wedding date and choose the “perfect” venue before anything else – 54 per cent. Choosing the wedding gown was the top priority for 25 per cent, while for 13 per cent starting a diet

Self planning: Most Arab brides prefer to manage their wedding themselves

came before anything else. Some 65 per cent of brides prefer to have their weddings in a special hotel hall while 23 per cent prefer an outdoor area. On the delicate issue of mother-in-laws and planning, 44 per cent confirmed no intervention at all, while 41 per cent said that their mother-in-law was involved.

However, 8 per cent complained that their motherin-laws interfered every step of the way. The sur vey canvassed 22 to 29 year olds in Saudi (28 per cent), Egypt (24 per cent), Jordan (six per cent), the UAE (six per cent), Iraq (four per cent) and other Middle Eastern countries.

New research firm debuts in Dubai

To the point: (L to R) Mahesh Bhaskaran; Deepak Kudkilwar, Maureen Massarani

UAE A new marketing research company has launched in Dubai to bring a fresh perspective to the industry which the founders believe have become too ‘project oriented’. Called Point Research & Marketing Consultancy it was created by three con-

sumer insight specialist who, collectively offer nearly a decade of MENA experience in specialisms including psychology, statistics, Market i n g a nd Ma rket i n g Research. “We are looking at building long term partnerships with our clients, offer them

a f fordable, va lue -added services,” said co-founder and managing director, Deepak Kudkilwar, formerly TNS MENA, Head of Areas of Expertise. “Apart from standard product development and innovation research, we also have sophisticated Choice Modelling capability. “We already have a strategic partner for Choice Modelling in Australia with extensive exper ience in several markets.” Clients he says can benefit from Point’s experience across sectors both public and private, geographies, global and regional clients.

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N e ws

Google launches InsightsMENA MENA Google has launched a publicly available research tool that offers statistics and insight into the MENA region’s internet usage patterns. InsightsMENA IS available at www.InsightsMENA.com. Google claims that anyone and any business can understand the online behaviour, interests and attitudes of urban consumers in Egypt, Jordan, Morocco, Saudi Arabia, and the UAE. Users can filter the informat ion by gender, a ge, and countr y for better targeted results. The initial research was done by Nielsen between September and November 2010; it spent a year gathering the information via 1,500 face-to-face interviews w it h men a nd women aged 15. Multi-stage stratified random sampling was use in the UAE, Egypt, Morocco and Jordan; referral-based sampling was preferred for Saudi Arabia. Once the data was compiled Google enlisted Egyptian start-up Bright Creation to create the site, featuring the latest HTML5 capabilities to help users visualise and interact with the data by selecting and exploring the countries, sectors, and consumer groups most relevant to them. The website is a collaboration with Google, the Information Technology Association of Jordan and the UAE’s TRA.

Mobile usage more pervasive in KSA One in three buys new handset every year says research Saudi Arabia More than 40 per cent of mobile phone users in Saudi Arabia use their phone in the bedroom; a third admitted to texting or talking while driving; an equal number believes that their mobile manners are “excellent”, but two in three also believe that there should be etiquette rules on using technology in public places. These are among the key findings in a survey by Intel which canvassed 12,500 people across 16 countries in Europe and MEA. Intel, which hopes to become a major player in the smartphone market, also asked participants how often they replaced their handsets. One in three bought a new handset every year, while

Looking smart: Nassir Nauthoa

one in 10 bought a new device every four months. Saudi respondents also proved that they love to keep their hands full; just less than half own two phones or more. “If you look at the internet a few years ago to what it is

today the net has become all-pervasive in our lives. Similarly mobile phones are part and parcel of our lives,” says Intel’s GM for the GCC, Nassir Nauthoa. “We expect to see Intelbased smartphones in the market from next year.”

Wanted: more Arabic language skills MENA Companies are placing a much greater premium on Arabic language skills when recruiting marcomms specialists, according to Alex Koumi, head of Dubaibased recruitment firm Kingston Stanley. A c c o r d i n g t o Ko u m i companies are now putting more emphasis on Arabic language skills. “Generally there is a need for experienced, quality Arabic talent in the market. “No t j u s t c a n d i d a te s with the ability to speak Arabic, employers are now looking for the ability to write

Talent scout: Alex Koumi

A rabic competently,” he tells GMR. “The market is developing fast and demand is increasing as a result. “There has been an increased drive towards Arabic execu-

tives to managerial talent in the market, from senior account executives through to account directors.” He added that the region’s marketing and communications talent is again in demand, with the need for marcomms professionals, both agency and client side, exceeding supply. Abu Dhabi and Qatar are proving particularly popular for new h i res, Kou m i says, but noted that despite t he n e w o p p o r t u n i t ie s professionals are opting to stay put, preferring security to money.

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News

Randall named new Masafi CEO UAE Masafi LLC has named Reginald Randall as its new CEO filling the role vacated by Ashraf Abushady some 12 months ago.

Making a splash: Reginald Randall

According to a company release Randall has 14 years of multinational senior management experience in leading FMCG companies, covering manufacturing, sales, marketing and supply chain. Abushady is CEO at Damac DPE Egypt.

Fresh approach

Dubai-based dairy Marmum Milk has repackaged in time for Eid. Created by tmh, an ATL/BTL campaign supports the new look. Marmums laban rebrand is under way. In separate news tmh launched a Ramadan App for Kenwood. Available in Arabic and English, it featured Iftar recipes, prayer times and a cooking video competition, Kenwood Stars, for the chance to win a Cooking Chef.

Tiffany aims for share of premium slot Bites TVC spearheads move away from value segment MENA Biscuit brand Tiffany has launched its first TVC for its rebranded Bites range. Formerly Nutty Bites, the revamp is part of its strategy to shift from the value into the premium segment. Bites has also been reformulated to include bigger, chunkier nuts and 100 per cent real butter. The range also boasts improved packaging. Blue Apple created Arabic and English TVCs. The agency created two commercials for the cashew and chocolate variants with

Biscuits at Tiffany: Brand upgrades to premium

the tag line “Real fun, anytime, anywhere.” The ads are airing on Arabic and Asian

channels including MBC, Zee Aflam and Star Plus. Budgets were not disclosed.

It’s back to basics says NADEC chief Saudi Arabia NADEC’s new marketing head aims to recapture the company’s brand values, focus on dairy and juice markets, he tells GMR. Paul Kenny, who originally joined NADEC last year as GM for sales, recently extending the role to cover marketing, believes the company needs to get back to basics. “My first task and the priority for NADEC is to align sales and marketing strategies. That is the most important thing for me now, to ensure that both are trying to achieve the same goal,” he says. “Secondly we aim to reestablish the NADEC corporate brand as a premium brand using the traditional values that NADEC is based on.”

Back in touch: Paul Kenny

The company has been active in launching into new product segments, including frozen coffee, but for Kenny the greatest opportunities remain with NADEC’s two strongest product categories; dairy and juices. “We want to refocus on key categories which is dairy and juices. NADEC will better communicate the dairy aspect

of our business as, even though we are a dairy company by history, we’re probably better known for our juices. New advertising will focus mainly on OOH and BTL. “As of now OOH and BTL are most suitable for NADEC’s business. Outdoor is incredibly effective in Saudi as people often spend their free time outside the home. BLT and TV too can add value to sales and the NADEC corporate brand.”

LATE NEWS MindShare Bahrain has jettisoned incumbent Media Edge and rival UM7 to land Gulf Air’s threeyear regional and global media account.

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NEWS

Bahrain’s marketers top effectiveness table Effie Worldwide and Warc reveal first MENA Effectiveness Rankings Index MENA Effie Worldwide and Warc, the global marketing intelligence service, has revealed the results of the inaugural Effie Effectiveness Index. After analyzing finalist and winner data from 40 worldwide Effie competitions, the following companies ranked the highest within (MENA): Bahrain Telecommunications Company is the most effective advertiser; Batelco is the most effective brand; Omnicom is the most effective advertising holding company; and, McCann Worldgroup is the most effective advertising agency network. OMD is the most effective individual agency office, while Equity Advertising is the most effective independently held advertising agency.

The Effie Index ranking system rewards not only Effie winners, but Effie finalists. The comprehensive rankings, which can be filtered by region, country and product category (along with detailed information surrounding the point system) can be found on the new site www. effieindex.com. The top five most effective advertisers in MENA include: Bahrain Telecommunications Company, Procter & Gamble, Coca-Cola, Saudi Snack Foods LTD and Beiersdorf. The top five most effective brands in MENA include: Batelco, Doritos Collisions, Nivea Angelstar, Standard Chartered Bank and Coca-Cola. The most effective Advertising Holding Groups with-

Gold standard: GEMAS effie Mena

in MENA include: Omnicom, WPP Group, IPG, Publicis Group and Havas Advertising, while the most effective Agency Networks include McCann Worldgroup, BBDO Worldwide, OMD, Starcom MediaVest Group and Leo Burnett Worldwide. The top most effective agency offices are OMD, FP7/

BA H, Sta rcom Med iaVest Group, Leo Burnett and Memac Ogilvy & Mather. On a global level, Procter & Gamble is the most effective advertiser, McDonald’s is the most effective brand, Omnicom is the most effective advertising holding company and BBDO Worldwide is the most effective advertising agency network. Sancho BBDO of Bogota, Colombia, is the most effective individual agency office in the world, while Wieden & Kennedy, based in Portland, is the most effective independently held advertising agency. This year’s GEMAS effie Mena Awards takes place on November 24 in Dubai. For further information and to upload ent r ies visit www.gemaseffie.com.

Saudis most active online during Suhoor says study Saudi Arabia Up to 700,000 u n ique browsers were seen daily 12am to 3am during Ramadan in Saudi Arabia. On August 15, 2011, the number of unique browsers peaked 3am to 6am, with the highest number of unique browsers for the day recorded at 4am. During this time, 250,000 unique browsers accessed more than 1.2 million pages within the hour. After unusually high online activity in the hours leading up to Suhoor, Saudis

Source: Effective Measure Saudi Arabia Market Size Analysis – August 15, 2011

started getting active again from 8pm onwards. In terms of content viewed between 3am and 6am, social network sites dominated along with local news websites and local contentgenerated entertainment-

based portals. Concentrated levels of mobile Internet fol lows P C u s e on t h i s day – between 4am to 6am, and 6pm to 8pm, up to 12 per cent of the online population were on mobile devices.

“This is, however, a typical pattern of mobile Inter net usage, as t he on l i ne c on s u me r te nd s to swap internet access from a PC to a mobile both first thing in the morning and during the dinnertime period. “What is interesting is this pattern of mobile internet usage continues du r i n g R a m ad a n – ju s t at earlier and later times,” s a y s B r e n d o n O g i l v y, VP Digital Insights, Effective Me a s u r e, t h at pr o duc e d the study.

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W O R L D N e ws

Omega marks time with American PGA

Stateside: Omega grows presence in US

USA Omega will sponsor the American PGA until 2016. The agreement, which covers multiple Official Timekeeper designation, marks a breakthrough for Omega’s relationship with golf in the US, said Omega. The deal aligns the swiss watchmaker with the world’s largest sports organisation comprised of 27,000 PGA professionals. The new partnership was launched at the 2011 PGA Championship at the Atlanta Athletic Club in Johns Creek, Georgia, last month and will extend through the PGA of America’s Centennial in 2016. Omega is a long- standing supporter of golf tournaments in Europe and Asia. “This partnership also gives us a fantastic platform to develop the brand in the important American market,” said Stephen Urquhart, president of Omega. The deal includes advertising on golf telecasts of PGA championship events, marketing support for the PGA’s player development efforts and extending benefits to PGA members and their facilities, said the firm. As the brand expands its presence in golf with the new PGA partnership, it has also been increasing its retail presence in the US by opening nine boutiques in 2010, with 20 more slated to open in 2011.

Lifebuoy to help reduce infant mortality Toiletries brand joins USAID for awareness programme Global Unilever’s Lifebuoy is working with the United States Agency for International Development (USAID)’s Maternal and Child Health Integrated Program (MCHIP) to reduce infant mortality in developing countries. The new public–private partnership aims to improve handwashing among birth attendants and family members, thereby reducing the risk of newborn deaths caused by infection.

Lifebuoy’s research reveals up to two-thirds of the 3.6 million neo-natal deaths each year in the developing world could be prevented. Some 85 per cent of deaths are due to infection, prematur ity and complications during labour. Simple, lowcost health interventions could reduce this by 70 per cent, says Lifebuoy. “As par t of Unilever’s Sustainable Living Plan we have made a bold commit-

ment to change the behaviour of one billion people by 2015,” says Myriam Sidibe, global brand director, Lifebuoy Social Mission. “Persuading people to change their behaviour for long-term health benefits is difficult and requires a sound understanding of their habits, lifestyles and environment.” Pilot programmes are planned for Bangladesh, Indonesia and Kenya.

Kellogg’s grows interactive format USA Kellogg’s is expanding its interactive pack formats to help collect more brand -buyer information, reports foodproductiondaily.com Working with US-based A u g m e Te c h n o l o g i e s , marketing solutions and patented technology provider, t he compa ny lau nche d an interactive campaign – It’s Morning Somewhere – for its Crunchy Nut cereal range. Cereal packs which sit static on a breakfast table are ideal for QR

Feeding on information: Kellogg’s

codes, says a n Au g me spokesperson. According to Kellogg’s, QR helped build a relationship with the Crunchy Nut brand’s key customer base

– primarily male – which readily engages with mobile devices. In separate, but related news, Augme is set to acquire Seattle-based marketing and advertising firm Hipcricket Inc for $44.5m. At the time of writing the deal was subject to shareholder approval. Following completion of the purchase the combined companies’ client roster is expected to include more than 300 clients.

Facelift for 35-year-old Ford Fiesta Europe The Ford Fiesta is celebrating two milestones this summer – its 35th birthday and hitting the 15 million production mark. The model was Europe’s best selling small car in 2009 and 2010, and is set to keep

its status in 2011, Ford says. “The Fiesta is a special car that has a special place in the hearts of European customers and car lovers around the world,” said Roelant de Waard, VP, marketing, sales and service, Ford of Europe.

The first Fiesta was produced in Valencia in 1976 as Ford’s response to the world-wide fuel crisis and tapped into a small car demand in Europe and around the world. Ford continues to build Fiesta models in Valencia.

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W O R L D N e ws

First Eid gift guide in the USA debuts USA One-stop, online, halal shopping for Islamic gift services has launched in the US. EidGiftGuide – a first for the US – is the brainchild of high-profile, American Muslim mother Ponn Sabra. Advertisers featured on the guide have a thumbnail image of their product that links to the site where it can be bought. Ads remain on the site year round, so halal shopping need not be limited to Eid. Gi f t s i nclude : Isla m ic clothing, natural skincare products, beard care products and food.

