Issue 6 - International Advertising Association
Transcription
Issue 6 - International Advertising Association
THE INTERNATIONAL ADVERTISING ASSOCIATION, UAE CHAPTER ◆ A BI-MONTHLY REVIEW OF THE ADVERTISING AND COMMUNICATIONS BUSINESS IN THE GULF ◆ ISSUE 6, OCT-NOV, 2006 WHAT’S INSIDE Guest Columns By Lara Haidar, Sunil John and Nabil Kazan Page 32 “You will not get protection for everything simply by submitting an application, you need to be very specific about what you want protection for” Free To Air A recent Booz Allen Hamilton review of television broadcasting in the Middle East analyses the prospects for Pay TV and the increasing number of advertisers interested in reaching out to the Saudi citizens. Page 16 Mind The Gap While companies seek to redress the problems with their own internal training solutions, the situation nevertheless has wide implications for the UAE ad industry and the economy as a whole. Page 20 Breakaway Brand Can financial institutions brand their products and services the same way FMCG brand their products? Tarek Sultani, client director at Landor Associates looks at the barriers facing financial institutions in brand development. Page 24 Critique AdVocate gave creative director Shehzad Yunus from TBWA\RAAD the chance to do what every creative person loves to do – separate media’s wheat from the chaff. Page 36 NEWS ■ THG Leads the Pack of Cannes Lions Winners ■ New Corporate Indentity for Dubai Quality Group ■ International Advertising Community Promotes Social Responsibility ■ AdForum Data to be Used in Gunn Report ■ IAA Television ad Shortlisted at Cannes ■ Horizon-FCB in Kuwait Wins Five Awards ■ DIFF Selects Communications Agencies for 2006 ■ Dubai to Host 2007 Gathering of International Press Clubs Cannes Lions Launch Dubai Lynx THE ORGANISERS OF THE Cannes Lions International Advertising Festival have announced a new awards competition, The Dubai Lynx, to be held in Dubai, for the first time in March 2007. The annual Dubai Lynx awards will be managed and organised by the team responsible for the running of Cannes Lions and Eurobest Awards and will be held in association with the UAE Chapter of the IAA and with support from Dubai Media City. Entries will be invited from throughout the Middle East and North Africa region. Judging will take place in Dubai over 4 days, culminating in an awards dinner and ceremony on 19 March 2007. Two juries, comprising of international leaders as well as top creatives will judge the two different sections of entries. There will be one jury for TV/Cinema, Print, Outdoor and Radio entries and a separate jury for Interactive and Direct Marketing entries, each headed by a jury president. Speaking exclusively to AdVocate from London, Terry Savage, executive chairman of the Cannes Lions International Advertising Festival said: “The decision to run the Dubai Lynx Awards was based on the significant potential growth in the region and the emergence, in the global village in which we operate, of work outstanding enough to win Lions at Cannes. We will bring to the region the brand values of neutrality and premium execution which we have developed over many years running the world’s leading global festival, Cannes Lions and Europe’s leading award event, Eurobest.” Savage added “We will be directly in control in all aspects of Dubai Lynx from origination of the event to our state of the art judging systems. Judges will be supervised by our own personnel who are used to running independent jury rooms. Our ability to reach out to the creative community in this regard is unparalleled.” Tanvir Kanji, president of the UAE Chapter of the IAA commented: “By holding the Dubai Lynx Awards in conjunction with the organisers of Cannes Lions, we are assured of neutrality, expertise and juries at the best level that we can get in the region. We expect these awards to become the standard for creative excellence in the Middle East and North Africa.” After the inaugural awards in 2007, the Dubai Lynx will be run in association with a new event “The Dubai International Advertising Festival” which will commence in 2008, bringing to the region a series of high profile seminars and other initiatives aimed at giving creative inspiration, learning and networking opportunities to people working in the region. Also commenting on the launch of Dubai Lynx, Mohamed Al Mulla, Director of Dubai Media City said, “We are proud to support the event’s efforts to recognise and foster global advertising excellence. Developing talent in the media industry is close to Dubai Media City’s own heart. Promoting Who’s Seriously Online? ONLINE PROPERTIES (websites) have matured in the Middle East. After the global dot.com bust of 1999, the online media scene is picking up pace again. Who are the main players? Who makes money? And what’s the long-term scenario? Mars Mlodzinski unveils a status report on the ‘new’ media business. ...Continues on Page 18 IAA’S UAE CHAPTER HELPS LEBANON THE IAA UAE CHAPTER IS contributing a sum of Dhs 50,000 to the Emarati-Lebanese Friendship Association. The association continues to raise funds to alleviate the suffering of ordinary Lebanese people. Tanvir Kanji, president of the UAE Chapter, has invited members to contribute generously to help friends and colleagues in Lebanon. Terry Savage, executive chairman, Cannes Lions International Advertising Festival aspiration and achievement in the advertising industry is one of our key strategic objectives. The fruits of our efforts are evident in the successes of DMC’s advertising segment, which is one of its most flourishing sectors. As Dubai gears up to host the region’s first International Advertising Festival, we look forward to receiving the global advertising fraternity here.” Further information will become available in mid October when the new website www.dubailynx.com launches followed by the Call for Entries in early December. GCC’s India Challenge WITH INDIA’S economy in takeoff mode, GCC based companies are seriously considering entering the market. It’s not going to be easy given the dynamics of marketing in India. Hilmy Cader, global CEO of MTI consulting gives an insight into what companies have to look at before hopping on the India bandwagon. ...Continues on Page 28 4 LETTER Welcome Dear friends, Ramadan Mubarak. A fter the spectacular success of the 40th IAA World Congress earlier this year, our Chapter in association with the organisers of the world renowned Cannes Lions Awards is launching the Dubai Lynx Awards. This marks the emergence and recognition of our regional industry in the global advertising arena. The Dubai Lynx Awards will further strengthen the image of the UAE – Dubai in particular – as the hub of the ad industry in the region. The videos of several of the Speakers of the World Congress have been posted on the website www.iaaDubai2006.com. The summer months of July and August are generally seen as off-season in our region. This is certainly not the impression one gets if one were to scan through the news section of AdVocate. Regardless of the 40-plus degrees outside, the industry seems to have taken the summer in its stride with launches, events and a whole host of other marketing related activities. This summer also saw conflict in the region. On the IAA’s part, we are continuing to support our brothers and sisters in Lebanon and raise funds for the rehabilitation and rebuilding of those affected. This issue of AdVocate also covers how online properties (websites) have matured in the Middle East. After the global dot.com bust of 1999, BPA Releases Gulf News Audit Figures GULF NEWS HAS announced its audited circulation figures, indicating that it is the top-selling English language newspaper in the UAE. Obaid Humaid Al Tayer, managing director of Al Nisr Publishing, which publishes Gulf News, said the paper’s Saturday to Thursday circulation averaged 91,985 between January and March this year. The figures from BPA Worldwide also showed that the average Friday circulation during the same period was 94,247. Al Tayer also said the average distribution or print run of Gulf News from Saturday to Thursday between January and March was 100,609, and on Fridays during the same period was 103,212. Gulf News is the first paid-for newspaper in the Gulf to be audited by BPA. Stuart Wilkinson, BPA Worldwide’s director for Europe, the Middle East and Africa, said, “Dubai is positioning itself as a regional hub, somewhere to invite people to do business. “As the population and economy grows, you have to put order into the chaos. Auditing is an opportunity for publishers to show they are best practice operators.” An analysis of the BPA figures the online media scene is picking up pace again. Who are the main players? Who makes money? And what’s the long-term scenario? This issue gives a status report on the ‘new’ media business. With the emergence of India – as a major market for products and services, we look at how brands in the region can best cash in on a market of a billion plus people. As always, I look forward to your feedback. Tanvir Kanji President – IAA UAE Chapter INFORMATION Tom Bernadin Sahar Hashemi Jack Klues Jose Anzar Hameed Haroon Allen Rosenshine President Tanvir Kanji Vice-President Marwan Kai General Secretary Nadim Barrage Treasurer Najib Trad Administrator Monica Baugi Vice-President and Area Director - Middle East and Africa Marwan Rizk PO Box 71104, Building 8 Dubai Media City Dubai, United Arab Emirates T: +971 4 390 3232 F: +971 4 390 8362 [email protected] www.iaauae.org ADVOCATE CONTACTS Group Senior Editor Riyad Mickdady Tateo Mataki Sergio Zyman Editor Vicky Kapur reveals that of the Saturday to Thursday circulation, 91,177 copies were paid for and just 808 non-paid. From Saturday to Thursday, an average of 89,004 copies were distributed in the UAE. Friday’s paid-for circulation was 93,439 and its non-paid 808, and the UAE distribution was 90,668. BPA, which was founded in 1931 and currently operates in 26 countries, is the only circulation audit firm currently approved by the Circulation Audit Steering Organisation (Castor), the auditing standards organisation created by the Gulf Cooperation Council Advertising Association (GCCAA) and the UAE Chapter of International Advertising Association (IAA). Deputy Editors Jacob Joseph Gopal Bhattacharya Amelia Rowling Norman Pearlstine Gregory Lee Twenty-four of the Speakers of the 40th IAA World Congress held in Dubai, March 20 to 23, 2006 have already agreed to have their speeches posted on our Congress website (www.iaaDubai2006.com). International Advertising Community Promotes Social Responsibility ORGANISED BY ACT Responsible, an initiative of AdForum, and supported by the International Advertising Association, a new TV programme called One Minute of Responsibility on Euronews provides spots for non-commercial, social and environmental causes. IAA CONTACTS “Since inception, the IAA has cared about promoting social responsibility,” says Joseph Ghossoub, chairman and world president of the IAA. The advertising concept, developed by TBWA/ Corporate has been produced by Artrack. The first selected spots are Human Ball by Duval Guillaume for Medecins Sans Frontières and Cake by Euro RSCG Prague for UNICEF. Herve de Clerck, Dream Leader of AdForum and ACT Initiator and IAA vicepresident for corporate social responsibility, said: “Our goal is AdVocate to federate, inspire and promote great work in advertising and communication, in favour of social responsibility and sustainable development, and to show how advertising plays a significant role in raising awareness in today’s crucial world issues.” Anju Govil Design Kris Karacinski Advertising Shawki Abd El Malik PO Box 2331, Dubai, UAE T: +971 4 282 4060 F: +971 4 282 7593 AdVocate is designed and produced for the International Advertising Association, UAE Chapter, by Motivate Publishing. Printed by Rashid Printers 6 NEWS KSA National Readership Survey THE PAN-ARAB RESEARCH Centre has announced its Saudi Arabia National Readership Survey for more than publications including newspapers, weekly publications and monthly magazines. Using multi-stage probability sampling through face-to-face interviewing, the survey covered urban centres, suburban and rural areas in Saudi Arabia. The total sample for this survey consisted of 4,964 individuals. Results have been weighted to represent the current adult population structure in the country. The objective of the survey was to compile a database of information about every publication including: distribution; popular reading topics; where it is bought; where it is read; how long raders spent reading; and how many people read the same copy. The results were analysed in the form of statistical tables by major socio-economic factors such as age, gender, family structure, family income, occupation, area and other variables, and by day of the week. Further details are available on: www.arabresearch.com. Motivate Publishing Teams Up with Golf In Dubai THE DUBAI DESERT Classic is today referred to as a ‘jewel’ on the European PGA Tour, courtesy the efforts of Team Dubai. Now, Golf In Dubai will host the first Dubai Ladies Masters in October this year alongside the organisers and promoters of the Dubai Desert Classic. Motivate Publishing has been an integral part of the Dubai Desert Classic folklore almost since its inception in 1989. As patron and official publisher of the Dubai Desert Classic and the new Dubai Ladies Masters, Motivate can take pride in playing a role in establishing the credentials of the event on a world stage. Motivate’s support to the Dubai Ladies Masters, underlines its commitment to Dubai’s sporting season. “Our relationship with Motivate Publishing has grown in strength and stature over the years. They are part of our well-knit family and naturally we are delighted to have their support for our events for another four years,” Mohamed Juma Buamaim, vice-chairman of Golf In Dubai, said. “The official programme, published by Motivate every year, is a souvenir to treasure. Featuring comprehensive previews and reviews of the Dubai Desert Classic, the programme has excellence written all over it. “Once again we welcome Motivate Publishing onboard. Without the backing of the corporate world it just wouldn’t have been possible to stage events the stature of the Dubai Desert Classic and the Dubai Ladies Masters,” he said. Ian Fairservice, group editor and managing partner of Motivate Publishing, was equally upbeat about their ever-growing ties with Golf in Dubai. “Our support to Golf In Dubai forms an integral part of our commitment to help and promote our booming city. “We are proud to be part of a team that professionally runs world-class tournaments Mohamed Buamaim (left), vice-chairman of Golf In Dubai and Ian Fairservice, managing partner and group editor of Motivate Publishing. which not only promote Dubai, but the UAE as a whole. “We have seen how the Dubai Desert Classic has matured into one of the premier events on the European PGA Tour and I am sure the forthcoming Dubai Ladies Masters, featuring a star cast led by Annika Sorenstam, will be equally successful, if not more so. I wish Golf In Dubai all the best in their endeavours in projecting Dubai on the world golfing scene.” YouGov Acquisition of Siraj Creates Regional Powerhouse Top to bottom: Nassim Ghrayeb, MD and partner at Siraj; Nadhim Zahawi, joint CEO and co-founder of YouGov Plc; Iman Annab, director and partner of Siraj; Lina Nahhas, director and partner at Siraj. YOUGOV, THE UK’S leading online polling and market research company, has acquired Siraj Marketing Research and Consultancy in a deal that creates a new force in the burgeoning research industry in the Middle East. The new business – to be known as YouGovSiraj – harnesses YouGov’s cutting- edge techniques in quantitative polling and online research with Siraj’s regional market leadership in qualitative, consumer research. In combining these capabilities, YouGovSiraj will be uniquely positioned to tailor a unique proposition that will give clients a competitive edge in the Middle East market. The purchase price will comprise a consideration of approximately $2.18 million (Dhs8 million). Capitalising on synergies between the two companies, YouGovSiraj plans subsequent expansion across the Gulf Co-operation Council (GCC) region, having established Dubai as its hub. Siraj, established in 1999, provides market insight that draws on the company’s strong local knowledge and understanding of the region. Their services range from custom and CSR related research to predicting social and political trends. YouGov has been active in the Middle East since 2004, when it established a specialist panel of businessmen and women across the GCC countries. In Britain, YouGov’s clients include a wide range of national newspapers, Channel 4 Television and accountancy practice KPMG. The business floated on the London Stock Exchange (LSE) in May last year, having been founded in 2000. Commenting on the acquisition, Nadhim Zahawi, joint CEO and co-founder of YouGov PLC said: “Siraj is an established company with a great reputation. The market research sector is growing rapidly in the GCC area and the enlarged group will be well placed to provide complementary services to its growing client base. The acquisition brings a highly experienced, Arabic speaking team to YouGov and adds further strength to our team in the region.” Nassim Ghrayeb, managing director of Siraj, added: “Joining forces with YouGov will allow us to develop cutting-edge market leading products, whilst retaining a boutique approach to service.” He added: “Importantly, our enhanced capability will give consumers a collective voice with which to express themselves.” DIFF Selects Communications Agencies for 2006 ADVERTISING AGENCY Bates PanGulf and public relations consultants JiWin are set to roll out communication and media relations campaign for Dubai International Film Festival 2006 (DIFF). Media planning and buying agency MindShare has retained the DIFF account for the second consecutive year. There has been a considerable increase in public awareness and participation at the festival through advertising and publicity in previous years. Organizers say it is now important that the cultural objective of the festival be highlighted, to help foster audience involvement. Commenting on the selection of Bates PanGulf, Shivani Pandya, DIFF Executive Director of Festival Operations said: “During the pitch, Bates Pan Gulf demonstrated its ability to effectively translate our core values into strong advertising, providing us with confidence in their ability to further assist us in our efforts.” AdVocate The main advertising campaign for DIFF 2006 will break during the last quarter of the year. However, the festival will continue with other initiatives and activities as a run-up to the event in December. The appointment of JiWin, the public relations arm of Dubai Press Club, follows DIFF’s strategic decision to reach out to an extensive media base in the UAE and the region and a large segment of filmgoers, industry professionals and media representatives. Media planning and buying agency MindShare presented a well-defined and detailed proposal on media strategies, which won the festival account. 