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Bahrain 2.00 dinars | Egypt 18.00 pounds | Jordan 3.500 dinars | Kuwait 1.800 dinars Oman 2.00 riyals | Qatar 20.00 riyals | Saudi Arabia 20.00 riyals | UAE 20.00 dirhams SEPTEMBER 2011 - NO 200 SECTOR ANALYSIS SECTOR ANALYSIS Q&A TALKING OMANI YOUTH ENTREPRENEURSHIP MEDIA SOCIAL NETWORKING IN SAUDI ARABIA BRAND ANALYSIS THE MAKING OF A BRAND ICON A MediaquestCorp Publication Registered in Dubai Media City 18 MILLION DOLLAR BABES MILLION DOLLAR BABES UAE AND KSA TEENS: HOW THEY SPEND REGION’S THIRST FOR COLD DRINKS PRESENTS CHALLENGING MARKET REGION’S THIRST FOR COLD DRINKS PRESENTS CHALLENGING MARKET

GMR | September 2011

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Page 1: GMR | September 2011

B a h r a i n 2 . 0 0 d i n a r s | E g y p t 1 8 . 0 0 p o u n d s | J o r d a n 3 . 5 0 0 d i n a r s | K u w a i t 1 . 8 0 0 d i n a r s O m a n 2 . 0 0 r i y a l s | Q a t a r 2 0 . 0 0 r i y a l s | S a u d i A r a b i a 2 0 . 0 0 r i y a l s | U A E 2 0 . 0 0 d i r h a m s

SEPTEMBER 2011 - NO 200

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2011 - N

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SECTOR ANALYSISSECTOR ANALYSIS

Q&ATALKING OMANI YOUTH ENTREPRENEURSHIP

MEDIASOCIAL NETWORKING IN SAUDI ARABIA

BRAND ANALYSIS THE MAKING OF A BRAND ICON

A MediaquestCorp Publication

Registered in Dubai Media City

18

MILLIONDOLLARBABES

MILLIONDOLLARBABESUAE AND KSA TEENS: HOW THEY SPEND

REGION’S THIRST FOR COLD DRINKS PRESENTS CHALLENGING MARKET

REGION’S THIRST FOR COLD DRINKS PRESENTS CHALLENGING MARKET

00-GMR 200-Cover Sept 2011.indd 1 8/29/11 4:05 PM

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AudiVorsprung durch Technik

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.

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.

Page 3: GMR | September 2011

AudiVorsprung durch Technik

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.

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.

Page 4: GMR | September 2011

4 Gulf Marketing Review September 2011

September – ISSue No. 200

www.GMR-Online.com

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NEWS 10A sour summer for Almarai. Major research initiatives from SMG’S Busi-ness 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.

World NEWS 24Omega tees off five-year sponsorship with PGA of America. Ford Fiesta cel-ebrates 35 years. Kellogg’s and Augeme collaborate on QR packs. Lifebuoy tackles infant mortality in develop-ing 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 30Consumer confidence bounces back across the UAE and the rest of the Middle East...except Lebanon.

Social MEdia 32Saudi Arabia hosted three media and marketing events just before the sum-mer. We report back from Riyadh.

Q&a 38We 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 42Are 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 56100 yEarS of NivEaThe crème de la crème of FMCG skin-care celebrates 100 years... but Nivea Beauty Is tagline fades away.

SEctor aNalySiS cold BEvEragES 64Maybe the most dynamic of all cat-egories 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 water-depressed MENA region and as-sess 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 seri-ously. Do consumers really care? The vibrant energy sector continues to captivate the region’s youth, vitamin-added water takes on juices, while packaging innovation moves the needle into the music sector and takes branded chilled drinks into new, ru-ral markets. Reports includes: latest Kantar World Drinks data plus SEO search terms and latest PARC stats and analysis.

ProfilE Yasser Joharji in Jeddah, the first Saudi to be named Unilever MD 50

02-05-GMR 200-Contents.indd 4 8/28/11 3:34 PM

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6 Gulf Marketing Review September 2011

64 SEctor aNalySiS: Cold BeveragesGROUP MANAGING EDITORSiobhán [email protected] SUB EDITORElizabeth [email protected] DIRECTORSSheela Jeevan, Aya Farhat CONTRIBUTORSAlex Malouf

ADVERTISING: MEDIALEADERUnited Arab Emirates [email protected]: +(971) 4 391 0760Saudi Arabia: Ghassan A. [email protected]: S.C.C Arabies18 rue de Varize75016 Paris, FranceTel: +(33) 01 47 66 46 00Fax: +(33) 01 43 80 73 62

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

PUBLISHED BY: Medialeader FZ/MediaquestCorp FZEurope:S.C.C Arabies, 18 rue de Varize75016 Paris, FranceTel: +(33) 01 47 66 46 00Fax: +(33) 01 43 80 73 62

CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman HaydarRegional Director for business development Bassel KomatyCreative Director Aziz Kamel

Head of Circulation Haries [email protected] Manager Maya [email protected]: +971 4 3757527KSA GM Walid Ramadan [email protected] Tel: +966 1 4194061Lebanon GM Nathalie Bontems [email protected]: +961 1 492801North Africa GMAdil Hamed-Abdelouahab [email protected] Tel: +213 661 562 660France Sales Director Manuel Dias [email protected] Tel: +33 1 4766 46 00

MediaquestCorp.Dubai Media CityAl Thuraya Tower 2, 24th FloorUnited Arab EmiratesTel: +(971) 4 391 0760Fax: +(971) 4 390 8737www.mediaquestcorp.com

AUDITED BY

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

Printed by: Rashid Printers, Ajman

02-05-GMR 200-Contents.indd 6 8/28/11 3:34 PM

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10 Gulf Marketing Review September 2011

Street-wise SMG explores new avenues of research

MMA launches Egypt and Middle East Local Council

N E wS

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 represent-ing 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 ‘pan-els’ 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 tradi-tional approaches, it simply complements them,” she adds.

The inaugural Street is youth- focused, 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

insight from non-nationals, g iven the demographics of the UAE.

Contributors – from uni-versities, referrals and other Arabic-language online com-munities – 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 infograph-ic that explores the behaviour of Saudi Arabia’s nine million internet users.

With access to the corre-sponding 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 on-line than the global average.

She added that the most interesting facet was internet consumption where nearly twice as many users are on-line for more than three hours when compared to those that watch TV.

Egypt The Mobile Marketing Association – MMA – has set up an Egypt and Middle East Local Council.

Karim Khalifa, CEO and co-founder of Digital Repub-lic, is named co-chairman.

The initiative is in response to the increased interest and investment in mobile mar-keting, and the need for industry support and guid-ance within the region, read an MMA press release.

The MMA Egypt and Middle East will encourage brands and marketers to adopt the mobile channel

as a key part of the market-ing mix and engage with their target audience in an interactive and compel-ling way.

“I am delighted to have been appointed co-chairman for the MMA Egypt & Mid-dle East,” Khalifa says.

“Mobile marketing in this region has evolved consid-erably 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 mar-keting 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, non-profit trade association with more than 700 member com-panies. 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.

In the fast lane: A real-time snap shot of consumer insight New avenues: Racha Makarem

Upwardly mobile: Karim Khalifa

10-11-gmr 200 News 1.indd 10 8/29/11 11:56 AM

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12 Gulf Marketing Review September 2011

Qatar Qtel is using social media to reconnect with dissident us-ers following an online protest over service and pricing.

In what has since been dubbed Qatar’s first civil society cam-paign, Qataris and expats alike launched a social media drive as a symbolic protest over pric-ing 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 al-Emadi, 32, used the hashtag #qtelfail to garner support, go-ing so far as to create Qtelfail ribbons on Twibbon.com for users to post on their Twitter profile pictures.

”This is the country associ-ated 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

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 accept-able, 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 capac-ity 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.

N e ws

Qtel reconnects with dissident users following protest

Loyalty card scheme sees net gains for Al Ahli FC fansDubai Al Ahli Football Club in Dubai is launching a loyalty card scheme for supporters.

The card entitles support-ers a host of benefits, includ-ing a free personalised rep-lica first team Al Ahli shirt with either their name or that of their favourite play-er on the back.

It also allows free entry into all Al Ahli’s home

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, individu-als, school children and col-lege 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 this goal. It’s important for supporters to attend matches and get behind the team.

“The more games support-ers attend the more benefits they will receive from their loyalty card.

Rival Dubai Club Al-Wasl recent ly s igned Diego Maradona as manager.

Let’s talk: Qtel’s Adel Al Mutawa stamp of disapproval: Qtel critiqued

Marketing support: Al Ahli loyalty card

Qatar’s ‘first civil society campaign’ highlights pricing and service quality concerns

12-13-gmr 200 News 2.indd 12 8/28/11 3:31 PM

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14 Gulf Marketing Review September 2011

N E WS

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 ‘con-nected’ 24/7, said Mohamed Kais Zribi, regional man-ager, HTC MENA.

ChaCha is also expected to appeal to women who are

particularly appreciative of its sharing capabilities, Neeraj Seth, MENA marketing man-ager, HTC MENA, told GMR.

The first 10 seconds of the 45-second TVC is aimed ex-clusively at women he said, adding that women have be-come a key focus for HTC as it moves from a technical plat-form more into lifestyle.

Recruitment of female brand ambassadors, along with ac-tivation 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.