USA Discount outlets are trading up to woo ultra-affluent consumers as hopes of a full recovery recede. According to a recent survey by luxury consultants Unity Marketing, consumers are now more likely to shop at discount outlets than high-end department stores. Ultra-affluents are defined as the top two per cent of households with a minimum income of $250,000. The research showed that more ultra-affluents shopped at Target (39.5 per cent) and J.C Penney (933.4 per cent) in Q1 than Neiman Marcus (20.1 per cent), Macy’s (34 per cent) and Bloomingdale’s (19.4 per cent). Affluent shoppers “are just

USA Walmart, one of the earliest pioneers of digital music downloads, has pulled the plug on mp3.walmart. com after eight years. Despite its early debut commentators say Walmart failed to keep pace with iTunes or Amazon. By the end of 2010 it still had only one per cent of the digital music business. According to ComputerWorld. com the decision comes as no surprise given iTune’s market dominance and popularity of services, including streaming services such as Spotify. Sales of physical music products on Walmart.com and in its retail stores are unaffected.

Discount stores trading up in the USA

Taking aim: US discount stores are attracting more affluents

as eager as shoppers with less disposable income to find good quality at reasonable prices,” says Unity president Pam Danziger. “That’s why they shop at discount stores such as Target, Kohl’s, Costco and Walmart, just like everybody else.” She adds that luxury shoppers have embraced a new “value orientation”.

Luxury products today must “deliver a meaningful return as measured in greater pleasure, comfort, superior performance, and longevity of wear and use,” she says. “If the product doesn’t measure up, [affluent consumers] won’t spend the money; they will trade down to a cheaper, yet acceptable alternative.” In separate news Danizger has cautioned luxury brands against manufacturing in China citing Prada’s decision to switch manufacturing from Italy. A Unity survey among 1,321 affluents cited China as top of the ‘D-list’ countries for manufacture, with 56 per cent associating it with poor quality.

UK rioters leave retailers $228m short UK The widespread rioting and looting that swept across major cities in the UK last month has cost retailers an estimated $228m. Shops have lost approximately $129m in missed sales due to disruptions and closures. Looted stock is estimated at $27m, while the bill for property repairs is estimated at $70m, according to price comparison firm Kelkoo. Chris Simpson, CMO, Kelkoo, said: “This comes at a time when retailers are already struggling to stay afloat with sales up by just 0.6 per cent on July 2010. Despite a small move in the right direction, I expect this could be a very

Curtain down on digital music site

Looters attack: London, UK

different picture in the coming months as consumer confidence has taken a turn for the worst.” Along with a dip in domestic consumer spending, the violence could also damage the UK’s reputation. “This is particularly problematic with the forthcoming Olympics, which should gen-

erate a considerable amount of revenue,” Simpson added. Kelkoo research suggests that if one per cent of tourists chose an alternative destination, the UK could lose $840m in lost revenue over the next 12 months. Charity Retail Trust launched a Twitter campaign and charity T-shirt to raise money for affected traders. Bearing the slogan: ‘They couldn’t break our spirit then and you can’t break it now,’ they are available from eBay. In separate, but related news, eBay UK is working with the authorities to establish the extent of the crimes and combat the resale of stolen items.

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NEWS

Customised online ads not always effective, study says UK Should marketers tailor online ads to individuals’ interests? The answer would seem to be ‘no’ according to a study – When does Retargeting Work? Timing Information Specificity – by the London Business School and the MIT Sloan School of Management. Using data from Artemis, Havas Digital’s digital and campaign management and optimisation system, the study wanted to discover if it is always optimal to provide more specific ad content based on consumers’ earlier product interests, as well as when

i nc rea se d spe c i f ic it y of information is effective. Those consumers who had looked at a company’s specific products were randomly shown a generic or a personalised advert. The company then tracked whether consumers ultimately bought its products. Consumers who saw the personalised product information were less likely to buy on the day they saw the ad than those who were shown the generic ad. Highly-specific ads were generally not more effective than generic messages, con-

Emirates lands on new OOH site

Tablets trounce eReaders for print ads

Scotland Emirates Airline is the launch advertiser, with a threeyear booking, on a new, highprofile site at Glasgow Airport. The site, above the check-in desks, is the start of a refurbishment programme of advertising locations at Glasgow Airport. The campaign was booked with JC Decaux Airport through Starcom MediaVest and Kinetic. The Glasgow check-in domination opportunity comprises two 14 metres x 3 metres backlit poster sites that reach 100 percent of departing passengers, and will be seen by 7.2 million airport passengers every year, Decaux says. The site will launch with creative promoting daily flights from Glasgow to Dubai and Australia. The airport services 85 destinations, Decaux says.

New data from GfK MRI Starch Advertising Research show that tablets are more effective than eReaders in garnering consumer attention to and engagement with magazine ads on these devices. A survey of 7,000 users of magazine apps on tablets and eReaders, May to July, revealed that 55 per cent who read a magazine on a tablet noted a magazine ad on their device. This compares with 41 per cent of eReader magazine app users who noted an ad. To put into perspective, the average noting score for all hard copy magazine ads measured in 2010 was 53 per cent. Magazine ads on tablets also drive engagement more versus eReaders, among those who read/saw an ad. From the users who noted a magazine ad on a tablet, 26

tradicting conventional wisdom that more specificity is preferable. However the research also found that under certain circumstances this type of specific ad did work if the consumer had developed well-defined product preferences at the time they saw it. When online shoppers were simply looking at a product category, ads that matched their prior web browsing interests were ineffective. However, after consumers visit a review site or product details then personalised ads

Top three actions after reading a magazine ad

became more effective than generic ones. This was a “big surprise,” says Anja Lambrecht, assistant professor of marketing, London Business School, as it was thought it is more effective to reach consumers with messages based on their known interests. “But just because you have the data to personalise, it doesn’t mean you always should.”

Anja Lambrecht Assistant professor of marketing, London Business School

Tablet ad noters

eReader ad noters

Had more favourable opinion of advertiser

26%

19%

Considered purchasing product or service

22%

Looked for information about product or service

21%

15%

Source: GfK MRI Starch Advertising Research May to July 2011

per cent had a more favourable opinion of the advertiser after viewing the ad (versus 19 per cent for eReaders) and 21 per cent of tablet ad noters looked for information about the product or service after viewing the ad (versus 15 per cent of eReader ad noters). And while an equal percentage (22 per cent) of ad noters on both devices said that a magazine ad drove them to consider purchase, the tablet was still more effective since

more consumers noted an ad on a tablet in the first place. Consumers are much more likely to interact with ads on tablets versus eReaders; 23 per cent of those who read a magazine ad on a tablet accessed a website via an ad, nine per cent viewed multiple pages of ad content and eight per cent watched a video or commercial embedded in the ad. Less than one per cent who viewed a magazine ad on an eReader took any action.

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India McCain Foods India Pvt. Ltd, the Indian subsidiary of McCa i n Foods Ca nada, has lau nched its f i rst TVC in India. The campaign showcases the ‘Delightfully Fresh’ positioning of McCain’s products, with the tagline ‘Fresh Banega, Baat Banegi’.

First bite: McCain launches TVC

Created by Leo Burnett India, the campaign marks phase one of McCain’s integrated marketing communications effort. KS Narayanan, managing director, McCain Foods India, says: “Frozen foods are a lowpenetration category and require continuous efforts and engagement with consumers. The ad is just an extension of the communication we have been doing in building the nascent but small category of frozen foods in India. “The ATL efforts are another dimension and will complement the ongoing BTL efforts.” Samir Gangahar, executive director, Leo Burnett, adds: “The creative challenge was to communicate the ‘delightfully fresh’ attribute of the product and break the consumer mindset on frozen foods.”

Sports division launch Global MediaCom Worldwide has launched a new global sports division, MediaCom SPORT. The new division offers four areas of services: Strategy, rights negotiation, rights activation and measurement. It will be headed by global head of sports, Marcus John. John will liaise with MediaCom’s global account directors, MediaCom’s Beyond Advertising team and GroupM’s Entertainment and Sports Partnerships Group “to communicate client engagement in sports across all consumer touch points.” Prior to joining, John spent 10 years at IMG, finishing as SVP and managing director, IMG Consulting Asia/Pacific.

Global head of sports: Marcus John

John was responsible for some of the biggest deals in Asia, including the Beijing Olympics’ first deal to exceed the $100m market. “MediaCom focused its sports expertise at a local and regional level, but we realise our clients require a more global and deeper understanding,” says MediaCom chairman and CEO Stephen Allan.

Sony switches its Asia media to OMD Hong Kong Sony Electronics has switched its $125m media planning and buying account for the Asia Pacific region to OMD from incumbent MEC. The territory will join China and Singapore, reports MediaPost. According to ZenithOptimedia, the region’s ad spend will grow by six per cent to $123bn this year, and by eight per cent in 2012 to $133bn. Carat, UM, Dentsu and ZenithOptimedia also pitched with MEC and Carat making it to the final round. MEC and OMD are battling it out for Toys “R” Us. According to Kantar Media the account is worth $115m.

M&C Saatchi boxes clever with OOH Xpert help for Hello Kitty’s Pynkiss UK M&C Saatchi has chosen England’s oldest puppet show – the famously warring couple Punch and Judy – as the platform for the latest ad from the Olympic Delivery Authority (ODA). It is the first time an ad break has ever featured in the seaside show, which was first performed in 1662. Targeting tourists, the campaign promotes the coastal towns of Weymouth and Portland, hosts of the sailing competitions. It is estimated that the live ad break will be seen by up to 20 per cent of tourists coming to Weymouth Beach. During the ad, Punch and Judy will emphasise that trav-

Leo Burnett India debuts McCain TVC

Packing a punch: Olympic campaign

el patterns around Weymouth and Portland next summer will alter during the Games. “We are encouraging residents and holidaymakers to swap their cars for either walking or cycling. With an extra 60,000 visitors to the area, the roads and [public transport] will be busier than usual,” says an ODA spokesperson.

UK Hello Kitty has asked Xpert Communications to handle the fashion company’s seven-figure global PR account for its Pynkiss brand, reports PR Week. Pynkiss, says PR Week, is ‘the high-end and grown-up’ extension of the Hello Kitty fashion and lifestyle brand. It launches this month during Milan Fashion Week. The agency will handle Pynkiss’ strategy and creative across PR, digital events and social media for the brand and its stores in Europe, Asia, the MENA region and the Far East. Pynkiss will open its first 10 stores and concessions in Tokyo and Korea in January.

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News plus

Positive thinking

ÂŠ Getty/Gallo Images

UAE consumer confidence highest since 2004.

ABOUT THE SURVEY

consumer confidence results Markets Egypt Kuwait Lebanon Oman Qatar Saudi Arabia U.A.E TOTAL middle EAST

1H 2011

2H 2010

1H 2010

2H 2009

1H 2009

2H 2008

1H 2008

78.2 90.8 15.0 99.0 95.7 98.6 95.6 83.4

47.7 80.4 54.3 83.6 95.1 73.6 71.6

45.5 96.9 44.6 65.8 85.0 82.4 69.2

59.5 70.9 55.4 89.2 83.2 86.1 74.5

32.3 49.5 64.4 71.4 67.1 29.6 49.9

55.6 96.6 69.1 76.2 72.4 75.4 72.7

32.3 89.4 32.0 88.6 80.2 85.4 66.4

UAE Consumers in the UAE are highly optimistic about the coming six months, according to a new study from Mastercard. Consumer confidence in the UAE is at a record high, with a score of 95.6 showing significant improvement from six months ago (73.6), a year ago (82.4) and even 18 months ago (86.1). In fact, the latest consumer confidence score for the UAE is

vs 83.0 six months ago) and least optimistic about the stock market, even though the latter indicator has increased drastically in the past six months (81.5 vs 63.2). All five economic indicators increased in the Middle East compared to six months ago. Consumer Confidence was highest overall in Oman at 99.0. This is the first time that the Sultanate has been included. In Saudi Arabia (the highest scoring market in the survey six months ago with a score of 95.1) confidence increased to 98.6. Confidence across all MENA markets rose except in Lebanon where the score fell from 54.3 six months ago to 15. n

the highest that it has been since 2004 and is significantly higher than markets such as China (78.3), Hong Kong (69.9) and India (75.2). Consumers are most optimistic about the economy (96.2) and regular income (96.1), and least optimistic about employment (94.7). All indicators were rated as positive, including quality of life (95.7) and the stock market (95.4)

Men were more optimistic than females (97.2 vs 93.6). Those under 30 years were more positive than those aged 30 plus (98.2 vs 93.5). Confidence levels for all gender and age groups were above 90. In the Middle East, consumer confidence has risen compared to six months ago (83.4 vs 71.6). Respondents were most optimistic about Regular Income (86.8

The MasterCard Worldwide Index of Consumer Confidence, March 15 to April 27, 2011, interviewed 17,620 qualified respondents in the 25 markets with the sample being representative of the middle and upper income groups in each market. The Index is calculated based with zero as the most pessimistic, 100 as the most optimistic and 50 as neutral. Five economic factors are measured: employment, the economy, regular income, stock market and quality of life. The responses are consumersâ&#x20AC;&#x2122; thoughts on the six months ahead. Data collection was via internet surveys, personal, telephone and CATI, with the questionnaire translated to the local language, where appropriate.

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MEDIA

Social Saudi

Amid social media hype in Saudi Arabia marketing experts urge firms not to neglect the basics. Alex Malouf reports from Riyadh. It would not have been surprising if just before the summer break Saudi Arabia’s marketing managers thought they had been temporarily relocated to Dubai. In just four weeks no less than three events focusing on marketing and communications were held in Riyadh; most of the discussions inevitably focused on new trends, particularly social media. First up was the second Arab Social Media Forum. Held under the auspices of Saudi Arabia’s Information and Culture Ministry, the event examined how social media could be best used by the kingdom’s marketers. While all of the speakers underlined their belief that social media could enhance a consumer’s brand experience, there was some debate regarding the ROI. While communications consultant Silvia Cambié suggested there were no

effective means to measure the ROI, social media MBC’s Ammar Bakkar rolled out a list of formulae. Other presentations focused on utilising social media for internal communications. Attendees were also treated to workshops on how to design social media campaigns for Saudi-based firms. Second up was a day-long marketing event – Mindshare’s media summit, the first organized in the kingdom by the agency. It brought together advertisers and agencies to discuss everything from digital to OOH, print media and TV. The event was opened by Dr Riyad Najm, the assistant deputy minister at Saudi’s ministry of culture and information. Dr Riyad provided an insight into the country’s long-term strategy for radio and TV as well as how Saudi

Arabia is looking for more content to be developed within the kingdom. “While Saudi is [one of ] the most important markets in the region, much of the material broadcast in Saudi Arabia is developed outside of the country,” he said. “We’d like to see more material created here, to support our media sector and to also respect the culture and customs of Saudi.” Other speakers at Mindshare’s event included Dubai Media Incorporated’s managing editor Ali Jaber who spoke ad-hoc about how broadcast media has shaped the region’s social opinions as well as JC Decaux ATA’s managing director Philippe Infante, who discussed growth in the country’s OOH sector. The afternoon sessions focused on digital and social media.

