gmr | mar 2011

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MARCH 2011 - NO 196

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Registered in Dubai Media City

Moving up the marketing agenda

JEWELLERY & WATCHES: ASIAN TOURISTS JOIN REGION’S GOLD RUSH

JEWELLERY & WATCHES: ASIAN TOURISTS JOIN REGION’S GOLD RUSH

MEDIATRACKING KUWAIT’S ‘SUSHI BLOGGER’

CREATIVEREADING LEBANON’S CRISTAL BALLS

CLIENT SERVICINGAUDIT MORE URGES GLOBAL IAA CHIEF

CSR

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Gulf Mktg Review_PNAB_43x28 cm_A7_DPS_E.pdf 1 2/22/11 4:34 PM

4 Gulf Marketing Review March 2011

March 2011 – Issue No. 196

www.GMR-Online.com

client servicing IAA global chief Alan Rutherford slams agency practices

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neWs 8Memac Ogilvy Tunisia spreads post- revolution message of hope. OMD Arabia snaps up Saudi’s Goody. Me360 circles the entertainment sector. Active PR opens health-care unit. The Economist opens a new ‘Conversation’. Nivea Tree eco-project tested. Fox focuses on Arab women. Tang swaps tin and glass for plastic in major packag-ing revamp after 50 years in the GCC and much more news from around the region.

World neWs 16UK watchdog investigates J C Decaux and Clear Channel UK in ‘restrictive practice’ probe. Techno choc firm Tcho opens ‘virtual factory’. Kidsco renews with Global Listings. JWT HK walks off with Samsonite. MEC India bags FlipKart. Dentsu London checks in with Starwood’s uber-techno-urban Aloft chain. Cannes Lions adds Holding Company of the year award.

neWs Plus 20Marketers in Egypt and Bahrain recoup to assess the seismic fallout from a month of political turmoil that has dented both client and agency forecasts.

Media 24The lawsuit filed against a Lebanese expat blogger in Kuwait for a mildly critical restaurant review has left a sour taste among the region’s blogging community and burned the brand’s reputation. We track the comments.

creative 28Our man in Feraya reports back

from this year’s MENA Cristal Creative Awards.

creative vieW 32 Did our guest critics put the boot in Shoe Mart’s creative and how did they receive Dubai Islamic Bank’s Give TVC?

cover story 34Emerging markets are more savvy about stakeholder engagement and CSR than developed countries, says study, while corporate activ-ism begins to supplant charity in the Middle East...at last. Report includes Washington-based APCO Insight feedback.

Brand analysis: HealtH Warning 54 The region’s burgeoning health-care sector requires a large dose of branding if it is to remain fit for purpose.

sector analysis JeWellery and WatcHes 58During the bad times consumers tend retreat to the safety of gold, so how are jewellers capitalising on this trend? We talk to the Diamond Marketing Council and Gold Marketing Council. Meanwhile any dip in UAE spend seems to be more than compensated for through Chinese tourists, so are retail marketers working harder to attract Asian business? We look at the growing appetite for jewellery among men and the increasing role of digital and online is explored. Finally, we examine the opportunities offered by the region’s numerous gifting occa-sions. Also featured are latest PARC ad spend data, plus SEO analysis and sentiment monitoring from Sekari.

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gMr exclusive:

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58 sector analysis: Jewellery and watches

GROUP MANAGING EDITORSiobhán [email protected] MANAGING EDITORPrecious Jasper de [email protected] SUB EDITORElizabeth [email protected] EDITORSalil [email protected] DIRECTORSSheela Jeevan, Alvin Cha, Aya Farhat CONTRIBUTORSAlex Malouf

ADVERTISING: MEDIALEADERUnited Arab Emirates [email protected]: +(971) 4 391 0760

Saudi Arabia: Ghassan A. [email protected]: S.C.C Arabies18 rue de Varize75016 Paris, FranceTel: +(33) 01 47 66 46 00Fax: +(33) 01 43 80 73 62Lebanon:Beirut, LebanonTel: +(961) 1 202 369Fax: +(961) 1 202 369

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

CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman HaydarCreative Director Aziz KamelDistribution & Subscription Director JP Nair, [email protected] Manager Maya [email protected]: +971 4 3757527KSA GM Walid Ramadan [email protected] Tel: +966 1 4194061Lebanon GM Nathalie Bontems [email protected]: +961 1 492801North Africa GMAdil Hamed-Abdelouahab [email protected] Tel: +213 661 562 660France Sales Director Manuel Dias [email protected] Tel: +33 1 4766 46 00

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

AUDITED BY

Reproduction in whole or part of any matter appearing in GMR is prohibited by law without the prior written approval of the publishers. Opinions expressed in GMR do not necessarily represent the views of the publishers and editorial staff of the magazine. The publishers do not hold out any guarantee as to its accuracy, neither do they indemnify any loss arising through use of the information.

All dollar prices ($) are US dollars, unless otherwise specified. All marketing data is subject to confirmation.

Printed by Emirates Printing Press, Dubai

04-07-GMR196-Contents.indd 6 2/24/11 7:05 PM


Tunisia Memac Ogilvy Tunisia has tapped into the zeitgeist of the national psyche follow-ing the January 14 Revolution with a new campaign.

Sensing a slump in spirit that often follows a revolution, the agency moved to spread a message of renewed hope.

Enlisting the help of six major consumer brands and six media, Memac Ogilvy launched a multi-media cam-paign called “June 16th 2014.”

Speaking to GMR, creative director Nicolas Courant, said: “The entire country was on strike, the economic activity was practically reduced to none and three weeks later uncertainty had already chased away hope.

“The whole advertising industry was completely stuck, although media were boom-ing due to newly accessed free speech.”

Brands, he added, wanted to communicate their eager-ness to help reboot the econ-

omy, but did not want to risk accusations of exploiting the revolution for commercial gain.

“We felt we needed to find an idea to encourage everyone to get back to work and build the country we all desire,” Courant continues.

“And we strongly believed that we all had to focus on the future goals rather than look back or complain about the present.”

The agency worked with six consumer brands – Tuni-siana, Sotubi, Délice/Danone, Sotuchoc and L’EPI D’Or – plus two newpapers, one radio and one TV channel, and an online magazine. The big idea was for the companies to act as though that particular day was June 16, 2014 – three years after the first planned free elections.

A hashtag on twitter #16juin2014 launched along with a website in which all the “content developed” by the media was compiled to

be shared – articles/videos of MFM and NESSMA TV.

According to Courant, consumers immediately en-gaged on Twitter, imagining how their future would be.

“Within a couple of hours, the hashtag #16juin2014 was the top trend on French Twitter,” he says. “The buzz also took to Facebook with the website content – such was the response, we had to change servers three times.

“Facebook users began im-agining their future and cre-ated content around 16/06/2014, such as photos, comics and drawings, Courant says.

“About 15 fan pages were spontaneously created to com-pile everyone’s dreams. Blogs and online news began to post about June 16, and at 6pm we revealed on all media what was the purpose of the op-eration and who was involved.”

Courant also reports exten-sive media coverage, including special news reports on Al Jazeera, France 24 and re-gional radio, such as Radio Monastira and Express FM, which plans a follow-up.

Radio Tataouine, meanwhile, will host a special June 16 day, inviting people to call and imagine their future.

At the time of going to press, involved brands had started re-communicating normally through participating media.

“And other brands followed,” Courant adds.

Memac Ogilvy helps spread hope in deflated Tunisia

$15 million Goody media is tasty win for OMD Arabia

Visionary June 16 2014 campaign rapidly becomes top trend on French Twitter

News

Hope floats: Nicolas Courant

saudi Arabia OMD Arabia has seen off competition from incumbent Starcom, Initiative and Optimedia to land the Saudi food conglomerate Goody media account.

Monitored value in media spend for 2010 was close to $15 million, said OMD.

Goody has more than 25 product lines, which it markets in the GCC and Levant.

OMD Arabia is tasked in launching new product lines.

The multi-million-dollar account is a very sizeable win for the Saudi agency, which manages the whole portfolio, including the complete Goody range, Velor and Cofique, an OMD press release reports.

“As we expand our business across the GCC and wider Middle East, we need a part-ner who has the required

regional footprint and right expertise in the field to help us optimise our campaigns,” says Khalid Temairik, GM, Goody, Saudi Arabia.

Choucrallah Abou Samra, managing director, OMD Arabia, adds: “As a 40-year- old brand, we have plenty of opportunities to capitalise on Goody’s rich history and deepen the brand’s relation-ships with its consumers.”Great taste: Choucrallah Abou samra

08-09-GMR 196 News 1.indd 8 2/24/11 6:18 PM


UAE Middle East-developed smartphone application me360 has entered the recreation and entertainment sector with the addition of Switch Bowl-ing and limebox.ae.

The company already has a roster of 700 enriched data providers and advertisers, including Jumeirah Group, Emaar, Starbucks, McDonald’s, Americana, Sofitel, AlShaya and Sumo Sushi.

The news coincides with me360’s discussions with spagenie.ae, a regional spa listing with a directory already available on the app. It also follows the launch of me360’s 2.0 version and, as it nears 6,000 users, the end of its free trials for businesses.

Launched in October, me360 uses an ad model that Sher-if Abaza, CEO-MENA, describes as a “low barrier entry.” This is a monthly commitment to a pay-per-click model of $109.

“This could lead to an av-erage annual spend of $1,307

per location on the portal. Many businesses spend more than that on a one-time flyer print run.”

The app is a platform from which businesses can build a social media presence and target potential custom-ers who are in the vicinity of their store through special deals and promotions, as well as brand messages.

Users have access to a di-rectory of businesses in prox-imity to their location.