HTC unveils its biggest regional campaign

Lifestyle: Neeraj Seth

Consumers turn sour on Almarai prices 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, #Stop-Mara3i to protest, noting that other dairies had not raised their prices.

Boycott-related images post-ed 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 bot-tle of Almarai laban with the caption “Go to Hell My Friend – Saudi Citizens.”

A Facebook page calling for a Gulf-wide boycott also at-tracted 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 min-istry … Almarai is taking the price of its two-litre fresh milk and laban pack sizes in the kingdom to the level that pre-vailed 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.

Boiling point: Almarai

UAE Samsung Electronics has renewed its sponsorship of Dubai Malls Ice Rink and Reel Cinemas for a further 12 months.

The Olympic-size rink re-ceives more than 300,000 visitors a year and is growing Arif Amiri, CEO, Emaar Re-tail told GMR.

“This growth is evident with the introduction of various initiatives such as Learn-to-Skate programmes

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 and managed by Emaar Retail LLC.

In related news Samsung Electronics Co. Ltd has post-ed Q2 revenues of $37.48bn, a four per cent increase year-on-year.

Samsung buys into Emaar retail

HTC ChaChasmartphone

Like it.Push it.Push it.

One touch to Facebook®

Tech-savvy: HTC’s ChaCha

Cool: Young Soo Kim and Arif Amiri

14-15-gmr 200 News 3.indd 14 8/28/11 3:36 PM

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YOUR STORY IS OUR HISTORYShare a story of how NIVEA has touched your life to win one of 100 prizes.

www.NIVEA-me.com/100years

NIVEAMiddleEast

Page 17: GMR | September 2011

YOUR STORY IS OUR HISTORYShare a story of how NIVEA has touched your life to win one of 100 prizes.

www.NIVEA-me.com/100years

NIVEAMiddleEast

Page 18: GMR | September 2011

18 Gulf Marketing Review September 2011

N e ws

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 stick-ing to their budget.

T he s e we re 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

came before anything else. Some 65 per cent of brides

prefer to have their wed-dings in a special hotel hall while 23 per cent prefer an outdoor area.

On the delicate issue of mother-in-laws and plan-ning, 44 per cent confirmed no intervention at all, while 41 per cent said that their mother-in-law was involved.

However, 8 per cent com-plained that their mother-in-laws interfered every step of the way.

The survey canvassed 22 to 29 year olds in Sau-di (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.

Region’s bridezillas want more control

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

New research firm debuts in Dubai

UAe A new marketing re-search 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, Mar-ket ing and Market ing Research.

“We are looking at build-ing long term partnerships with our clients, offer them

af fordable, va lue-added services,” said co-founder and managing director, Deepak Kudkilwar, for-merly 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 stra-tegic partner for Choice Modelling in Australia with extensive experience in several markets.”

Clients he says can ben-efit from Point’s experience across sectors both public and private, geographies, global and regional clients.

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

UAe In A&C 2011 we mistak-enly listed AGA-adk under non-networked agencies even though it is part of WPP. Details regard-ing Aegis Media Mena were also incorrect and should have read:

AEGIS MEDIA MENAFormer Name: AE MEDIACountry: UAEOwnership: Powered by Aegis MediaCompany Type:FZ LLCSector: Marketing Communica-tionsSecondary Industry: Marketing and Communications InsightsPrincipal Activities: Advertis-ing, media planning, media investment, PR, activation, dig-ital, marketing consultancyDate of Establishment: 2003Number of Employees: 101 to 500Offices/Branches: Saudi Ara-bia, UAE, Egypt, Kuwait, Lebanon, Jordan, Syria, Mo-rocco, Algeria, Tunisia, Libya, Sudan, Yemen, IranPrincipal Officers: Michael Nederlof, Antonio Chedrawy, Duncan JamesOwnership Structure: Wholly Owned, JV and Affiliates Sister Company: Carat, IsobarMajor Clients: Nokia, Kellogg’s, Philips, Total, BavariaHead Office Address: Dubai Media City, Loft Offices, Build-ing 3, Entrance B, Office 208 & 209, PO Box 502177 Phone: +971 4 4474996 Fax:+971 4 4474995Email : Michael.nederlof @aemedia.comWeb: www.carat.com

GMR is happy to put the record straight and apologises for the errors and any confu-sion caused.

Correction

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September 2011 Gulf Marketing Review 19

Mobile usage more pervasive in KSA

Wanted: more Arabic language skills

One in three buys new handset every year says research

NeWS

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 peo-ple across 16 countries in Europe and MEA.

Intel, which hopes to be-come 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

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 Intel-based smartphones in the market from next year.”

MeNA Companies are placing a much greater premium on Arabic language skills when recruiting marcomms specialists, according to Alex Koumi, head of Dubai-based recruitment firm Kingston Stanley.

Accord ing to Koumi companies are now putting more emphasis on Arabic language skills.

“Generally there is a need for experienced, quality Arabic talent in the market.

“Not jus t cand idates with the ability to speak Arabic, employers are now looking for the ability to write

Arabic competently,” he tells GMR.

“The market is developing fast and demand is increas-ing as a result.

“There has been an increased drive towards Arabic execu-

tives to managerial talent in the market, from senior ac-count executives through to account directors.”

He added that the region’s marketing and communica-tions 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 f o r n e w h i r e s , Kou m i says, but noted that despite t he new oppor tun it ies professionals are opting to stay put, preferring security to money.

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 under-stand the online behaviour, interests and attitudes of urban consumers in Egypt, Jordan, Morocco, Saudi Ara-bia, and the UAE.

Users can filter the infor-mat ion by gender, age, and country for better targeted results.

The initial research was done by Nielsen between September and November 2010; it spent a year gather-ing the information via 1,500 face-to-face interviews with men and women aged 15.

Multi-stage stratified ran-dom sampling was use in the UAE, Egypt, Morocco and Jordan; referral-based sam-pling was preferred for Sau-di 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 in-teract with the data by se-lecting and exploring the countries, sectors, and con-sumer groups most relevant to them.

The website is a collabora-tion with Google, the Infor-mation Technology Associa-tion of Jordan and the UAE’s TRA.

Google launches InsightsMeNA

Talent scout: Alex Koumi

Looking smart: Nassir Nauthoa

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20 Gulf Marketing Review September 2011

Tiffany aims for share of premium slot

It’s back to basics says NADEC chief

Bites TVC spearheads move away from value segment

N E ws

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.

B i t e s h a s a l s o b e e n reformulated to include big-ger, 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

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

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

saudi Arabia NADEC’s new marketing head aims to re-capture the company’s brand values, focus on dairy and juice markets, he tells GMR.

Paul Kenny, who origi-nally joined NADEC last year as GM for sales, recently ex-tending the role to cover marketing, believes the com-pany needs to get back to basics.

“My first task and the pri-ority for NADEC is to align sales and marketing strate-gies. That is the most impor-tant thing for me now, to ensure that both are trying to achieve the same goal,” he says.

“Secondly we aim to rees-tablish the NADEC corporate brand as a premium brand using the traditional values that NADEC is based on.”

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 bet-ter 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 incred-ibly 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.”

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

According to a company release Randall has 14 years of multinational senior man-agement experience in lead-ing FMCG companies, cover-ing manufacturing, sales, marketing and supply chain.

Abushady is CEO at Damac DPE Egypt.

Randall named new Masafi CEO

Making a splash: Reginald Randall

Back in touch: Paul Kenny

Biscuits at Tiffany: Brand upgrades to premium

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

FREsh AppRoACh

LATE NEWs

M i n d s h a r e B a h r a i n has jettisoned incumbent Media Edge and rival UM7 to land Gulf Air’s three-year regional and global media account.

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22 Gulf Marketing Review September 2011

Bahrain’s marketers top effectiveness table

Saudis most active online during Suhoor says study

Effie Worldwide and Warc reveal first MENA Effectiveness Rankings Index

N E WS

MENA Effie Worldwide and Warc, the global marketing intelligence service, has re-vealed the results of the in-augural Effie Effectiveness Index.

After analyzing finalist and winner data from 40 worldwide Effie competitions, the fol-lowing 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, Mc-Cann 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 rank-ings, which can be filtered by region, country and prod-uct category (along with de-tailed information surround-ing 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 C h a r t e r e d B a n k a n d Coca-Cola.

The most effective Adver-tising Holding Groups with-

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/

BAH, Starcom MediaVest 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, Omni-com 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 independ-ently held advertising agency.

This year’s GEMAS effie Mena Awards takes place on November 24 in Dubai.

For further information and to up load en t r i e s v i s i t www.gemaseffie.com.

Saudi Arabia Up to 700,000 un ique browser s were seen daily 12am to 3am d u r i n g R a m a d a n i n 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 re-corded at 4am.

During this time, 250,000 unique browsers accessed more than 1.2 million pag-es within the hour.

After unusually high on-line activity in the hours leading up to Suhoor, Saudis

started getting active again from 8pm onwards.

In terms of content viewed between 3am and 6am, so-cial network sites domi-nated along with local news websites and local content-generated entertainment-

based portals. Concentrated levels of mobile Internetfol lows PC use on th is 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 I n te r ne t u sage, a s t he on l ine consumer tends 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 dur ing Ramadan – just 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 Measure, that produced the study.

Gold standard: GEMAS effie Mena

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

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24 Gulf Marketing Review September 2011

USA Kellogg’s is expanding its interactive pack formats to help collect more brand -buyer information, reports foodproductiondaily.com

Working with US-based Aug me Tech nolog ie s , marketing solutions and pat-ented technology provider, the company launched 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

codes, says an Augme spokesperson.