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Speakers described Saudi’s love for all things online. There are almost two million Facebook users in Saudi and that the youth spend more time online than watching TV. While Saudi youth are embracing online, advertisers are yet to follow suit. Saudi Specialized Publishing Company’s managing director Mohammad Alomar noted that digital revenues for his parent company, which publishes Al Sharq Al Awsat and Al Eqtisadiyah, amounts to a single digit fraction of all advertising revenues. What was most memorable about the Mindshare event was the roundtable when five panelists – SABB’s heading of marketing communications and planning, Mohammed Abureesh; Google MENA’S key accounts manager, Mazen Sabbag; Rotana Media Services’s EM strategy and development manager, Ismail Abu Alsamh, managing director for Creative Edge Media Development, Nassr Ali Bek; and Zain Saudi Arabia’s media manager Amr Al Amri – who spoke very openly about the marketing issues they’ve encountered. Despite all of the buzz around social media one panelist said he couldn’t justify spend to his management, while another explained that his digital spend is only 10 per cent of his total marketing budget. The last in the lineup of events was the Saudi Branding and Communications Summit 2011. Hosted by events organizer IIR for the second year running, the summit aimed to raise awareness of communications as a discipline among Saudi-based companies. Over two days marketing managers from multinationals joined with Saudibased consultants to tackle issues from crisis communications to internal messaging and how to reach out to youth. Highlights included presentations from Saudi-based marketing consultant Said Baaghil on how local firms are yet to realize the power of communications;

Get the message: Fadl Al-Tarzi, COO, Said Baaghil and Moussa Obeid

…while new trends such as social media may be all the rage, marketing managers must get the basics right… Nokia’s youth-led communications programmes by Moussa Obeid, marketing head, Saudi and Yemen, Nokia Saudi Arabia, and an insight into B2B messaging by Olaf Brinkmann, group communications executive manager at electrics firm and Saudi-brand alfanar along with Fadl Al Tarzi, COO, News Group International. The second day mixed multinational and local speakers. First up was Mobily’s ad manager Samir Saddiqi who spoke about how the operator built its brand in the Saudi market. Next was a presentation by Colin Hensley. The former GM of corporate affairs and planning at Toyota Motor Europe spoke in detail about how the world’s largest car maker tackled a number of crises during the past 12 months through various communications tools, including so-

cial and digital media. Piers Schreiber, Jumeirah Group, discussed how the company has developed a corporate brand in addition to marketing each and every one of its hotels as unique properties. Singapore Tourism Board’s area director, MEA, Jason Ong, talked about the hospitality sector, and how the citystate has looked to embrace online communications to boost visitor numbers from the Gulf. There was a general consensus that while new trends such as social media may be all the rage, marketing managers must get the basics right before looking at how they communicate their company’s brand values. Emphasising the point, Baaghil said: “Brand messaging, product alignment, consumer research and effective communications are the very basics of any n marketing job.”

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BrAND CHECK

Foxy chic?

Did Fox Series manage to get in touch with its feminine side when it rebranded to attract more female viewers? Earlier this year Fox International changed one of the channels it airs in this region. What had been called “Fox Series” became simply “Fox”. More importantly, the channel reoriented itself, in the words of its accompanying press release, to become “a new 100 per cent Arabic general entertainment channel for women.” The channel is part of Fox’s venture with Rotana. It is FTA and shows duallanguage content from both partners and other sources. In other words a mix of international blockbusters, dubbed Hollywood films, and hitherto unseen soaps, series and lifestyle programming deemed to be of interest to Arab women. Leo Burnett produced a campaign running during March and April to target young(ish) women across the UAE and Saudi Arabia. The campaign aimed to

“showcase how the new channel is as essential to a woman’s daily routine as her accessories or make-up”. (You can see how these straight-forward metaphors were executed in a couple of adverts shown on the right.) You might be asking yourself why we are telling you all this? Wolff Olins is a brand consultancy not known for its TV work. Nonetheless, GMR asked us for our opinion of the change. Given our, dare we claim the term, profession, perhaps the first

observation to make is that this change is not a “re-branding”. Even in the sense in which that phrase is (mis-)used in the region. That is to say, this is not a change in identity. The new channel still uses the same old Fox logo. Admittedly minus the attached label “Series”. Not a great loss, you might suspect. Nor indeed a major step forward in clarity. Fox refers to the change as an “upgrade”, a language which borrows from

saying what they see Rating: Charles Wright, Steve Richards & Moussa Beidas, Wolf Olins Dubai

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B RA N D C H E C K

NEW LOGO

OLD LOGO

Background Fox International Channels upgraded its Fox Series channel to a 100 per cent Arabic general entertainment channel targeting women. The creative campaign supporting the upgrade went live in February for a two-month period targeting women across the UAE and Saudi Arabia, aged 18 to 35 years. The creative idea behind the campaign created by Leo Burnett Dubai is to showcase how the new channel is as essential to a woman’s daily routine as her accessories or make-up. The copy highlights the benefits of the accessories used and draws a comparison to what the channel has to offer. The use of the Arabic pronoun (Laki) in the headline shows that the channel is completely dedicated to women. The Arabic headline is adapted from a common Arabic saying that portrays love, endearment and respect. The overall idea uses bright colors, 3D modelling and simple messaging to clearly differentiate this women’s channel from the rest in terms of content, look and feel.

the world of software to promise something better which we would be foolish to do without. In case there was any doubt about whom the channel targets, the ads make it plain that this is Fox FOR YOU. “You” is written “Laki” in Arabic, laki being the feminine pronoun. Moreover, each ad rams home the targeting with pictures of feminine necessities; lipstick and high heels in the examples shown. And wraps them all in bright colours to create standout. Granted the imagery signals that the channel is for woman, perhaps it is too literal. Contrast the lipstick and high heels with how Desperate Housewives used a bright red apple in another campaign; the apple being a potent metaphor for Eve. Forgive the gentle irony of our description of the creative work. But sometimes the best creative work is achieved through gentle irony. By the by, why couldn’t the creative team have been allowed to be a little less literal and, for example, highlighted the kasra in “laki” to suggest femininity? That might, in turn, have engaged a wider audience. And where in the ads would those ladies see the “upgrade” that Fox’s press release promised? But as a wise man said: Never ask a hairdresser if you need a haircut. Time will tell how many of the region’s women fall in love with this new channel. Despite our apparently supercilious tone, we believe it heralds a new trend in the region of targeted programming, which is now commonplace and successful elsewhere. An attractive proposition to hungry advertisers and desperate housewives alike. Fox’s changes to this channel are not a fluffy cosmetic change – pun intended – but well-thought-through marketing, based on careful research. Yes, the campaign is a little stereotyped (three out of five). Maybe the channel is a real upgrade? We wish Fox the best. We’re off now to watch some women’s TV. n

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Q&A

“Great potential”

His Highness Sayyid Faisal bin Turki Al Said, COO, Brand Oman Management Unit, discusses innovation, entrepreneurship and youth. For more than a decade His Highness Sayyid Faisal bin Turki al Said has worked in a number of government roles promoting inward investment, export development and Oman’s national brand. Why is innovation and entrepreneurship so important to Oman’s youth? In Oman 43 per cent of us are under the age of 15. We don’t want that potential and talent to go to waste. It’s critical we identify and pursue innovative approaches for increasing and improving economic opportunities for our young people. Entrepreneurship has a major role to play in this. According to the Kaufman Foundation (2008) more than one-third of job creation is due to new businesses.

Entrepreneurship, in general, has seen an upsurge since the start of the global economic crisis. The Global Entrepreneur Monitor (GEM) estimates that up to half a billion people worldwide were already engaged in creating businesses in 2009. Is entrepreneurship in itself the key? Encouraging and facilitating new business formation is one of the most important socio-economic activities that Oman can be involved in to support its youth. But encouraging our youth to start new businesses and be more entrepreneurial is, by itself, not enough. We have to equip them with the skills to do so, show them the possibilities and create a framework and environment that breeds success.

The economic crisis has made governments around the world rethink their strategies for generating employment and stimulating economic development. They’re recognising that in order to prosper they need to out-innovate the competition and are shifting focus to growing their own entrepreneurial talent. And entrepreneurial talent is something we have in abundance in Oman. I see this, in particular, in our youth. It was evident at last year’s Muscat Youth Summit. The spirit and desire for success of the participants, their motivation and spirit, was inspirational. Apple’s Steve Jobs said that innovation has nothing to do with how much you invest in research and development. His view is that it’s about the people you

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have, how you’re led and how much you understand what innovation is about. I couldn’t agree more. How does youth entrepreneurship fit in with the goals of Oman? It is intrinsically linked to national competitiveness, an issue that is central to the success of any country. Youth entrepreneurship will help Oman realise its full economic potential. A nation with a thriving culture of entrepreneurship is competitive in the international arena – it attracts investment, attracts talent and creates a positive image – success generates success. Is entrepreneurship just about the economy? In the first instance, entrepreneurship is about creating employment opportunities. It’s also, in the long run, about success and by that I mean success for the individual and success for the nation. It’s about preparing our young people to deal with the challenges of the future. It’s also about choice and career satisfaction; about having control and independence. Being an entrepreneur gives young people the chance to create for themselves the career they’ve dreamed of. And being entrepreneurial, innovative – having those skills – being creative, flexible, adaptable and resourceful – will allow them to meet the changing demands of the global economy, the job market and the workplace. Let’s not forget social entrepreneurs – applying innovative and entrepreneurial thinking to solve social or community problems – the end result is a benefit for the community or society. Of course, this might involve profit for the individual, but that’s not the focus. But isn’t becoming an entrepreneur risky? Of course, the path of the entrepreneur is not all roses and it isn’t without risks – ask any entrepreneur – but studies in the US by Experian show that, on average, entrepreneurs make at least 25 per

Initiative: The 2012 Muscat Youth Summit takes place December 4 to 7 at Millennium Resort, Al Musannah

Real entrepreneurs are different from the rest of us. cent more than the general population, and research by Stanley and Danko concluded that entrepreneurs and selfemployed people are four times more likely to be millionaires than those who work for others. Are our young people ready? Absolutely, and this was the message we received at last year’s Muscat Youth Summit. Our children will be the innovators and entrepreneurs of the future. That’s a simple truth. They will be the ones who will meet the economic, social and environmental challenges of the future and I have to say, listening to the participants at the Muscat Youth Summit, that they’re definitely ready. They’re eager to make a difference, contribute, innovate, create. They are a sharp reminder of the talent Oman has at its fingertips, they’re our most

precious asset, and it is our collective responsibility to ensure their thoughts and ideas are taken forward. The endeavours of our youth in enterprise, their energy, enthusiasm and success will showcase Oman to the world and as such are a key part of the government’s efforts to create a positive international image and identity for the sultanate. Muscat Youth Summit 2010 focused on youth entrepreneurship, can you tell us a little more about this? That’s right. The Muscat Youth Summit ran a series of workshops on entrepreneurship, full-day sessions delivered by The Prince’s Youth Business International, the Commonwealth Secretariat, The Young Foundation, Intilaaqah and Knowledge Horizon. It’s through this type of exposure that we were looking

September 2011 Gulf Marketing Review 39

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Q&A

Starting young: ‘Introducing entrepreneurship in classrooms across Oman should be part of the fabric of school life, says His Highness

Entrepreneurship is a behaviour rather than a personality trait. to encourage Summit participants to become entrepreneurs or entrepreneurial thinkers. Hopefully we achieved this by immersing them in real life learning experiences where they could take risks, manage the results and learn from the outcomes. Entrepreneurship isn’t something special that a few people are born with, it’s a way of thinking that can be nurtured – this is what we wanted the summit’s participants to understand. Perhaps people don’t realize the size of the world’s youth population and its importance to the global economy. The World Bank estimates that by 2015 – target year for the Millennium Development Goals – there’ll be three billion people in the world under the age of 25. However, although this

generation will be the most educated ever, International Labour Organisation statistics forecast a sustained rise in youth unemployment. They estimate that young people already make up as much as 40 per cent of the world’s total unemployed, and are almost three times as likely to be unemployed as adults – a situation exacerbated by the recent world economic crisis. Indeed, young people are particularly vulnerable to the effects of an economic downturn, during and after a crisis, it’s the youth who are hit hardest in terms of unemployment. On a more positive note entrepreneurship can act as the engine for economic growth as well as provide a successful route to long-term employment, especially if entrepreneurs

receive the right support and advice in the business start-up phase. Given the potential of start-ups and SMEs it’s particularly important that Oman fosters the conditions for an enterprise culture at a time of economic crisis when the global job market is stalling. This was the message we wanted to get across at the summit’s workshops. What’s your take on teaching entrepreneurship in schools? As I mentioned earlier, if we’re intent on raising Oman’s competitiveness then we need to focus on youth entrepreneurship. Entrepreneurial acumen needs to come at an early age. Picasso once said: “Every child is an artist. The problem is how to remain one once we grow up.” Creativity, innovation, drive and a willingness to take risks subsides when we get older. We’ve got to keep these traits alive. Introducing entrepreneurship in classrooms across Oman should be n part of the fabric of school life.

40 Gulf Marketing Review September 2011

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ÂŠ Getty/Gallo images

cover story

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Tru love

High disposable income has spawned a whole generation of teen shopaholics in Saudi and the UAE. It’s different in Egypt, however.