8 NEWS New Corporate Identity for Dubai Quality Group THE DUBAI QUALITY Group (DQG), a non-profit organisation dedicated to raise the general performance level of the local business environment, has relaunched its new corporate identity to reflect the increasingly global nature of Dubai and the UAE. His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Department of Civil Aviation, Chairman and CEO of Emirates Group and the patron of Dubai Quality Group, unveiled the new logo. The new corporate identity was created by “Client Advertising” to reflect the stamp of quality that Dubai always excels in and further strengthens DQG’s status as an organisation that strives for corporate excellence. This is part of DQG’s strategy to meet the additional requirements warranted by the changing ground realities. Group and the patron of Dubai Quality Group while receiving the award from Abdulqader Obaid Ali, Chairman of DQG. THG Leads the Pack of Cannes Lions Winners THE HOLDING GROUP scored an unmatched hat-trick at the Cannes International Advertising Festival 2006 with Wunderman claiming the region’s first Cannes Gold Lion for direct marketing and Team/ Y&R scooping two Silver Lions. The group’s quality of work was further validated with Team/Y&R having a total of four finalists at Cannes, including one entry which was the first Middle East-made television commercial to be shortlisted as a finalist. “We are proud that we have been able to contribute in associating the Middle East and North Africa market with world class communications work,” said Joseph Ghossoub, THG chief executive, at a media briefing in Dubai. “This has been a great year for THG, and it is not over yet,” added Ghossoub, who is also the chairman and worldwide president of the International Advertising Association. The direct marketing specialists at Wunderman proudly display their Cannes Gold Lion; and a description of their winning campaign. Wunderman won in the direct marketing category for Microsoft - ‘Gotcha’ — a campaign to tackle the use of unlicensed Microsoft software in the Middle East. The most common way people obtain pirated software is via friends and colleagues. As such, Wunderman sent out a brown paper envelope (each of the 3,000 mailers was handwritten to make it look as if it had come from a friend). On opening it, the receiver found a CD with a hand-written post-it note. Within seconds of loading the CD the PC appears to crash. Moments later, a message appears to say that pirated software could actually make this happen. Results showed that 49 out of 3,000 prospects purchased Windows Genuine Software within five days of receiving the mailer. The campaign closed with a response rate of 9.91 per cent, which is 3 times higher than what Microsoft had experienced with mailings in the past. The mailer earned rave reviews from people and was received by them in quite good spirits. Many Microsoft retailers reported that people buying Genuine Software actually recounted the shock they got when a certain fake CD from Microsoft made their PCs crash for few a minutes. to a mere 2 per cent that were converted into customers on the basis of regular advertising in the consumer magazine. While the initial investment of creating your own custom publication is slightly higher than running an advertising campaign, the ROI is substantially greater. In the scenario mentioned above, the cost per sale in a custom publication was only $4.90 as opposed to $125 using conventional print advertising in a consumer publication. In a market that has become saturated with publishers that have not been honest about their circulations, the Middle East is primed for a custom publishing push, but in order for this to happen, marketing managers must be willing to reallocate significant portions of their budgets to producing custom publications. In addition to fully regulating the editorial content an experienced custom publishing house will be able to advise its clients on how to influence the overall costs of the publication, by tweaking circulation numbers, frequency, pagination and mode of distribution. While many publishers have dabbled in custom publications in the region, there are no resounding success stories outside the airline industry, and this is largely attributed to the absence of specialist custom publishing houses in the region. BRAND BUILDING THROUGH CUSTOM PUBLISHING A DUBAI-BASED COMPANY is aiming to promote custom publishing as a potential brand-building exercise. Leading Brands Publishing a UAE-based boutique publishing house, specialises in exclusively producing custom publications for its clients, setting out the benefits of producing such publications and explaining the true numbers behind Return on Investment (ROI). However, as managing director Mars Mlodzinski pointed out, the company also has to change attitudes among the business community which has become sceptical due to a lack of auditing. “There’s no question that measuring the success of a custom publication is a tricky proposition, and ROI, as with many marketing initiatives, is difficult to gauge,” says Mars Mlodzinski, managing director of Leading Brands Publishing. “Custom publications such as newsletters and magazines have to be an integral part of a long-term strategy to promote and build brand awareness, fostering customer loyalty and sales in the process. And while we all love to see an increase in dollar signs at the end of every project, success in custom publishing terms is not always easily defined in black and white numbers. This is where we step in – to conceptualise, write, design, print and distribute custom publications that are successful and that produce tangible results.” To put custom publications in quantifiable terms, market research carried out in the United States revealed that the conversion rate into sales was drastically higher in custom publications than it was using conventional advertising in mainstream publications. The study was carried out by monitoring two publications with an annual circulation of 100,000 copies (one custom, one consumer) that targeted a similar demographic with six issues being produced per year. The study revealed that 57 per cent of people that read the custom publication purchased a product or service as a direct result of what they read, as opposed AdVocate 10 NEWS Ex-US Transport Chief Joins Hill & Knowlton HILL & KNOWLTON has appointed former US Secretary of Transport Norman Y. Mineta as vice chairman. Mineta, who served under both the Bush and Clinton administrations has a distinguished career including 20 years in the US House of Representatives. He was also the chair of the National Civil Aviation Review Commission and cabinet service under the last two United States presidents. Mineta joined the administration of President George W. Bush in January 2001, becoming the 14th Secretary of Transportation and was the longest serving secretary in the history of that cabinet post. He was formerly Secretary of Commerce under President Bill Clinton. Mineta will be based in the firm’s Washington DC office and will report to Paul Taaffe, chairman and CEO. Cross Cultural Media Usage and Attitude Study THE UAE CHAPTER OF the IAA and Zayed University joined forces to conduct a survey of 1,115 UAE residents in all seven Emirates last fall. Each respondent was asked 70+ questions about media usage and attitudes. The survey covered such topics as media ownership, types of media used, language of media used, media used for different types of entertainment and information, importance and satisfaction with the media used, and attitudes about advertising. Importantly, the men and women interviewed were selected based on their nationality. This means that all of the information captured can be analyzed in terms of the nationalities of the survey participants, as well as other demographics. The six nationality groups are: UAE Nationals, Arab Expats, Indians, Other South Asians, Westerners whose native language is English and Westerners whose native language is not English. The results of this research will be issued in five reports between October and December. The scheduled reports are: ■ Media usage patterns in the UAE ■ TV programme type viewing behaviour by nationality, education, age and gender ■ Internet usage by nationality, education, age and gender ■ News topics importance and satisfaction by nationality, education, age and gender ■ Interaction of nationality, education, age and gender on advertising attitudes. LEO BURNETT CHOSEN BY DUBAI PROPERTIES LEO BURNETT HAS announced it has begun an extensive advertising campaign for Dubai Properties’ Corporate Brand and the developer’s Business Bay Project. The move follows Leo Burnett being chosen by Dubai Properties, a member of Dubai Holding and one of the five master developers in Dubai with free-hold status, to be its lead brand agency following a competitive agency review. Leo Burnett’s work for the rapidly expanding company will focus on a campaign that will emphasise the developer’s commitment to a journey of excellence, and its ability to create a unique environment for the lives of its customers. The Business Bay campaign will accentuate Dubai Properties’ commitment to making an environment conducive to the success of businesses of all types. “We have been impressed by the quality of Leo Burnett’s planning, strategic interpretation, creative interpretation, and positive team interaction,” said Nizar Khoury, chief marketing officer at Dubai Properties. “This is a company that has in its presentations managed to challenge itself and to think outside the box. We are happy to have them represent us in one of our most important developments and in highlighting our overall corporate brand,” Khoury continued. Kamal Dimachkie, managing director of Leo Burnett Dubai and Kuwait, said: “This is a fascinating time for the property market in Dubai with a myriad of challenges. With a new development being announced every other day, how do you create a brand, which will stand out and stand the test of time? I think for the team at Leo Burnett this is what we do best: that is create brands which are enduring and not just create awareness. This is what defines us as an agency and we are very excited to be part of this campaign with Dubai Properties.” Nizar Khoury, chief marketing officer for Dubai Properties (left), and Kamal Dimachkie, managing director of Leo Burnett Dubai and Kuwait. Marketing Does Wonders for Egyptian Tourism Egyptian celebrities featured in the successful Nawart Masr commercial. THE NUMBER OF VISITORS to Egypt from other Arab countries was up 15 per cent between January and June this year, which trade sources attribute to successful marketing, the abundance of airline services and the traditional holiday period. The largest leap was seen among visitors from Qatar (86.9 per cent), followed by Palestine (17.4 per cent) and the UAE (11.9 per cent), and their tourist nights rose 63.8 per cent, 26.9 per cent and 25.1 per cent respectively. Saudi Arabian visitors increased 8.9 per cent to 42,245, cementing its position as the premier regional market and fourth biggest overall after Germany, the UK and Italy, while Bahrain arrivals increased 8.3 per cent to 1,574 visitors. Lebanon and Libya also performed strongly, both recording double-digit growth. “Cairo remains the busiest route from Dubai by volume and we are seeing more short breaks, thanks to the increasing number of flights in and out of the UAE,” said Munir Sherwani, manager for Al Rais Holidays. “The Sharjah-Sharm El Sheikh flights on Air Arabia are going fully booked and interest in Alexandria is growing.” The success of the ‘Nawart Masr’ (‘You Light Up Egypt!’) campaign, which placed Arab visitors at its heart, was one of the key factors in the visitor upturn. The campaign highlighted the cultural similarities involving Egypt and its neighbours in North Africa and the Middle East. Reinforcing Egypt’s tourism message, popular Egyptian celebrities including Yusra, Omar Sherif, Hakim, Nour Al Sherif, Sherine and many AdVocate Marketing has boosted the appeal of Egypt’s ancient wonders. more, have opted to lend their celebrity to the cause, serving as tourism ambassadors for the country whose popular media extends well beyond its national boundaries. Even non-Egyptian stars who have come to call Egypt home are onboard. Young, rising film star featured in the highly acclaimed Yacubian Building, Tunisian-born Hend Sabry, and Moroccan singer Samira Said. A nine-country roadshow, which toured the region earlier this year, further strengthened links between Egypt and its close neighbours. 12 NEWS Entrepreneurs Examine PR in a Changing World IN THIS EVER-MORE competitive age, when events anywhere have an impact everywhere, building lasting, trusted brands has never been more challenging. That was the message of a series of addresses to a gathering of Dubaibased Indian entrepreneurs. Members of The Indus Entrepreneurs (TiE), a notfor-profit organisation that promotes entrepreneurship and wealth creation, attended the event. The theme of the evening was ‘The value of PR in today’s competitive world,’ an issue of crucial importance to this group of independent businesspeople operating in Dubai’s fastchanging environment. The core of the evening’s activities included presentations by Sunil John, partner and managing director at ASDA’A Public Relations; and Samit Bhatta, general manager, Sales and Marketing, Damas Jewellery. The two presentations were followed by a lively Q&A session, in which TiE members posed hard questions about the value of PR and the best means to communicate with customers and clients in an age characterised by what John called “continuous partial attention.” “The world has changed,” argued John, who insisted that globalisation, including technological change and corporate and government scandals, has brought with it an erosion of public trust in traditional institutions. “Openness, dialogue, credibility and transparency are therefore now all keys to effective communication,” he told the audience. “In the new global village, building trust is what matters most to any brand – whether it’s corporate or governmental. That’s why building bonds of trust is what PR is all about.” Dubai World’s Limitless Taps Enterprise IG’s Branding Skills ENTERPRISE IG ‘THE Global Branding Agency’, has announced the completion of an exciting project involving the creation of the new brand identity for Limitless. Limitless, is part of Dubai World, a Dubai government conglomerate that houses DP World and Nakheel amongst other leading businesses. As the Dubai property market features a multitude of property developers, Limitless wanted to stand out through a unique brand identity. This innovative corporate branding will help establish their business not only across the region, but also within international markets. The property boom in Dubai has been astonishing, with a property value of $45 billion in the development stage and a further $45 billion currently being conceptualised. Limitless, a sister company of Nakheel, is one of the top property developers in the region and is seen as an integrated property development company with global ambitions. The challenge was to develop a distinctive brand promise and identity that would allow Limitless to build a compelling and credible reputation in an extremely competitive market. The brand needed to gain local and international recognition quickly enough to sign up with industry partners and undertake large development contracts. ‘Grow’ to Brand Qatari Diar’s Moroccan Project QATARI DIAR, A REAL estate investment company, has appointed Dohabased communications agency Grow’to deliver the branding and communication campaign for the company’s first regional development in Tangier, Morocco. Al Houara is set to be Tangier’s new exclusive address and tourism hub with worldclass facilities including a five-star hotel, coastal chalets, exhibition centre, golf club, restaurants and a kasbah – an ancient-style bazaar – offering traditional handicrafts. Grow will be responsible for developing Al Houara’s brand strategy in the lead-up to the project’s sales office launch, which is scheduled to open in the coming months. “In all aspects of Qatari Diar’s developments we establish new global standards from master planning to marketing by selecting agencies and partners that are high-calibre specialists in their field,” said Leanne Arnold, director of marketing at Qatari Diar. “Under the direction of Grow, Al Houara’s brand will build on the benchmarks set by Qatari Diar’s Lusail development, but will be unique in its own creativity and highimpact marketing,” she said. Grow’s managing director, Anthony Ryman, added that Al Houara’s branding will reflect the cultural significance of Tangier and the development’s commitment to fostering a sense of community for visitors and residents. “The Al Houara branding will echo the development’s philosophy of being a sustainable community that has integrated into Tangier’s historic area,” explained Ryman. “Because we are a communications agency grounded in branding, we will develop a holistic, integrated campaign that communicates the experience that Al Houara’s guests and investors can expect.” Horizon-FCB in Kuwait Wins Five Awards HORIZON-FCB IN Kuwait, part of Horizon Holdings won five awards at the Kuwait Rewards Excellence in Advertising awards. The ceremony was held on June 2, at Hilton Kuwait Resort and was organised by ArabAd magazine and IAA Kuwait Chapter. The company won gold awards for two of its ads – those for IKEA and Mr Baker. There were also silver awards for another IKEA ad, the silver award for the Mr Baker TV commercial and bronze awards for the KDC ad. Besides the five awards, Horizon-FCB received three further nominations. These were in fashion (MaxMara), travel and tourism (Turkish Tourism Board), and beauty (La Colline Anti-Age Cream). Said Zeineddine, general manager of Horizon-FCB Kuwait, said: “Winning five awards and being nominated for another three was a great result for Horizon-FCB in Kuwait which recognised the significant creative capital we have within the agency. We submitted 19 entries in the KREA Awards Ceremony, and our success demonstrates the high standards that our clients have come to expect from us.” AdVocate Al Aan Sticks to Own Content Team Al Aan (R-L): Nisreen Sadek, Director News, Ihab Hamoud, Programming Director, Rania Fouda, Media consultant for launch campaign, Zoya Sakr, Head of Corporate Communications and Hussein Ali Ahmad, the Director of Sales and Marketing. AL AAN TV HAS BECOME one of the first Middle Eastern broadcasters to produce all its own content and shows. Recently launching with full content 24 hours a day, Al Aan TV is an innovative new station created specifically for the Arab audience. “As well as being informative, the programming will be exciting and fun - the region’s first example of “infotainment” - television that educates as well as entertains. Our programming enables personal growth and, at the same time, makes people’s lives better,” says Zoya Sakr, Al Aan TV’s Head of Corporate Communications. “Focusing on the issues that effect life in such a rapidly developing region, Al Aan TV reflects a variety of realistic issues that affect today’s Arabic viewers through open and accessible programming.” Broadcast from its headquarters and news studios in building 1 of Dubai Media City, Al Aan TV is strategically carving a niche in the Arab television landscape. Its extensive research has identified a gap between the big news broadcasters in the region and the lighter entertainment channels. AdForum.com in Gunn Report ADFORUM.COM HAS announced that it will be included in the 2006 Gunn Report, the industry’s annual ranking of agency creativity. In the past, only major award festivals were used in Gunn’s analysis to determine which agencies performed best. “Although it’s been a cardinal rule of the Gunn Report never to disclose the shows that are included and those that are not, I’m making an exception in this case. Reaching over 350,000 advertising professionals around the world each month, AdForum is providing a unique and unprecedented service to our industry.” said Donald Gunn, founder and chairman of The Gunn Report.