According to Kellogg’s, QR helped build a relation-ship 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 share- holder approval.

Following completion of the purchase the combined companies’ client roster is expected to include more than 300 clients.

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Global Unilever’s Lifebuoy is working with the United States Agency for International De-velopment (USAID)’s Mater-nal and Child Health Inte-grated Program (MCHIP) to reduce infant mortality in developing countries.

The new public–private partnership aims to improve handwashing among birth at-tendants 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, prema-turity and complications during labour. Simple, low-cost health interventions could reduce this by 70 per cent, says Lifebuoy.

“As part 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 So-cial 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, In-donesia and Kenya.

Lifebuoy to help reduce infant mortality Toiletries brand joins USAID for awareness programme

Kellogg’s grows interactive format

Feeding on information: Kellogg’s

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 watch-maker with the world’s largest sports organisation comprised of 27,000 PGA professionals.

The new partnership was launched at the 2011 PGA Cham-pionship at the Atlanta Athletic Club in Johns Creek, Georgia, last month and will extend through the PGA of America’s Centen-nial in 2016.

Omega is a long- standing supporter of golf tournaments in Europe and Asia. “This part-nership also gives us a fantastic platform to develop the brand in the important American mar-ket,” said Stephen Urquhart, president of Omega.

The deal includes advertising on golf telecasts of PGA cham-pionship events, marketing sup-port for the PGA’s player devel-opment 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 pres-ence in the US by opening nine boutiques in 2010, with 20 more slated to open in 2011.

Omega marks time with American PGA

Stateside: Omega grows presence in US

Facelift for 35-year-old Ford Fiestaeurope 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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September 2011 Gulf Marketing Review 25

Discount stores trading up in the USA

WORLD Ne WS

USA Discount outlets are trad-ing 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

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 shop-pers have embraced a new “value orientation”.

Luxury products today must “deliver a meaningful return as measured in greater pleas-ure, comfort, superior perform-ance, and longevity of wear and use,” she says.

“If the product doesn’t measure up, [affluent con-sumers] 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 man-ufacture, with 56 per cent as-sociating it with poor quality.

USA Walmart, one of the ear-liest pioneers of digital mu-sic downloads, has pulled the plug on mp3.walmart.com after eight years.

Despite its early debut com-mentators 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.

Curtain down on digital music site

Taking aim: US discount stores are

attracting more affluents

UK rioters leave retailers $228m short UK The widespread rioting and looting that swept across ma-jor cities in the UK last month has cost retailers an estimat-ed $228m.

Shops have lost approximate-ly $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, Kel-koo, 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

different picture in the com-ing months as consumer con-fidence has taken a turn for the worst.”

Along with a dip in domes-tic consumer spending, the violence could also damage the UK’s reputation.

“This is particularly prob-lematic 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 destina-tion, the UK could lose $840m in lost revenue over the next 12 months.

Charity Retail Trust launched a Twitter campaign and char-ity 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 com-bat the resale of stolen items.

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 Mus-lim 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.

Gif ts include: Islamic clothing, natural skincare products, beard care products and food.

Looters attack: London, UK

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26 Gulf Marketing Review September 2011

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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 prod-uct interests, as well as when

increased speci f ic ity of information is effective.

Those consumers who had looked at a company’s specific products were ran-domly shown a generic or a personalised advert.

The company then tracked whether consumers ulti-mately bought its products.

Consumers who saw the personalised product infor-mation 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-

tradicting conventional wis-dom 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 devel-oped 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

became more effective than generic ones.

This was a “big surprise,” says Anja Lambrecht, assist-ant professor of marketing, London Business School, as it was thought it is more ef-fective 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.”

Customised online ads not always effective, study says

Tablets trounce eReaders for print adsNew 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 meas-ured 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

Source: GfK MRI Starch Advertising Research May to July 2011

Scotland Emirates Airline is the launch advertiser, with a three-year booking, on a new, high-profile site at Glasgow Airport.

The site, above the check-in desks, is the start of a refurbish-ment programme of advertis-ing locations at Glasgow Airport.

The campaign was booked with JC Decaux Airport through Starcom MediaVest and Kinetic.

The Glasgow check-in dom-ination opportunity comprises two 14 metres x 3 metres back-lit 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.

Emirates lands on new OOH site

Anja LambrechtAssistant professor of marketing, London Business School

Had more favourable opinion of advertiser Considered purchasingproduct or service

Looked for information about product or service

Top three actions afterreading a magazine ad

Tablet ad noters

26%

22%

21%

eReader ad noters

19%

22%

15%

per cent had a more favour-able 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 percent-age (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 mag-azine 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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28 Gulf Marketing Review September 2011

Global MediaCom Worldwide has launched a new global sports division, MediaCom SPORT.

The new division offers four areas of services: Strat-egy, rights negotiation, rights activation and measurement.

It will be headed by global head of sports, Marcus John.

John will liaise with Me-diaCom’s global account directors, MediaCom’s Beyond Advertising team and GroupM’s Entertainment and Sports Partnerships Group “to com-municate client engagement in sports across all consum-er touch points.”

Prior to joining, John spent 10 years at IMG, finish-ing as SVP and managing director, IMG Consulting Asia/Pacific.

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.

Sports division launch

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India McCain Foods India Pvt. Ltd, the Indian subsidiary of McCain Foods Canada, ha s l au nched i t s f i r s t TVC in India.

The campaign showcases the ‘Delightfully Fresh’ posi-tioning of McCain’s products, with the tagline ‘Fresh Banega, Baat Banegi’.

Created by Leo Burnett India, the campaign marks phase one of McCain’s integrated market-ing communications effort.

KS Narayanan, managing director, McCain Foods India, says: “Frozen foods are a low- penetration category and re-quire 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 an-other dimension and will complement the ongoing BTL efforts.”

Samir Gangahar, executive director, Leo Burnett, adds: “The creative challenge was to communicate the ‘delight-fully fresh’ attribute of the product and break the con-sumer mindset on frozen foods.”

Leo Burnett India debuts McCain TVC

Global head of sports: Marcus John

M&C Saatchi boxes clever with OOHUK M&C Saatchi has chosen England’s oldest puppet show – the famously warring cou-ple Punch and Judy – as the platform for the latest ad from the Olympic Delivery Author-ity (ODA).

It is the first time an ad break has ever featured in the sea-side show, which was first performed in 1662.

Targeting tourists, the cam-paign promotes the coastal towns of Weymouth and Port-land, 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-

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.

Packing a punch: Olympic campaign

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Hong Kong Sony Electronics has switched its $125m media planning and buying account for the Asia Pacific region to OMD from incum-bent MEC.

The territory will join Chi-na and Singapore, reports MediaPost.

According to ZenithOptime-dia, 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 Ze-nithOptimedia 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.

Sony switches its Asia media to OMD

Xpert help for Hello Kitty’s Pynkiss

UK Hello Kitty has asked Xpert Communications to handle the fashion company’s seven-figure global PR account for its Pynk-iss 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 dur-ing 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.

First bite: McCain launches TVC

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30 Gulf Marketing Review September 2011

Positive thinkingUAE consumer confidence highest since 2004.

N e ws P lus

uAe CoNsumers in the UAE are highly optimistic about the com-ing 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

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 optimis-tic about the economy (96.2) and regular income (96.1), and least optimistic about employ-ment (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 opti-mistic about Regular Income (86.8

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

consumer confidence results

markets 1H 2011 2H 2010 1H 2010 2H 2009 1H 2009 2H 2008 1H 2008

egypt 78.2 47.7 45.5 59.5 32.3 55.6 32.3Kuwait 90.8 80.4 96.9 70.9 49.5 96.6 89.4lebanon 15.0 54.3 44.6 55.4 64.4 69.1 32.0oman 99.0 - - - - - -Qatar 95.7 83.6 65.8 89.2 71.4 76.2 88.6saudi Arabia 98.6 95.1 85.0 83.2 67.1 72.4 80.2u.A.e 95.6 73.6 82.4 86.1 29.6 75.4 85.4ToTAl middle eAsT 83.4 71.6 69.2 74.5 49.9 72.7 66.4

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 consumers’ thoughts on the six months ahead. data collection was via internet surveys, personal, telephone and cAti, with the questionnaire translated t o t he l o ca l l a n g ua ge , where appropriate.

ABOUT THE SURVEY

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Amid social media hype in Saudi Arabia marketing experts urge firms not to neglect the basics. Alex Malouf reports from Riyadh.

SociAl SAudi

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 com-munications 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 Cul-ture 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 en-hance 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 uti-lising social media for internal com-munications.

Attendees were also treated to work-shops 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 infor-mation. 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 cre-ated here, to support our media sec-tor 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 di-rector Philippe Infante, who discussed growth in the country’s OOH sector.

The afternoon sessions focused on digital and social media.

MEdIA

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September 2011 Gulf Marketing Review 33

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 Com-pany’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 market-ing budget.

The last in the lineup of events was the Saudi Branding and Communica-tions Summit 2011.

Hosted by events organizer IIR for the second year running, the summit aimed to raise awareness of communica-tions as a discipline among Saudi-based companies.

Over two days marketing managers from multinationals joined with Saudi-based consultants to tackle issues from crisis communications to internal mes-saging 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;

Nokia’s youth-led communications programmes by Moussa Obeid, mar-keting 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 corpo-rate 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 corpo-rate brand in addition to marketing each and every one of its hotels as unique properties.