The UAE’s teens enjoy more than four times the average personal allowance than their global peers, spending on average $103 a week, compared to $28, according to the Tru Kantar Global Teen Study – MENA edition 2011. Teens in Saudi spend relatively more modestly – $56 a week – still twice the global average – although in absolute terms, spending by Egyptian teens is way below the MENA or even global averages at $7. Unsurprisingly older teens spend more, while in the UAE girls shop as much as boys. Saudi Arabian and Egyptian societies, however, defy all norms. Here, teen boys spend more than girls – probably because they get more money, more opportunities and more exposure to the outside world. Spending outlook Globally as many as 17 per cent of teens

feel they would have spent less this year, but not MENA teens who seem unaffected by the economic downturn. Most teens in the UAE plan to spend more – 62 per cent – or the same amount – 36 per cent. In Saudi Arabia 74 per cent of girls, given that they have saved more, plan to spend more this year.

cOUNTING COSTS

Country Global UAE Males Females KSA Males Females EGYPT Males Females

Base 35721 401 204 197 800 403 397 814 404 410

Spend ($) 28 103 103 104 56 69 42 7 8 7

And despite having the lowest absolute income in the region, Egyptian teens are more positive about their spending outlook, with 75 per cent saying they would spend much more in the coming year. This is not only higher than the global average, but also higher than their more affluent neighbours. Optimism or escapism? Category spend Fashion For most teens fashion is their social status indicator, even for females wearing an abaya; they like to wear fashionable items underneath. Both sexes love to spend on clothes and accessories. What they wear helps them express their individuality; it helps them stand out in a largely conformist and homogenous society within the boundaries of their traditional upbringing. These boundaries, however, differ from country to country. As expect-

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cover story

UAE teens: Spending on categories per month Categories Clothing and apparel Entertainment Health and beauty aids Electronics and technology Cell/ mobile phones Eating in casual/ expensive restaurants Eating in fast food restaurants Carrying a ‘take away’ from fast food restaurants Sweet and salty snacks Home entertainment Transportation Soft drinks

In US$ Global teens ($) UAE teens ($) 35721 401 15 100 5 41 4 34 5 33 7 28 5 28 4 28 3 23 4 19 2 17 7 16 4 14

Total 401 366 150 125 121 103 103 102 84 68 63 57 52

In UAE dirhams Males 204 362 157 112 145 111 102 105 87 68 75 71 51

Females 197 370 143 139 96 95 103 99 81 69 50 43 54

Total 800 134 94 63 63 58 56 49 44 42 24 24 16

In Saudi riyals Males 403 161 112 67 81 84 49 61 52 43 42 40 25

Females 397 107 76 60 44 32 62 36 36 41 6 8 7

Total 814 23 19 18 16 14 12 10 9 8 7 6 2

In Egyptian pounds Males 404 26 20 19 17 15 15 12 7 10 9 10 3

Females 410 21 19 17 15 12 9 8 11 5 5 2 1

KSA teens: spending on categories per month Categories Clothing and apparel Cell/ mobile phones Eating in casual/ expensive restaurants Eating in fast food restaurants Electronics and technology Health and beauty aids Carrying a ‘take away’ from fast food restaurants Soft drinks Sweet & Salty Snacks Transportation Home entertainment Entertainment

In US$ Global teens ($) UAE teens ($) 35721 800 15 36 7 25 5 17 4 17 5 15 4 15 3 13 4 12 4 11 7 6 2 6 5 4

EGYPT teens: spending on categories per month Categories Clothing and apparel Sweet and salty snacks Soft drinks Cell/ mobile phones Transportation Eating in casual/ expensive restaurants Eating in fast food restaurants Health and beauty aids Entertainment Carrying a ‘take away’ from fast food restaurants Electronics and technology Home entertainment

In US$ Global teens ($) UAE teens ($) 35721 814 15 4 4 3 4 3 7 3 7 2 5 2 4 2 4 2 5 1 3 1 5 1 2 0

BASE: All respondents. 1USD = 3.67 AED/3.75 SR/5.96 EGP Source: The TRU study 2011

44 Gulf Marketing Review September 2011

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In the UAE they spend, on average, $34 dollars a month on health and beauty compared to the global average of $4. About the study This research aims to understand teens as consumers, their associations with and perceptions of brands, their lifestyle, views and opinions. The study highlights the key differences among MENA teens and global teens across 40 countries and was conducted among local Arab male and female teens aged from 12 to 19 years across all socio-economic classes. Face-to-face interviews were conducted with 2,000 teenagers (UAE, 400; Saudi Arabia (Jeddah, Riyadh and Damman),800; Egypt, 800).

ed girls spend more on health and beauty than boys. UAE teens spend a whopping $100 on clothes and apparel versus global teens who spend about $15. Health and beauty Beauty is very important to more affluent MENA teens. In the UAE, for example, they spend on average $34 dollars a month on health and beauty compared to the global average of $4. Obviously girls spend more than boys. Entertainment After clothes UAE teens spend the most on entertainment, while for global teens

it comes third. UAE teens spend $41 on average; other countries spend $1 to $4, while global teens spend $5. UAE teens have it all – the money, the avenues and the permission to have fun. Mobiles Although UAE teens spend $28 on mobiles – four times that of global teens – but they still rank fifth on their shopping lists. Mobiles have almost become passé among UAE teens – everyone has one, so there is no novelty value – now it’s all about smart phones. Egyptian teens spend $3 on mobiles compared to the global average of $7. Saudi Arabian teens, on the other

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cover story

Compared to global spend of $4 for snacks... UAE teens spend $19

Do you think you will spend...

UAE Spend less

Spend about the same

36%

Spend more

62%

KSA Spend less

Spend about the same

30%

Spend more

69%

EGYPT Spend less

Spend about the same

21%

Spend more

75%

BASE: All respondents Global (35721), UAE (401), KSA (800), Egypt (814). Source: The TRU study 2011

hand, are showing off their mobiles. This is the gizmo that they spend the most on after clothing, $25, which is almost equal to the UAE’s teen spend of $28. Snacks and soft drinks This is the category that tops the spending list for Egyptian teens, unlike their global, UAE or Saudi Arabia peers. When incomes are low the focus is typically on basic needs such as food and clothing. Older Egyptian teens spend a lot more than younger ones. For UAE teens, however, these categories rank lower in their list. The amount spent is still quite high, however, especially given the low per unit cost of a snack pack or a soft drink, they actually consume quite a lot. Compared to global spend of $4 for snacks and $4 for soft

drinks, UAE teens spend $19 and $14 respectively. Eating out In the UAE and Saudi Arabia teens spend significantly more on eating out compared to global teens. Eating out is a popular pastime in the MENA region because it is centred around family and friends. CDR are very popular and with new outlets in almost every mall teens have cheap, quick and fun options to eat out. This helps explain why UAE teens mention KFC and McDonald’s n among their favourite brands.

Deepali Bamane Project director AMRB Dubai

48 Gulf Marketing Review September 2011

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The GMR Interview Yasser Joharji, Unilever’s first Saudi national managing director, recalls his career highlights. Shams Ahsan reports from Jeddah. it is an unmarked, nondescript office building in Jeddah’s sparsely populated beach front Al-Shatea district, yet the security is so tight visitors have to go through two tiers of checks. On the second floor sits Yasser Joharji, managing director, Binzagr Unilever. He greets us and leads us into his spacious office. A laptop sits open on top of his desk, one which is strikingly uncluttered. A Saudi national in his 40s, Joharji is softly spoken with a charming face; a premature sprinkling of grey can be seen in his trimmed beard. Born in Riyadh, Joharji did his schooling and attended college in the Saudi capital. He graduated from the Industrial Engineering College of Riyadh’s King Saud University in 1993. The same year he moved to Jeddah and joined the market research team at Savola. “That was my destiny,” recounts Joharji. “It shifted my attention from machines and factories to consumers.

But there was a lot of commonality between what I studied and the market research field.” Joharji considers his Savola experience very enriching as he had the opportunity to work with Robin Jones. Jones was at that time an adviser to the Savola Group chairman and considered ‘one of the top 30 researchers in the world’. fantasy cv Born Riaydh, 1970 Marital status Married, with three daughters (Lubna, 14; Yumna, 11; and Leen, 9) Higher education achievement Industrial engineering, King Saud University First job Market research team Savola. Career high The launch of Clear shampoo in 2007, the first male-exclusive shampoo in the Saudi market Career low Nothing so far

“I was lucky enough because at that time Savola was doing a lot of feasibility studies and market research. We worked on chocolates, dates, cakes, snacks, edible oil… that was a brilliant experience for me because it widened my perspective beyond just numbers and machines into first-hand experience into people’s behaviour, thinking, habits and attitude.” In 1998, Joharji expanded from market research to marketing and joined Unilever. The company proved to be a great learning experience, he recalls. It gave him, as he says, a more methodical understanding of consumer behaviour. “I remember during my first three months at Unilever I read more than 20 consumer research manuals.” For a while he worked in beverage marketing before moving to personal care and beauty. Since May 2010 he has been managing director, Binzagr Unilever; the first Saudi national to hold the position and one he intends to hold on to for quite some time.

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Profile

Pyramid selling: Lipton’s fruit tea in pyramid bags is one of Unilever’s best innovations, says Joharji

Saudi consumers are not driven by price; they are driven by quality. Why? Because he considers Unilever a business school. “Unilever for me is not just a company where I wake up in the morning and go. It is a school of personal development. Unilever adds value beyond just business understanding.” Joharji, a father of three daughters, urges young Saudis, eager to widen their perspective, to join Unilever. Saudis, he thinks, are no different from other consumers anywhere in the world, although he hastens to add them among the most brand loyal. “Brands such as Signal, Lux, Lipton and Dove have unbeatable consumer loyalty because Saudi people have the ability to differentiate between good, sustainable, consistent quality and flashy work,” he says. “Saudi consumers are not driven by price; they are driven by quality. As long as you keep quality on top of your agenda and you make sure that consumers are engaged… you are winning.”

And quality comes through innovation, which, he says, is at the heart of Unilever. To prove his point, he cites Lipton Chai Latte, “one of our best innovations,” and Lipton Fruit Teas in pyramid teabags. Joharji was actively involved in the marketing of Lipton, which is considered to be the second largest retail tea market in the Middle East. The total tea market in Saudi Arabia is SAR950m,($253m) out of which the Lipton’s value share is 73 per cent. “We used to visit villages and sample Lipton, so people have Lipton social moments,” recounts Joharji. The nearest competitor to Lipton is AMS Baeshen and its popular brand Rabea, so Unilever has adopted a vigorous marketing-cum-awareness campaign to keep its grip on the market. It also “upgrades” people to higher value segments: From loose tea to tea bags to green tea to flavoured tea.

The success of this was highlighted in Ogilvy Noor’s Islamic branding survey in which Lipton ranked the number one brand. The survey was the result of a twoyear study conducted in Saudi Arabia, Egypt, Malaysia and Pakistan. The consumers surveyed felt that the top brands are brands that “bothered to create advertising and communications relevant to them. “They also created jobs and established relationships with communities. “These are the brands they feel close to.” As a marketer, Joharji is also proud of his involvement in the successful launch in the kingdom of Clear shampoo for men in 2007. This was the first male -dedicated shampoo launched in the Saudi market. In just four years it has become the number one brand in the male-exclusive shampoo category in Saudi Arabia. Says Joharji: “It was a marketing case study. It was team work at its best; it was leadership at its best; it was integrated planning. We mapped the consumers. “We made sure what the consumer needs were. We developed our product based on that, and we launched in a fashion

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Profile

One of the family: Comfort is one of the many global brands to be produced in Jeddah

List of marketing support agencies Globally Lowe Advertising and JWT Local Focus Advertising, Creative Circle, Maimak Media Magna Dubai PR Different agencies. The recent Lipton “Sip of Inspiration” campaign by Asda’a Company creds Unilever’s first business in the Middle East began in Saudi Arabia in the 1930s with Binzagar as its distributor. The Binzagar Unilever (BUL) operations started in 1978 with the opening of the first factory in Jeddah. Factories in Jeddah produce global brands such as Lux, Dove, Sunsilk, Comfort, Signal and Close Up for the Saudi market as well as for regional and other markets, including those in Yemen, Sudan, Tunisia, and Morocco. The company also has social initiatives, and through its Signal brand has been working with the Ministry of Health on educating the youth about dental hygiene.

that generated a very positive consumer reaction. They voted for our product; they liked the product.” So, what lies behind the strategy? “We position our brands very well in consumer minds,” replies Joharji. “We engage and partner with our customers where you have a brilliant solution based on the consumer insight and you place it very well on the ground in a fashion that adds value to all parties. So it is a win win situation for everyone. That’s the model that keeps us going. “We talk to our consumers at every touch point, and we don’t think of advertising in a classical way. We think of communication with our consumers at every point when it comes to packaging, when it comes to shelf, when it comes to shopping, when it comes to TV advertising.” Unilever spent $530m on paid media (IPSOS figures) across Saudi Arabia and the Gulf. This includes spending on pan-Arab TV channels. When asked about challenges he simply smiles and says: “We are trained to look at challenges as opportunities. “In the Saudi market today I am lucky enough to get this position when the time is at its best. Economy is booming. There is massive involvement of our key consumers who are women. The booming young population. The only thing we can think of is how to capture this massive growth.” Under Joharji’s able leadership, Binzagr Unilever is growing at a double-digit rate. “On the global radar Unilever pays a lot of attention to the Saudi market,” says Joharji. Joharji is a family man. He spends his weekends with his wife and three daughters: Lubna, 14; Yumna, 11; and Leen, 9. “I enjoy everyday life with them. We have fun, we swim, go out, play on the internet, we cook together. Lubna is a great cook and likes to watch Fatafet channel. “I make sure I spend quality time with each of them. We call it the Queen’s Time where we go out together and talk and exchange views. We have a very open n two-way relationship,” he says.

54 Gulf Marketing Review September 2011

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Ageless beauty...

Siobhan Adams joins Nivea’s centenary party in Hamburg to find out how the Grande Dame of FMCG skincare retains its youthful glow. If a product sells in more than 200 countries, tops $8,700m in annual sales and is still going strong after 100 years then it can genuinely claim to be a brand icon. Nivea has permeated the skincare regimen of generations of consumers around the world. Just like Elvis, Hoovers or the prospect of people metres in Saudi Arabia, you can’t remember when you first knew about it because it has always been there. In terms of brand equity, however, this rich heritage is something of a mixed birthday blessing. A strong brand that delivers on functionality and a solid care promise is highly creditable and laudable. No question. But reliability isn’t particularly cool, much less motivational to those on whom the fate of its next 100 years relies: celebrity-obsessed, digitally

dependent, brand-savvy Gen Z. (Born 1991-2011.) For despite its impressive pedigree, Nivea – the world’s number one skincare brand (Euromonitor, 2010) – has been struggling to keep up, especially in more developed markets. Owners Beiersdorf issued two profit warnings late last year, one for 2010 figures, another for its 2011 forecast. facing the future

New approach: Umit Subasi, board member

Closer: Jean-Manuel Canga-Valles

For, as many of its more mature loyalists can testify, maintaining an everyouthful glow demands continual effort and investment. Cue 23-year-old US superstar Rihanna. The US singer is the voice of the anniversary campaign with her current hit California King Bed, the backing track for the new global TVCs. She is also the bridge between the youth segment and the century-old brand. A series of celebrations are taking place around the world with events in the Middle East under way this month. The inaugural centenary event took place in Beiersdorf’s home city of Hamburg in May. International press – including GMR – and guests joined senior executives aboard Nivea-bedecked ocean liner The Blue Boat for a celebratory cruise, which included a recital by Rihanna.