“Including the 25 most requested and viewed ads by industry professionals over a full year gives an importantPeople’s Choiceaspect to the rankings.” The Gunn Report is published once a year in November and has become the definitive resource for determining which agencies have performed best each year in terms of creativity. IAA Television AD Shortlisted at Cannes THE TV COMMERCIAL for the 40th IAA World Congress in Dubai was among the 25 finalists shortlisted at the Cannes International Advertising Festival in June. The ad, which was commissioned by the IAA’s UAE Chapter, shows an old lady who is unable to claim a prize over the phone because she has an old-fashioned rotary-dial phone instead of a modern touch-tone phone. Known as Change Before It’s Too Late, the commercial features limited dialogue in the form of a recorded message on the phone, which informs the lady: “You are the 1,000th customer. To claim your prize please press one”. The commercial, which was entered into the Film Category (Corporate Image), was conceived and scripted by Team Y&R’s Dubai office alongside the IAA and produced by Filmworks based in Dubai. Tanvir Kanji, president of the IAA’s UAE Chapter, said: “This commercial was originally intended as one of three commercials with the same theme, ie. Change or get left behind. However when we saw the first cut of this commercial there was no doubt in our minds that this was it.” Danni Thomas, senior writer at Team Y&R, said: “The IAA World Congress was all about change, so when we were asked to do a commercial we thought the idea of old-fashioned technology would be a great hook. It was a simple but powerful message.” The 40th International Advertising Association World Congress was held in Dubai from March 20 to 23 and was attended by 2,000 delegates from 67 countries. 14 NEWS Standard Chartered Focus on Teamwork and Partnership STANDARD CHARTERED Bank has launched a new global brand campaign to reinforce its philosophy of teamwork and partnership. The new campaign concentrates on international team sports, building on the sports images used in previous campaigns. The campaign is being implemented through a full range of print media including outdoor, magazines and regional media. The campaign is being reinforced further via pan-regional television providing coverage in nearly 40 countries. Lucinda Semark, group head of marketing for Global Consumer Banking at Standard Chartered Bank, said: “The focus this year moves away from individual sports and instead features multinational team sports: football, rugby, hockey and rowing to name just a few. Team sports are the perfect reflection of Standard Chartered’s partnership philosophy. Their appeal crosses cultural and generational borders and really shows the human spirit at its best.” A new TV commercial for Standard Chartered, developed by TBWA\ MIDDLE EAST MICE & Events,a new B2B magazine, has been launched by Motivate Publishing. The new magazine capitalises on Motivate’s experience in publishing travel and business magazines, as well as exhibitions and events management. Middle East MICE & Events provides authoritative, informative and educational content for MICE (meetings, incentives, conferences and exhibitions) Singapore, demonstrates the value of partnership through the story of Henry Wanyoike who, with the help and commitment of his running partner Joseph Kibunja, overcame the loss of his sight to become an Olympic gold medallist and a world champion marathon runner. Ian Carvalho, account director at TBWA\RAAD said: “Energy, commitment, passion and focus are key partnership dynamics, and by using real athletes in real situations we have been able to deliver these emotions in a way that has a strong feeling of honesty and reality to it." Dubai to Host 2007 Gathering of International Press Clubs THE INTERNATIONAL Association of Press Clubs (IAPC) announced at its annual General Assembly in London that the next General Assembly will be hosted by the Dubai Press Club, the founding member of the IAPC and permanent general secretariat of the association. This year’s General Assembly in London on June 1 and 2 discussed the agenda for the year and charted out steps to further broaden its services and leverage the competitive advantages that exist between IAPC members. The meeting marked the signing of the London Declaration by the members of the International Association of Press Clubs and the European Federation of Press Clubs. The London Press Club will hold the presidency of the IAPC for the year 2006-2007. The presidency is rotational and is decided through election by the IAPC member Press Clubs. The London General Assembly was the largest gathering of Press Clubs in the world with more than 26 Press Clubs represented including Press Clubs from Europe, America, the Far East, Asia, Africa and the Middle East. Mohammed Al Mansoori, executive director of the Dubai Press Club, stated: “It was extremely gratifying to witness such a huge participation from across four continents. “The interactive sessions proved that there is need to engage more members of the press from various parts of the world to set up their own press clubs, which could then be integrated into the wider global body of the International Association of Press Clubs,” Al Mansoori said. “The London meeting also underlined one of the main objectives of the IAPC, which is to encourage the formation of press clubs in parts of the world where a collective of journalists as yet does not exist. “We believe that by doing so, we shall enhance better reporting and freedom of expression,” Al Mansoori added. Track Revolutionises it’s Identity TRACK ADVERTISING, based in Dubai, has announced that it will now be known as Track Communications. The change of name reflects the agency’s rapid development and, according to the company, “a fresh 360° approach, offering total integrated marketing solutions to clients in the UAE and GCC”. As well as the name change the agency has rebranded and updated its corporate identity with a logo that symbolises the meaning of Track – putting one’s New Magazine for MICE business on the right track. Seri Musallam, managing director of Track Communications, said: “Where there’s growth – there’s change. Track Advertising has developed into a full-service agency hence the name change and we want to become known as the communications specialists. We are passionate about what we do and the design of our new logo reflects this. “Track Communications believes the key to success is a mixture of quality, timely delivery, creativity and the ability to think outside the box. Our market is dynamic and so is our team; we see ourselves as a key part of our clients’ teams; we work alongside them to achieve their marketing objectives. With our new approach we now have the right tools to help our clients achieve success.” The Track Communications has grown and developed rapidly since its inception and now supports a diverse portfolio of clients with a range of throughAdVocate and event planners, hospitality industry professionals, venue managers, travel agents, airlines and government tourism departments. Catering for everyone from leading multinational corporate executives to the secretary booking board meetings, Middle East MICE & Events covers both in-bound and out-bound MICE business, with regular features including destination reports, what’s new, people on the move and advice such as getting the basics right, site inspections and planner’s check-list. The launch issue included a special focus on the UAE and Barcelona as destinations, and an exclusive interview with former No.1, Greg Norman, a report on the new Abu Dhabi National Exhibition Centre (due to open in 2007), a comparison of the most expensive beds in the Middle East and a survey of venues for out-of-town meetings. The Arab Spirit of Business Innovation YOUNG ENTREPRENEURS are competing to win $1 million in funding as part of the Arab Business Challenge on Al Arabiya News Channel. The competition involves 200 teams from across the Middle East and North Africa whittled down to two winners in September 2006. It is an initiative of Young Arab Leaders and the Arab Business Angels Network founded by Dubai International Capital (DIC), part of Dubai Holding. “Dubai International Capital is proud to sponsor the challenge in order to promote the spirit of innovation across the Arab world, and to offer the opportunity for a group of young Arab entrepreneurs to see their dreams become reality,” said Sameer Al Ansari, the CEO of DIC and a member of the Young Arab Leaders. Symantec Upgrades its Customer Communications SYMANTEC CORPORATION has recently revamped and redesigned its communications to provide its entire customer base with help, suggestions and the latest security updates to improve the performance of their IT systems with a high level of protection in place. The first in a series of initiatives adopted by the security giant is the distribution of a Home and Home Off ice Security Monthly. This monthly newsletter aimed at small users focuses on providing an overview of the top security threats of the month, together with ways to combat them. “The home and home office user comprises a very large proportion of Symantec’s customer base”, said Kevin Isaac, Symantec’s regional director for the Middle East and North Africa. “It therefore becomes necessary to provide a value added service such as this newsletter in order to ensure that the customers are up to date with the latest in security trends and capable of protecting their systems and their environment from malicious code attacks”. Kevin Isaac, Regional Director for the MENA, Symantec Symantec has also started issuing a newsletter to its channel partners. This comprises of specific news targeted at each of the five specialisations: security management, system and storage management, data management, application performance management and insight and expertise. The content of the newsletter revolves around general Symantec news, region-specific news and news on EMEA marketing campaign programmes and Pan-EMEA events. NEWS 15 Showtime Increases Sports Bouquet SHOWTIME, A LEADING pay-TV network in the Middle East, has signed an agreement with Arabic sports channel Al Jazeera to add the best in international football action to its developing portfolio of sports channels. From September 1st, Showtime subscribers will have 6 sports channels to choose from including Al Jazeera Sports +1 and +2, Showtime’s newly launched sports channels, Sportsnet World and Sportsnet America as well as Extreme Sports and Eurosport News. Teaming up with Al Jazeera gives the region’s sports fans unrivalled access to many of the world’s greatest sporting events through one service. For example, Showtime subscribers will now be able to view all of the games played in two of the world’s most important football leagues – Italy’s Serie A and the top flight in Spain, La Liga. In addition, subscribers will also be able to view the English FA Cup, Portugal’s ‘Superliga’, The English Carling Cup and the Qatari football league. Meanwhile, Showtime’s Sportsnet channels launched in May will continue to impress rugby and golf fans with events such as the 2007 Rugby World Cup, the prestigious Six Nations tournament, the Ryder Cup and European PGA Tour Golf and the English Coca Cola championship. The decision to team up with Al Jazeera is part of Showtime’s commitment to develop a diverse portfolio of channels and programmes for all types of content, from live and exclusive sporting events to the best of western entertainment for all members of the family. Showtime is the ultimate choice, offering the best of sports and the best of Western entertainment in the region through one service. Peter Einstein, President and CEO of Showtime Arabia said, “We are truly pleased to be able to offer our customers a broad range of the highest quality and most diverse mix of international sporting events and championships. With the addition of the two premium channels Al Jazeera Sports +1 and +2, whether you are a fan of football, rugby, motor racing or golf, this provides choice as Showtime has put the very best in sports entertainment in one place.” Subscribers to Showtime’s Platinum and Movie Premiere packages will receive Al Jazeera +1 and +2 at no additional cost, while subscribers to the other packages will receive the channels only when upgrading to Platinum or Movies Premiere. Al Aqariya to Promote RAK Airport Business Park DEVELOPMENT COMPANY Ta’sees has announced the signing of an agreement with Al Aqariya Media Group, a leading media conglomerate based in Dubai Media City, to promote its Airport Business Park project in Ras Al Khaimah. The Airport Business Park is a USD 272 million (AED 1 billion) project located in the Ras Al Khaimah Airport Free Zone. The agreement was signed between Saad Ibrahim Al Moosa, President of Ta’sees, and Engineer Mohammed Saleh, President of Al Aqariya Group. The Airport Business Park project in Ras Al Khaimah consists of 10 commercial towers, each one comprising 10 floors, in addition to eight 11-floor residential towers, two tower blocks comprising furnished apartments, a luxury hotel and a cargo village. The park will also host a building for Dnata Travels on a total land area of 1.6 million square feet. Engineer Mohammed Saleh said, “Al Aqariya Media has been actively promoting real estate developments in the UAE and in the Arab world, and our support to the Airport Business Park in Ras Al Khaimah is in line with our commitment to the growth of the property sector. Al Aqariya Media will promote the park locally and regionally, and we are committed to offer all media and promotional LogicaCMG picks Asda’a PR Stuff and MIMS to Make Regional Debut Nabil Y Khalil, director of LogicaCMG’s Global Telecoms in the Middle East and North Africa. ASDA’A PUBLIC RELATIONS Consultancy has been appointed as the official PR agency of LogicaCMG for the Middle East. Asda’a will be responsible for covering the communications activities for LogicaCMG’s telecoms business in the GCC and Egypt. LogicaCMG, which is headed in the Middle East by Nabil Khalil, is a world leader in telecoms for intuitive messaging, intelligent charging, content enablement and customer intelligence management. GLOBAL PUBLISHER, THE Haymarket Publishing Group, based in London with offices worldwide, have entered into licence agreements with UAE based Motivate Publishing to produce Middle East editions of two of their leading publications, Stuff and MIMS First published in 1996, Stuff has been transformed in the last six years, into the world’s best selling gadget magazine and the fastest growing readership in the men’s lifestyle sector. Stuff Middle East will be the 21st international edition and will be packed with fast paced news and reviews of the latest technology products – plus a healthy dose of lifestyle and sports kit. Launched in 1959, MIMS is published monthly and is the UK’s leading prescribing reference with more than 3,500 formulations of major branded and generic prescription products. All major medicines available on prescription are listed and key information about each Saad Ibrahim Al Moosa, president of Ta’sees, and Engineer Mohammed Saleh, president of Al Aqariya Group. support to help attract investor attention to this unique project.” “The Airport Business Park exemplifies the unprecedented construction boom in Ras Al Khaimah. The fact that a highly reputed firm like Ta’sees is associated with the product’s active ingredients, uses and dosages. Motivate Publishing will take over the publishing of MIMS Middle East from December 2006, initially on a bi-monthly basis. It will be distributed to the existing database of over 5,000 doctors, general practitioners and used by nurses and pharmacists. Ian Fairservice, Motivate’s managing partner said “We see these licence agreements with Haymarket Publishing as a significant strategic move for Motivate linking us with one of the UK’s leading publishers and expands our already successful portfolio to now include B2B and men’s lifestyle publications. The latest survey by Synovate reveals that 87 per cent of respondents in Saudi Arabia and 43 per cent in the UAE feel that having the newest high-tech gadget is important. Additionally, 49 per cent of those surveyed in the UAE and 32 per cent in Saudi Arabia love AdVocate project will ensure that the park is developed in accordance with high international standards,” Eng. Saleh added. Saad Ibrahim Al Moosa said, “We are delighted to join hands with Al Aqariya Media, who has built a reputation as a leading media group in the region with interests across the media spectrum. This agreement holds great importance for Tasees with regard to our promotional strategy for the Airport Business Park, and we expect to gain considerable mileage from this alliance by leveraging the reach and popularity of Al Aqariya’s various media arms.” “Al Aqariya has diverse media interests and boasts a significant new technology and couldn’t live without it. This is in line with our own research and reinforces our decision to publish Stuff Middle East.” Commenting on MIMS, Fairservice said “Healthcare is one of the fastest growing industry sectors in this region so we are confident that there will be increasing demand for MIMS Middle East from medical professionals. It will also provide presence in the broadcast, print and electronic media segments, which influenced our decision to team up with the Group. This partnership will help us promote the Airport Business Park to a cross-section of audience in the Arab world,” Al Moosa added. Al Aqariya Media Group is the first media group in the region to offer dedicated property media services and has a team of experienced and qualified professionals. The company’s media interests include Al Aqariya News, an English news channel; RENA, a first-of-its-kind real estate news agency; and two magazines - Al Aqariya World and Billion Plus. a valuable service through the detailed up-to-date information contained in every issue.” Susan O’Hare - publishing director, Stuff, said: “We’re delighted to be working with Motivate at such an exciting time. 2006 has been an exceptional year for Stuff as we continue to deliver a product that capitalises on the growing wave of personal tech. We share our reader’s addiction to the latest gadgets and have created a product that showcases kit in a way that makes their habit fun, compulsive and instantly rewarding. The key to Stuff ’s global appeal lies in an ongoing strategy of delivering a quality product that identifies closely with its readers.” Peter Welland, Haymarket Medical’s managing director said “Motivate provide publications of the highest quality throughout the Middle East and Haymarket Medical is delighted that MIMS Middle East is in such capable hands.” 