Singapore Tourism Board’s area di-rector, MEA, Jason Ong, talked about the hospitality sector, and how the city-state has looked to embrace online com-munications 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 man-agers 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 com-munications are the very basics of any marketing job.”

…while new trends such as social media may be all the rage, marketing managers must get the basics right…

Get the message: Fadl Al-tarzi, Coo, Said Baaghil and Moussa obeid

n

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34 Gulf Marketing Review September 2011

Did Fox Series manage to get in touch with its feminine side when it rebranded to attract more female viewers?

Foxy chic?

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 re-oriented itself, in the words of its ac-companying 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 dual- language 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 pro-gramming 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 meta-phors 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 “up-grade”, a language which borrows from

Br a N D CHECK

Saying what they See

charles wright, Steve Richards & Moussa Beidas,wolf olins Dubai

Rating:

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the world of software to promise some-thing 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 pic-tures 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 de-scription 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 chan-nel. Despite our apparently supercilious tone, we believe it heralds a new trend in the region of targeted programming, which is now commonplace and suc-cessful elsewhere. An attractive proposi-tion 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 market-ing, 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

Background

Fox International channels upgraded its Fox Series channel to a 100 per cent arabic gen-eral entertainment channel targeting women. The creative campaign supporting the up-grade 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 pro-noun (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.

Br a N D CHECK

NEW LOGO OLD LOGO

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38 Gulf Marketing Review September 2011

His Highness Sayyid Faisal bin Turki Al Said, COO, Brand Oman Management Unit, discusses innovation, entrepreneurship and youth.

“GreAT pOTenTiAl”

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 ap-proaches for increasing and improv-ing 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 busi-nesses 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 govern-ments 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 Sum-mit. 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

Q& A

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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 com-petitiveness, an issue that is central to the success of any country. Youth entre-preneurship 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 opportuni-ties. 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 satis-faction; about having control and inde-pendence. 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 aver-age, entrepreneurs make at least 25 per

cent more than the general population, and research by Stanley and Danko concluded that entrepreneurs and self-employed 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 inno-vators 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 entrepre-neurship, full-day sessions delivered by The Prince’s Youth Business Interna-tional, the Commonwealth Secretariat, The Young Foundation, Intilaaqah and Knowledge Horizon. It’s through this type of exposure that we were looking

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.

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Q& A

to encourage Summit participants to be-come entrepreneurs or entrepreneurial thinkers. Hopefully we achieved this by immersing them in real life learning ex-periences 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 Organisa-tion statistics forecast a sustained rise in youth unemployment. They esti-mate 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 eco-nomic 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 entrepre-neurship can act as the engine for economic growth as well as provide a successful route to long-term em-ployment, 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 en-terprise 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 entrepreneur-ship in schools?As I mentioned earlier, if we’re intent on raising Oman’s competitiveness then we need to focus on youth entrepreneur-ship. 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 part of the fabric of school life.

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entrepreneurship is a behaviour rather than a personality trait.

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

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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 outlookGlobally 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.

And despite having the lowest absolute income in the region, Egyp-tian 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 afflu-ent neighbours. Optimism or escapism?

category spendFashionFor most teens fashion is their social status indicator, even for females wear-ing an abaya; they like to wear fashion-able 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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country Base Spend ($)Global 35721 28UAe 401 103Males 204 103Females 197 104KsA 800 56Males 403 69Females 397 42eGyPt 814 7Males 404 8Females 410 7

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

TrU lovE

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UAE tEEns: spEnding on cAtEgoriEs pEr month

in Us$ in UAE dirhamscategories global teens ($) UAE teens ($) total males Females

35721 401 401 204 197clothing and apparel 15 100 366 362 370Entertainment 5 41 150 157 143health and beauty aids 4 34 125 112 139Electronics and technology 5 33 121 145 96cell/ mobile phones 7 28 103 111 95Eating in casual/ expensive restaurants 5 28 103 102 103Eating in fast food restaurants 4 28 102 105 99carrying a ‘take away’ from fast food restaurants 3 23 84 87 81sweet and salty snacks 4 19 68 68 69home entertainment 2 17 63 75 50transportation 7 16 57 71 43soft drinks 4 14 52 51 54

EgYpt tEEns: spEnding on cAtEgoriEs pEr month

in Us$ in Egyptian poundscategories global teens ($) UAE teens ($) total males Females

35721 814 814 404 410clothing and apparel 15 4 23 26 21sweet and salty snacks 4 3 19 20 19soft drinks 4 3 18 19 17cell/ mobile phones 7 3 16 17 15transportation 7 2 14 15 12Eating in casual/ expensive restaurants 5 2 12 15 9Eating in fast food restaurants 4 2 10 12 8health and beauty aids 4 2 9 7 11Entertainment 5 1 8 10 5carrying a ‘take away’ from fast food restaurants 3 1 7 9 5Electronics and technology 5 1 6 10 2home entertainment 2 0 2 3 1

KsA tEEns: spEnding on cAtEgoriEs pEr month

in Us$ in saudi riyalscategories global teens ($) UAE teens ($) total males Females

35721 800 800 403 397clothing and apparel 15 36 134 161 107cell/ mobile phones 7 25 94 112 76Eating in casual/ expensive restaurants 5 17 63 67 60Eating in fast food restaurants 4 17 63 81 44Electronics and technology 5 15 58 84 32health and beauty aids 4 15 56 49 62carrying a ‘take away’ from fast food restaurants 3 13 49 61 36soft drinks 4 12 44 52 36sweet & salty snacks 4 11 42 43 41transportation 7 6 24 42 6home entertainment 2 6 24 40 8Entertainment 5 4 16 25 7

BASE: All respondents. 1USD = 3.67 AED/3.75 SR/5.96 EGP

Source: The TRU study 2011

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Which would you bank on?

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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.

MobilesAlthough 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

c over story

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 beautyBeauty 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 aver-age of $4. Obviously girls spend more than boys.

entertainmentAfter clothes UAE teens spend the most on entertainment, while for global teens

In the UAE they spend, on average, $34 dollars a month on health and beauty compared to the global average of $4.

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48 Gulf Marketing Review September 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 spend-ing 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

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

drinks, UAE teens spend $19 and $14 respectively.

eating outIn the UAE and Saudi Arabia teens spend significantly more on eating out com-pared 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 among their favourite brands.

Deepali BamaneProject director AMrB Dubai

dO yOU ThINk yOU wIll SpeNd...

Spend less

Spend about the same

Spend more

UAe

2%

36%

62%

KsA

Spend less

Spend about the same

Spend more

1%

30%

69%

Spend less

Spend about the same

Spend more

BASE: All respondents Global (35721), UAE (401), KSA

(800), Egypt (814). Source: The TRU study 2011

eGyPt

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75%

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P ro f ile

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it is an unmarked, nondescript office build-ing 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 Uni-lever. 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 Engi-neering 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 be-tween 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’.

“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 perspec-tive 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 learn-ing 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.

Yasser Joharji, Unilever’s first Saudi national managing director, recalls his career highlights. Shams Ahsan reports from Jeddah.

The GMR InTeRvIew

fanTasy cv

Born Riaydh, 1970Marital status Married, with three daughters (Lubna, 14; yumna, 11; and Leen, 9)Higher education achievement Industrial engineering, King saud Universityfirst job Market research team savola.Career high The launch of clear shampoo in 2007, the first male-exclusive shampoo in the saudi marketCareer low nothing so far

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52 Gulf Marketing Review September 2011

Why? Because he considers Unilever a business school.

“Unilever for me is not just a compa-ny where I wake up in the morning and go. It is a school of personal develop-ment. 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 mar-keting 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 Lip-ton 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 two- year 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 sham-poo launched in the Saudi market. In just four years it has become the number one brand in the male-exclusive shampoo cat-egory 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

P ro f ile

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.

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54 Gulf Marketing Review September 2011

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 cus-

tomers where you have a brilliant solu-tion 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 consum-ers 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 daugh-ters: 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 two-way relationship,” he says.

P ro f ile

LIsT of MaRKeTInG sUppoRT aGencIes

Globally lowe Advertising and JWtlocal focus Advertising, Creative Circle, MaimakMedia Magna DubaiPr 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 Bin-zagar 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.

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

n

50-55-GMR 200 GMR Profile-Yasser.indd 54 8/28/11 10:05 AM

Page 55: GMR | September 2011

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Page 56: GMR | September 2011

56 Gulf Marketing Review September 2011

Siobhan Adams joins Nivea’s centenary party in Hamburg to find out how the Grande Dame of FMCG skincare retains its youthful glow.

AGeleSS beAuty...

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 func-tionality and a solid care promise is highly creditable and laudable. No question. But reliability isn’t particu-larly 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 skin-care 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, an-other for its 2011 forecast.

For, as many of its more mature loy-alists can testify, maintaining an ever-youthful glow demands continual effort and investment.

Cue 23-year-old US superstar Rihanna.The US singer is the voice of the an-

niversary 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.

B r a N d a N a L Y S I S

New approach: umit Subasi, board member

FACiNG tHe Future

closer: Jean-Manuel canga-Valles

gmr 200 nivea BA updated.indd 56 8/28/11 12:21 PM

Page 57: GMR | September 2011
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58 Gulf Marketing Review September 2011

Consumer promotions are offering concert tickets as prizes; 10 million prod-uct 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 be-tween brand and ambassador stretches credibility and flies in the face of Nivea’s avowed policy to only use ‘real people’.