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b r a n d A N A LY S I S

Rockin’ the boat: Rihanna performed at Nivea’s inaugural centenary event aboard The Blue Boat

Getting Rihanna and riding the digital media wave affirms the leadership aspect of the Nivea heritage platform Consumer promotions are offering concert tickets as prizes; 10 million product codes enabling exclusive downloads from Nivea’s website plan to mobilize Rihanna’s fan base on social networks (10 percent of the campaign budget is dedicated to digital). The brand is also sponsoring Rihanna’s ‘Loud’ tour in the US and Europe, and with a host of local bloggers in tow, it expects to generate 120 million mentions on social media platforms worldwide. The digital campaign is flanked by a Nivea TV and print campaign that initially focuses on Nivea Creme in the blue tin. It will be followed by a product campaign featuring the key Visage, Body and highly profitable Deodorant product lines. (Check out its new Deo, Invisible for Black & White, which it claims is

nivea’s first deodorant against white marks and yellow stains). Campaigns will be supported by posters, billboards and city lights. But for some, Rihanna’s flawless complexion aside, the 77-year gap between brand and ambassador stretches credibility and flies in the face of Nivea’s avowed policy to only use ‘real people’. Timeless

Creme of the crop: Launched in 2011, Nivea Creme is still going strong after 100 years

“I’m not entirely certain how comfortable long-standing customers would be meeting Rihanna,” says brand expert Ricky Sharma, CEO tmh. But, he adds: “If the focus is to bridge the gap between the youth segment and its existing consumer base, then enlisting Rihanna is “genius”. It’s a great way to connect with a new generation of users and remain relevant, while still proudly talking about heritage, he added. “The TVC achieves these objectives with ease, while the heavy use of digital is a brave move for them.” Hasan Fadlallah, managing director, Brand Lounge ME, agrees. Heritage, he says, can be utilised in one of two ways: conservative and resistant to change – clearly a negative. Or, by leveraging leadership and expertise. “Getting Rihanna and riding the digital media wave affirms the leadership aspect of the Nivea heritage platform,” he says. It should be noted that Rihanna is not Nivea’s first youth-focused initiative. It’s teen deo range, Angelstar for

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B RA N D A N A L Y S I S

Crème de la crème: As part of its celebrations, Nivea is to embark on what it bills as the world’s biggest skin advisory tour

Future market growth predictions all point to skincare, with 45 per cent of total growth in cosmetics coming from skincare by 2015 girls which has been particularly successful in the Middle East. But it is the first for Creme. Despite the tyranny of youth, this Grand Dame of skincare FMCG is far too astute to throw its legions of older loyalists, nor its noble pedigree, out with the bathwater. The new campaign, 100 Years Skincare for Life, is part of a brand realignment that reinforces the traditional brand values of trust, honesty, reliability and family, says the company. What has gone overboard, however, is the five-year-old tagline ‘Beauty is…’ and with it the entire colour cosmetics range which failed to make a significant impact in value terms, despite high volumes and notable success in some markets, including the Middle East.

According to outgoing board member, brands, Marcus Pinger: “Beauty is…” was a deliberate strategy to improve the beauty profile of the range. “What we are doing now is building upon it. Beauty is still relevant to the brand. Ultimately women want to feel well in their skin and they want to feel beautiful as well. “But we have taken a deliberate decision to focus more on the skincare categories as opposed to the outer beauty categories such as decorative cosmetics.” He adds that future market growth predictions all point to skincare, with 45 per cent of total growth in cosmetics coming from skincare by 2015. So, with its strategy to be number one in two or three of the categories in which it operates, Beiersdorf already has

a huge advantage, with Nivea already number one in many countries. Anyway, the decision to cull cosmetics is not as dramatic (Pinger’s words) as it may seem, since the 11-year-old range accounted for only two per cent of total business. Haircare will also be cut in markets where it is does not have a creditable chance of being in the top three. France and Italy are the most likely for the chop. A simultaneously culling of some unprofitable SKUs is under way in all territories. According to board member, emerging markets, Umit Subasi, a completely new approach to the category is being formulated. “Meaningful and detailed consumer research has shown us that women in the GCC and particularly in Saudi Arabia have a strong preference for scented body lotions with a musk fragrance, a scent which is deeply rooted in the Muslim culture. Building on these findings, we are now introducing in the region Nivea Sensual Musk body

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lotion, the first Nivea product developed solely for the Middle East,” says Jean-Manuel Canga-Valles, marketing diector, Beiersdorf ME. But whether it’s skin, hair, men or women, it’s all down to leveraging the care competency to the maximum. Hair products will be care-based not cosmetic, so no colourants, for example. Care is all-encapsulated in the new creative through what the company calls ‘we moments,’ depicting closeness between couples, or parents and friends. The degree of intimacy will, of course, be tailored to suit the sensitivities of local markets including, of course, the Middle East, where the $5m campaign will run in Arabic, English and Farsi. Greater intimacy is also reflected in the shift in media spend, not only to digital, but also shopper marketing. In what it bills as the world’s biggest skin advisory tour – mainly in Europe – with more than 75,000 promotions, it’s expected to generate 13 million consumer contacts, including 1.7 million consultations with individual skin analyses. The Middle East, along with other emerging markets, is also key to Nivea’s future. Currently Beiersdorf divides into three main regions: Europe and North America; China and SE Asia, and the rest of the world, which is roughly 100 countries, labelled as emerging markets. This will change. Plans are not finalized, but the Middle East – currently 17 countries – will expand to 26 including Maghreb, which right now falls within Europe. In line with this, North Africa will become a priority area. “Essentially this (emerging markets) is going to be the growth engine for Beiersdorf,” Subasi says. But for now the colossal global marketing effort and the Nivea celebration activation has started to pay off. Half-year group sales are up by 1.9 per cent on the previous year to

Celebration time: Nivea is still going strong after 100 years

Greater intimacy is also reflected in the shift in media spend... $4,165m. Consolidated profit after tax rose to $370m. “The campaign to position Nivea for the future and mark the brand’s 100th anniversary generated positive momentum at retailers and among our consumers in the second quarter. The performance of our skin and body care business shows that our ‘Focus on Skin Care. Closer to Markets’ strategy is having the desired effect,” said CEO Thomas Quaas. Sales in Africa/Asia and Australia which, for the present, includes the Middle East, however, declined by 0.6 per cent overall to $716m. In the Middle East alone however, where the Arab Spring would have been expected to have had a particularly negative impact, market sales grew YTD by 14.1 per cent to July. All in all the next 100 years are off to a promising. The $1.4 billion global

campaign, its biggest to date, to promote 100 years as a skincare brand is starting to pay off. As tmh’s Sharma says there has to be a lot more to commemorative events than “corporate chest beating”. “The golden rule for such milestones for all brands should be, what’s in it for the consumer?’ as they don’t care that you’ve turned 10, 25 or even 100. “However, if brands can engage and involve consumers in their celebrations through content, competitions, promotions or dialogue, then an anniversary campaign can succeed.” Nivea, he says, has earned the right to claim an emotional connection with consumers because it’s a product people feel close to. Afterall: “It’s not an oven cleaner.” Many happy returns. n

September 2011 Gulf Marketing Review 61

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s e c T O r a N a Ly s i s

cOLD BeVeraGes As cold beverage consumption hots up, do water companies have enough to quench the thirst? Low tide chilling out Filling up sekari top search terms Kantar ramadan analysis Parc analysis Parc stats

65 70 74 78 80 83 86

NeXT MONTh reTaiL aND MaLLs

64 Gulf Marketing Review September 2011

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Low tide

Rising consumption and corresponding scarcity has left both regional and global water companies with a tricky equation. The scarcity of water resources in the GCC is something that bottled water companies are all too aware of. But as they continue to increase production to meet consumers’ thirst, they say the cost of their products will remain low. Bottled water in the UAE accounts for 17 per cent of total Liquid Refreshment Beverages (LRB) segment, with Masafi producing 320 million litres a year from natural resources; and international companies such as PepsiCo, with its brand Aquafina, purifying desalinated sea water. A survey published in March by Procter and Gamble and YouGov Siraj, found that concerns for water shortages in the region are higher than ever. “In the UAE alone, water consumption tops 550 litres daily per capita, three times the global average, resulting in massive fears for the future of fresh water for the next generation,” the report read. The research found that 25 per cent of married couples with children in the UAE worry that there will not be enough fresh water available for their children; 28 per cent of Emiratis worry that limited natural resources will be an issue for the next generation; and 57 per cent of Dubai residents take an active role in monitoring their water consumption to use only what is necessary. However, 24 per cent of residents across Abu Dhabi and Dubai don’t believe their personal actions can make a difference to water consumption. “The water category in general is very competitive in the UAE as the vast

Wat-er concern: The scarcity of water is something water companies are all too aware of

majority of the population recognise that tap water is not acceptable for drinking and cooking,” says Mike Henderson, customer development partner at consultancy firm Kantar Retail. The bottled water category is divided into two main segments: PET bottled putting environment thirst

Aware: Natascha Edelmann, head of marketing, Masafi

Responding: Dirk Holzapfel, international marketing and sales development, Evian

water, for on-the-go consumption, and five gallon containers. “The market for all segments is sustainable in the short to medium term, however the water sources and their sustainability will, in the medium to long term, become a significant factor,” he says. “The debate between ground water and desalinated water will also become a key battle ground and as the market and regulations within the industry matures, stricter label and product definition data will force a more transparent market place. “Consumers need to have safe healthy water to drink and its composition is of major importance and will become increasingly important as the consumer becomes more aware of

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©Getty/Gallo Images

SEC T O R A N A L YSIS

Responsible: As a sustainable brand Evian sees it as their responsibility to respect nature

...25 per cent of married couples in the UAE worry that there will not be enough fresh available water for their children... the various composition differences between brands.” Masafi, which has been in the industry for 30 years, has diversified into juices, hygiene and food products in the past six years – just last month it launched its Masafi Select Premium Basmati Rice – but during the past five years has doubled its production of bottled water. The company owns eight wells in the foothills of Hajar Mountains in Ras Al Khaimah, the UAE, and says its capacity is limited to the natural flow of water. “We have a set production schedule in place with the market demands and consumer trends from time to time. So naturally, we take into account all of these specifics before initiating any production

batch,” says Natascha Edelmann, head of marketing, Masafi. “We are constantly measuring the water tables and levels of the different Masafi wells, ensuring that none of the wells are depleted before it has time to re-generate itself. “We continuously consult with international hydrologists. We take this very seriously. We are dependent on nature; thus working in a sustainable manner is non-negotiable.” But on the subject of increasing the cost of water as a way of limiting waste, Edelmann says: “This is too premature to talk about.” On the international level bottled water companies such as Evian also produce

fresh water from a natural source in the French Alps, but because of their limits are considered a premium brand, both in Europe and the Middle East. “Evian is a natural flowing source, and thus has a natural cap. Evian is not a brand that can provide bottled water to the masses,” says Dirk Holzapfel, international marketing and sales development director at Evian. “As a response to the increased consumer awareness to the issues challenging the region, and their demand for higher levels of sustainability, Evian now enters into dialogue with interested consumers and customers on what has always been part of our DNA: being a sustainable business and our respect for nature. Concretely, this means that we continue to do what we have always done and see it as our responsibility to respect nature to the best of our means.” Beverage giants PepsiCo and Coca-Cola have their own bottled water companies – Aquafina and Arwa respectively – and

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SEC T O R A N A L YSIS

Thirsty business: The UAE spends nearly $3.2bn a year producing desalinated water to meet consumers’ growing needs

Aquafina continuously works with all environmental bodies, including those responsible for water resources in the UAE... purify desalinated water for consumption in the Gulf. According to the UAE government the country spends nearly AED11.8bn ($3.2bn) a year producing desalinated water to meet the growing needs for drinking water and offset its dwindling reserves. “At the regional level, the crisis of water is the biggest challenge, not only for us, but for the region as a whole,” says Omar Farid – GCC Business Unit, GM-PepsiCo MEA. “We can overcome this crisis only through concerted efforts with all parties concerned and through the development of a long-term strategy and plans to ensure adequate investment in

water resources and maintaining consumption within the framework of systematic science in order to avoid crises. “Aquafina continuously works with water world

Diversifying: Masafi brand expanding

Investing: Aquafina focuses on resources

all environmental bodies, including those responsible for water resources in the UAE, such as the Ministry of Environment and Water to ensure we do not exploit resources. PepsiCo invests in this to ensure a state of stability concerning water resources within the region is achieved, as we believe it is the basis for social and political stability, as well as health. “We do not have, at present, any intention to raise the prices of Aquafina water. A strategic pricing strategy has been designed carefully to suit the physical ability of consumers to purchase clean drinking water and compete effectively with competition.” So for now, as the Gulf’s bottled water market grows ever larger (it has doubled in size in the past five years), the cost to consumers will remain low. But with more awareness the argument about which source is more sustainable will rage on and the tide may begin to turn. n

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S E C T OR A N A L Y S I S

Chilling out

The cold drinks market is hotting up in the region reports Adrian Murphy. The burgeoning iced teas and coffees segment of the cold beverage market is being driven by the Gulf’s younger generation with their busy on-the-go lifestyles. Big brand coffee and tea companies and café chains are continually looking at ways to entice the tech-savvy youth of the region, with new products popping up in coffee shops and on supermarket shelves on a monthly basis. “The habit of [hot] tea drinking is not as well entrenched in the Arab youth of today,” says Waqas Javed, marketing director, Asia, Middle East and Africa, Pepsi-Lipton International (a joint venture with Unilever). “There is therefore a stronger need for refreshment beverages (usually in cold formats). This cold beverages sector is dominated by other categories, mostly carbonated drinks. Therefore there is a definite space for the iced tea category

to play in the cold beverages side, by providing the younger generation the refreshment that they desire through a brand they trust.” A few years back Lipton launched its Green Tea portfolio to ride on the success of this fast-growing segment. “It has been quite successful in markets like the UAE,” Javed adds. Now the Lipton Ice Tea range is available in both black and green tea types, and has lately focused on increasing its refreshing

Well entrenched: Waqas Javed

range of flavours. The core flavour of the range is peach and lemon in black, with two new flavours of red fruits and exotic fruits recently introduced. While in the green tea range pear and peach have been added to the existing range of lemon and mint, and mixed berries. “The latest introduction of pear and peach in July has been greatly appreciated by consumers in the UAE and has greatly helped drive sales,” Javed says. “The Ice Tea range helps Lipton become more relevant to the large youth population of the region, while also helping establish a more youthful and premium image to the overall mother brand.” In terms of coffee brands one of the most widely known in the region is Nescafé, which has launched a trio of brands in this segment in the past 12 months and subsequently reports a double-digit growth in sales.