16 BROADCASTING FREE-TO-AIR TV gets ready for rationalisation In the KSA, TV is still the centrepiece of family entertainment with a higher preference for general entertainment Arabic programmes and general interest channels. A recent Booz Allen Hamilton review of television broadcasting in the Middle East looks behind this trend to analyse the prospects for Pay TV and the increasing number of advertisers interested in reaching out to the Saudi citizens. T elevision viewing finds itself at the centre stage for family entertainment in the Kingdom of Saudi Arabia (KSA) with a strong bias towards free-to-air TV (FTV) compared to a rather lukewarm response to Pay TV (PTV ) channels. A recent Booz Allen Hamilton review of television broadcasting in the Middle East has said that preference for FTV channels in the KSA stems from the fact that TV viewing still remains a collective family exercise thereby sparking traditional attitudes. “The KSA’s substantially lower penetration rate of 6 per cent [of PTV ] results from a lower share of upper and middle class households and more significantly, greater concerns over the liberal nature of PTV content,” the review has pointed out. Consequently, the general bias among Saudi viewers is towards entertainment and general interest channels, with a section of those who have been labelled as ‘TV addicts’ (against ‘usual TV viewers’) showing a marked preference for movies and music channels. GENERAL ENTERTAINMENT BIAS Given the bias towards general entertainment content and the size of the KSA market, the vast majority of general interest, Pan-Arab FTV channels are targeted at general entertainment. The attitudes towards TV are clearly manifested in the dominant ratings performance of general interest channels such as MBC and Dubai TV. However, the Booz Allen Hamilton report has also detected an undercurrent of viewers preferring more thematic and progressive programming. The improved ratings performance of movie channels such as Rotana and MBC2 reflects the gradual trend towards more thematic viewing habits in the KSA. In addition, the equally strong ratings performance of LBC and Rotana Clips signals the growth of more progressive TV viewer segments. Despite a rising demand for thematic and progressive programming, TV ratings show that the majority of KSA viewers remain among the traditional fold. The featuring of Saudi TV AdVocate and Al Majid TV in the top 10 channels in the KSA confirms the persistence of conservative viewing preference among Saudi families. Overall, mainstream Saudi viewers appear to prefer moderate FTV channels with smaller yet sizeable segments preferring more progressive programming. LOW PTV PENETRATION Besides fears that the possible liberal content might not be compatible with the general trend of collective TV viewing by families, the other factor that is pushing PTV to the background is the easy availability of good content beamed through the numerous FTV channels. Such concerns (of liberal content), together with the abundance of good quality TV content targeted at the Saudi viewer by PanArab FTV channels and terrestrial Saudi TV are diminishing the perceived value of the PTV offering. Also adding to the strain is the comparatively low level of income in various classes of the KSA population. Although PTV subscriptions are priced BROADCASTING 17 at nearly constant prices across the UAE, Kuwait and the KSA, PTV is less affordable in Saudi given the relatively lower income levels across all classes. The review however, says that given the low penetration levels there appears to be high potential for growth for this segment of television broadcast in Saudi Arabia. Overall, the KSA appears to have strong potential for future PTV penetration across all classes if the issues with PTV perception, different value proposition versus FTV, and affordability are addressed. Given the social demographic construct of the population and the fact that a relatively young population is coming to the fore in the next 10-15 years, things are set to change. The younger population is educated and nurtured in a different environment and therefore much more tuned to progressive Arabic content and even non-Arabic content. This generation of viewers is driving a more individual consumption of TV, particularly in the higher socio-economic classes. “We predict that PTV will reach almost one third of the total households,” says Karim Sabbagh, vicepresident, Booz Allen Hamilton. As an indication of things to come, the 2005 ME market for SMS2TV chat services is estimated at about $80 million with youth accounting for more than 60 per cent. Since the middle of the 1990s, there have been three PTV operators in the Middle East – Orbit, Showtime and ART. Their subscriber base has grown substantially during the past four years in the core markets: Saudi Arabia, Kuwait, the UAE and Egypt. PTV subscribers in these countries increased from an estimated 340,000 to an estimated 1,020,000 between 2002 and 2005 – a compounded annual growth rate of over 44 per cent. The main growth driver has been the push to acquire more differentiated content and all three channels have invested considerably in securing exclusive rights for premium content. However, the PTV market continues to remain underdeveloped. With an overall market size of roughly $220 million and given the challenges, the Middle East market could be classified as underdeveloped and somewhat sub-scale. At the same time, addressing these challenges would pay dividends on two fronts. First, it would allow PTV operators to raise their monthly average revenue per user (ARPU) figure from the current modest level of $18-20 towards the $40-60 levels for leading platforms. Secondly, it would allow them to penetrate the sizeable untapped segments of the market. MIDDLE EAST MARKET TV channels are crowding the Middle East (Bahrain, Egypt, Jordan, KSA, Kuwait, Lebanon, Oman, Qatar, Sudan, Syria, UAE and Yemen) market with an eye to the growing number of household and potential viewers. The Middle East audio-visual market with over 190 million inhabitants is particularly large and attractive for broadcasters and advertisers. The review has pointed out that already more than 200 free-to-air TV channels are available to most households in the Middle East via direct-to-home (DTH) technology with many leading channels eager to improve content and market share. “Industry leaders such as MBC, LBC, Rotana, Al Jazeera and Saudi TV are committing substantial investments to create a strong portfolio of channels and secure attractive programming rights,” the review mentions. The review points out that the market is not only expanding, but is also witnessing “fundamental changes” in socio-economic structures. Strong economic growth is gradually favouring the advent of a larger middle class. This will create a market of approximately 13 million households with medium to high income level in Egypt, the KSA, Kuwait and the UAE by 2015. It is estimated that by 2015, the share of the population over 25 years of age could reach 65 per cent in the UAE, 63 per cent in Kuwait, 51 per cent in Egypt and 49 per cent in the KSA driven by the transition of young teenagers to adulthood. This young generation of viewers is driving a more individual consumption of TV, particularly in the higher socio-economic classes in which multi-TV equipment is extensive. With today’s younger generation of viewers accounting for a growing share of the population and progressively forming the nucleus of future households, their TV preferences are shaping future consumer demand. FTV LEADS THE WAY The fact that the proliferation of FTV has been so extensive and at virtually no running cost that the Middle East viewer may be getting better valuefor-money than those in the Western countries “Middle East viewers now enjoy an FTV line-up that at least matches if not considerably surpasses those in the Western countries,” the review states. From the availability of a mere 18 channels in 1993, the Middle East collectively has a bouquet of over 200 channels. Most TV households today, with the exception of Egypt to some extent, can access a particularly comprehensive line-up of both generalist and thematic channels at no running cost, through the simple acquisition of a satellite dish. “FTV will ultimately consolidate as the number we have today exceeds 200 accessible channels and a number of these are public service broadcasters,” says Sabbagh. Additionally, today all broadcasters are in one pool making differentiation difficult. With time, these will be restructured and regulated making room for private broadcasters. ADVERTISING CONCERNS Despite growing interest among advertisers, the market share of FTV is only a small portion of the overall advertising pie in the Middle East. So much so, that the advertising revenues may not be enough for the industry at large and that a good number of channels may not be making enough to cover the costs. The probable scenario is that only a handful of leading FTV broadcasters are marginally profitable at present, whilst thematic channels are loss making for the most part. The net advertising revenue for FTV channels was estimated at around $410 million in 2005; $330 million of this went to the top eight channels and the rest ($80 million) to support all the other channels. Whether commercial networks will rationalise their investments behind loss-making channels remains highly uncertain in the short term. This clearly implies consolidation as the government starts to rationalise this sector. “Public broadcasters provide a specific function and the government might even propose a funding arrangement for a few of them on the lines of BBC, but all the others will have to learn to swim or sink on their own,” says Sabbagh. For example, Lebanese Broadcasting Corporation (LBC) is already a privately owned, commercially run company. Intense challenge for increased share of the advertising market is coming from the growing print media. The constrained development of TV advertising spending results from, among other things, strong competition from the print media. In addition, intense competition amongst FTV networks for advertising revenues has led to irrational and non-transparent commercial practices. Rationalisation and revenue consolidation for the FTV industry is unavoidable. Small channels could be integrated as part of a broader portfolio on the lines of the Fox portfolio in the US. Only then could the industry drive economies of scale. However, in itself, there has been a significant rise in advertising through the FTV channels during the past couple of years. During the past five years, the FTV sector has grown rapidly and attracted increasing attention from advertisers. Advertising revenues have grown by an estimated annual average of 20 per cent on a net basis between 1999 and 2004. The growth in advertising revenues has been driven largely by economic deregulation in key AdVocate sectors in the Middle East, most notably in telecommunications, financial services, insurance, real estate, tourism and entertainment creating new categories of advertisers in the process. The review is, however, optimistic that the advertising revenues would start to flow in soon. Continued economic development, an increasing base of Pan-Arab advertisers and continued deregulation should spur six per cent net advertising market growth per annum during the next five years. In addition, emerging signs of increased transparency and economic rationality provide room for renewed optimism. In fact, most large FTV networks have recently conducted extensive cost-reduction efforts. As for PTV, each of the three service providers – ART, Showtime and Orbit has a different profile and different ‘go to’ market strategy. Showtime tends to focus on premium western content; Orbit offers more of a mix between western and Arabic content and ART tends to localise as much as possible and has focused, in particular, on premium sports content. This is reflected, in turn, in the revenue generation by each of these channels. “We estimate that the average revenue per user ranges from below $10 per month to more than $50 per month, depending on the service provider’s positioning. This puts, by way of example, Showtime with an estimate ARPU of more than $50 per month in the league of European players, but the construct of their viewers is different,” says Sabbagh. RATING AND REGULATION The lower share of advertising revenues flowing into TV may be partly due to the absence of a common rating measurement. In the absence of a common and reliable rating measurement methodology, advertisers lack the critical tools to make efficient media buying decisions. Inflationary rate cards and growing advertising inventory have led to increasing price discounts and more generally speaking, diluted the attractiveness of TV as a medium of choice for advertisers. Though broadcasters have shown incipient signs of changing for the better, areas of concern remain. In 2005, irrational ad-sales inventory management and pricing discount practices have been reported to come under increasing control. Despite these positive perspectives, significant risks and discontinuities remain. Once a rating system is put in place the asymmetry of information will go away. “But for that to happen we need a regulatory framework that requires very explicitly to define the role of public broadcasters vs. private broadcasters and also that the currency that is used to measure performance in a uniform manner across the industry,” argues Sabbagh. Today media buying units are trading their own currency defined by their own agendas. As a first positive sign, the government has already announced its intentions of looking at licensing of private broadcasters in the area of thematic channels. In fact, Saudi could set a precedent that other markets will follow. 18 MARKETING Continued from page 1... Seriously online A fter the spectacular dot.com bust in 1999, the Internet, in business terms, went through a period of consolidation and today seems to be built on a far solid foundation. Users, especially in the West, are now far more confident in what the Internet has to offer them. Where they may have once been hesitant to disclose personal information or credit card details to business or e-commerce sites, they are now self-assured e-consumers who are thriving in the virtual world. For the sceptics among us, it can be argued that there is a 1999-type vibe with the upsurge of new web ventures and bloggers becoming cult-like celebrities, which was the case with the emergence of dot.com superstars only seven years ago. Event organisers around the world are selling out seminars and exhibitions on the back of terms like ‘new media’ and ‘convergence,’ and when you look around, everyone seems to be getting into the game. The trouble is that no one has actually bothered to identify what the game actually is and what the rules of operation are, which in a way differentiates what is happening today from the roaring 90s. Back then, investors were throwing huge amounts of money at half-baked business models that sounded incredibly tempting because they identified a means of capturing the whole world as their potential market. There was a slight issue with that theory though, in that there weren’t nearly enough customers willing to pay online, which quickly put these ambitious ventures to bed. Admittedly, the global online market has matured since then, and for the first time there seems to be a suggestion that there’s no shortage of potential customers, with even specialised blogs and media sites that focus on unusual subjects getting thousands of unique visitors per day. What is lacking though, are solid, fundamentally strong business models that can make money from the tens of millions of prospective clients who are spending their time in cyberspace. It’s on the back of this that the Internet industry across all sectors is growing by leaps and bounds, and recent studies indicate that online retail sales AdVocate will grow to an estimated $117 billion by 2008, while business-to-business online transactions are expected to yield over $8.5 trillion – yes, trillion. While the Middle East doesn’t really play a significant role in terms of hard numbers, this is a market that is beginning to mature. Online media in the region has also gained a lot of momentum in the past 18 months and the region boasts a selection of quality business-to-consumer and business-to-business portals such as AME Info, Zawya and Al Bawaba. “Once people ‘discover’ the benefits of online media, they tend to get hooked. Another healthy sign is that all Arab telcos and governments are investing heavily in infrastructure for more Internet connectivity and broadband,” says Lars Nielsen, sales and marketing director, AME Info. There’s no denying that money is pouring into online ventures, and private equity firms invested $130 billion last year, largely on ‘sure-thing’ sites that had solid business plans rather than companies whose financials were anyone’s guess. Closer to home, AME MARKETING 19 Info was bought out by Emap Communications for a deal that was reported to be in the region of $29 million – an indication that online media in the Middle East is starting to be taken seriously. “Because AME Info understood the online advertising model early on and embraced it, it led to the first major acquisition by an outsider of a local media company, and it happened to be in the online space,” says Hani Jabsheh, CEO, Al Bawaba Group. Looking around the web, there are numerous other reasons to be optimistic. The front pages on America’s most popular sites such as Yahoo!, MSN and AOL are booked for up to the next 18 months, which has subsequently prompted a double-digit rate increase. A year ago, MSN was charging between $25,000-$50,000 for a 24-hour prime position on its web page – the price today stands at $1 million. To attract that kind of advertising support, media sites have to address to key areas: keep the content fresh and come up with innovative ways to secure as many revenue streams as possible. Using a regional example, AME Info, which is now arguably the most successful media site in the region, has been a great exponent of online advertising, direct marketing via email, e-newsletters, sponsorship sales, online surveys and competitions, video and radio production, and content licensing, at the expense of making the site resemble the lion enclosure in Fierce Creatures. While companies such as AME Info have diversified their revenue streams, online media sites, if they hope to stay afloat as business entities, are reliant on two forms of income: advertising and content sales. “Content sales is a very unique business to us in the region, and I think that this will continue to grow. We are seeing most of the world’s major brands moving online, and as such, many will require content for their sites, which is where we come in,” says Jabsheh. While selling content is a lucrative business, everyone knows that the real money lies in securing advertising. The good news is that there’s been a significant 26 per cent increase in global online ad spend, a figure that has now exceeded $6 billion, which is indicative that the industry has moved from the experimentation phase, and is beginning to commit sizeable portions of its marketing budget to