“I’m not entirely certain how comfort-able 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 be-tween 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 dig-ital 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 initia-tive. It’s teen deo range, Angelstar for

Getting rihanna and riding the digital media wave affirms the leadership aspect of the Nivea heritage platform

B r a N d a N a L Y S I S

rockin’ the boat: rihanna performed at Nivea’s inaugural centenary event aboard the Blue Boat

tiMeleSS

creme of the crop: Launched in 2011, Nivea

creme is still going strong after 100 years

gmr 200 nivea BA updated.indd 58 8/28/11 12:21 PM

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24437-2 360 Sport 28x21.5 FPC-GMR Ad.indd 1 5/15/11 2:41 PM

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60 Gulf Marketing Review September 2011

girls which has been particularly suc-cessful 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 signifi-cant 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 de-cision 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 cosmet-ics 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, emerg-ing 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 fra-grance, 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

Future market growth predictions all point to skincare, with 45 per cent of total growth in cosmetics coming from skincare by 2015

B r a 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

gmr 200 nivea BA updated.indd 60 8/28/11 12:21 PM

Page 61: GMR | September 2011

September 2011 Gulf Marketing Review 61

lotion, the first Nivea product devel-oped 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 be-tween 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 big-gest 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 final-ized, 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 mar-keting 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

$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 pro-mote 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 mile-stones 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, com-petitions, promotions or dialogue, then an anniversary campaign can succeed.”

Nivea, he says, has earned the right to claim an emotional connec-tion with consumers because it’s a product people feel close to. Afterall: “It’s not an oven cleaner.”

Many happy returns. n

celebration time: Nivea is still going strong after 100 years

Greater intimacy is also reflected in the shift in media spend...

gmr 200 nivea BA updated.indd 61 8/28/11 12:21 PM

Page 62: GMR | September 2011

How to apply to jobs on Bayt.comHow

1 . Visit our website at www.bayt.com

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Strong command of Arabic & English

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BUS DEVELOPMENT EXECUTIVEAL Jaber & Partners (Qatar)

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Page 63: GMR | September 2011

How to apply to jobs on Bayt.comHow

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4 . When you view the job pos�ng, click on “Apply to this job” and a�ach your Bayt.com CV.

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UAE

MKT COMMUNICATIONS MGRManpower Middle East

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Page 64: GMR | September 2011

64 Gulf Marketing Review September 2011

ws e c T O r a N a L y s i s

cOLD BeVeraGes

NeXT MONThreTaiL aND MaLLs

Low tide 65chilling out 70Filling up 74sekari top search terms 78Kantar ramadan analysis 80Parc analysis 83Parc stats 86

As cold beverage con-sumption hots up, do water companies have enough to quench the thirst?

64-69-GMR 200 SA Lead 1.indd 64 8/28/11 11:24 AM

Page 65: GMR | September 2011

September 2011 Gulf Marketing Review 65

Rising consumption and corresponding scarcity has left both regional and global water companies with a tricky equation.

Low tide

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 com-panies 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 consump-tion tops 550 litres daily per capita, three times the global average, result-ing 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 be-lieve their personal actions can make a difference to water consumption.

“The water category in general is very competitive in the UAE as the vast

majority of the population recognise that tap water is not acceptable for drinking and cooking,” says Mike Henderson, customer development partner at con-sultancy firm Kantar Retail.

The bottled water category is divided into two main segments: PET bottled

water, for on-the-go consumption, and five gallon containers.

“The market for all segments is sus-tainable 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 ma-tures, stricter label and product defini-tion 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

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

aware: Natascha edelmann, head of marketing, Masafi

putting enviRonment thiRst

responding: Dirk holzapfel, international marketing and sales development, evian

64-69-GMR 200 SA Lead 1.indd 65 8/28/11 11:24 AM

Page 66: GMR | September 2011

66 Gulf Marketing Review September 2011

s e c T O r a N a L y s i s

...25 per cent of married couples in the uAe worry that there will not be enough fresh available water for their children...

responsible: as a sustainable brand evian sees it as their responsibility to respect nature

©Get

ty/G

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Im

ages

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 in-ternational 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 Holzap-fel, international marketing and sales development director at Evian.

“As a response to the increased con-sumer awareness to the issues challeng-ing 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

64-69-GMR 200 SA Lead 1.indd 66 8/28/11 11:24 AM

Page 67: GMR | September 2011

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68 Gulf Marketing Review September 2011

s e c T O r a N a L y s i s

Aquafina continuously works with all envi-ronmental bodies, including those responsi-ble for water resources in the uAe...

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

purify desalinated water for consump-tion in the Gulf.

According to the UAE government the country spends nearly AED11.8bn ($3.2bn) a year producing desalinat-ed 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 de-velopment of a long-term strategy and plans to ensure adequate investment in

water resources and maintaining con-sumption within the framework of sys-tematic science in order to avoid crises.

“Aquafina continuously works with

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 stabil-ity, as well as health.

“We do not have, at present, any inten-tion 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 dou-bled 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 sustain-able will rage on and the tide may begin to turn. n

©Get

ty/G

allo

Im

ages

Diversifying: Masafi brand expanding

wAteR woRLd

investing: aquafina focuses on resources

64-69-GMR 200 SA Lead 1.indd 68 8/28/11 11:24 AM

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70 Gulf Marketing Review September 2011

The cold drinks market is hotting up in the region reports Adrian Murphy.

Chilling ouT

The burgeoning iced teas and coffees seg-ment 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 avail-able in both black and green tea types, and has lately focused on increasing its

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 appreci-ated 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 Nes-café, which has launched a trio of brands in this segment in the past 12 months and subsequently reports a double-digit growth in sales.

S e C T o r A n A L Y S i S

refreshing

Well entrenched: Waqas Javed

gmr 200 SA Lead 2.indd 70 8/28/11 10:57 AM

Page 71: GMR | September 2011

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Page 72: GMR | September 2011

72 Gulf Marketing Review September 2011

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 Bever-ages 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

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 es-presso, 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 communica-tions 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 Iced Shaken Espresso. n

our iced drinks account for 35 per cent of our total beverage sales

S e C T o r A n A L Y S i S

best served cold: The gulf’s younger generation is driving the cold beverage market

new flavours: Costa

iCeD geMs

growth: nescafé

gmr 200 SA Lead 2.indd 72 8/28/11 10:57 AM

Page 73: GMR | September 2011

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74 Gulf Marketing Review September 2011

Packaging innovation continues to drive consumer interest reports Adrian Murphy.

Filling uP

A number of companies have intro-duced 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 manufactur-ers in the Gulf have been concerned with the environment and sustain-ability, and lessening the amount of materials they use, which has led to new innovations.

For example Masafi launched the light-est 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 design-ers,” 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.

“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 pack-aging designs.

For example, a specially designed Pepsi PET bottle with motifs depict-ing the Holy Month of Ramadan were embossed onto family-sized bottles in Egypt. During the FIFA World Cup last year it introduced the first football- shaped can in the region.

As well as the environment and vis-ually arresting packaging, Tetra Pak, which claims to be the world’s largest

S e C T O r A n A L Y S I S

© G

etty

/Gal

lo I

mag

es

shelF liFe

new format:

riccardo Castagnetti,

marketing director

Tetra Pak Arabia

74-77-GMR 200 SA Lead 3 Pkg.indd 74 8/28/11 2:46 PM

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76 Gulf Marketing Review September 2011

food processing and packaging solu-tions 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 fastest-growing 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, mar-keting director, Tetra Pak Arabia

“We work very closely with our cus-tomers 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 lat-est 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-

S e C T O r A n A L Y 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

DREAM JOBaging 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. Consum-ers 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. ■

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 commit-ment 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 innova-tion and development so as to ensure a sustain-able healthy product offering. We will continue to coordinate closely with our partners of success, especially Tetra Pak, to further develop and im-prove our products and ensure Health for All.”

74-77-GMR 200 SA Lead 3 Pkg.indd 76 8/28/11 2:46 PM

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78 Gulf Marketing Review September 2011

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 – 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 men-tioned 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 senti-ment 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 Coca-Cola. 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 Bull’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 com-munities are becoming in today’s age of digital communications.

The brand that engages offline and wins the hearts and minds of local communities are the ones reaping the rewards in the social space.