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S E C T OR A N A L Y S I S

Best served cold: The Gulf’s younger generation is driving the cold beverage market

Our iced drinks account for 35 per cent of our total beverage sales The new iced drinks in cans include Nescafé Original, Nescafé Latte, and Nescafé Mocha. “Nescafé Iced Coffee has implemented intensive sampling within the trade and has executed creative and fun activities in universities and other youth touchpoints,” says Manuel Mansour, regional product development manager – Coffee and Beverages at Nestlé Middle East. “Cold beverages occupy over 88 per cent of total beverages consumed in the Middle East market, thus Nescafé decided to tackle this opportunity and create the iced cold category, which barely exists in the retail channel.” Major high street cafés such as Costa and Starbucks are also creating a new type of iced drink at an impressive rate to stay ahead of the curve and keep up with demand. Costa, which has its own Ice Cold Costa products, has a wide range of Coffee, Fruit

and Creamy blended Coolers, iced coffees and iced teas. “Our iced drinks account for 35 per cent of our beverage sales,” says Eric Hughes, general manager Costa Coffee UAE. “This year we have introduced new flavours across both our blended and poured-over-ice ranges; two new refreshing ice-blended Fruit Coolers in Red Berry and Peach flavours; a seriously indulgent Strawberry Cream ICED GEMS

New flavours: Costa

Growth: Nescafé

Creamy Cooler and a new Costa Iced Tea.” Hughes adds that Costa’s baristas are now working on extending its ice cold collection further by introducing new varieties. Moving beyond the coffee shop and into the supermarkets and convenience stores, Starbucks is also having success with its branded ice drinks. Starbucks beverages, such as bottled Frappuccino or canned Doubleshot espresso, are available in retail chains across the GCC and its chilled bottled beverages enable Starbucks customers to enjoy some classic beverages while on the move, the company says. “Starbucks continues to innovate its products to ensure customer satisfaction, as well as making sure that popular seasonal beverages return each year,” says Rana Shaheen, regional CSR and communications manager, Starbucks. “The wide varieties of cold coffees as well as the regular ‘classic’ hot drinks maintain our commitment to excellence across all Starbucks products.” Starbucks’ chains also have a range of eight iced coffees including DoubleShot n Iced Shaken Espresso.

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

Filling up

Packaging innovation continues to drive consumer interest reports Adrian Murphy. A number of companies have introduced exclusive new packaging into the cold beverage market and have shown that when it comes to liquid containers there’s a lot more than meets the eye. Recently many of the soft drink, water companies and packaging manufacturers in the Gulf have been concerned with the environment and sustainability, and lessening the amount of materials they use, which has led to new innovations. For example Masafi launched the lightest 500ml water bottle in the UAE this year made with 23 per cent reduced plastic, while PepsiCo will introduce a new PET bottle in 2012 made entirely from bio-based raw materials. “The packaging conversion landscape in the Middle East has experienced

rampant improvements in recent times and at PepsiCo we are fortunate to hold strategic partnerships with all major suppliers and creative designers,” says Amr El Hadidi, research and development senior director, PepsiCo MEA. “Our focus is always to maintain local relevance and provide engaging new designs which strike a chord with our consumers. shelf life

New format: Riccardo Castagnetti, marketing director Tetra Pak Arabia

“Recent changes to Pepsi’s logo (the smiley face) across all Gulf countries and all packaging formats made use of electronic colour measurement techniques to drive accurate and consistent colour reproduction.” PepsiCo also uses its packaging to take advantage of special events and occasions with customised packaging designs. For example, a specially designed Pepsi PET bottle with motifs depicting the Holy Month of Ramadan were embossed onto family-sized bottles in Egypt. During the FIFA World Cup last year it introduced the first footballshaped can in the region. As well as the environment and visually arresting packaging, Tetra Pak, which claims to be the world’s largest

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S e C T O r A n A LY S I S

new look: Tang has made one of its biggest changes in 50 years, swapping its tin container for an easy–grip plastic one

food processing and packaging solutions company, has introduced its new DreamCap in the region in February. It has been ergonomically designed for on-the-go users with an easy access spout and a comfortable fit to the face and lip. “The GCC region is one of the fastestgrowing emerging markets for Tetra Pak. Given the harsh climatic conditions and the distribution challenges in the region for safe, reliable packaging solutions, our partners here rely on Tetra Pak’s continued leadership in providing the best possible products to meet these needs,” says Riccardo Castagnetti, marketing director, Tetra Pak Arabia “We work very closely with our customers and many are early adopters of the latest packaging innovations. Just to give you one example, Al Rabie Saudi Foods Co is the first company in the world to launch one of Tetra Pak’s latest innovations – the DreamCapon – its 330ml fruit juice and chocolate-ﬂavoured drinks range.” Breaking with tradition, powdered drink manufacturer Tang has recently revamped its packaging. The new pack-

DREAM JOB

monther Al Harthi, CeO of Al rabie Saudi Foods Co. said: “Since our inception in 1980, we have built a great reputation for offering quality and healthy products and successfully catering to the requirements of our growing customer base. now after 30 years of hard work and commitment to excellence, we are proud to be the ﬁrst company to adopt the innovative solution by Tetra Pak, the “DreamCap” for our 330ml prisma paks. We are committed to continuous innovation and development so as to ensure a sustainable healthy product offering. We will continue to coordinate closely with our partners of success, especially Tetra Pak, to further develop and improve our products and ensure Health for All.”

aging was specifically designed for the GCC, the third largest Tang market for Kraft Foods globally, and is not sold anywhere else. “For decades Tang has been sold in tins and glass jars in the GCC and the tins format has been the single biggest packaging format for Tang in the GCC due to their durability in withstanding a wide range of environmental factors,” says Vishal Tikku, managing director, Kraft Foods MEA. “In January this year, Tang made one of the biggest changes in 50 years to replace the iconic, best-selling tin formats. “Tang now comes in easy-grip, plastic containers, which are easier to carry and handle, as well as open. Consumers no longer require a can opener to remove the twist-top plastic lids. In addition, the new packaging gives the brand a modern and updated look, which consumers respond well to.” In the past two years, Tang business in developing markets grew by 20 per cent and now accounts for $12bn in annual revenues. ■

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

Coffee mate

Beans are pick of the bunch for UAE and Saudi Arabia consumers. It is common knowledge that drinks brands such as Coca-Cola have for many years considered their target market to be people who drink â&#x20AC;&#x201C; which is everyone. However, in the UAE and Saudi Arabia the most searched for drink is coffee. In the UAE most searches on Google.ae are in English however, somewhat unexpectedly, in Saudi Arabia searches in Arabic were less than searches in English for drinks-based key phrases. In Saudi there were more Arabic searches for 7Up then for Pepsi or Coca-Cola, and the search volumes suggest more interest for Pepsi as a brand then Coca-Cola. In the UAE Pepsi had 14,800 searches in English, whereas Coca-Cola only had 12,100; in Saudi Pepsi received in an average month 49,500 searches in Arabic and 60,500 searches in English, with Coca-Cola only receiving 3,600 and 8,100 searches respectively. Pepsi is by far the most talked about brand in social media, with the sentiment expressed in social mentions regarding

Pepsi being mostly neutral. Red Bull had the second highest number of mentions regarding the brand and, on average, social mentions were very positive, scoring the highest positive index across all of the mentioned brands. Coca-Cola & Tang showed the third- and fourth-highest number of mentions, with Coca-Cola and Tang scoring about the same on the positivity of sentiment expressed regarding their brands. Traditional drinks such as coffee and tea are seemingly more requested then big soft drink brands, and Pepsi seems to have a far bigger share then CocaCola. Local brands such as Al Rawabi, Masafi and Oasis Water did not feature as much, suggesting a need to do more online to spark buzz regarding these brands. The English version of many of the brand names fared better then the Arabic translation, a common feature in Arabic search behaviour. Red Bull by far proves to be the most successful drinks brand in social media, with the most amount of positive sentiment

expressed regarding the brand within the region. A major component to the success is seemingly Red Bullâ&#x20AC;&#x2122;s involvement in many sports, from Formula One to more local community initiatives such as an Emirati breakdancing competition, and Red Bull X Fighters. Seemingly Red Bull has got it right by getting involved in the community by supporting, sponsoring and creating unique community events and in return the local community is talking about the brand. An insight perhaps into how increasingly important communities are becoming in todayâ&#x20AC;&#x2122;s age of digital communications. The brand that engages offline and wins the hearts and minds of local communities are the ones reaping the n rewards in the social space.

Lee Mancini Head of Sekari SEO Dubai

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SEARCH AND SOCIAL DRINKS MARKET ANALYSIS Top 20 keywords drinks # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Top drinks brands by volume of social media sentiment

Keyword (UAE) Search volume Coffee 301,000 Milk 90,500 Tea 74,000 Juice 33,100 Soda 22,200 Pepsi 14,800 Green tea 12,100 Coca-Cola 12,100 Chai 9,900 Red Bull 8,100 Drinking water 6,600 7 Up 5,400 Chai tea 5,400 Squash 5,400 Lemonade 2,400 Orange juice 2,400 Sprite 2,400 Lemonade 2,400 Milkshakes 1,600 Cup of tea 1,600

Brand Al Marai Coca-Cola Coffee Mate Crush Lacnor Lipton Masafi Rainbow Milk Mountain Dew Nescafe Nestle Nido Oasis Rawabi Tang Tropicana 7 Up

Keyword (UAE) Search volume Coffee 1,500,000 Milk 368,000 Tea 301,000 Juice 110,000 Soda 74,000 Pepsi 60,500 Chai 40,500 Chai tea 40,500 Green tea 33,100 Drinking water 27,100 7 Up 12,100 Coca-Cola 8,100 Squash 8,100 Red Bull 4,400 Orange juice 3,600 Hot chocolate 2,400 Cup of tea 2,400 Sprite 2,400 Lemonade 1,900 Power energy drink 1,900

Sentiment 0 17 -2 3 2 -10 4 -4 22 -2 4 -2 -25 52 14 6 -6

Volume 1 171 3 3 20 82 6 6 60 38 48 15 194 67 92 20 34

Search Engine Results Pages (SERPS) research conducted on Google.ae and Google.com.sa Top 20 keywords with the most amount of searches last month based on local results from Google.ae and Google.com.sa Source: Sekari SEO 2011

SOCIAL MEDIA – VOLUME VS SENTIMENT GRAPH: UAE 250

HIGH VOLUME POSITIVE SENTIMENT

HIGH VOLUME NEGATIVE SENTIMENT 200

Oasis Coca-Cola

Number of mentions

150

100

Tang Lipton

LOW VOLUME NEGATIVE SENTIMENT 7Up

-40

-30

-20

-10

Nestlé

Nescafé

Nido Rainbow milk Coffee-mate

Source: Sekari SEO 2011

Rawabi

Mountain Dew Lacnor

Tropicana

Masafi Crush Al Marai 10

LOW VOLUME POSITIVE SENTIMENT 20

Range of sentiment

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ÂŠ arabianEye.com

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

A fluid situation

The timing of this yearâ&#x20AC;&#x2122;s Ramadan could alter the usual sales pattern in Saudiâ&#x20AC;&#x2122;s beverage sector. The Saudi beverage market is one of the most evolved compared with other FMCG in the region, offering a wide range of products. In a continual effort to meet consumer needs and stay relevant in this hyper-competitive sector, marketers constantly come up with new flavours, labels and packaging. On an average, about eight types of beverages are purchased for in-home consumption every year in the kingdom. They include hot beverages such as tea and coffee, and cold beverages such as laban, CSD and NCSD. Beverages are typically purchased once every two to three days, with an average

spend of SAR13 ($3.5) per visit. Modern stores are visited less often, but the spend per visit is almost double compared to other channels. Purchase of tea and NCSD are skewed to upper trade and bought less frequently. CSDs and laban are purchased more likely to be bought in baqalas and are bought more frequently. Marketers, therefore, have fewer opportunities to attract consumers in tea and NCSD compared to CSD and laban, given the longer purchase cycle. The downside of higher frequency from lower trade is the higher risk of brand promiscuity. Marketers need to strike the right balance in the trade channel mix

by understanding the dynamics of the category in which they operate. Cold beverages account for almost two thirds of spend, followed by hot with slightly less than 23 per cent and water with less than 10 per cent. Hot beverages have been fairly stagnant since 2009, whereas cold, such as laban, NCSD and water experience significant growth during the same period. In the water category growth is driven by the bottled water segment more than the bulk. Ramadan purchase patterns Along with traditional drinks such as Sou-

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VOLUME OF GROWTH DURING RAMADAN Beverages Hot Tea

Cold Coffee

Carbonated Soft

Powdered Beverages

RTD Juices

Tea

Water

Coffee

CSD

Liquid Concentrates

NCSD

Laban

Non Carbonated Soft Drinks (CSD)

Malt Beverages

Energy drinks

Water

Ice Tea

RTD Powdered Liquid Malt Energy Juices Juices Beverages Drinks

Ice Tea

Source: TNS Kantar Worldpanel Saudi Arabia (Purchase Panel of 2000 Households spread across the Kingdom).