It includes contact informa-tion, consumer reviews and promotions. Users can also share their opinions on the app, which is simultane-ously updated on Facebook and Twitter.

me360 was released despite location-based challenges, including the poor quality of data available in the region.

Most regional information online, says Abaza, is often inaccurate and outdated.

Currently available on all

iTouch devices, me360 is on track to launch on Black-Berry, Android and Nokia at the end of this month.

When asked about promot-ing the app, Abaza said word-of-mouth is central to the app.

This “can be a chicken-and-egg situation,” he said, “because people will use it if it has a lot of company list-ings and coupons in it, but then companies will get on it if they see that there are a lot of people using it.”

Detailed analytics are pro-vided to companies via a secure business portal.

In the future, branding within the app is a possibil-ity, says Abaza.

An example is the inclusion of product logos in a store’s tab to indicate that the product is being sold in the outlet.

Bilingual options for Sau-di Arabia, China and France are under consideration.

Regional smartphone app extends category line-upAverage annual spend is $1,307 per location on the portal, “less then a flyer print run”

NEws

which came first?: gaining traction is a chicken-and-egg situation, says Abaza

GCC Fox International Channels is repositioning Fox Series to target Arab women, particularly women in Saudi Arabia.

The repositioning was unveiled at the same time as the launch of the channel’s new name that drops ‘Series’, leaving only the name ‘Fox’.

The channel will feature both content in dual audio (Arabic and Eng-lish) while programming will include international health and lifestyle programming.

Currently, Fox is premiering a new season of Desperate Housewives (season 6) and introducing a number of new shows airing for the first time in the region. These include musical-comedy-drama series Glee, competitive cooking show Masterchef Australia and crime series Lie to Me. New regional programmes will inlcude Jdeed O Mofeed, a one-hour block during the daytime that discusses issues affecting women’s everyday life, along with various genres like cooking, arts & crafts, health & beauty, parenting, & home improvement.

IT’S A womAN’S world

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Qatar Media Group, a sub-sidiary of Ghanim Bin Saad Al Saad & Sons Group Hold-ings (GSSG), has acquired 80 per cent of Salam Media Cast for an undisclosed sum.

The acquisition of Salam Media Cast, which special-ises in telco, broadcasting and security solutions, will allow Media Group to offer media services and products throughout the region.

“In today’s world, media has become one of the most important components of any country’s development,” said Mohammed Al-Hama-di, GSSG deputy chairman.

“Media Group is planning to expand its scope to cover a variety of media services that would meet the needs of the evolving media mar-ket,” said Mohammed Badr Al-Sada, VP of Media Group.

“Together, Media Group and Salam Media Cast, plan to work with the key constituents in the media industry to better understand the needs of all media outlets in the region and help them maximise yield and achieve their media objectives.”

Launched last year, the

Media Group services GSSG and other clients across the GCC. It offers services such as PR, media production, event management, market-ing and IT.

GSSG Holdings is a private company boasting a range of businesses from engineer-ing and automobiles to fitness and education.

GSSG’s Media Group bags Salam MediaEighty per cent acquisition allows wider media product offerings

NewS

New deal: (L to R) Mohammed Al-Hamadi with Hussam A.S. Abu Issa

Raising the bar: QA’s new creative

GCC Tang has repackaged for the first time in 50 years, swapping tins and glass jars for plastic. The design was inhouse.

“Tins have been the biggest packaging format for Tang in the GCC, contributing to more then 65 per cent of sales,” said Vishal Tikku, MD, Kraft Foods GCC.

“The new packaging and format is expected to drive increased sales as it will appeal to a wider segment of consumers who look for convenience, variety and excitement in the beverages they consume.”

Promoting the revamp is one of the largest campaigns for Tang outside of Ra-madan, including OOH, TV, in-store, social media, as well as a home makeover pro-motion in Saudi Arabia, offering $1,300 worth of vouchers. Spend was undisclosed.

bRAnD REFRESH

Qatar The latest print and radio ads for Qatar Airways focus on images that represent the airline’s new destinations.

The campaign was created by QR Marketing Communi-cations & Batey (Singapore).

The radio commercials offer insights into a city with a series of single-sentence statements about key aspects of that location.

The “I am...” concept creates intrigue and engages listeners before finally reveal-ing the city’s name.

Meanwhile, each print ad uses familiar visual refer-ences for each destination.

The image of an airport baggage belt with sushi plates on it, for example, is used to promote the Tokyo route.

QA CEO, Akbar Al Baker, said the new ads reflected a maturing of the brand. “With brand awareness of the airline maturing globally dur-ing the past two years, we are now producing ad-vertising that is thoughtful and original.”

QA campaign takes to the air

12-GMR 196 News 3.indd 12 2/24/11 6:22 PM

Visit the Longines Boutiques at:

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UAE Dubai-based Active PR has opened a specialist health-care unit.

“Based on the regional and UAE healthcare sectors’ growth over the past five years, the sector has huge potential in the region and is predicted to expand greatly over the next 10 to 15 years,” said Louay Al-Samarrai, managing direc-tor, Active PR.

There are currently about $14 billion worth of healthcare-related projects in progress across the Gulf, according to the agency.

The four-man unit is going for a number of pitches in the healthcare IT, healthcare tourism and pharmaceuticals sectors, and is expecting three major projects by mid-year.

Active PR is already work-ing with Berlin Bradenburg to promote Berlin in the Mid-

dle East as a preferred health-care destination.

“Too many ventures take the view of ‘Open it and they will come….’ – we took a very different road.

“We did feasibility studies, approached key industry play-ers and government entities and researched the markets and the region, as well as competitive healthcare des-tinations. The result is a healthcare unit of the agency

that is providing consultancy and world-class programmes to some very interesting and challenging clients,” Al-Sa-marrai adds.

The GCC healthcare market is expected to reach $47 billion to $55 billion by 2020, with the UAE alone rising to $12 billion in 2015, from $3.5 billion in 2005, says research firm McKinsey & Co.

Direct health spending in the GCC is expected to rise by 300 per cent to $60 billion in 2025, compared to $15 billion in 2008.

In other health-related news, Etisalat has signed a MOU with Ericsson to deploy a range of mobile healthcare services in the UAE.

Ericsson Mobile Health will allow medical professionals to remotely monitor the health of patients.

Active PR opens healthcare practiceGCC healthcare to reach $47 billion to $55 billion by 2020

NEws

Healthy outlook: Louay Al-samarrai

UAE Nivea has launched the Nivea Tree macro- packaging concept. The global sustainability test programme is investigating whether consumers would prefer to lose the packaging they currently receive upon purchase. It will also test how consumers would like to see the brand move towards a more sustainable ap-proach to its packaging and logistics.

Experiential agency LightBlue is running the test in the region and has developed a new shipper device made almost entirely out of recycled Nivea products.

“Rather than just remove the micro packaging, we created a robust macro-packaging system; we call it the Nivea Tree, which could be reused for differ-ent SKUs. We also devised a new re-useable delivery system, so that more products could be shipped on one pallet while decreasing the carbon footprint,” says Phil Lynagh, managing partner, LightBlue.

Research showed that 86 per cent of people asked preferred products with less packaging.

TREE hUGGERS

MEA In line with its aim to encourage audiences in the MEA to “Join the global con-versation”, The Economist has launched its “Conversations” campaign.

It invites readers to take part in conversations by illustrat-ing two, often controversial, sides of an argument, urging people to share their thoughts online via Facebook.

“We wanted our new brand campaign to be thought- provoking and encourage intellectually curious people in the region to participate in international issues.”

“This very simple combina-tion of visuals and text do just that,” said David Taylor Evans, managing director, MEA, The Economist Group.

The campaign will run across the region in print and OOH media throughout the rest of the year. It shifts from the magazine’s typical text-only approach, adding new visual elements to illustrate the debate, while keeping the red and white signature colours.

Campaign starts “Conversations”

Open dialogue: The Economist

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World Ne W s

UK The Of f ice of Fa i r Trading (OFT) is investigating JC Decaux and Clear Channel in connection with contracts issued to local authorities relating to bus shelter adver-tising and information panels.

Particular concern centres on the long duration and “potentially restrictive” terms, says the OFT.

It has written to both com-panies citing reasonable grounds for suspecting that the agree-ments restrict competition, under the Competition Act 1998 and/or Article 101 of the Trea-ty on the Functioning of the European Union.

The move is part of the OFT’s investigation into the UK’s OOH sector into whether re-bates by outdoor media own-ers to specialist buyers could affect incentives and worsen deals offered to advertisers.

Heather Clayton, OFT sen-ior director of infrastructure,

said: ‘‘There are some concerns around barriers to entry and expansion for media owners and the OFT has launched a competition investigation in order to assess whether certain street furniture agreements are compatible with UK and EU competition law.”

Since the investigation is at a very early stage, no as-sumption should be made

that any of the agreements infringe competition law, she added.

In separate, but related, news JC Decaux has toppled Clear Channel to become the largest OOH company in the world, boasting 2010 rev-enues totalling $3.115 million, says the french company.

The firm operates 1,040,600 panels in 56 countries.

Us More than half – 56 per cent – of marketers are upping spend on newer me-dia platforms according to an ANA (Association of National Advertisers) member survey.

Another 35 per cent are holding spend at the same level, while nine per cent are reducing their investments.

“Reaching audiences with targeted messages via differ-ent touch points is more im-portant today than ever,” said

Bob Liodice, ANA president and CEO.

“Particularly in targeting multicultural consumers, newer media platforms pro-vide an effective way for meaningful engagement to occur.”