online media. With print media being in some disarray in the Middle East, it opens the door for online media to stake its claim. According to Elie Khouri, regional managing director of Omnicom Media Group (OMD), Emirates airline (one of OMD’s clients and a member of Castor), (Circulation Audit Steering Organisation, the auditing standards organisation created by the UAE Chapter of the International Advertising Association and the Gulf Cooperation Council Advertising Association) has stated that the alternative to publications that are not audited is online. Emirates has successfully built a strong online brand through consistent Internet advertising to sell tickets and holidays online, which is an excellent example of just how potentially effective web-based advertising can be. With many international advertising agencies now beginning to see the benefits of online advertising, websites may still be undervalued, and online advertising is still perceived as being a bargain. Using the United States as an example, a 30-second spot on Desperate Housewives costs a heart-stopping $500,000. AdVocate “There’s no comparison between the rates charged for online advertising and those of old line media. Once you get past the major portals and websites, most sites are practically giving the space away,” says Danny Crane, marketing director, TheNewsBox.com. Online zealots have generally accepted this disparity as part of the inevitable transition from old to new media. The problem is that the overall ad numbers have remained obstinately low and are nowhere near the critical mass required for those private equity folks in three-piece suits to feel comfortable about leveraging their investment into a new media venture. While advertising spend has been on the up-andup, advertisers, it seems, still remain gun-shy about the web, which isn’t great news for online media companies trying to figure out how to make serious money. “There is still a degree of conservatism amongst advertisers and media buyers in the region that needs to be overcome, but it is a work in progress and fortunately many big advertising agencies have seriously embraced online advertising by setting up dedicated departments to handle online and interactive media,” says Nielsen. The challenge for new media lies in trying to convince companies and advertising agencies that online ventures are viable options for them. “Online media has the benefit of being highly trackable, meaning that even if your name isn’t as well known on other sites, you can prove your worth through statistics. Our site currently serves nearly 800,000 page views a month from close to 50,000 visits,” says Sam Whatley, managing partner, Dubizzle.com. While regional sites wait for an increase in ad spend to support their ventures, businesses have turned to alternative means of making money on the web – not necessarily by charging subscribers to view their content – but to charge for online services where they act as intermediaries. And it’s a sound business model because by building a solid subscriber base, your traffic automatically increases, which in turn gives you the ammunition to approach advertisers. “As a company that is based in the UAE, we realised that launching a professional-services site that would be dependant on regional traffic would be a tricky proposition. As a result, we opened our site to media professionals across the globe, in a bid to secure worldwide traffic from our core audience. Once we achieve our traffic and subscription objectives by offering competitive sign-on packages, this will make the site far more marketable when it comes to approaching advertisers, and kicking into the next financial stage,” says Danny Crane, marketing director, TheNewsBox.com. 20 TRAINING Creative Training: MIND THE GAP Several clear messages emerge from any analysis of training in the UAE advertising industry, particularly the lack of training courses for highly-skilled executives and creatives. While companies seek to redress the problems with their own internal training solutions, the situation nevertheless has wide implications for the UAE ad industry and the economy as a whole. W e spoke to three managers to glean their thoughts about some of the pressing issues – Ravi Rao, managing director of OMD, Elie Haber, director and head of buying for Mindshare, and Aubert Fernandes, managing director of Turning Point Advertising. They said agencies often overlook training because staff are selected and recruited overseas, adding that the most obvious impact of this is that it pushes up costs and prices for the client. The lack of sophisticated career development cadres means the UAE advertising industry has struggled to break through into the league of more mature markets and is doing all it can to keep pace. However, it is not all gloom. The industry can be buoyed by a few positive measures, such as the creation of in-house training centres, the growth of multi-disciplinary on-the-job training and a range of bright ideas for the future from some of the managers we interviewed. What qualities do employers look for in new recruits? We asked employers what they look for in the CVs AdVocate of their candidates and the answer was a variety of qualifications, depending on the role in question, plus a wide range of ‘soft skills’ that would enable the new team member to adapt, communicate and progress. Ravi Rao MD of OMD said he always looks out for the following attributes: ■ Experience in strategic planning ■ Evidence of out-of-the-box thinking ■ Competency in using basic MS Officebased products (PowerPoint); good general computing skills are essential. TRAINING 21 had little confidence in being able to recruit a full complement of staff from the UAE market. The majority of people are brought from Beirut as fresh graduates and receive an intensive training in Beirut for one month by media experts. Then they are brought to the assigned offices. “Once people are selected, they go on an intensive recruitment course until they have all the necessary information about the GCC, demographics, as well as the history and profile of our clients,” Haber said. “Recruiting people from Beirut is in line with the trend in this market for bringing people from either Beirut or India. There are not sufficient numbers coming through locally.” Haber added that Mindshare is currently attempting to fill several vacancies and that he was keen to ensure they had the highest qualifications. “Recruits should have university degrees, but agencies are recruiting people who do not have degrees. It sometimes becomes difficult for them to cope with the demands of the role and if you put people from different backgrounds together it can really damage the whole environment.” The question of training has been widely neglected by the UAE media and advertising industry as a whole, according to Haber, who believes there is a need to establish better training facilities for prospective recruits. In addition, he said many companies neglect the need for on-the-job career development post-recruitment: “This is where companies can gain a real return on investment”. Experts should be brought in every two or three months to update the knowledge of the team.” IN-HOUSE TRAINING In-house training is a major focus at Turning Point Advertising, where new recruits spend several weeks shadowing various members of the team in order to gain an understanding of the entire company. Managing director Aubert Fernandes said he learnt the importance of holistic on-thejob training while working at Unilever. “It means the new recruits learn more about the way their role fits into the wider team and what other people expect of them. When new recruits are learning about other people’s work, we often find they have new talents and might be more suitable in a different role.” Fernandes said that this kind of on-the-job training becomes even more important due to the lack of training providers in the UAE. He said new recruits will typically spend time as a member of each division of the company, ie. design, copy writing, client servicing, business development and media management. It has further advantages in helping the new recruit to adapt to the new working environment, Fernandes said. “The deferred starting time gives new people some breathing space at the crucial first stages. They can get to know everyone and they can launch their work better when the time arrives.” THE OMD ACADEMY ■ Numerate ■ Driven and passionate ■ Strong written and oral communication skills ■ Detail conscious, forward planning, and good organisation skills required ■ Familiar with project planning systems and allocation of resources to meet stringent deadlines ■ Ability to work under pressure ■ Negotiation skills However, Elie Haber, director of Mindshare, added that while his company has exacting standards they OMD’s Dubai office has its own training facility, the OMD Academy, which was created two years ago to formalise the company’s training and to harmonise the curriculum across the company. The academy’s programme includes a range of formal sessions designed for different levels of seniority and the academy has this year increased the number of presentations and classes to provide support on more specific issues. Staff members are also invited to present their work or initiatives to the rest of the team, which doubles as presentation training. The academy has benefits for clients too, since their representatives can benefit from training. There are also two training conferences each year, where people from the whole OMD network gather to sharpen their skills on a specific topic. Senior staff from the global OMD network are often invited to conduct these presentations. Ravi Rao MD of OMD said staff training is based on an annual performance appraisal, self assessment and the corporate plan. Training is overseen by a specialist of both the individual’s skills and training overall. He added that training at OMD has a dual emphasis: “It’s a combination of evaluation during the recruitment process, where we evaluate the level of understanding and technical skills, and training provided by our two networks. “This also comes in different shapes and sizes. There is on-the-job coaching by team leaders for their team members, conducted on a very ad-hoc basis. Refresher courses are done on request or when deemed necessary. We have more than 30 refresher courses during the year. “Lastly, we also book our employees on outside courses, conferences and seminars, based on the relevance to their job or career progression.” AdVocate MAKING CLIENTS MORE ‘AD-SAVVY’ Many companies in the UAE display a lack of awareness about the intricacies of advertising and this continues to present problems for the industry, the ad agency managers said. Most of our correspondents agreed that when the client, or its marketing manager, is unaware of what advertising can achieve, it leads to a situation where high standards are not expected. This in turn affects the mindset of advertising and media agencies who pursue cheaper options or are led to believe that training and the maintenance of high standards are not important. Aubert Fernandes, MD of Turning Point Advertising, said: “It’s sad but the standards required by some clients in the UAE are not as demanding as they should be. As such, some companies think that the skill set required is not very high. “As such, the need for training is not felt so acutely. Historically, the UAE has been a trading hub where services such as advertising have been seen as an unnecessary expense. The diverse nature of the city also makes advertising difficult as advertisers and clients are left wondering which cultural buttons they should press.” So what’s the answer? Elie Haber of Mindshare believes training of prospective clients can provide a solution. “By making clients more media savvy – and we would be obliged to give the training – we can serve our clients in a more meaningful way. “We do this at Mindshare, giving training to clients and brand agencies so that they can understand the media landscape, as well as the details of their ad spend. We do this every six months and it is always appreciated by the clients as they can understand our language and techniques.” Fernandes at Turning Point also provides insight for his clients, but believes another factor will gradually make clients more ‘ad savvy’ – the developing business landscape. He said: “As the economy gains pace then the whole issue of advertising awareness will come into common focus. Companies are becoming more professional according to international benchmarks and are developing a more strategic impression of marketing.” Ravi Rao of OMD said his company’s academy was designed with clients in mind too. “We have already delivered tailored sessions for several client teams,” Rao said. Where are training providers? Advertising executives believe there is a general and acute lack of training sources in the UAE. Ravi Rao, managing director of OMD, said this was the crucial factor in the creation of his company’s academy. “There is plenty of generic advice on training, but it becomes a lot more difficult when you are trying to fill specialist disciplines such as ours,” Rao said. Aubert Fernandes of Turning Point Advertising said his company had attempted to overcome the training deficit by creating a link between his company and Indian universities. “We tested the idea, because it is widely applied in the West, and took in a couple of trainees from an Indian university. At first, we were not sure whether it would pay off, but I think there are always benefits.” Elie Haber, director and head of buying at Mindshare, said there is not only a lack of training courses available, but a lack of knowledge within the industry about where such training can be obtained. THE FUTURE OF MIDDLE EAST ADVERTISING INDUSTRY TRAINING Industry experts are at least optimistic about the future of training in the UAE advertising industry and they listed a number of trends to watch in the future. These include: ■ Online training ■ Video conferencing ■ General use of technology ■ More training of clients Elie Haber, director and head of buying for Mindshare, said: “Technology will become even more important in our industry. You get lots of people who are good at analysis and research, but technology continues to be a weakness in this part of the world. When you are tech-savvy you can use it to give yourself or your company more time to focus on something else.” Ravi Rao, managing director of OMD, said: “Online training, provided through companies’ intranets, seems an interesting development. Video conferencing could also help bring international best practice more easily. 22 MARKETING Dubai companies spreading their brands overseas While global companies are making a beeline to establish a presence in bustling Dubai, a few home-grown companies, with not much history of their own, are going on aggressive expansion plans to establish a global presence for their businesses and brands. A few such companies are the leading hospitality group, Jumeirah, the real estate giant, Emaar and the major ports management company, DP World, that are all well on their way to becoming easily identifiable brands in large parts of the globe. Jumeirah and Emaar, both set up in 1997 and DP World International, established in 1999, are all spreading their wings across the world. Jumeirah today manages premier hotels in major cities including New York, Shanghai and London. That’s not all. Future expansion is all set to be at a breakneck speed with the company targeting to manage 40 hotels by 2009, all in the premium, luxury range of properties. The Emaar group has also been expanding rapidly with billions of dollars worth of investments lined up in several countries across the world. Joint venture and projects have been lined up in India, Egypt, Turkey, Morocco, Syria, Pakistan, Tunisia and Saudi Arabia. The King Abdullah Economic City in Saudi Arabia would entail an investment of $26.6 billion, the single largest foreign investment in the Kingdom while the planned $4 billion investment in projects in India is the largest FDI in the real estate sector of the country. DP World, on the other hand, in its short period of existence, has spread globally across continents to operate nearly 19 major terminals and five major ports across the world. Hectic behind the scenes activities are on in these companies to meet the expansion targets. Jumeirah, for example would be selecting the location of its next hotels from among 60 cities identified by it. “We have identified 60 cities across the world as ‘Aclass’ destinations. We are looking at North America, Asia and Europe. In the US, we have identified cities such as Los Angeles, Washington and Boston, while our target cities in Europe are mainly the capital cities such as Paris and Berlin among others. In Asia, we have larger plans for China,” said Bill Walshe, chief marketing and business innovation officer, Jumeirah. JUMEIRAH TO SPEND $4 MILLION FOR GLOBAL BRAND BUILDING IN 2006 Backing its fast-paced expansion overseas, the Jumeirah group has set aside $4 million for 2006 to promote its brand in the overseas markets. “At the beginning of the year, we have earmarked $4 million on campaigns to popularise our brands internationally,” Walshe said. Going forward, Walshe hinted that the company’s advertising spend for brand presence overseas could only get bigger than the 2006 kitty that has been set aside. “Next year onwards, I do not see our annual advertising spend going below $4 million annually,” he said. Walshe said that the $4 million does not include the brand promotion efforts being made by the individual properties to popularise their brands. “Other than the $4 million set aside by Jumeirah, all our hotels have parallel ad spends to popularise the brands and their other facilities such as their restaurants. Together that would be another substantial amount,” he said. Walshe said that the company plans to make a bigger splash overseas in the coming days. “At present, our advertising efforts to promote the Jumeirah brand are limited to print and online. We plan to make a splash on the TV screen shortly,” he said. With more countries likely to be targeted for the promotion of the company’s brand, Walshe said: “We are presently directing our advertising campaigns mainly in the US, Germany and China. We plan to include more countries soon.” According to Walshe, the effort at promoting the Jumeriah brand is to project the company as one that would offer a ‘unique experience’ to its customers. “The essence of our brand, the core message is ‘Stay Different.’ That is really the theme.” AdVocate He said that the brand wants to convey to its customers that Jumeirah is a premium hospitality brand that would provide a distinct experience compared to others. “We want our portfolio to always be unique. We want to create new experiences and to recreate what others have put on offer. Ours is a luxury brand that offers five-star deluxe comfort.” Walshe said that other than luxury hotels, the other focus area for the company’s expansion would be theme parks. The company presently runs the ‘Wild Wadi’ – a water theme park in Dubai. “We have recently been awarded the contract to manage Aqua Dunya which is part of the Dubailand project. Managing theme parks is an integral part of our business and expansion plans,” Walshe said. 24 BRANDING Barriers to breakaway brand development Can financial institutions brand their products and services the same way FMCG brand their products? TAREK SULTANI, client director at Landor Associates looks at the barriers facing financial institutions in brand development. W hen it comes to choosing a coffee brand everybody has a passionate opinion. Some people buy into the Starbucks experience, some to the Dunkin Donuts quick fix, while for others there is always that store around the corner that just does everything right. It’s fascinating to see how marketers have been able to take the service of ‘delivering a commodity’ like coffee and create so many different brand phenomena around the world. What’s more fascinating is how only a scarce number of financial institutions have been able to turn their service of ‘delivering a commodity’ into a strong differentiated brand. As much as the complexities of the back office activities differ, what is actually important in terms of building a brand are the first and last nodes. These nodes represent the points of greatest interaction with customers and hence have the biggest effect on developing the brand. In most AdVocate cases, a good quality product is the minimal cost of entry to compete, not a brand differentiator. So why have coffee outlets been able to master the creation of branded experiences while banks have struggled to achieve the same level of success? The series of logos on the next page demonstrate the strength of recognition of some brands as opposed to those in the finance industry. While the brand marks for companies in the first row are all recognised visually, using symbols without 26 BRANDING the need for a name next to them, the brand marks for companies in the second row are all driven by word marks. You know you have a strong brand when you don’t need to bluntly communicate who you are on every communication you produce. Pictures speak a thousand words. There are several barriers to breakaway brand development facing financial institutions in the region, some intrinsic to the industry and others relating to specific organisations. CONSUMER CONSUMER 1. THE CYCLE OF THE SIMILAR The best example of this barrier is that people in the finance industry reading this article would argue that their flow chart is much more complicated than that of a coffee outlet. This is probably true to a certain extent, however, to build a breakaway brand, you need to reassess the whole nature of how things are historically done within the industry. The whole banking industry is based on adopting best practices, setting benchmarks, developing standard operating procedures, which are great for operational efficiencies, but detrimental to creating a differentiated brand. This is applicable mainly to retail banks, especially in the region. The cycle consists of the boring queue, the teller behind a desk, the countless forms on the table and the automated telebanking service. Brands like Yo! Sushi have been able to take a product that is available almost on every street, innovate and break down the cycle of similar to create a differentiated brand with global success. Banks should understand that they do not need to look or act like a traditional bank anymore. Just imagine banking at your local ‘Starbank’ from Starbucks while you sip your coffee and download MP3s. 2. THE BIGGEST AND THE ‘BESTEST’ If brand consultants had a dollar for every time a client says to us; ‘We want to position our company as the biggest and the best’, we would start an investment firm. This type of approach to brand building is the bi-product of the economic boom the region has been witnessing over the past decade. In many cases demand outweighs supply by folds and companies rush to reap the profits by catering to more customers then their resources allow them to properly manage. I have rarely heard a financial institution say we just want to be positioned as the most convenient retail bank, a niche player with a focused selection of services targeted towards customers who want quick, easy and comfortable interaction with their bank. And less rarely have companies stuck to the mission statements and positionings laid out in their strategic plans. Once the money starts coming in, strategy takes a back seat. This is the difficulty in creating a brand and implementing it. Brands are not about being everything to everyone or having a nice logo, they are about trade offs. It’s easy to determine what a company wants to be, but the trick is to determine what it is NOT and then stick to those beliefs. The Body Shop is an example of a company who understands these trade offs and has built its brand around its core values, listed below. In an attempt to increase their bottom line, they could choose to buy cheaper products or try to sell to a wider audience, thus acting against their principle tenets. However, this compromise would dilute their brand equity and over time, have a negative impact on their profits. Every economy hits a plateau or recession sooner or later, and that’s where the balance shifts and the customer becomes king. It is then that the companies who have invested and carved a brand for themselves will reap the return on their investment and be able to come out on top. 3. TANGIBLE VS INTANGIBLE ASSETS “If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trade marks, and I would fare better than you” John Stuart, chairman of Quaker. Just because it is difficult to put an actual figure on the value of an intangible brand and input it into the balance sheet does not make it any less valuable than a tangible million-dollar factory. Take any decent shoe and stick a ‘check’ mark on it and watch how it would fly off the shelf. Finance institutions are driven by facts and figures; their products are notes with face values, and currencies, which state exactly what they are worth BANKS on both sides. So how can a $100 bill at Bank Brand A be worth more than a $100 bill at Bank Brand B? The answer is simple. Its for the same reason Evian can sell a bottle of water at three times the price of your local water – the power of a brand. This is reflected in stock prices of companies such as P&G, Nestlé and other powerhouse global brands. Banks in the region need to start looking past their tangible assets and consider the added value of their intangible assets over the long term. 4. HIGH ENTRY BARRIER In the PC industry, there is Michael Dell and Steve Jobs. In the software industry there is Bill Gates and Larry Ellison. In the coffee business, there is Howard Shultz. In the bookstore business there is Jeff Bezos. All these entrepreneurs singlehandedly revolutionised their industry. Unfortunately, their counterparts in the finance industry date back to the 1800s. Marcus Goldman and JP Morgan established two of the most prominent investment firms in the world. Till this day, these firms represent the strongest brand names in investment banking. The question is why are they still around? Why hasn’t a young entrepreneur taken on the investment industry, revolutionised it and turned Goldman to a challenger instead of a market leader. Other than the fact that Goldman makes competition difficult by keeping its act together on mostly all fronts, the cost of entry into the industry is extremely high. While Dell and Gates could drop out from university and start their businesses in their basements, no one would be able to enter the finance industry with less than a couple hundred million dollars. And once you aquire that level of investment, no matter how entrepreneurial the founder may be, he will always be guided by the cycle of the similar and best practice, rather than by passion, risk and innovation. Suddenly you have created a business and a brand that is just a bit different, but not different enough to breakaway. 5. MANAGEMENT BY COMMITTEE “To get something done, a committee should consist of no more than three men, two of whom are absent.” Banks are big institutions, with interconnected departments that are supposed to seamlessly communicate with each other and work together to provide a consistent level of service and quality. Very little change can actually be implemented without buyin from the heads of the departments. Each department tends to have its own culture, directed naturally by the department head. Political agendas, personal rivalries and management style differences usually lead to a lack of cohesion in how the business is run. Even a CEO with a strong vision and determination finds it challenging to get his vision to trickle down the ranks, and become a holistic corporate vision. This issue is even more challenging in the region, where banks are considered a lifetime employment AdVocate opportunity. Once you join the family, you become a member of the family forever. With a long roster of senior staff that have been around for 15 years doing the same job, the same way, it’s practically impossible to instal a new corporate culture and bring on change to truly create a new brand. So, until the CEOs of regional banks have the vision and the ability to personally drive the brand building process internally and make sure everyone is either in line with their vision or off the boat, re-branding remains an aesthetic exercise with empty promises. Where would Brand Dubai and HH Sheikh Mohammed bin Rashid al Maktoum, Vice-President and prime minister of the UAE and ruler of Dubai, vision be if he had to consult and get buy-in from everyone who has an opinion on how to move forward? “A successful leader lays down his vision, specifies its goals, shows the path to its development and then makes sure it is executed” - HH Sheikh Mohammed bin Rashid al Maktoum, VicePresident and prime minister of the UAE and ruler of Dubai, (translated to English from his Arabic book, My Vision; sentence 4; page 41). The five points above are some of the most challenging barriers to breakaway brand development in the finance industry. The common theme that runs across most of the points is ‘change’. For many reasons, we are naturally resistant to change and this reflects on how we run our lives and our businesses. Fear of failure, risk aversion, or just comfort with the status quo limits our ability to explore opportunities and approach things differently. Society reinforces this resistance. Breakaway brands, just like breakaway individuals, are the ones that accept change as necessity, a stepping-stone for development and the next chapter in a journey of continuous evolution. It is change that makes brands stand out from the crowd and creates differentiation. This differentiation leaves an emotional effect on anyone interacting with the brand. For businesses, a new logo or brand mark is the symbol of change – a company’s way of saying that they have evolved. However, it is only a sign. To create a successful brand, the logo needs to be part of a bigger plan that includes actual premeditated change within the organisation, affecting the way it operates and ultimately having a beneficial functional or emotional effect on its customers. The timeline for such a transformation could take years and several attempts. IBM had to reinvent itself several times over its history and continues to do so to adapt to the requirements of today’s markets. Short-sightedness of some businesses in the region, and their preoccupation with reaping profits during a booming economy without the foresight to prepare for more intense competition and a shift in market forces, sets them up for a quick down fall in the future. In the words of Dwight D. Eisenhower: “Neither a wise man nor a brave man lies down on the tracks of history to wait for the train of the future to run over him”. 28 BRANDING Continued from page 1... From the GCC to India The branding dynamic T he new ‘Asian Dynamo’ is set to hit the world. The booming Indian economy and consumer markets are attracting the attention of all marketers across the globe. The analysts are in consensus on the fact that the Indian consumer markets are changing at a rapid pace, with unprecedented growth in disposable incomes, the development of modern urban lifestyles, and the emergence of the new kind of trend-conscious consumers that India has not seen in the past. The Indian economy is growing at a whopping 8.1 per cent with inflation at just around 4 per cent. The foreign exchange reserves are about $150 billion with exports at $80 billion growing at the rate of 26 per cent. Increasing income levels and rising consumer spending will keep the robust growth of the economy up. Adding to this is the overall growth of the services industry, manufacturing on a global stage, infrastructure growth, mature political economy with development as its core agenda. At the current growth rate of the economy, India would be adding nearly one France every three and a half years and one Australia every year, to become the third largest economy in the world by 2050. In terms of the consumer base, India has crossed the 1,000 million mark, out of which, almost 420 million consumers are less than 25 years of age – making India one of the youngest nations in the world. The Indian middle class is about 450 million consumers and 22 million consumers are added to this tally every year. Almost 67 million have an average annual income of $32,018 the same as Milan! The great Indian middle class is comprised of almost 56 million people in households earning between $4,400-$21,800 a year, with the upper-middle and high-income urban households estimated to grow to AdVocate 38.2 million in 2007. India’s market for consumer goods could reach $400 billion by 2010 making it the fifth largest market in the world with a growth rate of 15-20 per cent per annum in the sector. Apart from the macro indicators, the Indian industry is witnessing high growth in all of its major business sectors and hyper growth in retail, realty, hospitality and financial services. The Indian retail market is aiming for the stars and is witnessing a huge revamping exercise as traditional outlets make way for new formats. The retail market is expected to grow at the rate of 36 per cent by 2008; the retail sector is estimated to increase three-fold from the present; and the organised retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, strong income growth and favourable demographic patterns. India’s vast middle class and its almost untapped BRANDING 29 MADURA GARMENTS FOR MARKET EXPANSION IN THE GCC Madura Garments, part of the Aditya Vikram Birla Group – a $6.5 billion conglomerate with operations in 20 countries, has a marked presence across the value chain in the apparel industry. It has operations from wood pulp, fibre, yarn, fabric to apparels. Madura Garments is a market leader in India with a turnover above $100 million, which is growing at a rate of 20 per cent per annum Madura Garments has perpetual rights for the manufacture and sale of international brands like Louis Philippe, Van Heusen, Allen Solly, Allen Solly Women’s Wear, Peter England, Peter England – Elements, Byford, and SF Jeans. Madura Garments also contracts manufacturers for global brands like Marks & Spencer, Tommy Hilfiger, Polo and Ralph Lauren among others. The credibility of Madura Garments is enabled by the state-of-art design studio with an international team headed by the well-known European designer David Platon; and the investments in R&D to retain technological leadership, as well as investments in the talent under the experienced leadership of Hemachandra Zaveri. Madura Garments’ strategy is to consolidate and build its brands into mega brands, through various product categories, collections and retail expansion in India and overseas. The company has already established its brands at chain stores in the Gulf region such as Lulu Centre and K M Trading in Dubai. It also has exclusive retail stores such as Planet Fashion at Karama Centre, Dubai and Yateem Centre, Bahrain. It has been exporting products since 1992 to the UAE and its brands are available in most countries in the Gulf region. When asked why with such market dominance within India, they were looking outwards, Vikram Shivdas, head of Branded Exports said, “It is quite natural and logical too for MG to have its presence in the global market. MG is already doing business in 12 countries which includes the UAE, Qatar, Bahrain, Kuwait and Oman in the Middle East, Philippines, Male, Mauritius, Indonesia, Sri Lanka, Bangladesh and Nepal with a turnover of $5.5 million ( FY 20052006) at wholesale price. In the next two to three years we plan to grow to around $20 million in branded exports alone. In view of this we need to expand our market, enter into new markets and new countries. Since we have a portfolio of brands of international repute and a range of products inspired by the latest international fashion trends/styling and manufactured to international quality standards we are confident of entering into new markets/ countries and establishing ourselves.’’ Madura Garments, in line with its strategy to expand its channels and increase its brand footprint in the region, approached MTI Consulting for assistance. “To achieve our aggressive expansion across the Middle East we need to identify franchisee’s and alliance partners who can map us across the region. We look at consultancies like MTI to identify such potential partners and work together until closure,’’ said Shivdas. The process started with the The hotel and tourism sector in India is among the fastest growing in the world. According to the World Travel and Tourism Council, global tourism is projected to grow at 5.8 per cent in 2004 and 4.5 per cent over the next 10 years (2005-2014). retail industry are key attractions for global retail giants wanting to enter newer markets. India has been ranked fifth in the list of 30 emerging retail markets and predicted an impressive 20 per cent growth rate for the organised retail segment by 2010. India’s total retail market is estimated at $202.6 billion which is expected to grow at a compounded 30 per cent over the next five years. With the organised retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current $7.7 billion to $24 billion by 2010. The share of modern retail is likely to grow from its current two per cent to 15-20 per cent over the next decade. India has allowed 51 per cent FDI into brand retail companies. The luxury brand market in India is pegged close to $500 million growing at 15-20 per cent per annum. A recent ACNielsen survey on Global Consumer Shopping Habits says that the world’s largest shopaholics can be found in Asia; 32 per cent of Indians go shopping once a month with 22 per cent on a weekly basis. This provides an opportunity for companies to launch global premium brands in India. Driven by positive growth in the economy, infrastructure and real estate in India is also booming. The year 2006 started on a promising note when the government of India opened the construction and development sector in February 2006, and allowed 100 per cent foreign direct investment (FDI) under the ‘automatic route’ in order to spur investment in the vital infrastructure sector. The relaxation of the FDI ceiling saw big names like Dubai-based Emaar Properties – the largest listed real estate developer in the world – joining hands with the Delhi-based MGF Developments to announce India’s largest FDI in the realty sector amounting to over $500 million in projects having capital outlay of $4 billion. The number of malls in Mumbai, Bangalore, New Delhi, Hyderabad and Pune was expected to grow to about 250 by 2010 as against 40 now. In terms of total area, there was 12.40 million square feet (mnsqft) of mall space available in these cities. India is also embarking on a major infrastructure building drive to support its high paced economic growth. Currently India is about to finish one of the world’s largest infrastructure project’s – the Golden Quadrilateral – a road network that will connect AdVocate identification of potential markets within the MESA region including Bahrain, Dubai, Saudi Arabia, Qatar, Iran, Kuwait, Syria and Egypt, among others, where one could find the target consumers for the brands of Madura Garments. The next step was mapping these markets for potential brand placements and tieups for retailing in the Gulf region. These potential partners that had been identified were met with personally by our regional consultants who presented the credentials of Madura Garments to all the identified prospects to check their initial interest in the concept. Once the initial interest was identified, it was necessary to start detailed discussions with the potential parties in identifying the right fit option from Madura Garments between an exclusive brand outlet (for brands like Louis Philippe and Van Heusen) and Plant Fashion (multibrand outlet) based on the potential of the locations, the footfall catchmentarea for the potential store, the target consumers, potential competition, and the product mix options. It was also necessary to conduct background checks on the interested parties and the fit based on the requirements of Madura Garments. Based on these detailed discussions, MTI rated the best fit of the interested parties and Madura Garments’ requirements and developed a prioritisation list for each party per market. Following which, MTI facilitated the tie-up discussions with Madura Garments to finalise the strategic alliances. the major consumption centres to the major ports and supply centres. There are many projects that are coming up for sea ports, airports, roads, bridges, power, etc. This sector will see an unprecedented boom for the next five years and may taper down, but will still be growing at an above average rate compared to other countries in the world. The large builders, real estate and infrastructure companies from the GCC will find these developments attractive for entering the Indian economy. The financial sector is also in the process of rapid transformation. Reforms are continuing as part of the overall structural changes aimed at improving the productivity and efficiency of the economy. The role of integrated financial infrastructure is to stimulate and sustain economic growth. The $28 billion Indian financial sector has grown at around 15 per cent and has displayed stability for the past several years, even when other markets in the Asian region were facing a crisis. The financial sector’s big guns from the Gulf region will see huge potential in this sector of the Indian economy. Another lucrative opportunity lies in the hospitality industry, which is also showing signs of positive growth and boom. The hotel and tourism sector in India is among the fastest growing in the world. According to the World Travel and Tourism Council (WTTC), global tourism is projected to grow at 5.8 per cent in 2004 and 4.5 per cent over the next 10 years (2005-2014). India will be one of the fastest growing markets, as it grew at 10 per cent in 2004 and generated economic activity of $39 billion. According to the WTTC, India will grow 8.8 per cent between 2004-2014 to generate economic activity of $90 billion by 2014. The Indian healthcare industry is not behind either and is expected to grow by around 13 per cent per year for the next four years. In India more than 50 per cent of the total health expenditure comes from individuals versus a state level contribution of below 30 per cent. At the current pace of growth, the healthcare spending in the country will double over the next 10 years and the total healthcare market could rise from $22.2 billion currently (5.2 per cent of GDP) to $50 billion – $69 billion (6.2-8.5 per cent of GDP) by 2012. Some of the other sectors that are looking attractive are Telecom with 131 million subscribers; Passenger Vehicles market with a sale of about 85,000 units/ 30 BRANDING MTI SERVICES JAPANESE JV COMPANY* FOR INDI-MARKET ENTRY A Japanese JV Company was gearing up to enter the high potential Indian market with a new range of high-quality value-added sleeping equipment and products and accessories based on a detailed market-entry feasibility done by international strategy consulting firm, MTI Consulting. The Company specialised in manufacturing semifinished mattresses for international markets, and last year embarked upon a strategic restructuring of its operations with MTI Consulting, wherein the company decided moving up the value chain by manufacturing finished products and entering the Indian market with these high-quality valueadded products under a global brand name. It was necessary to do an extensive opportunity assessment in India for the company’s products and developing a business strategy that would ensure a smooth entry into the Indian market. A proprietary entry model was customised to the specifications of the client and the intricacies of the Indian market. The solution drew its detail from extensive primary and secondary research on the market, the consumers, the competition, the channels, the value proposition and the macro- economy. This research was analysed to develop a snapshot of the market opportunity that exists for the company. The snapshot detailed the nature of opportunity in terms of month; FMCG with a market of $10 billion and growing at 30 per cent CAGR; White Goods with a market size of $5 billon and growing at 11 per cent; Urban Household mortgages market being $77 billion in 2008 and growing at 40 per cent CAGR; domestic and international air traffic grew by 24.2 per cent and 18 per cent respectively in AprilDecember 2005; to add to this Indians withdrew $50 billion using credit cards. What all this says is that the expansion in the Indian market is robust, all around and is poised for an explosive growth. THE BLANK CHEQUE India provides a great opportunity for the national and international players to expand and be part of a booming economy and to take advantage of the rising tide. India provides companies with an opportunity to expand their operations, grow their top line and bottom line and also diversify the business risk through a multi-country presence. The GCC companies can cash upon the blank cheque called ‘India’ by investing in the different business segments and then grow with the economy. The tremendous potential of India in terms of economic growth, consumer base, consumption patterns, manufacturing capabilities, sophisticated financial infrastructure with dependable legal and accounting system combined together, makes India an opportunity that cannot be ignored by the GCC players aspiring to rule the power corridors on a global platform. AdVocate value, volume, geographic origin, segments and competition within the segments among other details related to market dynamics. Given the opportunity, MTI Consulting developed the best fit strategy for entering the Indian market supported by the requisite structure and systems. After a market entry was successfully developed, the company asked for assistance in the implementation of the entry plan. The Japanese JV Company has already begun developing new and innovative product features like Anti-Stress, Anti-Dustmite and Anti-Allergen mattresses together with a range of new sleep accessories that have been designed to complement the main product range of mattresses. The company has also started a detailed research and development for developing a range of speciality products focused on health needs like orthopaedic and spine care products, which were identified as potentially profitable segments in a detailed ‘productmarket gap analysis’. As part of the turn key implementation, the client has also requested a new global brand identity for the company’s new product range, along with conceptualising profitable marketing solutions for the company in terms of product mix, pricing, promotions and channel management. * Please note that the client name is not disclosed. The tremendous potential of India in terms of economic growth, consumer base, consumption patterns, manufacturing capabilities, sophisticated financial infrastructure with dependable legal and accounting system combined together, makes India an opportunity that cannot be ignored by the GCC players aspiring to rule the power corridors on a global platform. THE INDIA TREASURE HUNT: A MARKET ENTRY SOLUTION FOR GCC COMPANIES? Large and small corporations in the GCC region with an ambition to increase their top line, bottom line and diversify risk by expanding operations to different markets need look no further than India. One of the important aspects is that companies should gain help in order to enter new markets. This usually comes in three phases: ■ Assessing the opportunity a market provides ■ Developing the market entry strategy ■ Handholding in implementation or turnkey implementation PHASE 1 Market Opportunity Assessment is designed to help GCC companies assess the size and nature of opportunities exploitable in the Indian market given its competencies. It details the statutory requirements for a presence in India, and involves an in-depth analysis of the macroeconomic BRANDING 31 The market opportunity will be presented to the GCC client in the form of a model representing the opportunity in various segments; the size of each segment, the challenges each segment poses; competition in each of the segments and the competencies of client that can be leveraged in each of the segments. elements, industry, key competitors and consumers. Opportunity assessment will involve both primary and secondary research using quantitative and qualitative techniques to identify: ■ Opportunities: geographical location, size and potential, type of segments that exist and how the segments are being serviced currently ■ Key competitors: competitors, competitive stance, USP, loyalty, network, quality, services, coverage, flexibility, advantages and disadvantages, pricing and key success factors With information on the size and nature of the opportunity, it is important to map the competencies of the GCC company that can be leveraged in the Indian market scenario. Both will be threaded together to map out in detail the opportunities that the client can exploit in India. The market opportunity will be presented to the GCC client in the form of a model representing the opportunity in various segments; the size of each segment, the challenges each segment poses; competition in each of the segments and the competencies of client that can be leveraged in each of the segments. This module will also provides the client with details of the statutory requirements of the market under study for any type of entry and outlines the legal and compliance requirements. PHASE 2 The second phase of the solution involves strategy development detailing the entry strategy for the GCC client, the structure, the geographical presence, the systems, the staff, and the investments that are required to sustain the strategy. Depending on specific requirements of the GCC client, a business plan can be developed to assess the returns that can be expected from the Indian market’s operations. This Market Entry Strategy will be linked to the existing strategic plan of the client. The Entry Strategy will be presented in the form of a one-page strategy map detailing the strategy, systems, structure and staff. This will further be supported by a model detailing the various tasks to be undertaken for market entry with staff members responsible and dates. PHASE 3 The third stage of the solution is ‘Implementation Hand-holding/Turnkey Implementation’. Depending upon the specific requirements of the GCC client, there might be a need for an external agency to hand-hold in implementation by taking up turnkey implementation of the strategy involving identification of suitable partners, locations and personnel, as well as liaising with the authorities. This can help GCC companies enter India and realise their growth and diversification ambitions. “WHY INDIA?’’ MTI CONSULTING’S GLOBAL CEO AND INTERNATIONAL STRATEGY CONSULTANT, HILMY CADER ASKS, “WHERE ELSE?’’ Your organisation has done a lot of work in the Indian Subcontinent region. What is the main attraction? What we find attractive and what GCC companies ought to be finding attractive about India is the population of 1.2 billion. Hands down, India is one of the world’s most attractive markets. For foreign companies, India is not only an appealing sales market, but also an attractive industrial base and a good source of cost-effective services. How optimistic are you about the Indian market? India bills itself as the world’s fastest-growing democracy, has a growing consumer base, a strong, diverse 300 million middle class. That’s an eye-catching number for growth-minded global companies. Half of India’s population of roughly 1.2 billion is under the age of 25. So far at least for the next 20 years, India will have a growing population of people in their prime working years. The Indians are buying homes, cars, and other products at rates never seen before in the Subcontinent; this is proof to the evident opportunity. What opportunities do you sense for Middle East- based companies in India? The services sector contributes more than 50 per cent to the GDP; this is where a huge opportunity exists. The demanding needs of the Indian consumer poses a challenge to foreign companies. The following are key sectors where companies from the Middle East can grab a piece of the Indian market. Firstly, retail, consumerism and brand proliferation have fuelled organised retailing. The structure of retailing is developing rapidly with malls becoming increasingly common; about 150 new shopping malls are projected to come up by 2008. Secondly, infrastructure to support the fast paced economy, is gearing up. Heavy investments are needed in sectors like roadways, power, aviation, telecom and housing among others. The Indian market is currently witnessing a boom in the real estate segment. Lastly, financial services – the increase in income levels opens up a gamut of opportunities for financial service providers. Insurance, banking, mutual funds, capital markets are some of the key growth engines. The industry is undergoing a transformation with an increasing emphasis on the service component the consumer seeks. Oil, natural gas and heavy engineering are some AdVocate of the other sectors in the B2B segment that are poised for growth. What competencies can the Middle East-based companies leverage in India? Non-availability of trained manpower, especially at the management level, poses a key risk for the retail sector. The experience garnered by retail companies in the Middle East can be used to gain an upper hand in the growing retail market. Similarly the experience in realty and infrastructure will come in handy for the Middle East-based companies. What are the factors for success in the Indian market? Foreign players entering India need to customise their offerings to suit the diverse needs of the Indian consumer. Global dish with a local flavour will tickle the Indian taste buds. The consumer is very demanding and this poses a challenge for marketers to innovate. What are the road blocks? Limitations on FDI are a key hindrance to companies planning to venture into India. Besides, there is multiple-point octroi or entry tax collection. All these add to the cost and complexity of distribution as these necessitate multiple warehouses and do not allow for centralisation of certain procurements given the incidence of local levies. This poses a challenge. Also, it’s difficult finding suitable partners who have the same longterm objectives, as largely the firms are small and family-run especially in the retail segment. That’s where we can partner with firms to ensure efficient entry and transition into India. 32 GUEST COLUMN Snakes on a Plane: Communicating in the Internet age Imagine that you’re the boss of a major Hollywood studio. Every day, you’ve got to weed through the piles of unsolicited scripts that land on your desk and decide which ones to greenlight and which ones to toss in the bin. But how do you separate the potential blockbuster from the likely flop? How do you know which script is the next Titanic and which is the next Waterworld? C onsider the unlikely case of Snakes on a Plane, a New Line Cinema release that hit screens in the United States in mid-August. The title pretty much says it all; this action/horror movie is about what happens when 500 snakes get loose on an airplane. Sounds amazingly stupid, right? Then again, as the satirist H.L. Mencken famously said, “No one ever went broke underestimating the intelligence of the American public.” That’s a sentiment apparently shared by New Line’s co-chairmen, Michael Lynne and Robert Shaye. The pair eventually greenlighted Snakes on a Plane, although the film was given a tiny production budget, including next to nothing for PR or marketing. Not too long after, though, one of the scriptwriters, Josh Friedman, described the project on his personal blog, or online diary. And here’s where the story starts to get interesting – and where it holds some extremely valuable lessons for communications professionals, whether they’re based in the US, Europe or here in the Middle East. By nearly all accounts, word of mouth is the single most effective form of marketing. Whatever product or service your client has to offer, nothing will improve sales or boost the company’s image like positive word of mouth. Unlike traditional forms of marketing and advertising, word of mouth offers instant credibility. Why? Because people tend to trust people they know. Indeed, according to the 2006 Edelman Trust Barometer, published earlier this year by our own international affiliate, there has been a “steady decline of trust in traditional figures of authority and [an] increase in the credibility of the average person.” What does this have to do with Snakes on a Plane? Just about everything. Shortly after Friedman’s brief blog posting about the script, the movie became an Internet phenomenon. Within days, the Net was buzzing with rumours, jokes, songs, fake posters and even mock trailers. Then news filtered out that actor Samuel L. Jackson, of Pulp Fiction fame, had been cast in one of the two lead roles. Suddenly, everyone was talking about this movie that had little more than a working title. Snakes had been slotted as a minor movie in New Line’s 2006 schedule but, as a direct result of the incredible response in the blogosphere, the studio increased the production budget and began its own online marketing campaign. A promotional website was launched, including an online competition for amateur musicians to submit their own songs to the final soundtrack. Viral videos proliferated, including both real and fake Podcast trailers, while Jackson and other actors made the rounds of American latenight TV. At nearly no cost to the studio, Snakes had become the bestknown movie no one had ever seen. At the