INDEX VOLUME TRENDS 150

150

May 2011

April 2011

March 2011

January 2011

February 2011

October 2010

December 2010

November 2010

September 2010

July 2010

August 2010

May 2010

April 2010

June 2010

March 2010

January 2010

February 2010

December 2009

October 2009

November 2009

July 2009

August 2009

September 2009

May 2009

June 2009

April 2009

March 2009

January 2009

May 2011

April 2011

March 2011

January 2011

February 2011

October 2010

December 2010

November 2010

September 2010

July 2010

August 2010

May 2010

April 2010

June 2010

March 2010

January 2010

February 2010

December 2009

October 2009

November 2009

July 2009

August 2009

September 2009

May 2009

June 2009

April 2009

March 2009

January 2009

February 2009

Source: TNS Kantar Worldpanel Saudi Arabia (Purchase Panel of 2000 Households spread across the Kingdom). 120

120

have’ for families during Iftar and later in the evenings. Among cold beverages, highest growth is in liquid concentrates followed by powdered beverages and then laban. Laban plays an important part of meals as it aids digestion. Is there an opportunity for beverages in general to leverage this need to be more relevant during Ramadan by creating a stronger association with Iftar? Big product categories such as RTD juices and CSDs experience a significant decline during Ramadan. The growth of laban, powdered beverages and liquid concentrates (LC) are mainly at the expense of these categories. For most of the year CSDs are normally

May 2011

April 2011

March 2011

January 2011

February 2011

December 2010

October 2010

November 2010

September 2010

August 2010

July 2010

May 2010

June 2010

April 2010

March 2010

January 2010

February 2010

December 2009

October 2009

November 2009

July 2009

August 2009

September 2009

June 2009

May 2009

April 2009

March 2009

January 2009

February 2009

May 2011

April 2011

March 2011

January 2011

February 2011

December 2010

November 2010

September 2010

August 2010

July 2010

May 2010

June 2010

April 2010

March 2010

January 2010

February 2010

December 2009

October 2009

November 2009

July 2009

August 2009

September 2009

June 2009

May 2009

April 2009

March 2009

January 2009

…the increase in spend is signiﬁcantly higher in Jeddah and is the lowest in Riyadh… 60

October 2010

bia and Qamardeen, the sales of branded beverages increase during Ramadan. The average spend on branded lines rises by 15 to 16 per cent compared to other months. But is this uniform across SECs and regions? Interestingly the increase in spend is significantly higher in Jeddah and is the lowest in Riyadh. With higher population and more affluent, local families, there is definitely an opportunity to grow beverages in Riyadh during Ramadan. The spend does increase across SECs but the increase is less among the lower SEC. The increase in spend is very similar between the upper and middle classes, which marketers should remember while designing specific promotions to ensure they are catering to the needs of middle-class families as well. So, which products were driving this growth? It is no surprise that coffee being part of the Arab tradition is one of the categories that witnesses high growth. Traditional Arabic coffee is a ‘must February 2009

February 2009

100

consumed during the day, especially lunch, so fasting results in fewer consumption occasions. But what works for powdered beverages and LC concentrates does not work for RTD juices. By entering Saudi in the 1900s, much earlier than CSDs and other speciality drinks, powdered beverages and liquid concentrates have become integral to Ramadan. Part of the growth is because the products can be made in larger volumes when mixed with water. This is a major influencer when there are big ‘social gatherings’. RTD juices could, therefore, become more relevant by offering bigger value packs. Among the three product categories which grow during Ramadan, laban is spread fairly evenly throughout the year

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

AVERAGE DRINK SPEND Average spend per households during Ramadan in SAR

165

Spend Indexed to Non Ramadan Months

115

144

132

130

127

119 121

112

109

140

128 117

115

110

116

114

115

116 117

105

105 67

1st Half 2010 Total KSA

Riyadh

Jeddah

Dammam

Non Urban

Local Arabs

Expat Arabs

Asian

Source: TNS Kantar Worldpanel Saudi Arabia (Purchase Panel of 2000 Households spread across the Kingdom).

Changing trend: Ramadan’s summer timing this year is expected to inﬂuence drink sales

orange is the most preferred ﬂavour followed by mango and apple. whereas powdered beverages and liquid concentrates are highly dependent on this season for sales whereas Ramadan accounts for 56 per cent of liquid concentrates and 43 per cent of powdered beverages annual sales. A large number of liquid concentrate consumers – about 42 per cent – only buy during Ramadan. This is much lower for powdered beverages at 25 per cent. To grow the categories marketers have to expand their sales beyond Ramadan. Flavour of the month? The beverages market, especially the NCSD market, offers a wide range of flavours. With ‘research and development’ teams working hard to stay on top of consumer taste trends, beverages shelves are cluttered with new and different ingredients with a high number being

a combination of basic flavours. Is the consumer palate sophisticated enough for these new flavours? Are these initiatives paying off? In the NCSD market where this phenomenon is more prevalent, single variants account for almost 75 per cent of volume; fruit cocktail for 15 per cent with less than 10 per cent generated by exotic flavours. Orange is the most preferred flavour followed by mango and apple. Consumers generally stick to their regular flavour during Ramadan. Packaging In terms of pack sizes, consumers tend to buy bigger during Ramadan. In juices, sales of 250ml packs (the biggest selling SKU) drop, while one litre packs increase. This trend is seen in most categories including powdered bever-

ages and laban. Therefore it is very vital to ensure sufficient stocks of bigger SKU, especially in supermarkets, from where consumers tend to shop more during Ramadan. However, with Ramadan falling in the middle of the school holidays and in the quiet business month, it is expected sales could dip as many expat families and some local families travel. Our data has shown a decline in overall sales during the summer months that did not coincide with Ramadan in the previous years. The scope of this article is limited to the beverages categories tracked: tea, coffee, CSD, laban, RTD juices, powdered beverages, malt beverages, energy drinks, iced tea and water. ■

Ranjitha Subash Senior account manager Kantar Worldpanel, Dubai.

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

rich pickings

Fruit Juice consumption Country Algeria Bahrain Egypt France Kuwait

Fruit and veg juices 86% 91% 67% 86% 72%

Country Lebanon Qatar Saudi Arabia Syria UAE

Fruit and veg juices 87% 89% 85% 75% 91%

Source: Global TGI, Kantar Media

Higher BMI, lower fruit juice frequency

Higher BMI, higher fruit juice frequency

140 45+ 120 30-44 Outdoor

I always look for the light diet versions of food and drinks Arab expat Weekly magazine

Radio

Non Arab expat

20-29

Daily Newspaper I am a bargain hunter Television

Internet

I always look out for second offer

100 Higher BMI

The middle East is a hot market for the fruit juice industry, suggest the latest TGI surveys conducted by Parc, in partnership with Kantar Media. Approximately 91 per cent of adults consume fruit juice in the UAE, compared to 85 per cent in Saudi Arabia and 72 per cent in Kuwait. Orange flavoured drinks are the most popular fruit juices consumed in the UAE. The second most popular juice is cocktail. Plastic bottle juices are consumed the most, followed by metal cans, carlton pack, glass jar bottles and foil pouches. More than nine per cent of the adult population in the UAE drinks fruit juice daily. Sixty five per cent of the population drinks weekly and 13 per cent drinks two to three times in a month or once a month. Around 11 per cent of fruit juice drinkers are loyal consumers. Twenty seven per cent consume mostly two different brands. Underweight adults are less likely to drink fruit juice than those above the normal weight. Forty five per cent of the adult population in the UAE pay extra to save time and trouble shopping around. A similar percentage agrees they always look for diet versions. The fruit juice industry faces an uphill task to maintain loyalty and increase usage with discrete segments of society exhibiting a different psychographic profile. These segments undergo metamorphic changes with time such as when a health-conscious cluster group increases its weight-age in the market. The result of which significantly impacts the industry. n

ÂŠ arabianEye.com

The UAEâ&#x20AC;&#x2122;s fruit juice industry is blooming, with orange most popular.

Monhly magazines

I often pay extra to save time and trouble shopping around

National Cinema

I have a sweet tooth

60 15-19 40

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

80 Lower BMI, lower fruit juice frequency

100 Heavy fruit juice drinkers

120 140 Lower BMI, higher fruit juice frequency

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

tHIRST FOR GROWTH

Stability returns to beverages sector following drop in ad spending. THE region’s Beverages sector posted a double-digit growth of 12 per cent in the first five months of the year, with Pan Arab Media reporting a positive healthy growth of 36 per cent. Civil unrest and uncertainty effected spending, however, as all of the regional markets are in the red. The top spending market in the region, Egypt, plummeted by 35 per cent. Lebanon dragged the spending by 21 per cent, while the UAE resisted the regional downward trend with flat spending. Saudi Arabia’s spending plunged by 38 per cent. The sector also fared badly in Kuwait, posting a 54 per cent decline, while Jordan’s spending was down by 67 per cent. Oman is also down by 15 per cent, while spending in Qatar reported a fall of 34 per cent. Spending in Bahrain suffered a 98 per cent

downfall. Pan Arab Media, therefore, dominates with a 79 per cent market share, up from 65 per cent last year. Television gained 18 per cent, taking its media share to 93 per cent, up from the 89 per cent it held during the same corresponding period last year. Newspaper plunged by 43 per cent, while magazine followed with a 41 per cent decline. Radio spending was up by 27 per cent. CSD, with a 50 per cent category share, gained 37 per cent during the period. Fruit juice posted a 54 per cent increase in measured spending, while tea spending was up by seven per cent. Non alcoholic beverages posted a single digit gain of eight per cent, while spending on coffee was flat with a five per cent category share. Other sub categories declined by 33 per cent.

The top five spending brands in the region are Pepsi, Coca-Cola, Lipton, 7Up and Mirinda. The sector started the year on a buoyant note as it reported an 81 per cent increase in January. However the regional unrest hit the sector hard, with spending plummeting during February and March. As stability returns the sector reversed the decline and posted a 10 per cent growth in April. A robust 38 per cent growth during May demonstrates how the sector is n returning on a juicy note.

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

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

CATEGORY: BEVERAGES – ADVERTISING MARKETS 2011 Millions US$242

Markets Ranking & Media Split (000 US$) Television Rank Market Name & Abbreviation 2009 1 2 3 4 5 6 7 8 9 10 11

Pan Arab Media Egypt Lebanon United Arab Emirates Kingdom Of Saudi Arabia Kuwait Jordan Oman Qatar Bahrain Other Markets** Total All Markets

2010

%Var’n 2011 YTD

PAN 113,969 140,304 190,538 EGY 16,287 30,506 19,898 LEB 9,621 17,416 13,753 UAE 6,231 6,122 6,067 KSA 8,598 7,150 4,452 KWT 3,100 7,349 3,411 JOR 1,867 2,822 920 OMN 683 1,024 875 QTR 266 401 264 BAH 209 448 9 OTH 3,171 2,213 1,825 164,002 215,755 242,012

36 -35 -21 -1 -38 -54 -67 -15 -34 -98 -18 12

2011

%Var’n YTD

190,390 36 15,455 -33 13,361 -20 1,102 19 718 -30 3,246 -52 119 -82 122 -10 0 -100 7 -88 1,376 -24 225,896 18

Newspapers

Magazines

%Var’n YTD

2011 0 437 10 365 1,869 109 789 723 187 2 257 4,748

2011

– -70 -9 -58 -14 -59 -63 -16 -16 -99 6 -43

Radio

%Var’n YTD

148 104 37 495 181 43 12 30 2 0 157 1,209

-54 -43 48 -32 -45 -82 -66 25 -94 -100 52 -41

2011 0 2,571 0 49 23 13 0 0 26 0 35 2,717

Outdoor

%Var’n YTD 41 -100 250 -71 -66

-42 -100 -39 27

2011 0 1,331 345 1,710 1,661 0 0 0 49 0 0 5,096

+12% Cinema

%Var’n YTD

2011

%Var’n YTD

0 0 0 2,346 0 0 0 0 0 0 0 2,346

-66 -39 94 -53

0 -100 -43

– – – -13 – – – – – -100 – -19

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

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

Category split by market

2% 3%

75%

79%

50% 25% 0%

Total GCC LEV PAN EGY LEB UAE KSA KWT JOR OMN 242012 206811 35201 190538 19898 13753 6067 4452 3411 920 875

Television

Newspapers

Magazines

Radio

QTR 264

Outdoor

BAH OTH 9 1825

Pan Arab Egypt Lebanon UAE KSA Kuwait Others

Cinema

SPLIT BY PRODUCTS – 2011 All Markets 12% 16%

50%

10% 7% 5%

Pan Arab Media 5% 13% 11% 11% 8%

52%

Carbonated soft drinks Fruit juice Tea Non alcoholic drinks Coffee Others

GCC Markets 45%

5% 5%

Levant Markets 10% 17%

Carbonated soft drinks Fruit juice Tea Non alcoholic drinks Soups Others

53%

13%

8% 8% 11%

Carbonated soft drinks Coffee Soups Water bottled carbonated Water bottled still Others

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

Brand Pepsi Coca-Cola Lipton 7-up Mirinda Maggi Freez H2oh! Rani Nescafé Barbican Nestlé Bario Fanta Tropicana Vimto Sprite Al Marai Tang Schweppes

Pan Arab Media Value 49,991 32,271 19,172 17,622 10,236 9,655 8,466 8,182 7,127 5,856 5,418 4,599 4,571 4,477 3,463 3,299 3,203 3,134 3,089 3,025

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

Brand Pepsi Coca-Cola Lipton 7-up Freez Mirinda Rani Maggi Barbican H2oh! Bario Fanta Nescafé Vimto Schweppes Sprite Tropicana Ali Cafe Nestlé Tetley

GCC Value 38,695 30,112 17,574 12,644 8,466 7,756 6,770 5,563 5,057 4,809 4,571 4,475 3,756 3,299 3,025 2,993 2,759 2,741 2,672 2,426

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

Levant Brand Pepsi Coca-Cola Lipton 7-up Freez Mirinda Maggi Rani Barbican H2oh! Bario Fanta Nescafe Vimto Al Marai Tang Schweppes Sprite Nestlé Tropicana

Value 40,676 30,935 19,035 12,698 8,466 7,760 7,408 7,075 5,418 4,809 4,571 4,475 3,897 3,299 3,134 3,087 3,025 2,993 2,904 2,777

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

Brand Pepsi 7-up H2oh! Mirinda Maggi Zein Nescafé Nestlé Coca-Cola Star Cafe Tropicana Methode Minceur Super Brasil Rass El Hissan Maatouk Al Kbous Maccaw Diet Pepsi Sprite Hayat

Value 9,315 4,924 3,373 2,476 2,247 2,008 1,959 1,695 1,336 1,033 686 590 455 340 263 237 217 212 210 196

Source: PARC

All market

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CATEGORY: BEVERAGES – AGCC, LEVANT, PAN ARAB and ARASIAN MEDIA MARKET Advertising Expenditure for Top Products (000 US$) 2009 – 2011 (Jan - MaY) 2009 67,502 14,561 22,684 11,381 8,581 39,293 164,002

CSD FJN TEA NAD COF OTH

2010 87,674 18,927 23,382 14,476 13,146 58,150 215,755

2011 120,391 29,080 24,949 15,663 13,106 38,823 242,012

%Var’n Y11/10 37 54 7 8 0 -33 T

Sh% 50 12 10 6 5 16 100

2011 Media Split %

TV 95 91 98 98 91 87 93

NP 1 3 1 0 1 7 2

MG 0 1 0 0 1 2 0

RD 2 0 0 0 2 1 1

OD 1 5 1 2 5 3 2

CN 2 0 0 0 0 0 1

Product Growth 2009 - 2011 (000 US$) 140000

CSD

120000

FJN

100000

TEA

80000

NAD

60000 40000

COF

20000

OTH 88%

90%

92%

94%

96%

98%

100%

CSD

Newspapers Television Magazines Outdoor Radio Cinema

FJN

TEA

2010

2011

NAD

COF

OTH

2009

Overall Media Split Analysis (000 US$) Media Television Newspaper Magazine Radio Outdoor Cinema Total