The platforms identified in the survey as being particu-larly effective in targeting multicultural audiences are: SEM (cited as effective by 60 per cent); SEO (58 per cent); firm’s own website (54

per cent); VoD (53 per cent) and online ads on third-party websites (50 per cent).

While multicultural mar-keters are increasingly using newer media platforms, they are not ignoring more traditional media.

About 6.6 per cent of mul-ticultural media budgets are allocated to these vehicles. Within general marketing strategies, 15.6 per cent are spent on newer media platforms, says a 2009 ANA survey.

Marketers upping new media spending

Global Eag lemont Media has launched what it claims is the world’s first Islamic finance e-newspaper, The Islamic Globe.

The free weekly is delivered via a variety of digital platforms as well as PDF.

The design evokes the style of a newspaper from the 1950s, complete with yellowing paper and curled edges, states a company press release.

Founder and publisher Ku-nal Wadhwani, previously co-founder and head of sales and marketing of Zawya, said: “The unique readership and unique delivery mecha-nism of The Islamic Globe has already made it a hit with key advertisers in the industry.”

Global Global Listings has signed a deal with children’s edutainment channel KidsCo to deliver its EPG, programme highlights and website/VOD content worldwide.

The company provides broadcasters with a multi-media solution for their pro-gramme schedules.

It will provide information in local language for France, Germany, Portugal, Spain, Russia, Poland, Turkey, Greece, the Middle East, Africa, Sin-gapore, China and Australia.

Products and services are targeted at reflecting the local market per designated terri-tory, the company says.

Islamic finance e-newspaper debut

Global listings’ deal with KidsCo

UK ooH firms investigated over rebatesJC Decaux and Clear Channel at centre of ‘competition’ row

out of home, out of favour? Concern over ‘potentially restrictive’ contracts

18-GMR196-World News 1.indd 16 2/24/11 6:46 PM

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World Ne W s

Us A r t i san chocolate co-operative Tcho – which stands for technology and chocolate – is developing an online virtual factory.

Real-time sensor data and video is imported from hun-dreds of sensors on the 30,000-square-foot factory in San Francisco to create the computer-based environment.

“We are designing ways for customers to track their own product from point of origin to finished product,” marketing manager Larry Del Santo tells Confection-arynews.com.

“In the future, visitors will be able to choose avatars and interact with each other as well as the factory,” he adds.

He said the technology will allow the company to create multi-user collaborative spac-es for tasks such as factory observation, virtual inspec-

tions, customer visits, em-ployee training, process monitoring, and inventory tracking.

The initiative is an exam-ple of serious games, which combines high-end game engines with media and data importation for “real-world purposes”.

Tcho is developing the project with FXPal, the com-pany which helped create its iPhone app that controls the factory’s machines.

Del Santo added that it is helpful to be able to start or stop machines remotely.

UK KFC has dropped its “finger lickin’ good” slogan after 50 years and replaced it with “so good”.

The new tagline is part of a brand overhaul to reflect the CDR’s move to healthier oils and to griddling. Outlets in the UK and Ireland will switch from palm food oil to health-ier rapeseed oils, reducing saturated fats by 25 per cent. It will also source oil with-

in the UK instead of Asia to cut on food miles while calo-rie content will be included on menus from September.

KFC is also spending $1.1 mil-lion on refitting its UK outlets with ovens so it can launch the Brazer, its first product that is griddled, not fried.

Martin Shuker, CEO of KFC & Ireland said that the old slogan was too ‘food centric’. “‘So good’ is still about food but it allows us to more ef-fectively communicate the breadth of different things about the brand.”

Col. sanders junks 50-year-old tagline

se Asia/europe Nestlé innova-tion, the ‘peelable’ ice cream, which launched in Thailand last year as Eskimo Monkey, is now available in Europe under the Pirulo brand.

Eaten like a banana, a bite is taken from the top of the peelable jelly shell, which then rolls down like a banana skin to reveal an ice cream.

First extended to Malaysia in January under the Matkool brand, the range entered the Philippines in February as Krazy Banana under the Kimy brand. Roll-out in several other, as yet unspecified, countries is slated this year.

The range was developed in line with the Nestlé Nutri-tional Foundation’s requirement of using no artificial colour-ings and being low in fat and sugar.

In Thailand the launch linked in with the Eat Smart Play Hard campaign – backed by the Ministry of Public Health. Focusing on six- to 12-year-olds, it encourages health-conscious food choic-es, Nestlé says.

TVCs, cartoon-style posters and tricycle sellers used easy-to-understand instructions to demonstrate the ice cream’s ‘peelability’.

Asia’s ‘Peelable’ ice cream has it licked

Chocolatier gets taste for “virtual” factoryTcho designing ways for customers to track products online

Changing tastes: KFC brand overhaul

Bean there: Tcho’s virtual factory

A-peeling: Banana-style ice cream

Diet Pepsi’s Skinny Can, which debuted at the Fall 2011 Mercedes-Benz Fashion Week in New York last month, left some consumers fizzing with indignation. Cre-ated “In celebration of beautiful, confident women”, said Pepsi. The can rolls out nationwide this month. While fashion-led events support the launch, critics say the campaign, ‘Get the Skinny’, helps fuels low self esteem issues among women.

WeIGhTY ISSue


March 2011 Gulf Marketing Review 19

World NeWs

I n d i a M E C h a s b e a t e n competition from a multiple agency pitch to become AOR for FlipKart.

FlipKart, the three-year-old e-commerce portal based in Bangalore, initially sold books, but has expanded to offer music, movies, games and mobile phones.

MEC’s mandate is to increase awareness of the brand, said the agency. Happy was re-cently appointed FlipKart’s creative agency.

“FlipKart as start-up brand/ serv ice has been bui lt entirely by word-of-mouth,”

explained Sachin Bansal, CEO. “A move from that ‘buzz cul-ture’ to a mass media campaign is a big shift for us, and we wanted an agency that un-derstood these nuances.”

“It’s a real pleasure to have a brand like flipkart.com on our client roster”, added Man-jiri Kamat, managing partner, MEC. “We look forward to adding value to the business through our unique Active Engagement approach.”

MEC is part of WPP’s GroupM and has four offices in India employing 130 people. Clients in India include: LG, Colgate, Nivea India, Mercedes-Benz, Zee Network, HDFC Standard Life Insurance, Citi, DHL, Sony Ericsson, Singapore Tourism Board, Singapore Airlines and Honda Motors & Scooters.

UK Starwood Hotels & Resorts has appointed Dentsu London to help launch its urban brand Aloft in the UK.

Aloft London ExCel opens in London’s Docklands in October. Dentsu London, which won the account without a pitch, is the first agency in the UK to work with Starwood, reports Brand Republic.

The remit spans outdoor, online, experiential and social media.

Aloft is positioned as the highly sociable, tech-savvy destination inspired by the celebrated cool of Starwood’s W Hotels.

Available in both franchise and managed models, Aloft signed 100 deals within 30

months of its launch in 2008. Georgia-Lee Cleland, mar-

keting manager at Aloft Lon-don Excel, told CampaignLive: “Aloft is a unique hotel expe-rience for design-conscious, Generation Y consumers and we needed an agency that could help find and target those people in a convincing and compelling way.”

starwood welcomes dentsu london

south Africa The International Marketing Council (IMC) of South Africa – custodians of Brand South Africa – has ap-pointed Native Inside, a client service division of Native.

Native is the full service digital marketing solutions agency, formed last year by the merger of Cambrient, Brandsh and Stonewall, which partners with Publicis.

South African Tourism is also a client of Native.

Native Inside operates from inside the Publicis offices, facilitating work on joint clients, to ensure a stream-lined service delivery to the IMC and other Publicis Groupe clients, a Native press release reports.

Hong Kong JWT Hong Kong has walked off with Samon-site’s entire Asia Pacific busi-ness following a four-way pitch.

JWT currently handles Samsonite and its American Tourister brand in Shanghai and India.

The expanded remit includes delivery of a unified brand idea across multiple media.

“They’ll help us deliver a meaningful message about what the many facets of the Samsonite brand represent in today’s world,” said Kenzo Yoneno, assistant director, design and communications, Samsonite Asia.

JWT’s pitch-winning brand campaign launches next month.

south Africa’s IMC goes Native Inside

JWT HK walks off with samsonite

MeC named Aor for India’s FlipKart

Actively engaged: Manjiri Kamat

The Cannes Lions International Festival of Creativity has introduced a new award, Holding Company of the Year. Any agency that is owned 20 per cent or more by a holding company will contribute points to this award across all sections and categories for both shortlisted and winning entries.

The Holding Company of the Year Award will be presented alongside the Agency of the Year, Inde-pendent Agency of the Year, Palme d’Or and Network of the Year, in Cannes on June 25.

Other special awards given at the festival include Direct Agency of the Year, Media Agency of the Year, Advertiser of the Year, Media Person of the Year and Grand Prix for Good.

PrIDe OF PLACe



Marketers have been buffeted but not bowed by the recent social turmoil that swept through the MENA region during most of February, but the cost is mounting.

The economic impact is still being assessed, but office closures, cancelled events – most notably the Formula One grand prix and GP2 Asia Championship, both in Bahrain – and a sharp drop in tourist arrivals, especially in Egypt and Tunisia, will dent profits for clients and agencies alike.

egyptSpeaking from his office in Cairo, Med-hat Amin, MD, Mindshare Egypt, tells GMR that a month of inactivity through intermittent office closures has forced a downward revision of 10 per cent for 2011 forecasts.

The Egyptian Tourist Authority – ETA – is a key Mindshare client.

“What’s unknown yet is for how long clients would remain inactive,” Amin says. “There are two scenarios. If the situation goes back to normal in the coming few weeks, we expect many clients would compensate for the inactive period.