Lee Mancini Head of Sekari SEODubai

s e c t o r a n a L y s I s

COffEE mAtE

n

78-79-GMR 200-SA SEKARI.indd 78 8/28/11 10:13 AM

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September 2011 Gulf Marketing Review 79

SEARCH AND SOCIAL DRINKS MARKET ANALYSIS

# Keyword (UAE) Search volume Keyword (UAE) Search volume1 Coffee 301,000 Coffee 1,500,0002 Milk 90,500 Milk 368,0003 Tea 74,000 Tea 301,0004 Juice 33,100 Juice 110,0005 Soda 22,200 Soda 74,0006 Pepsi 14,800 Pepsi 60,5007 Green tea 12,100 Chai 40,5008 Coca-Cola 12,100 Chai tea 40,5009 Chai 9,900 Green tea 33,10010 Red Bull 8,100 Drinking water 27,10011 Drinking water 6,600 7 Up 12,10012 7 Up 5,400 Coca-Cola 8,10013 Chai tea 5,400 Squash 8,10014 Squash 5,400 Red Bull 4,40015 Lemonade 2,400 Orange juice 3,60016 Orange juice 2,400 Hot chocolate 2,40017 Sprite 2,400 Cup of tea 2,40018 Lemonade 2,400 Sprite 2,40019 Milkshakes 1,600 Lemonade 1,90020 Cup of tea 1,600 Power energy drink 1,900

Brand Sentiment Volume Al Marai 0 1 Coca-Cola 17 171 Coffee Mate -2 3 Crush 3 3 Lacnor 2 20 Lipton -10 82 Masafi 4 6 Rainbow Milk -4 6 Mountain Dew 22 60 Nescafe -2 38 Nestle 4 48 Nido -2 15 Oasis -25 194 Rawabi 52 67 Tang 14 92 Tropicana 6 20 7 Up -6 34

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

Top 20 keywords drinks Top drinks brands by volume of social media sentiment

Source: Sekari SEO 2011

Source: Sekari SEO 2011

SOCIAL MEDIA – VOLUME VS SENTIMENT GRAPH: UAE

250

200

150

100

50

0-40 -30 -20 -10 2010 30 40 50 60

HIGH VOLUME NEGATIVE SENTIMENT

LOW VOLUME NEGATIVE SENTIMENT

LOW VOLUME POSITIVE SENTIMENT

HIGH VOLUME POSITIVE SENTIMENT

Num

ber o

f men

tions

Range of sentiment

Oasis

Coca-Cola

Tang

Nestlé

Masafi

TropicanaLacnor

CrushAl Marai

Nescafé7Up

NidoRainbow milk

Coffee-mate

Mountain DewRawabi

Lipton

6 20-6 34

HIGH VOLUME HIGH VOLUME POSITIVE SENTIMENTPOSITIVE SENTIMENT

78-79-GMR 200-SA SEKARI.indd 79 8/28/11 10:13 AM

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80 Gulf Marketing Review September 2011

The timing of this year’s Ramadan could alter the usual sales pattern in Saudi’s beverage sector.

A fluid SiTuATion

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 patternsAlong with traditional drinks such as Sou-

S e C T O R a N a L Y S i S

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September 2011 Gulf Marketing Review 81

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 afflu-ent, local families, there is definitely an opportunity to grow beverages in Riyadh during Ramadan. The spend does in-crease across SECs but the increase is less among the lower SEC. The increase in spend is very similar between the up-per and middle classes, which marketers should remember while designing specificpromotions 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

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 liq-uid concentrates (LC) are mainly at theexpense of these categories.

For most of the year CSDs are normally

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

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

Beverages

Hot Cold Water

Tea Coffee Carbonated Soft

LabanNon Carbonated Soft Drinks (CSD)

RTD Juices Powdered Beverages

LiquidConcentrates

Energy drinks MaltBeverages

Ice Tea

VOLUME OF GROWTH DURING RAMADAN

INDEX VOLUME TRENDS

50

100

150

May

201

1

Apr

il 20

11

Mar

ch 2

011

Feb

ruar

y 20

11

Jan

uary

201

1

Dec

embe

r 20

10

Nov

embe

r 20

10

Oct

ober

201

0

Sep

tem

ber

2010

Aug

ust 2

010

Jul

y 20

10

Jun

e 20

10

May

201

0

Apr

il 20

10

Mar

ch 2

010

Feb

ruar

y 20

10

Jan

uary

201

0

Dec

embe

r 20

09

Nov

embe

r 20

09

Oct

ober

200

9

Sep

tem

ber

2009

Aug

ust 2

009

Jul

y 20

09

Jun

e 20

09

May

200

9

Apr

il 20

09

Mar

ch 2

009

Feb

ruar

y 20

09

Jan

uary

200

9

60

90

120

May

201

1

Apr

il 20

11

Mar

ch 2

011

Feb

ruar

y 20

11

Jan

uary

201

1

Dec

embe

r 20

10

Nov

embe

r 20

10

Oct

ober

201

0

Sep

tem

ber

2010

Aug

ust 2

010

Jul

y 20

10

Jun

e 20

10

May

201

0

Apr

il 20

10

Mar

ch 2

010

Feb

ruar

y 20

10

Jan

uary

201

0

Dec

embe

r 20

09

Nov

embe

r 20

09

Oct

ober

200

9

Sep

tem

ber

2009

Aug

ust 2

009

Jul

y 20

09

Jun

e 20

09

May

200

9

Apr

il 20

09

Mar

ch 2

009

Feb

ruar

y 20

09

Jan

uary

200

9

50

100

150

May

201

1

Apr

il 20

11

Mar

ch 2

011

Feb

ruar

y 20

11

Jan

uary

201

1

Dec

embe

r 20

10

Nov

embe

r 20

10

Oct

ober

201

0

Sep

tem

ber

2010

Aug

ust 2

010

Jul

y 20

10

Jun

e 20

10

May

201

0

Apr

il 20

10

Mar

ch 2

010

Feb

ruar

y 20

10

Jan

uary

201

0

Dec

embe

r 20

09

Nov

embe

r 20

09

Oct

ober

200

9

Sep

tem

ber

2009

Aug

ust 2

009

Jul

y 20

09

Jun

e 20

09

May

200

9

Apr

il 20

09

Mar

ch 2

009

Feb

ruar

y 20

09

Jan

uary

200

9

60

90

120

May

201

1

Apr

il 20

11

Mar

ch 2

011

Feb

ruar

y 20

11

Jan

uary

201

1

Dec

embe

r 20

10

Nov

embe

r 20

10

Oct

ober

201

0

Sep

tem

ber

2010

Aug

ust 2

010

Jul

y 20

10

Jun

e 20

10

May

201

0

Apr

il 20

10

Mar

ch 2

010

Feb

ruar

y 20

10

Jan

uary

201

0

Dec

embe

r 20

09

Nov

embe

r 20

09

Oct

ober

200

9

Sep

tem

ber

2009

Aug

ust 2

009

Jul

y 20

09

Jun

e 20

09

May

200

9

Apr

il 20

09

Mar

ch 2

009

Feb

ruar

y 20

09

Jan

uary

200

9

Tea Coffee CSD NCSD Laban Water RTDJuices

PowderedJuices

Liquid MaltBeverages

EnergyDrinks

Ice Tea

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

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

© ar

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82 Gulf Marketing Review September 2011

whereas powdered beverages and liquid concentrates are highly dependent on this season for sales whereas Ramadan accounts for 56 per cent of liquid con-centrates 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 develop-ment’ teams working hard to stay on top of consumer taste trends, beverages shelves are cluttered with new and differ-ent 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.

PackagingIn terms of pack sizes, consumers tend to buy bigger during Ramadan. In juices, sales of 250ml packs (the biggest sell-ing SKU) drop, while one litre packs increase. This trend is seen in most categories including powdered bever-

ages and laban. Therefore it is very vi-tal 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. ■

orange is the most preferred flavour followed by mango and apple.

S e C T O R a N a L Y S i S

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

Ranjitha SubashSenior account managerKantar Worldpanel, Dubai.

1st Half 20101st Half 2010

AVERAGE DRINK SPEND

Average spend per households during Ramadan in SAR

Spend Indexed to Non Ramadan Months

127

Total KSA Riyadh Jeddah Dammam Non Urban Local Arabs Expat Arabs Asian AB C1 C2 D

115

130

109

119 121

132

112

128

117

144

115110

114

48

105

165

116

140

115

67

105116 117

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

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The UAE’s fruit juice industry is blooming, with orange most popular.rich pickings

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 up-hill task to maintain loyalty and increase usage with discrete segments of soci-ety exhibiting a different psychographic profile. These segments undergo meta-morphic 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

Source: TGI UAE 2010: Copyright PARC international

Source: Global TGI, Kantar Media

Higher BMI, lower fruit juice frequency

Lower BMI, lower fruit juice frequency

Higher BMI, higher fruit juice frequency

Lower BMI, higher fruit juice frequency

High

er B

MI

Heavy fruit juice drinkers80 100 120 140

140

120

100

80

60

40

shaharyar UmarMarketing Directorpan Arab research centre, Dubai, UAE

Non Arab expat

Arab expat

Television

I am a bargain hunter

Daily Newspaper

CinemaMonhly magazines

NationalRadio Internet

Weekly magazine

I always look out for second offer

I often pay extra to save time and trouble

shopping around

I have a sweet tooth

Outdoor30-44

15-19

20-29

I always look for the light diet versions of food and drinks

FRuIT JuICe CONsuMpTION

Country Fruit and veg juicesAlgeria 86%Bahrain 91%egypt 67%France 86%Kuwait 72%

Country Fruit and veg juicesLebanon 87%Qatar 89%saudi Arabia 85%syria 75%uAe 91%

45+

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84 Gulf Marketing Review September 2011

s e c t o r a n a l y s i s

Stability returns to beverages sector following drop in ad spending.tHIRSt FOR GROWtH

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 re-gion, 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. Spend-ing 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, tak-ing 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 buoy-ant note as it reported an 81 per cent increase in January. However the re-gional unrest hit the sector hard, with spending plummeting during February and March. As stability returns the sec-tor 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 returning on a juicy note.

shaharyar UmarMarketing directorPan Arab Research Centre, Dubai, UAE

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86 Gulf Marketing Review September 2011

CATEGORY: BEVERAGES – ADVERTISING MARKETS 2011

MARKETS RANKING & MEDIA SplIT (000 US$)