Value 139,173 5,997 3,049 1,673 11,407 2,703 164,002

2009

Sh% 85 4 2 1 7 2 100

Value 191,323 8,399 2,047 2,141 8,957 2,888 215,755

2010

Sh% 89 4 1 1 4 1 100

Value 225,896 4,748 1,209 2,717 5,096 2,346 242,012

2011

Sh%

93 2 0 1 2 1 100

Var'n % 2010/2011 18 -43 -41 27 -43 -19 12

Monthly Spend Analysis (Millions US$) 2009 – 2011 90 80 70 60 50 40 30 20 10 0

Month Jan Feb Mar Apr May Total

Jan

Feb

Mar 2011

April

2010

2010 28 28 51 54 55 216

2011 50 18 40 59 75 242

Total Category – Media Split % 2% 1% 93%

2% 2%

May

2009

Overall Media Split 2009 – 2011 (000 US$ - Semi Logarithmic)

250000

2009 19 20 33 40 53 164

200000 150000 100000 50000 0

2009 Television Radio

2010 Newspapers Outdoor

2011 Magazines Cinema

Television Radio

Newspapers Outdoor

Magazines

+12%

Top brands 2011 (000 US$)

Var’n % Y11/10 81 -37 -22 10 38 12

Television Top Spenders Rank Brand 1 Pepsi 2 Coca-Cola 3 Lipton 4 7-up 5 Mirinda 6 Maggi 7 Freez 8 H2oh! 9 Rani 10 Nescafé

2011 46183 30404 19029 17417 10230 9588 8466 8181 6771 5501

Newspaper Top Spenders Rank Brand 1 Hana 2 Oman Oasis 3 Tropicana 4 Pepsi 5 Nestlé 6 Nova 7 Coca-Cola 8 Popular 9 Juhayna 10 Al Ain

2011 1331 623 546 302 267 254 86 69 68 64

Magazine Top Spenders Rank Brand 1 Masafi 2 Perrier 3 Nova 4 Wow 5 Sun Cola 6 7-up 7 Alokozay-tea 8 Arwa 9 Sun Top 10 Hildon

2011 54 53 50 50 42 38 38 38 37 33

Radio Top Spenders Rank Brand 1 Pepsi 2 Coca-Cola 3 Nescafé 4 Hayat 5 Lipton 6 Nestlé 7 7-up 8 Sprite 9 Al Marai 10 B-cola

2011 1147 795 322 121 70 66 46 40 29 22

Outdoor Top Spenders Rank Brand 1 Pepsi 2 Tang 3 Coca-Cola 4 Vitaene 5 Cofique 6 Rani 7 Barbican 8 Nada 9 Al Rabie 10 Masafi

2011 619 545 518 464 449 355 351 259 255 174

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

Product and Abbreviation Carbonated soft drink Fruit juice and nectar Tea Non alcoholic drink Coffee Others Total

Millions US$ 242

Media Split %

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

CATEGORY: BEVERAGES - Levant Media Markets Advertising Expenditure for Top Products (000 US$) 2009 – 2011 (Jan - May) 2009 16,651 3,648 553 1,654 1,146 5,413 29,065

CSD COF SUP WBC WBS OTH

2010 26,609 6,933 3,428 3,360 1,830 9,469 51,629

2011 18,529 3,907 2,873 2,866 2,487 4,539 35,201

%Var’n Y11/10 -30 -44 -16 -15 36 -52 -32

Sh% 53 11 8 8 7 13 100

2011 Media Split %

TV 81 84 96 99 84 75 84

NP 2 3 0 0 3 16 4

MG 0 1 0 1 2 1 1

RD 11 8 0 0 8 1 7

OD 6 4 3 0 3 7 5

CN 0 0 0 0 0 0 0

Product Growth 2009 - 2011 (000 US$) 30000

CSD

25000

COF

20000

SUP

15000

WBC

10000

WBS

5000

OTH 0%

20%

40%

60%

80%

100%

CSD

Newspapers Television Magazines Outdoor Radio Cinema

COF

SUP

2010

2011

WBC

WBS

OTH

2009

Overall Media Split Analysis (000 US$) Media

Value 19,006 2,636 451 1,203 5,769 29,065 6,096

Television Newspaper Magazine Radio Outdoor Cinema Total

2009

Sh% 65 9 2 4 20 100 100

Value 41,158 3,823 283 1,889 4,476 51,629 5,967

2010

Sh% 80 7 1 4 9 100 100

Value 29,432 1,311 211 2,571 1,676 35,201 5,762

2011

Sh%

84 4 1 7 5 100

Var'n % 2010/2011 -28 -66 -25 36 -63 -32 -3

Monthly Spend Analysis (Millions US$) 2009 – 2011 16 14 12 10 8 6 4 2 0

Month Jan Feb Mar Apr May Total

Jan

Feb

Mar 2011

Apr

May

2010

2010 7 7 14 12 11 52

2011 12 3 2 7 11 35

June

2009

Overall Media Split 2009 – 2011

Total Category – Media Split %

(000 US$ - Semi Logarithmic)

2500

2009 2 4 7 8 9 29

84%

2000 1500 1000 500 0

2008 Television Radio

2009 Newspapers Outdoor

2010 Magazines Cinema

Television Radio

Newspapers Outdoor

Magazines Cinema

-32%

Top brands 2011 (000 US$)

Var’n % Y11/10 67 -53 -84 -43 -1 -32

Television Top Spenders Rank Brand 1 Pepsi 2 7-up 3 H2oh! 4 Mirinda 5 Maggi 6 Zein 7 Nescafe 8 Nestle 9 Star Cafe 10 Methode Minceur

2011 7446 4782 3372 2474 2180 2008 1604 1559 883 590

Newspaper Top Spenders Rank Brand 1 Tropicana 2 Pepsi 3 Coca Cola 4 Juhayna 5 Nestle 6 Sinalco 7 Fawzy Al Banan 8 Crush 9 Pepsico 10 7-up

2011 546 124 76 68 54 50 41 34 34 31

Magazine Top Spenders Rank Brand 1 Hayat 2 Coca Cola 3 Perrier 4 Americana 5 Pepsi 6 Sprite 7 Juhayna 8 Aytac 9 Ionia 10 Maggi

2011 23 21 14 12 12 11 10 8 8 7

Radio Top Spenders Rank Brand 1 Pepsi 2 Coca Cola 3 Nescafe 4 Hayat 5 Nestle 6 Lipton 7 7-up 8 Sprite 7 H2oh!

2011 1116 795 322 121 66 65 46 40 1

Outdoor Top Spenders Rank Brand 1 Pepsi 2 Coca Cola 3 Sprite 4 Star Cafe 5 Pampa 6 Nesquik 7 7-up 8 Rani 9 Maccaw 10 Maggi

2011 617 214 159 147 80 74 60 51 50 50

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

Product & Abbreviation Carbonated Soft Drink Coffee Soups Water Bottled Carbonated Water Bottled Still Others Total

Millions US$ 35

Media Split %

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CATEGORY: BEVERAGES - AGCC, Pan Arab & Arasian Media Markets Advertising Expenditure for Top Products (000 US$) 2009 – 2011 (Jan - Mar) 2009 50,851 13,034 21,681 11,122 7,265 30,984 134,937

CSD FJN TEA NAD SUP OTH

2010 61,065 15,393 22,573 13,156 18,548 33,391 164,126

2011 101,862 27,877 23,985 15,656 9,359 28,072 206,811

%Var’n TV Y11/10 67 97 81 94 6 98 19 98 -50 100 -16 82 26 95

Sh% 49 13 12 8 5 14 100

2011 Media Split %

FJN TEA NAD SUP OTH 20%

40%

60%

80%

MG 0 1 0 0 0 2 0

RD 0 0 0 0 0 0 0

OD 0 4 1 2 0 5 2

Product Growth 2009 - 2011 (000 US$) 40000 35000 30000 25000 20000 15000 10000 5000 0 CSD FJN TEA NAD

CSD

NP 0 1 0 0 0 10 2

100%

Newspapers Television Magazines Outdoor Radio Cinema

2009

2010

SUP

CN 2 0 0 0 0 1 1

OTH

2008

Overall Media Split Analysis (000 US$) Media Television Newspaper Magazine Radio Outdoor Outdoor Total

Value 120,167 3,361 2,598 470 5,638 2,703 134,937

2009

Sh% 89 2 2 0 4 2 100

Value 150,165 4,576 1,764 252 4,481 2,888 164,126

2010

Sh% 91 3 1 0 3 2 100

Value 196,464 3,437 998 146 3,420 2,346 206,811

2011

Sh%

95 2 0 0 2 1 100

Var'n % 2010/2011 31 -25 -43 -42 -24 -19 26

Monthly Spend Analysis (Millions US$) 2009 – 2011 Month Jan Feb Feb Feb Mar Total

80 70 60 50 40 30 20 10 0

Jan

Feb

Mar 2011

Apr

2010

2010 21 22 37 42 43 164

2011 38 15 38 53 64 207

May

2009

Overall Media Split 2009 – 2011

Total Category – Media Split % 2% 1% 95% 2%

(000 US$ - Semi Logarithmic)

250000

2009 17 16 26 32 44 135

200000 150000 100000 50000 0

2009 Television Radio

2010 Newspapers Outdoor

2011 Magazines

Television Radio

Newspapers Outdoor

Magazines Cinema

+26%

Top brands 2011 (000 US$)

Var’n % Y11/10 85 -33 2 25 48 26

Television Top Spenders Rank Brand 1 Pepsi 2 Coca Cola 3 Lipton 4 7-up 5 Freez 6 Mirinda 7 Maggi 8 Rani 9 Barbican 10 H2oh!

2011 38737 30174 18964 12635 8466 7756 7408 6771 5057 4809

Newspaper Top Spenders Rank Brand 1 Hana 2 Oman Oasis 3 Nova 4 Nestle 5 Pepsi 6 Popular 7 Al Ain 8 Al Marai 9 Najdiyah 10 Masafi

2011 1331 623 254 213 178 69 64 64 58 57

Magazine Top Spenders Rank Brand 1 Masafi 2 Nova 3 Wow 4 Sun Cola 5 Perrier 6 Alokozay-tea 7 Arwa 8 Sun Top 9 7-up 10 Hildon

2011 54 50 50 42 39 38 38 37 33 33

Radio Top Spenders Rank Brand 1 Pepsi 2 Al Marai 3 B-cola 4 Brooke Bond 5 Lacnor 6 Ultra 7 Hosten 8 Lipton 9 Lipton Y.label 10 Chiquita

2011 31 29 22 19 13 11 8 5 3 2

Outdoor Top Spenders Rank Brand 1 Tang 2 Vitaene 3 Cofique 4 Barbican 5 Coca Cola 6 Rani 7 Nada 8 Al Rabie 9 Masafi 10 Brooke Bond

2011 545 464 449 351 304 304 259 255 174 136

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

Product & Abbreviation Carbonated Soft Drink Fruit Juice And Nectars Tea Non Alcoholic Drink Soups Others Total

Millions US$ 207

Media Split %

September 2011 Gulf Marketing Review 89

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DIARY

Boosting Sales Performance IIR ME Date: September 18 to 21 Venue: JW Marriott, Dubai T: +971 4 3352437 F: +971 4 3352438

EVENT OF THE MONTH

The Internet Show Terrapinn Date: September 27 to 28 Venue: ADNEC T: +44 20 72421548 W: terrapin.com/2011/ middleeast

Experiential Marketing: Invoking Brand Loyalty Revolutionising the marketing concept in an effort to increase brand stature on an emotional level to leverage brands among industry leaders. Key benefits of attending include: • Defining the key concepts and strengths in promoting experiential marketing in the Middle East. • Upscaling your current marketing campaigns by re-engineering marketing strategies resulting in immediate results. • Delivering the crucial insights on regional challenges and opportunities in experiential marketing. • Leveraging brand strengths to the expectations of target audiences. • Matching the strengths of digital marketing to the concept of experiential marketing to maximise brand awareness. Marcus Evans September 25 and 26, 2011 Hyatt Regency Dubai, UAE Contact: Ms Bernadine Michael E: bernadinem@marcusevanskl.com

September MedHealth & Wellness Omanexpo LLC Date September 27 to 29 Venue: Oman International Exhibition Centre, Muscat Tel: +968 2466 0124 Fax:968 2466 0125/126 E: info@omanexpo.com W: omanexpo.com

Chic Lady Show 2011 Al Hader Exhibitions & Conferences Date: September 27 to October 1 Venue: ADNEC Abu Dhabi T: +971 (0) 2 444 6900 F: +971 (0) 2 444 6135 E: feedback@adnec.ae W: chiclady.al-hader.com

October The International Furniture and Design Exhibition (INFDEX 11) Qatar Expo Event Mgmt. Venue: Doha Exhibition Cntr Date: October 5 to 8 T: +974 4465 0211 E: info@qatar-expo.com W: qatar-expo.com International Jewellery and Watch Show Abu Dhabi (JWS 2011) REED Exhibitions FZ – LLC Date: October 17 to 21 Venue: Halls 5-7, ADNEC E: raya.dandal@reedexpo.ae Total Marketing IRR Middle East Date: October 24 to 28 Venue: The Address Dubai Marina T: +971 4 335 2437 F: +971 4 335 2438 E: register@iirme.com Iraq Health Expo 2011 Expotim Intl Fair Organisation, Inc. Date: October 27 to 30 Venue: Basra Intl Fair Ground T: +90 212 3560056 W: iraqhealth.net

November Saudi International Motor Show Al Harithy Company for Exhibitions Limited Date: November 19 to 23 Venue: Jeddah Centre for Forums & Events T: + 966 (0) 2 654 6384 E: ace@acexpos.com Successfully Managing Marketing Teams IIR ME Date: November 20 to 23 Location: TBC T: +971 4 3352437 W: iirme.com/mktgteams Jewellery Arabia Arabian Exhibition Management WLL Date: November 22 to 25 Location: Bahrain International Exhibition & Convention Centre, Manama Tel: +973 17 550033 Email: fawzi@aeminfo. com.bh W: aeminfo.com.bh GEMAS effie Mena Awards 2011 Mediaquest Corp. Date: 24 November Location: Joharah Ballroom, Madinat Jumeirah, Dubai W: gemaseffie.com The Saudi-Turkish Forum Exhibition Council of Saudi Chambers and the Gulf Research Cntr Date: November 26 to 27 Location: King Faisal Conference Hall, Intercontinental Hotel, Riyadh T: +966-2-6518888 E: events@grc.ae W: grc.net

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CMY

For a free booklet on India, write to: India Tourism, P.O. Box 12856, Deira, Dubai, UAE. Tel: (9714) 2274848 Fax: (9714) 2274013. www.incredibleindia.org E-mail: goirto@emirates.net.ae