“If not, we expect there will be a drop of at least 30 per cent versus what we had budgeted before the revolution.”

“We have already started working on a strategy to bring tourism back to Egypt,” he says.

“The revolution brought about a global scare to tourists intending to visit Egypt. However, the Ministry of Tourism is adamant about bringing back the tourists to a better Egypt.”

“The decision to reconvene global campaigns as soon as possible had already been taken, however there is some caution as some countries’ governments have issued travel warnings.”

FP7 Cairo, meanwhile, closed for five days, reports GM, Lina Fateen.

“We cannot assess financial losses accurately yet as the situation is still vague with many clients – whose budget reflects hours at the end of the day – but for sure there will be a loss,” she tells GMR, adding that it would be “huge in Q1,” but hopefully pick up between Q2 and Q3.

“We’re working on a few proactive campaigns in the meantime to get buy-in from clients to sponsor a call for action for productivity, tourism – postcard from Egypt – and change from within,” she adds.

Raja Trad, CEO, Leo Burnett MENA, whose Cairo office closed for nearly a fortnight, but had now resumed normal operations says that it was too soon to guage the impact on the network.

“Clients have reactivated communica-tions requests and we believe that things will resume normalcy,” he told GMR. Leo Burnett does not have offices in Algeria, Tunisia, Bahrain, Yemen and Libya.

BahrainThe economic impact on Bahrain – the

news plus

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Region’s marketers recoup to assess economic impact on 2011.counting the cost of fReedom

proactive: Fp7’s lina Fateen

Back to noRmal

party: unisono’sliam Farrell

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news p lus

venue for the 43rd IAA World Congress in March – is more easily estimated given the well-documented benefits of F1.

Martin Whitaker, former CEO of Bahrain International Circuit – home to the Sakir F1 track – said that the 2008 grand prix generated $600 million for the economy, as well as changing international percep-tions of the Middle East.

The upfront investment is consider-able, especially for hosting the season opener, traditionally the one to garner the highest global TV ratings. F1 chief Bernie Ecclestone, however, has since waived the $40 million race fee which mitigates some losses, but local sponsors are inevitably short-changed.

Public agency The Bahrain Economic Development Board – responsible for at-tracting FDI to the kingdom and the body behind the Business Friendly Bahrain global awareness campaign – declined to comment, but Gulf Air, the F1 title sponsor, told GMR, somewhat predict-ably: “We fully support the decision by the Kingdom’s leadership to reschedule the race and we are looking forward to a new date being set and to welcoming the fans and teams later in the year.”

Other brands are said to have paid around $2 million for smaller sponsorships.

“It’s a crisis of course,” said DDB Bahrain managing and creative director, Francois Bourgoin, “but I trust Bahrain as a com-munity will do a great job of handling it constructively and as a consequence will emerge a winner, even if in the short- to medium-term this will undeniably affect some businesses and suggest a rethink of Bahrain’s brand image.”

Liam Farrell, founding partner and ex-ecutive creative director of Bahrain-based creative consultancy, Unisono, said the F1 effect had been largely “overhyped”.

“Few brands made much of the F1 year-by-year, except main sponsors Gulf Air

or constructors like Toyota. Hotel brands including the Ritz and Gulf Hotel will suffer on fewer numbers for this one weekend, especially as they add a whopping F1 tax on all rooms.” He added that the keenest effect would be felt in the entertainment sector as visitors for the F1 like to party.

“The island feels alive for one weekend so we will definitely miss it, but I feel most brands here fail to really make the most of the F1.”

Founder of one of Bahrain’s oldest agen-cies, Gulf Marcom, head of the local IAA chapter and the man who is bringing the IAA World Congress to the kingdom, Khamis Al Muqla remains cautiously optimistic.

At the time of writing he told GMR’s sister title Communicate the grand prix cancellation would have an immediate impact on marketing activities, and let’s not forget that GP2 Asia Championship was cancelled too.

“So this period, the first quarter, which is a very active period, will be affected,” he said, adding that he was in contact with the IAA pending a board meeting this month when the situation would become clearer. “But let’s be more optimistic,” he concluded. Samir Ayoub, CEO Mindshare MENA, however, speaking about the can-cellation is characteristically direct: “We expect many clients either to cease or reduce spend. Nothing is clear or predictable yet.” n

We expect many clients either to cease or reduce spend.

red flag: Bahrain economy blown off course

reactivate: Mind-share’s Medhat amin

holding on

trust: DDB Bahrain’s Francois Bourgoin

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When japanese brand Benihana Kuwait served Lebanese expat Mark Makhoul with an $18,000 lawsuit for reviewing the restaurant on his blog, it soon found itself in hot water.

Many in the Middle East online com-munity have condemned the outlet for what it perceives as an attack on freedom of speech.

The review wasn’t especially damning; in fact it was “mild” compared to the tirades other brands – namely telcos – receive.

Benihana is not the first company to be caught off guard by issues that have emerged in social media and then snowballed out of control. And it certainly won’t be the last.

Brand owners looking to leverage social media must listen and keep an eye on the buzz and sentiment around products. Early detection of negative discussions can help formulate a better crisis management strategy.

Instead of engaging proactively with Makhoul to find out what prompted his negative comments, Benihana staff started posting fake endorsements of the brand under different identities.

What should have been an apology and promise to address Makhoul’s concerns escalated into one big hot mess. As other bloggers and tweeps caught scent of the story, Benihana’s reputation rapidly fell into tatters, tweet by tweet.

The “BenihanaKUW” hashtag was cre-ated and, at the time of writing, is still going strong with more than 3,500 tweets.

Benihana Kuwait’s Facebook page was inundated with comments, some funny, some angry; the Benihana Kuwait GM even asked Makhoul ‘Are you Lebanese?’...the PR equivalent of pouring fat on the fire.

Within a few hours these comments were removed and some users blocked.

Media

CritiCal panning

Benihana sues customer

for review382* (63.6%)

Questions to Mark248amover twitter41* (6.83%)

When Benihana Kuwait served a $18,000 lawsuit against blogger Mark Makhoul for his slightly unfavourable review it received a critical pan-ning from consumers that reverberated across the region and beyond.

© C

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The result? A Facebook page titled “Boycott Benihana Kuwait” where criticism of its actions continues unabated.

Both Benihana Kuwait and Benihana of Tokyo have remained silent. Mean-while, millions of people have read the story on blogs, forums and social media platforms. Traditional media have also covered it.

On February 14, In a show of strength, the region’s bloggers posted the original review on their own blogs.

The brand has been damaged and it will be interesting to find out how this controversy has affected overall restau-rant footfall.

However, not all is lost for Benihana. It would do well to drop the lawsuit (the case is due in court on March 8). It can

retweets82* (13.6%)

BoycottBenihana

59* (9.83%)

then leverage whatever positive coverage there is and focus on engaging traditional media outlets and prominent bloggers

and social media ‘influencers’. If social media has destroyed the brand, it can also help bring it back to life.

‘are you lebanese?’...the pr equivalent of pouring fat on the fire.

*Mentions across social platforms except where specified

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Media

So what lessons can brands learn from Benihana? When building a brand or engag-ing customers it is vital to remember how quickly an update (or careless comment) can go viral. Listen to your stakeholders; be transparent, own up to your mistakes, especially on media that you control. You will be surprised how a positive gesture in times of crisis can be quickly amplified.

In times of crisis, stop using the head-in-sand approach. The one thing in Benihana’s favour was it chose not to ignore the is-sue. However, it did not have a strategy in place for combating negative feedback.The approach was all wrong. n

The study saw overall buzz coming from the UAE (54 per cent), Kuwait (27 per cent), Angola (6 per cent), the US (4 per cent), Egypt, Bolivia and KSA (2 per cent each), and India, Oman and Greece (1 per cent).

What can Benihana do?

27* (4.5%)

Benihana will win the case9* (1.5%)

ashwin saliandirectorClique Media, UaE

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media network entitled: “Restaurant Review puts blogger in Hot Water”

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Buzz timelineAn alarming number of supporters on Mark’s blog

Source: January 30 to February 11, 2011. Clique Media FZC



1. There is no contradiction between creativity and building business.As predicted during the GEMAS effies last November, the gap between crea-tivity and effectiveness is shrinking. Indeed, almost all GEMAS effies winners came out with top awards at the Mena Cristals, many times in several different categories: Exotica “Valentine Make a Move”; Batelco “Debate the Game”, “SimSim O net” and “Notepads”; Dorito “Mixers vs Jammers”; Nivea “Angelstar”; Alfa “Radio Hijack”; and, Birell “Be a Man”. This time, however, they were honoured for their creativity.

The ones that did not win a GEMAS effie last year probably stand a very good chance in 2011. My hot tips are: Vodafone Egypt (Kowetna); Blom Bank (demining campaign with MasterCard); and KSARA (Every Bottle Tells a Story).

2. Post-crisis, the region can still compete globally.In this post-crisis recovery period, work is bound to suffer. However, the Middle East is not lagging behind the rest of the world. We have managed to produce world-class work that can compete globally.

It may be true that we do not have a huge quantity of work at that level, but we have enough to get noticed and eventually win.

In the more traditional categories, such as print and poster, for example, the Mid-dle East has delivered work that will be acknowledged at Cannes, most notably with Batelco’s print work (Directory and Mouth), Harvey Nichols’ Accessories Re-quired, and Le Mall’s Take Her to the Game. That is even more evident in the film category with Batelco’s Infinity, which beat European competition at the Crans-Montana’s Cristals in December (at the

European version of the MENA Cristals the jury requested changing the rules to give the Cyber Grand Prix to Infinity for both the Middle East and Europe).