Rank Market Name & Abbreviation

Television Newspapers Magazines Radio Outdoor Cinema

2009 2011%Var’n

YTD 2011%Var’n

YTD 2011%Var’n

YTD 2011%Var’n

YTD 2011%Var’n

YTD 2011%Var’n

YTD 2011%Var’n

YTD2010

1 Pan Arab Media PAN 113,969 140,304 190,538 36 190,390 36 0 – 148 -54 0 0 0 –2 Egypt EGY 16,287 30,506 19,898 -35 15,455 -33 437 -70 104 -43 2,571 41 1,331 -66 0 –3 Lebanon LEB 9,621 17,416 13,753 -21 13,361 -20 10 -9 37 48 0 -100 345 -39 0 –4 United Arab Emirates UAE 6,231 6,122 6,067 -1 1,102 19 365 -58 495 -32 49 250 1,710 94 2,346 -135 Kingdom Of Saudi Arabia KSA 8,598 7,150 4,452 -38 718 -30 1,869 -14 181 -45 23 -71 1,661 -53 0 –6 Kuwait KWT 3,100 7,349 3,411 -54 3,246 -52 109 -59 43 -82 13 -66 0 0 –7 Jordan JOR 1,867 2,822 920 -67 119 -82 789 -63 12 -66 0 0 0 –8 Oman OMN 683 1,024 875 -15 122 -10 723 -16 30 25 0 0 0 –9 Qatar QTR 266 401 264 -34 0 -100 187 -16 2 -94 26 -42 49 0 0 –10 Bahrain BAH 209 448 9 -98 7 -88 2 -99 0 -100 0 -100 0 -100 0 -10011 Other Markets** OTH 3,171 2,213 1,825 -18 1,376 -24 257 6 157 52 35 -39 0 0 –

Total All Markets 164,002 215,755 242,012 12 225,896 18 4,748 -43 1,209 -41 2,717 27 5,096 -43 2,346 -19

SplIT BY pRODUCTS – 2011All Markets Pan Arab Media GCC Markets Levant Markets

Carbonated soft drinks Carbonated soft drinks Carbonated soft drinks Carbonated soft drinksFruit juice Fruit juice Fruit juice CoffeeTea Tea Tea SoupsNon alcoholic drinks Non alcoholic drinks Non alcoholic drinks Water bottled carbonatedCoffee Coffee Soups Water bottled stillOthers Others Others Others

50% 16%12%

11%8%

8%

5%7%

10%

8%11%

13%5%

17%10%

6%

52%11%

45%5%

5%

TOp BRANDS – All MEDIA (000 US$) – 2011

Rank1234567891011121314151617181920

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

Value49,99132,27119,17217,62210,2369,6558,4668,1827,1275,8565,4184,5994,5714,4773,4633,2993,2033,1343,0893,025

Rank1234567891011121314151617181920

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

Value38,69530,11217,57412,6448,4667,7566,7705,5635,0574,8094,5714,4753,7563,2993,0252,9932,7592,7412,6722,426

Rank1234567891011121314151617181920

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

Value40,67630,93519,03512,6988,4667,7607,4087,0755,4184,8094,5714,4753,8973,2993,1343,0873,0252,9932,9042,777

Rank1234567891011121314151617181920

BrandPepsi 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

Value9,3154,9243,3732,4762,2472,0081,9591,6951,3361,033

686590455340263237217212210196

ALL MARkeT PAN ARAB MeDiA GCC LeVANT

Sour

ce: P

ARC

MIllIONS US$242 +12%

Ranking of markets and media split (000US$) Category split by market100%

75%

50%

25%

0%Total

242012GCC

206811LEV

35201PAN

190538EGY

19898LEB

13753UAE6067

KSA4452

KWT3411

JOR920

OMN875

QTR264

OTH1825

BAH9

Television Newspapers Magazines Outdoor CinemaRadio

Pan ArabEgyptLebanonUAEKSAKuwaitOthers

79% 1%

1%6%

3%2%

8%

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

53%7%

13%

S e C T O R A N A L Y S i S

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September 2011 Gulf Marketing Review 87

MIllIONS US$242 +12%

Product and AbbreviationMedia Split %

2009 2011%Var’nY11/10 TV NP MG RD OD CN2010 Sh%

Carbonated soft drink CSD 67,502 87,674 120,391 50 37 95 1 0 2 1 2Fruit juice and nectar FJN 14,561 18,927 29,080 12 54 91 3 1 0 5 0Tea TEA 22,684 23,382 24,949 10 7 98 1 0 0 1 0Non alcoholic drink NAD 11,381 14,476 15,663 6 8 98 0 0 0 2 0Coffee COF 8,581 13,146 13,106 5 0 91 1 1 2 5 0Others OTH 39,293 58,150 38,823 16 -33 87 7 2 1 3 0Total 164,002 215,755 242,012 100 T 93 2 0 1 2 1

CATEGORY: BEVERAGES – AGCC, lEVANT, pAN ARAB AND ARASIAN MEDIA MARKETADVERTISING ExpENDITURE fOR TOp pRODUCTS (000 US$) 2009 – 2011 (JAN - MAY) MIllIONS US$ 242 +12%

Media 2009 2010 2011 Var'n %Value Sh% Value Sh% Value Sh% 2010/2011

Television 139,173 85 191,323 89 225,896 93 18Newspaper 5,997 4 8,399 4 4,748 2 -43Magazine 3,049 2 2,047 1 1,209 0 -41Radio 1,673 1 2,141 1 2,717 1 27Outdoor 11,407 7 8,957 4 5,096 2 -43Cinema 2,703 2 2,888 1 2,346 1 -19Total 164,002 100 215,755 100 242,012 100 12

OVERAll MEDIA SplIT ANAlYSIS (000 US$)

MONThlY SpEND ANAlYSIS (MIllIONS US$) 2009 – 2011

2011 Media Split %

Overall Media Split 2009 – 2011 Total Category – Media Split %

Product Growth 2009 - 2011 (000 US$)

88% 90% 92%

CSD

FJN

TEA

NAD

COF

OTH

140000

120000

100000

80000

60000

40000

20000

0

250000

200000

150000

100000

50000

02009 2010 2011

94% 96% 100%98% CSD OTHCOFNADTEAFJN

Television Newspapers MagazinesOutdoor CinemaRadio

Television Newspapers MagazinesRadio Outdoor Cinema

Television Newspapers Magazines

Radio Outdoor

2011 2010 2009

Month 2009 2010 2011 Var’n % Y11/10Jan 19 28 50 81Feb 20 28 18 -37Mar 33 51 40 -22Apr 40 54 59 10May 53 55 75 38Total 164 216 242 12

93% 1%2%

2%2%

Television Top SpendersRank Brand 2011

1 Pepsi 461832 Coca-Cola 304043 Lipton 190294 7-up 174175 Mirinda 102306 Maggi 95887 Freez 84668 H2oh! 81819 Rani 677110 Nescafé 5501

Newspaper Top SpendersRank Brand 2011

1 Hana 13312 Oman Oasis 6233 Tropicana 5464 Pepsi 3025 Nestlé 2676 Nova 2547 Coca-Cola 868 Popular 699 Juhayna 6810 Al Ain 64

Magazine Top SpendersRank Brand 2011

1 Masafi 542 Perrier 533 Nova 504 Wow 505 Sun Cola 426 7-up 387 Alokozay-tea 388 Arwa 389 Sun Top 3710 Hildon 33

Radio Top SpendersRank Brand 2011

1 Pepsi 11472 Coca-Cola 7953 Nescafé 3224 Hayat 1215 Lipton 706 Nestlé 667 7-up 468 Sprite 409 Al Marai 2910 B-cola 22

Outdoor Top SpendersRank Brand 2011

1 Pepsi 6192 Tang 5453 Coca-Cola 5184 Vitaene 4645 Cofique 4496 Rani 3557 Barbican 3518 Nada 2599 Al Rabie 25510 Masafi 174

Top brands 2011 (000 US$)

(000 US$ - Semi Logarithmic)

9080706050403020100

Jan Feb Mar April May

2011 2010 2009

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88 Gulf Marketing Review September 2011

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

Product & AbbreviationMedia Split %

2009 2011%Var’nY11/10 TV NP MG RD OD CN2010 Sh%

Carbonated Soft Drink CSD 16,651 26,609 18,529 53 -30 81 2 0 11 6 0Coffee COF 3,648 6,933 3,907 11 -44 84 3 1 8 4 0Soups SUP 553 3,428 2,873 8 -16 96 0 0 0 3 0Water Bottled Carbonated WBC 1,654 3,360 2,866 8 -15 99 0 1 0 0 0Water Bottled Still WBS 1,146 1,830 2,487 7 36 84 3 2 8 3 0Others OTH 5,413 9,469 4,539 13 -52 75 16 1 1 7 0Total 29,065 51,629 35,201 100 -32 84 4 1 7 5 0

CATEGORY: BEVERAGES - LEVAnT MEdiA MARkETSAdVERTiSinG ExpEndiTuRE fOR TOp pROduCTS (000 uS$) 2009 – 2011 (JAn - MAY) MiLLiOnS uS$ 35 -32%

Media 2009 2010 2011 Var'n %Value Sh% Value Sh% Value Sh% 2010/2011

Television 19,006 65 41,158 80 29,432 84 -28Newspaper 2,636 9 3,823 7 1,311 4 -66Magazine 451 2 283 1 211 1 -25Radio 1,203 4 1,889 4 2,571 7 36Outdoor 5,769 20 4,476 9 1,676 5 -63Cinema 29,065 100 51,629 100 35,201 100 -32Total 6,096 100 5,967 100 5,762 -3