time of writing, the movie was still poised for release. So, for now, it’s too soon for anyone to judge whether all that publicity in virtual reality will actually translate into real-world profits. But one thing is nevertheless sure: pretty much by accident, New Line Cinema stumbled into the future of the communications industry. Snakes on a Plane, for better or worse, is where we’re all headed. The sooner we figure that out – and embrace the transformative power of new technology – the more effective, and profitable our businesses will be. Here in the Middle East, such statements are likely to sound like so much hot air. After all, across the region, Internet penetration rates are mostly very low, and activities like blogging are still in their infancy. Day by day, however, penetration rates are growing, especially in countries like the UAE, while the number of regional bloggers is also fast expanding. Here in Dubai, for instance, just about everyone in the communications industry now turns to local blogs – such as Secret Dubai Diary, AdVocate Grapeshisha, One Big Construction Site and The Emirates Economist – when they want to get a sense of the underground pulse of the emirate. The blogosphere is the new Arab street. While there are now thousands of Middle Eastern bloggers – who write in Arabic, English and sometimes a combination of the two – the numbers here still pale beside those in the world’s most technologically advanced market, the United States. According to a Pew research study released in June, 12 million American adults, or four per cent of the population, currently maintain their own blog, while a further 45 million, or 20 per cent of the population, say they regularly read blogs. Those are astonishing statistics, even in a country as big as the US, which has a total population of 295 million and an online user base of 147 million, especially since blogs themselves have only been around for about nine years. Also noteworthy is the fact that more than half of all American bloggers are under the age of 30, while another third are between 30 and 50. ( Just two per cent of bloggers are over the age of 65.) Originally known as weblogs, today’s blogs have evolved significantly from the first online diaries that appeared on the Net. As a medium, blogs now encompass everything from political GUEST COLUMN 33 Lebanese TV and production industry STILL STANDING Nabil Kazan looks at how the Lebanese broadcasters have adapted to the frequent political disruptions. advocacy and citizen journalism to celebrity gossip and social networking. From the sublime to the ridiculous, blogs are frequently intensely personal and yet, at the same time, completely anonymous. Like so much new technology, blogs are also unconstrained by physical geography. To communicate with the wider world, all a blogger needs is a PC, an Internet connection and plenty of imagination. But while earlier technological changes – like the invention of, first, moveable type and then the mechanical printing press – mostly led to an increase in the size of our shared public space, today’s communication revolution is taking us in the opposite direction. We increasingly turn to those media – whether they are print, broadcast or online – that most closely reflect our own point of view. In the region, that’s one reason why we read blogs like Secret Dubai Diary and watch shows like Arra’i wa Arra’i Akhar, Al Jazeera’s hugely popular talk show. Worldwide, the explosion of information and entertainment options is taking place simultaneous to the decline of traditional media. Presented with far more choices, consumers are choosing those narrowly targeted sources of information that mirror their own prejudices. Consumers are also changing channels because, quite simply, they have lost trust in traditional media. “Societies create structures of authority for producing and distributing knowledge, information and opinion,” says Nicholas Lemann, dean of the Columbia Graduate School of Journalism. “These structures are always waxing and waning, depending not only on the invention of new means of communication but also on political, cultural and economic developments.” As people have lost faith in traditional structures of authority – including government, business and media – they have gravitated towards alternatives. According to the Pew survey, 95 per cent of US bloggers turn to the Internet as a source of news, while 47 per cent said they sometimes follow the news as reported on other blogs. Considering that few bloggers have the time, resources or initiative to actually report stories first-hand or even fact-check their work, however, it seems clear that the rise of so-called citizen journalism will eventually lead to some kind of backlash. In the meantime, having a strong opinion appears to trump reporting the facts. If most bloggers tend to lead with their hearts, other citizen journalists are taking a much more straightforward tack to the world’s front pages and satellite news networks. “The best original Internet journalism happens more often by accident,” says Lemann, “when smart and curious people with access to means of communication are at the scene of a sudden disaster. Any time that big news happens unexpectedly, or in remote and dangerous places, there is more raw information available right away on the Internet than through established news organisations.” Ordinary people using their cellphone cameras provided the first, and frequently most gripping, images of the London terrorist attacks, the South Asian tsunami, Hurricane Katrina and the recent bombing of Lebanon. These witnesses to tragedy, with no apparent agenda, were able to accomplish something that would have been impossible just a few years ago: to share their experience, via new technology and in nearly real time, with the rest of the world. This unique kind of communication is both instant and instantly credible; it is the ultimate word of mouth. It’s not such a great stretch, then, to link the marketing of Snakes on a Plane to the reporting of realworld disasters. Both examples show how the means of communication have changed. More important, both examples show how the meaning of communication has changed, too. Today, for all kinds of reasons, we increasingly place our trust with people like ourselves, who share our likes and dislikes, our values and our prejudices. Today, thanks to new technology, we are able to share information with those same peers, through text, image and speech, in something approaching real time. The challenge for communications professionals is to engage with this incredibly fragmented audience, which is right now reading Secret Dubai Diary on a cell phone while listening to an iPod. How can we do that? By engaging this new kind of audience in a genuine dialogue, rather than simply dictating the terms of discourse through traditional means and traditional media. In that sense, and despite the lightning speed of technological change, what we’ve got to do is just go back to basics. We need to listen to what’s being said out there in this strange new world. We have to hear what’s being said, and then respond in kind. In this age of terror and technology, we have to give the people what they really, truly want. Thankfully, at the moment, that’s fairly obvious: 500 great big snakes, slithering down the aisle of a jumbo jet. Sunil John is managing director of ASDA’A Public Relations, the exclusive affiliate of Edelman T he global focus on Lebanon during the past five weeks has given a tremendous boost to broadcasting quality and viewership of all Lebanese TV stations. Namely those with multi satellite coverage such as LBC Sat, Future TV and New TV. Whilst they may have lost some local advertising income, it’s important to keep in mind that ad spend during the summer is usually low anyway. Let’s also not forget the Pan-Arab Ramadan campaigns and the industries involved in the rebuilding of Lebanon that will largely compensate this loss. Meanwhile most of the cited channels never stopped recruiting talent, buying or producing new programmes and enhancing their corporate image. In the first week of the war, most film production projects were put on hold. Some local TV productions continued as normal, but those for Saudi or GCC clients were cancelled due to the closure of Beirut airport (and for many other obvious reasons). After it became clear the war was to be a long one, many Lebanese AdVocate production companies temporarily used existing facilities in Amman, Dubai and Cairo. It was particularly difficult to arrange for senior Lebanese production teams to leave the country during the 33 days of blockade. One production company commissioned a bus for 20 people who travelled through Syria all the way to Amman in a 25-hour long journey. The next day they were shooting like normal (we mean film shoots, of course). Lebanese producers have a long history of working in difficult conditions. Despite wars, lack of infrastructure and inflationary costs of production, they developed a guerrilla warfare approach to production in which the whole world is their studio. Flexibility and adaptability became a Lebanese speciality. Mobility and lightweight production units meant that production could be scheduled anywhere. Let’s end on a true story: Not so long ago, a Lebanese editor travelled to Dubai carrying his current projects on his hard drive. You guessed right; he carried on editing in his hotel room the next day! Nabil Kazan is the director of Dubai-based Telcast Mena. 34 GUEST COLUMN Brandishing Brands Lara Haidar takes a look at the legal aspects of ensuring brands have a long life. A ll businesses operate using brands. A brand name is a name that has a personality. It is the brand that defines the image of the product or service that a company is offering. That is why brands, or trade marks are one of the most important elements in any business. And that is why successful companies spend a lot of money on branding, and sometimes re-branding, every year. Brand development or advertising agencies work closely with companies to create a brand that identifies with those companies’ products or services. And there is a right way and a wrong way to create a brand. The whole purpose of having a brand is having something that is going to be a long-term tool for the business; so companies need to know that that tool is something they can keep using into the future and also that it is something they can properly protect so that they can stop other people using it as well. Agencies therefore can advise their clients at the point of brand creation, that there are ways of protecting the brand and that is through brand or trade mark registration. Which brands should be protected? If you look around at the various trade marks that you come across in a day (remember everyone who sells any kind of product or service uses some kind of trade mark), you will see that sometimes they are words only eg. our brand ‘therightslawyers’. A registration for this means that no one else could use the mark which includes or is similar to the words ‘therightslawyers’. You’ll see stylised versions of word marks, for example the particular font in which the words Coca-Cola are written on the beverage can be registered, this protects the actual way the words are depicted and gives different protection than for the words alone. There are also logos, for example the McDonald’s ‘M’, the Mercedes three-point star in a circle and so on. The final alternative would be a slogan, for example Nike’s ‘Just Do It’. Where? The next thing to figure out is where your brand should be protected and a good starting point is where you sell or plan to sell your products/services. What I usually advise clients is to think about what their major brands will be and in what countries in, say, eight to 12 months – that is what you should seek to protect by trade marking now. The reason for this is simply that the trade mark process can take a while, particularly if you are doing a number of applications at once. On timing, even in the fastest jurisdictions around the world and even assuming there are no problems as part of the application process, you will be looking at an average of six months as a minimum from the date of application. Ultimately, it will come down to a cost-benefits analysis. Where do you want to spend your money? Which goods & services? So once you know which brands and where, then you need to figure out what for. The way trade marks work around the world – including in the Middle East – is that (almost) every Trade Marks Registry is split into 45 different classes which list every type of product or service you can think of. Basically, whatever business you are in will fall into one or other of the classes. Remember though that you will not get protection for everything simply by submitting an application, you need to be very specific about what you want protection for. That’s why you get different companies using what looks like the same mark, but for very different goods or services ‘POLO’ is a car, a fashion brand and a sweet! BRAND CLEARANCE One useful exercise to undertake at the time of brand creation, is brand clearance. Basically,conducting a search against the class of goods and services against which a brand will be used to determine what rights (if any) already exist in relation to this brand in a specific territory. One thing I often get told by clients is that they already have the name registered with the Economic Department. It is important to know that in many countries, including in the UAE for example, there is no synchronisation between the government bodies which regulate the grant of trade licence and approval of trade names (the Economic Department and/or the Municipalities in the UAE) and the Trade Mark Registry AdVocate in terms of clearing the trade names against the Trade Marks Registry’s database prior to granting approvals. As a result, trade marks often compete with company names as identifiers of the origin of goods and services. A common belief is that these signs confirm similar rights to the holder or registrant. This misconception and the different legal or administrative regimes under which these different types of registrations operate have opened ground for much confusion in relation to who owns the actual right to use the name. As a company in the process of setting up or re-branding, one way of avoiding potential trade name disputes and, possibly, a costly re-branding exercise, is to run a simple and often relatively inexpensive brand or name clearance search first. This would determine whether the proposed trade name or trade mark is available for use and, could potentially save the company a lot of money. The author is Lara Haidar at therightslawyers 36 CRITIQUE CREATIVE CRITIQUE Shehzad Yunus Creative Director TBWA\RAAD The pen is mightier than the sword. And this couldn’t be more apt than when a creative director is asked to critique a bunch 1 of ads. The first thought that crosses the mind is to use it like a proverbial 2 sword and hack those hideous ads to pieces. Granted, there’s a whole lot of unmitigated rubbish that is churned out on a regular basis. But there are few bright sparks that bring redemption to our industry. 12 For instance, the outstanding work for Dubai Sports City done by Tonic. The idea is big and simple: Dubai Sports City will soon be the hub of international sport and will bring the entire world of sports to our shores. The result: sports centres all over the world will become redundant. The art direction is simply stunning. It looks every bit international. A great idea executed brilliantly. AdVocate While on the subject of great ideas, there’s one particularly powerful ad done for drink driving by Brandcom. The visual looks seemingly normal. A nice shot of the side-view mirror of a car. You look at it closely and reality hits you at 200 km/h The reflection in the mirror shows a view that is upside-down, as if your own car has flipped in an accident. Thought-provoking. Intelligent. Simple. CRITIQUE 37 3 4 It’s heartening to know that there are still quite a few ads that I like, which is not so bad. This is precisely why I decided to pay tribute to the great work we as an industry are beginning to produce, rather than point fingers at our weaknesses. If all of us roll up our sleeves and produce better work, no global big-shot from a big network will ever say disparaging things about the standard of advertising here. 3 4 Print ads aside, there’s an ambient media piece (by Saatchi & Saatchi Dubai) for La Vache Qui Rit (The Laughing Cow) that I really liked. A real hopscotch grid was drawn on the ground at a leading park in town and the pebble was replaced with a huge rock. The message was simple: La Vache Qui Rit with vitamins to make kids stronger. The idea was big, just like the rock. Now to the Lowe self ad. It’s not every day that you see an ad that’s so beautifully crafted. The attention to detail is spellbinding. The headline is provocative enough to raise eyebrows, as well as raise your interest in the body copy. You are drawn into the copy, which is well-written. It is an intelligent ad which urges people to change the way they think and be disruptive. It coaxes them into thinking differently and shows them how they will be rewarded if they change. And how AdVocate does it do it? Not by telling a story set in Europe or America, but by telling them a story that’s set in our own Arabia. If some visionary maverick could change people’s preferences several centuries ago (1341 years to be precise), why can’t we do it in an evolved, ever-changing UAE today? All one can hope is that the story in the ad had better be true. 38 DATAWATCH Quarterly monitor TOTAL MEDIA SPEND The Pan Arab Research Center (PARC), in association with Advocate, provides an insight into the regional media spend MEDIA SPENDING BREAKDOWN JANUARY-JULY 2006 Spend in ‘000s ($) Country Cinema PANARAB SAUDI ARABIA UAE EGYPT KUWAIT LEBANON QATAR OMAN JORDAN BAHRAIN ARASIAN† YEMEN SYRIA 6468 1387 Magazine Newspaper Outdoor 120700 35353 102277 25206 29897 25289 4545 3320 4448 8395 4684 15760 441226 357551 218877 207819 22071 110914 64738 47734 39131 9791 13184 47072 31121 474 15313 23700 2496 133 850 77 1725 6034 Radio 11824 6817 25792 2783 11673 55 82 4917 1273 3621 Television 1084126 32441 50508 153964 23775 191338 1739 7781 6171 9520 31677 10420 1082 Total Media level 1233770 567916 554742 424312 279586 274070 119749 76054 64120 59783 49773 10420 8841 † Asian media in the Arab World. Advertising frequency is a measure of the number of advertising transactions. Advertising space is measured in standard equivalent space units. One unit is equal to one 30-second TV, radio or video commercial, a half-page newspaper advertisement, a full-page magazine advertisement. Data Watch is produced with the co-operation of the Pan Arab Research Center, a member of market research organisation Gallup International. Pan Arab Saudi UAE Egypt Kuwait Lebanon Qatar Oman Jordan Bahrain Arasian Yemen Syria 1500000 PANARAB CINEMA OUTDOOR MAGAZINE RADIO NEWSPAPER TELEVISION Total Media level 1200000 SAUDI Television UAE EGYPT Radio KUWAIT 900000 TOTAL LEBANON Outdoor QATAR 600000 OMAN Newspaper JORDAN BAHRAIN Magazine ARASIAN YEMEN SYRIA 300000 Cinema 0 USD 500000 1000000 1500000 2000000 USD 0 2500000 AdVocate PANARAB SAUDI UAE EGYPT KUWAIT LEBANON QATAR OMAN JORDAN BAHRAIN ARASIAN YEMEN SYRIA