The real challenge, however, is whether international juries will ac-cept work that is truly local and Arab, such as Vodafone Egypt’s “Kowetna”, as opposed to work crafted to suit global creative standards.

3. The way to go: localisation and realism.Many big winners devised campaigns that were deeply rooted in local cultures, resulting in a standing ovation from the public for Vodafone Egypt (Integrated Grand Prix). In that same spirit, campaigns from Lebanon (Exotica, KSARA, Alfa) and the Egyp-tian market, (Vodafone, Hyundai, Tiba, Pepsi, Birell and Domino’s Hadji Najji) dominated the contest, showcasing every aspect of local cultures, from the insight,

CreaT ive

Back down to earthAn industry insider descends Mzaar Kfardebian, Lebanon, venue of the 2011 Mena Cristals, with fresh observations.

28-31-GMR196-CRISTALS.indd 28 2/24/11 6:07 PM


tone, language, right down to the cast.These campaigns had a 100 per cent

local flavour. Furthermore, they were true to life, whether using real actors to play real people or real people playing themselves. Even when celebrities were used, they acted like real people (former footballer Zinadine Zidane in Wataniya and Egyptian actor Adel Imam in Vodafone). This is most probably the way to go in the coming years as the pendulum seems to have swung again in the direction of typically local work with realism at its core, versus an idealised world.

4. The story: vodafone egypt and the power of the crowd.Vodafone Egypt’s “Kowetna” has to be the story of the MENA Cristals 2011. As the Egyptian revolution was unfold-ing live, the ad had the perfect timing.

How many times in the history of an awards event have you showcased an ad advocating power to the Egyp-tian people as they demonstrated in the streets? All attendees gave a spontane-ous standing ovation as the film was aired in celebration of its award victory.

That campaign, which had no political intentions, was not only spot on in terms of capturing the state of mind of a popula-tion, but I believe it also kick-started what I think is going to be a very big trend in the immediate future of communication: the power of the crowd. Indeed, in today’s connected world, crowds can do amazing things, starting with peaceful revolutions. I believe brands will also take advantage of such capacity to do positive things. However, this is a two-way street, as brands can also suffer severe consequences if crowds turn against them should they do something unethical. Crowds can make your brand famous or infamous.

OverheArd At the MenA CristALs 2011

“Ana Masri” (i am an egyptian) receiving the award for vodafone in front of a standing ovation. – rich Wakefield, eCd, JWt egypt

“don’t be impressed by your seniors. spend more time in real life and less time looking at compilations of awarded work.” – Bechara Mouzanar, CCO, Leo Burnett MenA.

“internet does not forget.” – hervé Cuvilliez, CeO, diwanee

“really good creative work is about people loving it and not about wondering if they got it.” – ramsey naja, CCO, JWt MenA

“Our success is about love. We want love from our suppliers and partners. if you don’t love me, i will not get the best from you. i ask for love then.” – Antoine Abou Khalil, director, Zain Corporate Communications.

“Creativity is about solving a problem. if there’s no problem there’s no creativity, and if controversy is the solution, great, if not it’s stupid.” – ramsey naja, CCO, JWt MenA

“there are two championships in a year: the obvious one and the one that hap-pens before: the building championship. if you win that one, you can’t go wrong.” – roland Courbis (former coach of Olympique Marseille and Girondins Bordeaux)

“stick to your morals. if you are not risking your job every day, then you are not doing your job.” – Antoine Abou Khalil, director, Zain Corporate Communications.

Whatever emmanuelle Beart – said.Hubert Boulosregional managing director MAC ddB, doha.

Party Time: FP7 celebrates its wins


www

CreaT ive

Film hajj nadi domino’s Pizza tBWA\rAAd dubai

Outdoor All terrain ets. Kettaneh impact BBdO Beirut

radio the hijack Alfa Managed by Orascom Leo Burnett Beirut

Magazine Accessories required harvey nichols dubai Y&r dubai

Print Craft Musical Creatures the Fridge tBWA\rAAd dubai

Arabic Cristal vodafone Brand Campaign vodafone egypt JWt Cairo

Promo and direct valentine - Make a Move exotica Leo Burnett Beirut

Cyber note Pad Batelco FP7/BAh

simsim O-net Batelco FP7/BAh

debate the Game Batelco FP7/BAh

infinity Batelco FP7/BAh

Good Call Batelco FP7/BAh

Media touch of Ads hewlett Packard Middle east OMd

Corporate Loubnani Bank Audi Leo Burnett Beirut

Production Cristal Zain UnrWA 60 years – it’s a Wonderful Life

Zain telecom City Films Production

Category Campaign name Client Agency name

–– Accessories required harvey nichols dubai Y&r dubai

FestivAL GrAnd CristAL

GrAnd CristALs



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creative view

Sarosh DaruwallaDirector of operations, P&A KuwaitDubai Islamic Bank ‘Give’ TVCLike – Simple straightforward mes-sage linking the act of selfless giving during Ramadan with Dubai Islamic Bank (DIB), thus creating an unsaid connection about DIB’s Islamic iden-tity and values in a positive way. The direction was crisp and captured the emotions pretty well. In other words, I connected with the ad, despite being non-Muslim.Dislike – I don’t think there’s anything that I dislike in this commercial.

Shoe MartLike – The simple header “The World at Your Feet” and clean, uncluttered layout.

Dislike – The image treatment; I thought the execution was not up to standard and they could have been a lot better in their presentation. The series did not evoke any strong passions or motivate me with “Buy Me” signals. Average at best.

Ahmed BeckExecutive creative director, FP7 RiyadhDubai Islamic Bank ‘Give’ TVC There were many positive elements that attracted my attention. The tagline at the end is very strong, it says everything. The director of photography did a good job providing the right lighting and mood. I also liked how the director showed us different people and the way they are living in a way that allowed us to feel their difficulties. The only thing I would

have done differently, or would have added, is to show that hope and little bit of smile after receiving each pack. When the hero forgot the last pack, I would have shown him smiling, as if he is happy to deliver it again and not bothered by it. I liked that they didn’t show what is inside the packs, because it is a good way to say you can help as much as you can, even if it is a simple thing. The music is very good and played a key role.

Shoe MartI will start with the positive. The cam-paign has a very creative edge in terms of fashion photography, compared to other categories in the market. The campaign also has a very nice treatment visually, you can see the separation and focus on the shoe in a very artistic way. It can easily be a three-year campaign and applied to different markets. What’s nice about it is that it is very easy to understand and can relate to all ages. It also works well in terms of marketing and business.

If I want to criticise, I would say that it is not very creative and origi-nal. You can feel it is not something completely new. n

CRIT Iq uE

Client: Dubai islamic Bank Agency: Milkshake Media, Dubai

Client: Shoe Mart Agency: the classic Partnership, Dubai

SaroSh Daruwalla

Dubai islamic Bank Shoe Mart

ahMeD Beck

Dubai islamic Bank Shoe Mart

Dubai islamic Bank ‘Give’ tvc, Shoe Mart ‘world at Your Feet’ print

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COVER STORY

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CSR needs to go beyond simple corporate philanthropy into strategic brand reputation management. Precious de Leon looks at who gets it and why the rest are slow to catch up.

BRand outReaCh

SOmE Call it return-on-involvement, cor-porate activism or social performance, while others stick to its more traditional name of CSR. It may already have a whole crop of monikers but, in the Middle East, Corporate Social Responsibility is yet to assume its proper place within most business strategies.

Back in 2008, The Economist found that 98 per cent of global businesses believe that CSR is a priority while an IBM study of 250 global business leaders found that 68 per cent are looking at CSR as a platform for sustainable growth.

While no one refutes the need for com-panies to give back to the community, that same IBM study said 76 per cent admitted they didn’t really understand their stakeholders’ CSR expectations.

A more advanced view of CSR requires long-term commitment, a clear integration of corporate values and a good understanding of consumers’ expectations of a brand’s involvement within the community.

“In every country we’ve done research in and every client we’ve done research

for, there are a set of expectations about what a company needs to do to ‘give back’ to society separate from what it makes or how it is run itself,” Karen Buerkle, VP and director of corporate reputation research for APCO Insight in Washington DC tells GMR.

APCO Insights is being introduced in the Middle East following APCO Worldwide’s acquisition of local PR agency Jiwin in November last year.

Three years after that IBM survey, global events have forced some companies to take a closer look at the impact of CSR,

moving beyond describing it simply in terms of philanthropy.

“The post-economic crisis rules of the game have changed and those in the region that didn’t want to acknowledge this before are now being dragged into the new paradigm,” says Ziad Hasbani, CEO Weber Shandwick MENA.

It is irrefutable that regaining consumer trust; addressing worries that came with recession; and consumers’ increasing awareness towards ecological issues are reshaping consumer behaviour towards consumption and purchasing.

“Engaging with CSR activities helps rebuild trust between the brand and consumers,” says Khalid Hadi, director of brand and corporate communications, ENOC (Emirates National Oil Company).

“Research has also found that a lot of people would like to conduct business that is engaged in CSR activities because they know that part of their payment goes into a charitable cause.”

Along with the 20-plus CSR initiatives it has developed, the company’s flagship

Expectations: aPCO’s Karen Buerkle

SoCiaL inveStoRS

Shape shifter: WS-mENa’s Ziad Hasbani



programme is the ENOC Challenge, which sees the company take in 15 financially less fortunate students and young people with mental health issues to prepare them for the workforce.

This year will see ENOC run CSR activi-ties outside the UAE for the first time. It is currently in talks with two charitable institutions in Dubai for initiatives focused on education and school building, particu-larly in Africa and the Indian subcontinent.