OVERALL MEdiA SpLiT AnALYSiS (000 uS$)

MOnThLY SpEnd AnALYSiS (MiLLiOnS uS$) 2009 – 2011

2011 Media Split %

Overall Media Split 2009 – 2011 Total Category – Media Split %

Product Growth 2009 - 2011 (000 US$)

0% 20% 40%

CSD

COF

SUP

WBC

WBS

OTH

30000

25000

20000

15000

10000

5000

0

2500

2000

1500

1000

500

02008 2009 2010

60% 80% 100% CSD COF SUP WBC OTHWBS

Television Newspapers MagazinesOutdoor CinemaRadio

Television Newspapers MagazinesRadio Outdoor Cinema

Television Newspapers Magazines

Radio Outdoor Cinema

2011 2010 2009

Month 2009 2010 2011 Var’n % Y11/10Jan 2 7 12 67Feb 4 7 3 -53Mar 7 14 2 -84Apr 8 12 7 -43May 9 11 11 -1Total 29 52 35 -32

84% 5% 7%4%

Television Top SpendersRank Brand 2011

1 Pepsi 74462 7-up 47823 H2oh! 33724 Mirinda 24745 Maggi 21806 Zein 20087 Nescafe 16048 Nestle 15599 Star Cafe 883

10 Methode Minceur 590

Newspaper Top SpendersRank Brand 2011

1 Tropicana 5462 Pepsi 1243 Coca Cola 764 Juhayna 685 Nestle 546 Sinalco 507 Fawzy Al Banan 418 Crush 349 Pepsico 3410 7-up 31

Magazine Top SpendersRank Brand 2011

1 Hayat 232 Coca Cola 213 Perrier 144 Americana 125 Pepsi 126 Sprite 117 Juhayna 108 Aytac 89 Ionia 810 Maggi 7

Radio Top SpendersRank Brand 2011

1 Pepsi 11162 Coca Cola 7953 Nescafe 3224 Hayat 1215 Nestle 666 Lipton 657 7-up 468 Sprite 407 H2oh! 1

Outdoor Top SpendersRank Brand 2011

1 Pepsi 6172 Coca Cola 2143 Sprite 1594 Star Cafe 1475 Pampa 806 Nesquik 747 7-up 608 Rani 519 Maccaw 5010 Maggi 50

Top brands 2011 (000 US$)

(000 US$ - Semi Logarithmic)

1614121086420

Jan MarFeb May JuneApr

2011 2010 2009

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September 2011 Gulf Marketing Review 89

Product & AbbreviationMedia Split %

2009 2011%Var’nY11/10 TV NP MG RD OD CN2010 Sh%

Carbonated Soft Drink CSD 50,851 61,065 101,862 49 67 97 0 0 0 0 2Fruit Juice And Nectars FJN 13,034 15,393 27,877 13 81 94 1 1 0 4 0Tea TEA 21,681 22,573 23,985 12 6 98 0 0 0 1 0Non Alcoholic Drink NAD 11,122 13,156 15,656 8 19 98 0 0 0 2 0Soups SUP 7,265 18,548 9,359 5 -50 100 0 0 0 0 0Others OTH 30,984 33,391 28,072 14 -16 82 10 2 0 5 1Total 134,937 164,126 206,811 100 26 95 2 0 0 2 1

CATEGORY: BEVERAGES - AGCC, pAn ARAB & ARASiAn MEdiA MARkETSAdVERTiSinG ExpEndiTuRE fOR TOp pROduCTS (000 uS$) 2009 – 2011 (JAn - MAR)MiLLiOnS uS$ 35 -32% MiLLiOnS uS$ 207 +26%

Media 2009 2010 2011 Var'n %Value Sh% Value Sh% Value Sh% 2010/2011

Television 120,167 89 150,165 91 196,464 95 31Newspaper 3,361 2 4,576 3 3,437 2 -25Magazine 2,598 2 1,764 1 998 0 -43Radio 470 0 252 0 146 0 -42Outdoor 5,638 4 4,481 3 3,420 2 -24Outdoor 2,703 2 2,888 2 2,346 1 -19Total 134,937 100 164,126 100 206,811 100 26

OVERALL MEdiA SpLiT AnALYSiS (000 uS$)

MOnThLY SpEnd AnALYSiS (MiLLiOnS uS$) 2009 – 2011

2011 Media Split %

Overall Media Split 2009 – 2011 Total Category – Media Split %

Product Growth 2009 - 2011 (000 US$)

0% 20% 40%

CSD

FJN

TEA

NAD

SUP

OTH

40000

35000

30000

25000

20000

15000

10000

5000

0

250000

200000

150000

100000

50000

02009 2010 2011

60% 80% 100% CSD FJN TEA NAD OTHSUP

Television Newspapers MagazinesOutdoor CinemaRadio

Television Newspapers MagazinesRadio Outdoor

Television Newspapers Magazines

Radio Outdoor Cinema

2010 2009 2008

Month 2009 2010 2011 Var’n % Y11/10Jan 17 21 38 85Feb 16 22 15 -33Feb 26 37 38 2Feb 32 42 53 25Mar 44 43 64 48Total 135 164 207 26

95% 1% 2%2%

Television Top SpendersRank Brand 2011

1 Pepsi 387372 Coca Cola 301743 Lipton 189644 7-up 126355 Freez 84666 Mirinda 77567 Maggi 74088 Rani 67719 Barbican 505710 H2oh! 4809

Newspaper Top SpendersRank Brand 2011

1 Hana 13312 Oman Oasis 6233 Nova 2544 Nestle 2135 Pepsi 1786 Popular 697 Al Ain 648 Al Marai 649 Najdiyah 5810 Masafi 57

Magazine Top SpendersRank Brand 2011

1 Masafi 542 Nova 503 Wow 504 Sun Cola 425 Perrier 396 Alokozay-tea 387 Arwa 388 Sun Top 379 7-up 3310 Hildon 33

Radio Top SpendersRank Brand 2011

1 Pepsi 312 Al Marai 293 B-cola 224 Brooke Bond 195 Lacnor 136 Ultra 117 Hosten 88 Lipton 59 Lipton Y.label 3

10 Chiquita 2

Outdoor Top SpendersRank Brand 2011

1 Tang 5452 Vitaene 4643 Cofique 4494 Barbican 3515 Coca Cola 3046 Rani 3047 Nada 2598 Al Rabie 2559 Masafi 17410 Brooke Bond 136

Top brands 2011 (000 US$)

(000 US$ - Semi Logarithmic)

Sour

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80706050403020100

Jan Feb Mar Apr May

2011 2010 2009

88-89-GMR200- SA-PARC Beverages 2.indd 89 8/29/11 2:55 PM

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90 Gulf Marketing Review September 2011

SeptemberMedHealth & Wellness Omanexpo LLCDate September 27 to 29 Venue: Oman International Exhibition Centre, MuscatTel: +968 2466 0124Fax:968 2466 0125/126E: [email protected] W: omanexpo.com

Chic Lady Show 2011Al Hader Exhibitions & ConferencesDate: September 27 to October 1 Venue: ADNEC Abu DhabiT: +971 (0) 2 444 6900F: +971 (0) 2 444 6135E: [email protected]: chiclady.al-hader.com

Boosting Sales PerformanceIIR MEDate: September 18 to 21Venue: JW Marriott, DubaiT: +971 4 3352437F: +971 4 3352438

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

OctoberThe International Furniture and Design Exhibition (INFDEX 11)Qatar Expo Event Mgmt.Venue: Doha Exhibition CntrDate: October 5 to 8 T: +974 4465 0211E: [email protected]: qatar-expo.com

International Jewellery and Watch Show Abu Dhabi (JWS 2011)REED Exhibitions FZ – LLCDate: October 17 to 21Venue: Halls 5-7, ADNECE: [email protected]

Total MarketingIRR Middle EastDate: October 24 to 28Venue: The Address Dubai Marina T: +971 4 335 2437F: +971 4 335 2438E: [email protected]

Iraq Health Expo 2011Expotim Intl Fair Organisation, Inc.Date: October 27 to 30Venue: Basra Intl Fair GroundT: +90 212 3560056W: iraqhealth.net

NovemberSaudi International Motor ShowAl Harithy Company for Exhibitions LimitedDate: November 19 to 23Venue: Jeddah Centre for Forums & EventsT: + 966 (0) 2 654 6384E: [email protected]

Successfully Managing Marketing TeamsIIR MEDate: November 20 to 23Location: TBCT: +971 4 3352437W: iirme.com/mktgteams

Jewellery ArabiaArabian Exhibition Management WLLDate: November 22 to 25Location: Bahrain Interna-tional Exhibition & Conven-tion Centre, ManamaTel: +973 17 550033Email: [email protected] W: aeminfo.com.bh

GEMAS effie Mena Awards 2011Mediaquest Corp.Date: 24 NovemberLocation: Joharah Ballroom, Madinat Jumeirah, DubaiW: gemaseffie.com

The Saudi-Turkish Forum ExhibitionCouncil of Saudi Chambers and the Gulf Research CntrDate: November 26 to 27Location: King Faisal Conference Hall, Intercontinental Hotel, RiyadhT: +966-2-6518888E: [email protected] W: grc.net

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