“Your brand gets associated with the activities you do and we now want to enhance on the ENOC brand internation-ally. It has been active in countries such as Singapore, Djibouti and Morocco already, but we haven’t done much on CSR. So we are using this opportunity to build our reputation and our brand in these markets,” says Hadi.

Pending approval from local authori-ties, the company is also planning to launch the independent ENOC Fund in 2012, to support community initiatives. It has also already started on its first sustainability report.

So the cause is not lost at all. There are some regional companies that are taking some strides forward, albeit the overall regional progress is just at an incredibly slow pace.

“I believe much has changed in our region in the past few years. As little as three years ago we were still finding some clients think that sending an annual or

twice-annual cheque to charity ‘ticked their CSR box’ and while this kind of activity has both validity and cultural resonance, now there is definitely a greater understanding of how effective corporate responsibility is more than about creating a ‘feel good factor’,” says Hasbani.

Aramex is another brand that has taken corporate responsibility to heart. It is one of a few Arab brands that has a dedi-cated chief sustainability and compliance officer, with a goal to make Aramex a carbon-neutral company – quite a feat for a global logistics company that thrives on hauling packages around the globe in gas-guzzling airplanes.

“We don’t call it CSR. We call it Cor-porate Activism. We believe this reflects our initiatives better,” says Raji Hattar, chief sustainability and compliance officer. “It’s about being active and part of the process in the community as much as it is about making it a part of the business and financial processes.”

The company requires its regional offices to set aside at least one per cent of their net profits pre-tax for sustainable projects.

Progress is “a slow-moving trend in the region because people are still used to the typical philantrophic mode,” says Hattar.

Aside from its focus on education and

COVER STORY

...corporate responsibility initiatives work best when they have resonance with a business...

Recycling: Q.media Decaux is promoting eco-friendly transport in Doha, while introducing recycled materials for its street furniture

The ministry of municipality and Urban Planning in Qatar has partnered with q.media Decaux to launch Q Bike, the first self-service bicycles in the middle East.

a sample station of bicycles has been installed on the Corniche in Doha to collect public feedback on the facility before developing a citywide scheme. Running until april, residents and tourists will be able to use the bicycles and helmets from 3pm to 8pm on a dedicated bicycle track on the Corniche. The service is free of charge and users will be guided on the station by an operator.

The project is intended to ease traffic in Doha and promote eco-friendly transport and regular exercise. apart from the bikes, q.media Decaux is also introduc-ing some products in the airport made of recycled ma-terials. It also uses water-based ink instead of solvent in printing. This requires more expensive machines, but is said to be better for the environment and health of the people undertaking the installation.

CSR DRive: q.meDia DeCaux



community rehabilitation through its Ruwwad programme and disaster relief initiatives, about 78 per cent of the company’s cars are currently running on unleaded gas and it is currently working on achieving LEED ratings for its corporate properties in Egypt and Jordan.

More significantly, Aramex is integrating its sustainability report (now in its fourth year) into the company’s annual financial report, indicating the correlation between its financial performance and its ‘corporate activism’ programmes.

Internal brandingCompanies are also seeing internal benefits to reaching out to communities.

“We also want to create a culture of volunteerism within the ENOC Community,” says Hadi. Regular outreach programmes such as Clean up The Walk (Dubai) and blood donations, as well as volunteering to help pack disaster relief packages are some examples.

Louay Al Samarrai, managing partner, Active PR, sees it not just as an act of goodwill, but also as a morale booster.

“The team is more likely to want to stay in an organisation that, while com-mercially focused, also has the conscience and confidence to pro-actively look for

and offer this kind of consultancy,” he says when asked about pro-bono work.

Active PR is involved in at least two of these projects a year, either offering pro-bono work or on a much reduced fee – usually to donations-based companies and young businesses with products in which the agency strongly believes.

“Where we do not leverage this is by any self-promotion, we appreciate and welcome these organisations recommend-ing us to their other business partners or contacts and if this generates regular busi-ness for us then we are grateful. If it does not, we will always find this fulfilling,” says Al Samarrai, adding that working this way with some start-ups can also benefit agencies, in that once that client gains traction, they will be more likely to stay loyal and reinvest in the agency.

Getting involved with charity has also become a way to mark milestones within the company. PHD, for example, ran the PHD Big Hug charity last month to cel-ebrate the agency’s 21st birthday. It’s a series of activities run by PHD’s 74 global offices simultaneously to raise funds for charitable causes. Each office identified a charity to support through raffles, bake sales, bingo events, rugby tournaments, and even donating free media planning

COVER STORY

…some clients think that sending an annual or twice-annual cheque to charity ‘ticked their CSR box’…

Fuelling development: ENOC is in talks with organisations focused on education and school building

Henkel arabia is donating part of its 2010 profits from its Persil liquid detergent for White Thobes product to train women in Saudi arabia in tailoring. The project reinforces the sub-category’s presence while creat-ing jobs for women in the region. The training is done in association with Nafisa Shams academy for arts and Crafts, part of Bab Rizk Jameel, which includes abdul latif Jameel Community Services Programs.

a fReSh StaRt



support. In the UAE, PHD chose to sup-port the Dubai Center for Special Needs through fund raising and donations.

“So while the PHD Big Hug is not re-ally CSR, it was our network’s approach to celebrate our anniversary in a differ-ent way, that of a global charity drive, instead of a party,” says Elda Choucair, GM, PHD Dubai.

Reasons for beingWhile the environment, the recession and the general human condition offer a lot of avenues for participation, there must be a strategy behind the selection of causes.

“Expectations about what a company should do to demonstrate it is socially responsible usually call on it to leverage its particular expertise to help others (not just itself). For instance, for a major bank we’ve seen expectations that they should help educate people (especially poorer people) on financial literacy issues,” says APCO Insights’ Beurkle.

“Similarly, for technology companies it has been things like helping bridge the ‘digital divide’ between rich and poor areas of a country or form technology and edu-cation partnerships to make sure schools of all levels are teaching the most relevant skills needed to train the workforce of tomorrow, etc.”

WS MENA’s Hasbani agrees. “There’s no doubt that more companies are engaging with the concept of corporate responsi-bility and that more of their customers and stakeholders are expecting it too. However, it’s an area rife with potential pitfalls and the best intentions can fail to get off the ground if the correct proc-esses haven’t been followed, resulting in often wasted resources, demotivated personnel and even reputational or stake-holder relationship damage.

In our experience, corporate responsibility initiatives work best when they have resonance with a business, creating a shared value.”

Given that a company chooses CSR drive that is in synergy with its core values and executed well, returns from the community

involvement should be measured, just as with any other corporate initiative.

Last year, ENOC’s media coverage saw CSR-related stories account for a majority 37 per cent of the total coverage. General ENOC stories such as exhibitions, sponsor-ships, conferences and statements, came second with 18 per cent.

“In the case of where CSR is embedded into a consumer brand at ‘DNA’ level or a specific brand promotion, it is not always possible to measure success by product sales alone: it may be that a consumer

is buying a product for a number of rea-sons quite separate from the CSR element. This is where market research, perception audits, and other marketing tools help to shape the understanding of what the returns are, and how much the CSR ele-ment contributes to the brand equity and reputation,” says Hasbani.

UM is currently working with some clients to implement internal initiatives aimed at reducing internal office energy and water consumption. In this case, the measure of success is clear and is reflect-ed on the office’s monthly utility bill. In other cases success may be more in-tangible, such as the implementation of new policies aimed at staff motivation and retention.

In addition, the Dubai government re-cently launched the Hawkamah Institute of Corporate Governance ‘Environment, Social and Governance Index’, developed in partnership with Standard and Poor and the International Finance Corporation. Its premise is to look at the correlation

Corporate activist: aramex’s Raji Hattar

BenefiCiaL

Embedded: ENOC’s Khalid Hadi

eNOC CSRGeneral*

emgaseNOC Brand

eNOC Lubricants

eNOC Retail

tasjeelhtL

eNOC aviation

50 100 150 200 250 300 350 400 450 500

432

206

146

91

89

71

45

39

31

ENOC Media coverage - Total hits (January – December 2010)

2009

20102009

20102009

2010

200 400 600 800 1000 1200 1400

ENOC Media coverage – 2009 vs. 2010

* General stories include HR-related, participation in ex-hibitions, sponsorships, visiting

dignitaries, general awards and ENOC statements. Source:

ENOC Insights January 2011

Source: ENOC Insights January 2011

eNOC

arab

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1,069

358332

8550

1,150

no. of hits across all media

no. of hits across all media



between business performance and non-financial indicators.

CSR’s regional future So where does the future of CSR lie? “We’ve seen a strong desire for visible social investments that ‘put something back’ and these activities need to be things that are clearly available to av-erage citizens, not just well-connected elites,” says Buerkle.

“In particular, we’ve noticed a strong desire to train local citizens for leader-ship roles in enterprises in many Mid-dle Eastern countries where there is a visible lack of corporate leadership among the local population and there is a perception that talented young people must move to Europe or America for a career opportunity.”

As for ENOC, aside from it bringing its CSR reach out of the UAE for the first time and plans for an ENOC Fund, the company is in talks with local sports as-sociations such as the Dubai Chess Club, offering to cover fuel costs in exchange

of branding the team’s transportation.The company has also started shar-

ing their CSR model with others. Most recently, it met with the Abu Dhabi Economic Development Department to share its ideas on CSR. In addition, ENOC ran a Safety Driving Campaign during Ramadan, in partnership with Volvo.

Brands and agencies are collectively

hoping more companies will follow suit. “We would love to see an upris-ing of companies moving forward to create corporate reports,” says Aramex’s Hattar. While Choucair sums it up, saying: “We hope that all of us in the marketing industry, who help brands do better every day, harness that same enthusiasm to make a difference by supporting the cause they feel the most connected to.”

Looking further ahead, Hasbani says: “CSR marketing will shape-shift from isolated cause support activi-ties (such as mobile phone collection bins in retail outlets or profits from a limited-edition product going to-wards a nominated cause) to deeper, more meaningful associations with a more limited number of social or en-vironmental causes that are somehow more connected to the core business strategy, accompanied by considered stakeholder management and consistent, well-targeted communication.

There are inklings that this forecast is possible. But the pace is slow, as measurability and therefore incentives are still not a priority. So it seems CSR will eventually have its rightful place in business…slowly but surely. n

COVER STORY

…it’s an area rife with potential pitfalls and the best intentions can fail to get off the ground.

Team effort: Taking corporate responsibility seriously, aramex is going carbon-neutral

Silkor laser medical Center, has partnered with the Dubai Foundation for Women and Children (DFWaC) on a number of social projects.

The initiative is one of the calendar of ac-tivities under the Silkor Foundation. It provides vocational training sessions on skin treatments, as well as offers treatments to three women every month, in efforts to help boost their self-esteem and confidence.

Having started in September 2010, this is the first phase of the partnership with DFWaC, which houses women and children affected by domestic violence and human trafficking.

Based in Beirut, the Silkor Holding management division will also collaborate closely with DFWaC in speaking opportunities at various forums and outreach activities aimed at empowering women.

wOmeN aND ChiLDReN fiRSt


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developing countries are realising the benefits of sustainable programmes, just not quickly enough, says study.

feeLing the PReSSuRe

ONlY 18 PER CENT of companies publish their targets and performance in meeting environmental, social and governance sustainability goals on an annual basis, says the Economist Intelligence Unit (EIU).

In addition, 40 per cent do not currently publish information on their sustainability practices and have no plans to do so.

However, when segmented between the developing and industrialised world, the former has shown greater recognition of the growing importance customers and other stakeholders attach to sustainable business practices.

In fact, 45 per cent of those in the developing countries who do not publish their results for sustainability practices say they plan to do so in the next two years, compared to only 19 per cent in developed countries.

The research explores companies’ commitment to environmental, social and governance (ESG) sustainability goals, and their priorities among sustainability-oriented

practices. The study defines sustainability as operating in a way that ensures long-term viability.

Globally, 78 per cent say that a focus on sustainability will be important for their firms in the coming three years. In developing economies, that figure is 85 per cent. The study found that emerging market firms see sustainability-oriented ESG practices as a chance to bolster relations with custom-ers and investors in developed economies.

Meanwhile, 54 per cent say customers have the strongest influence on their ESG policies – more than any other stakeholder. Experts urge caution, though, warning that consumers are fickle, but the influence of regulators and investors appears to be growing.

Short-term financial pressures are the main obstacle to commitment to sustain-ability, says 54 per cent of respondents. Many managers fail to see the opportuni-ties, with only 14 per cent seeing a link between sustainability and short-term profit,

even though some ESG initiatives pay off within a year.

Some are divided on the merits of integrated financial and sustainability reporting. Among large firms that 35 per cent report ESG sustainability data annually, yet only 18 per cent publish an integrated report.

Not all executives agree on the merits of integrated reporting: some business leaders cite the advantages of targeting individual stakeholder groups with information most relevant to them.

Some companies take an ad hoc approach to including sustainability practices in risk management. Just 22 per cent say sustain-ability is a fundamental part of their risk management programmes; 35 per cent have more of an ad hoc approach. Only 22 per cent expect to begin including sustainabil-ity in their risk management in the future.

The relationship between ESG and long-term financial performance is crystallising with 76 per cent agreeing that sustainability is a pre-requisite for long-term growth.

Similarly, mainstream investors are paying closer attention to sustainability practices. One implication is that poor performance on sustainability could restrict access to capital. n

The sustainable future: Promoting growth through sustainability is available at: www.eiu.com

Hands up: 45 per cent of respondents in developing countries do not publish their sustainability reports

COVER STORY

aBOut the StuDy

Sponsored by enel, the survey ran be-tween December 2010-January 2011 among 284 senior executives globally, of which 75 per cent are responsible for strategy and business development.


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CL ient Serv iC ing

44-53-GMR 196 Q&A alan rutherford.indd 44 2/24/11 5:30 PM


gMr exclusive: Don’t change your agency, change how you manage it… before we all hit rock bottom, urges global IAA chief. Siobhán Adams relays the message.

A GRAVEYARD SPIRAL

“eArLier i SPOKe about the IAA, which is a tripartite organisation. It has about 3,000 members, including clients, agen-cies and media owners. One of the things I was talking about earlier with Siob-hán is that, in this region, there aren’t any advertisers in the UAE IAA. This is very, very unusual and something we need to address over time. We are now working with the WFA, and I know that you [the ABG] are affiliated with the WFA to try to bring our two organisa-tions much closer. That’s going to be an interesting dynamic.

“So, let me come on to some of the key trends in agencies, as I see them.

“It’s a very, very different world from what we tend to think it is be-cause the big agencies are all listed, and they’re not operating under the ROI model that we all like to think they are operating under.

“It’s actually an RFI – Return for In-vestors – model. Because, for them, it’s all about shareholder value, about stock-market prices and dividends. This creates some very, very different rules for engagement.

“It means that the management teams running those agencies probably work in a different way from what you think.

“You already know about the increas-ing consolidation of agencies and the big four, WPP, IPG, Publicis Groupe and Omnicom. Arguably, there is a sort of second tier emerging, which is Havas and Aegis, the Big Media Group.

“Then there are the new holding agencies coming on board. They are largely being driven by private equity. HIG Capital has taken a big stake in Engine and they are now out, going around the world, setting up a new global network.

alaN RUThERFoRd

alan Rutherford is chairman and world president of the International adver-tising association. he is also chair-man and non-executive director of a number of companies, including axiol-ogy, which specialises in performance management and financial compliancy of marketing services companies, and UK-based digital marketing firm Vol-ume. previously, Rutherford was CEo of digital Global, worldwide head of media at Unilever and media direc-tor at ogilvy & Mather. during a short visit to the UaE late last year, he spoke to the abG. What follows is an ed-ited version of his presentation: Don’t change your agency, change how you manage it.



Landgrab: Agencies within a network are usually small offices with their own P&L, battling with an ‘overkill’ of financial management and incentivised against hefty margins

“I’m sure you’ve all experienced agencies who say I can do that, even though you know they don’t have the capabilities...

“As, indeed, is new group Obtineo, which is the Carlyle Group, one of the biggest PE companies in the world, and LBI, a big digital agency. They’re doing exactly the same. They are on the acquisition trail.

“This changes the game in a number of ways, including the fact that the new hotshops, who I guess we are all inter-ested in, tend to develop themselves with the ambition of being sold. So, again, you’re seeing little differentiation between hotshops among third-tier, second-tier and top-tier holding companies.

“And it’s easy to forget that agencies are not big businesses. We’ve all worked in advertising, with big multinational advertisers, which are big businesses. Agencies don’t operate in that mature

way. Even WPP doesn’t operate in that way. They operate as small businesses.

“Take JWT, one of the biggest agencies in the world. It has more than 200 offices and employs 10,000 people. Take out New York and London, and that means there are, on average, 40 people per office.

That’s not big business. Each office has its own P&L. And they have to follow the rules of the holding company, which are designed to help deliver margins. So there are headcount percentages which they can’t go over. There are office costs to which they have to adhere. There are even fees that they have to pay from their office to the regional HQ and from regional HQ to global HQ.

“And they all have margin targets. Those margins tend to be pretty hefty.

And the bonus is paid against those hefty margin targets, which is normally in excess of 15 per cent.

“Think about it. Those holding com-panies then have to report to their in-vestors, Wall Street or the FTSE on a quarterly basis, so the stock price is directly related to quarterly results. You know that quarterly results by quarterly margin are the key factors. And the analyst can’t factor in assets or brand or anything like that.

“All they can do is look at the im-mediate results. It really is a day-to-day results business.

“Therefore, agency management teams become crippled by internal reporting and overkill of financial management. They become almost too internally focused. And none of them, whether it’s top-tier, tier two, tier three or the new guys, have the route to financially manage up and resource up, because they are all small businesses.

“Given that the holding company’s focus is revenue, growth and margin,

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they have to organise accordingly. Each manager is incentivised on those, so that creates a sort of land-grab mental-ity rather than a spirit of integration or co-operation.

“I’m sure you’ve all experienced agencies who say I can do that, even though you know they don’t have the capabilities of delivering on that kind of function. And, of course, rebates and AVBs, and all that sort of trans-parency kind of business, that then becomes a driving force for them because they are all motivated by revenue, growth and margins, which are pretty severe in terms of targets they have to achieve.

“And it’s definitely changed the brand-agency relationship because the success of the brand is no longer, I believe, the predominant measure of success of an agency, and client-service isn’t about the famous strategic partnerships that it used to be, but about ‘how can I serve this client for less cost?’

“It’s a marked change and I can’t blame any particular group. No one group is worse than another because they are all in that particular model.

“And, if you look at some of the recent press, it all fuels the scandals that are happening in the agency world. This [press cutting] is the first one I pulled out. It’s called: Ad man tests the limits. Irwin Gotlieb, head of media WPP’s Group M talking about how he can bring the European rebate model into

the US. The US is known for being a relatively transparent market. He’s also quoted as saying, a third of European annual profits, of Mediacom, is down to rebates. So you can see how this becomes a driver of the agencies.

“Another one, from Publicis, where, in China, the buying group there, Vivaki Exchange, was investigated for corrup-tion. It’s being used to launder money for media brokers and to get additional payments for rebates.

“So advertisers need to be very clear on what the role and responsibility of the media agency holding companies are.

“Again, back to the US, where the Grey Group was in court for holding monies back, particularly in media production, of some major clients and lost the rul-ing in the New York courts. And this is a major multinational client. This is a serious issue.

“Aegis Media, in Germany, settled with client Danone in June for EUR30 million to end allegations that it had kept its clients’ rebates.

“The next involves Leo Burnett and the US army… one client you don’t want to take on is the US army. LB settled in January 2009 for $15.5 million in a case in which it was accused, in part, of marking up bills for pass-through expenses that were supposed to be billed without profit.

“Another really interesting one. When Publicis acquired Razorfish. The deal involved some equity, but most of it was a guarantee to spend money against Microsoft – remember Microsoft owned Razorfish – against Microsoft’s media assets. So they were using their client’s money to buy an agency. I gotta say that’s smart.

“Other headlines you will probably have had conversations about: remu-neration and how each of the agencies will have said how tough it is at the moment – how they’re not making any money.

“Well, look at the headlines and you’ll see these major groups have upgraded

Key players: Sara Sahely, ABg vice chairperson and manager of group advertising for emirates, David Porter, media

director for Unilever Arabia, and global iAA chief, Alan rutherford

Smart move: When Publicis acquired Microsoft-owned razorfish, it guaranteed to spend money against Microsoft’s media assets, says rutherford.

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On the same page: Agencies and procurement are very comfortable discussing revenues and stock prices

Procurement is going into a tough market. And, of course, the agencies are hurting a little bit.

their profit margin and total revenues for 2010. How? Given that it’s such a tough environment and that every advertiser is employing their procurement guys to push harder on remuneration?

“These are trends from one of the companies within Axiology, an agency remuneration and benchmarking firm.

“In 2008 remuneration and total spend was in sync. As we hit recession in 2009, agency compensation fell faster than the amount of money being spent in the market, but in 2009 the agency groups managed to rebalance themselves.

“They’ve taken out the number of overheads, cut staff, replaced senior staff with junior staff, etc. So the trend is that remuneration is now moving ahead to spend. They’ve rebalanced and their margin is back on the increase.

“Let’s get on to procurement. “Within the average marketing or-

ganisation, procurement can easily find a 20 to 25 per cent saving. They see that as standard.

“On the other side, you will hear agencies moaning that procurement

doesn’t understand the value of crea-tivity, which is a fair point. But it’s a biased market. Procurement is going into a tough market. And, of course, the agencies are hurting a little bit. If you are a small, local agency, you’ve only got 40 people, you can’t afford to lose anyone so you do the deal just to keep the cash-flow going through.

“We’ve seen the rise of procurement and it’s not surprising really because there’s some low-hanging fruit there as well. There are some key dynamics around procurement within advertisers.

“Firstly, everybody knows you can always do it cheaper. The low-hanging fruit, this environment, and the bad publicity surrounding marketing and agencies, procurement has every right to get involved.

“And, importantly, they’re talking the same language as agencies these days. The agencies don’t go in and talk about their great creativity, their brands, added values. They are actually very


tripartide: iAA has 3,000 members globally comprising clients, agencies and media own-ers...but not, it seems, the iAA chapter.

all aboaRd?


Consumer Publ ishing Contract Publ ishing B2B Publ ishing L icense Publishing Yearbooks Awards Conferences Digital Media Representation

Progressive Publishing in Action

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500 millionimpressions

MEDIAQUEST NEW OK GMR 215x280.indd 1 1/25/11 12:55 PM


Just rewards? ‘the incentive towards malpractice grows daily as the pressure comes from bosses...’

So the industry is in a bit of a graveyard spiral, but I don’t think it has yet hit rock bottom

comfortable talking about revenues, their margins, and stock-prices etc. So procurement and agencies are actually on the same page.

“Ironically, the agency move towards financial reporting coincides with the rise of procurement.

“In the downturn, agencies are prepared to cut margins, do things cheaper. They are desperate for the revenue.

“So what does all this mean? “The old adage ‘the cost of everything’

holds true. There is limited focus on the value that the IP of agencies can provide. And agencies are so risk-averse they’re not prepared to gamble on brand success and remuneration being more closely tied to brand success.

“And if you sit within marketing, or media or advertising services within an advertiser, you have to be very, very vocal on that point to your senior management.

“The second point is that incentives aren’t necessarily fundamental in this new remuneration model, so agencies look to cut costs… mainly talent and hours in order to gain profitability.

“The incentive towards malpractice grows daily as the pressure comes from bosses; as procurement tightens the purse strings. I’ve had an agency boss blame advertisers for malprac-tice… because he says agencies are left with little choice, as they’d been pushed so hard on remuneration the only way they can make money is by not being transparent.

“And let’s not forget that it is a tougher world for other suppliers, media own-ers, production houses, etc, so there is an environment for rebates to flourish.

“In my day at Unilever, we thought if we paid a decent incentive, the agency would work hard to achieve that. Actu-

ally the agency and agency management today is more focused on, ‘can I just get my base revenue in and make sure I’m profitable on that at the moment’ and find other ways of ensuring that they can raise the margin.

“I hate to say it but the world’s changed, and probably forever. No CEO or CFO is going to accept a new, higher-priced agency in the remuneration model. And, once agencies have rebates they are not going to accept those being withdrawn.

“So the industry is in a bit of a grave-yard spiral, but I don’t think it has yet hit rock bottom… because agencies can still be leaner and some advertisers can still improve their position, and rebates and bad practices still grow...” n

In next month’s GMR Alan Rutherford recalls his days as head of media at Unilever, where he helped overhaul the marketing services and, in doing so, “brought creative thinking and media closer than I’ve seen in any other agency or client relationship”.



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An injection of branding is just what the region’s healthcare sector needs, Omnia’s Matthew Ronson tells Precious de Leon.

DOctOR feeLgOOD

the gcc’s PoPulation stood at 39.26 million at the end of 2009 and is ex-pected to rise by nearly 6.93 million in 10 years, according to a UN report. This will result in increasing medical and general healthcare needs of an age-ing and expanding population, which already faces diseases such as thalas-saemia and diabetes.

Hospitals and governments recog-nise this, and research firm McKinsey & Company expects investment in the healthcare sector across the region to grow from $12 billion in 2006 to $60 billion by 2025.

This will include not just the improve-ment and expansion of existing healthcare companies, but the entry of global brands. Mayo Clinic has set up a representa-tive office in Dubai, while the Cleveland

Clinic has signed a venture with Abu Dhabi-based group Mubadala. As the number of healthcare brands increases and competition becomes more intense, healthcare professionals are discover-ing how branding is becoming just as relevant to their industry.

“Healthcare companies are realising that in order to build a sustainable brand, they will need to understand PR and marketing, and that branding is important in getting

their message across to the consumers,” says Matthew Ronson, brand director at agency Omnia Middle East.

“And as these international brands come in, the market will have to adjust the way it communicates.

“Right now there are two ways we see healthcare brands communicate: either they slap a logo or endorsement name on something, or they have advertising messages that tend to be clichéd and don’t do anything to drive consumer belief.”

While numbers are unavailable, it is common to hear patients looking outside the region for medical assistance – and Ronson believes poor communication of existing services is partly to blame.

As consumers become more interac-tive with brands in other aspects of their lives, they will soon demand to have the

cLinicAL PeRsPective

Matthew Ronson brand director,Omnia Middle east

© C

orbi

s

BRa nD a nalYs is

54-57-GMR 196 Branding Analysis Healthcare.indd 54 2/24/11 5:20 PM


same open communication with their clinics and hospitals.

This is a global trend that is emerging in the region, brought on by the presence of global brands that already have these branding strategies in place elsewhere.

The Equitrend Brand Equity Study last year placed Cleveland Clinic in fourth place in the US in terms of brand trust and brand equity – the highest a health-care brand has ever reached. In 2006, the clinic wasn’t even on the list, which measures equity not just in healthcare, but across brands in general.

Ronson suggests five disciplines for branding in healthcare:

1. Have a big idea: Make sure everything is driven from this big idea. Healthcare companies need to see themselves like any other brand in the consumer world. A core idea is where the branding strategy and everything else follow.

2. Be different. Many in the region strug-gle to think of a hospital where they would go for specific medical care. And without strong positioning and knowl-edge of where the specialists are, patients are left with going to the geographically most convenient establishment in hopes it will have the best possible care for their specific ailment.

“There’s definitely a blanket perception among patients when it comes to medi-cal facilities in the region,” Ronson says.

Healthcare brands need to start thinking about how they can differentiate them-selves. Moving away from clinical to lifestyle features, this could range from exceptional customer service to the ac-tual environment itself, including mood lighting and other sensory experiences.

In the 2010 ArabHealth exhibition, Philips’ healthcare division, for example, showcased a sensory model that created a relaxed and personalised atmosphere in a CT scan room through lighting, sound, and textures of the materials used.

With one of its healthcare clients, Omnia is looking at the possibility of

placing fake trees along the corridor – a warmer alternative to the unnatural feel of fluorescent lights usually seen by patients.

The Mayo Clinic in the US extends its branding through a number of ex-periences that are as simple as placing a piano in their atrium. Initially the idea was to uphold music’s contribu-tion to healing. But that soon gave way to patients and their families playing the instrument.

The most famous example of this are elderly couple Marlow and Frances Cowan, who became YouTube sensa-tions when their impromptu piano performance was captured by one of the visitors.

The clip currently boasts more than 7.4 million views and has follow-up videos and interviews from patients endorsing the Mayo Clinic. (Mayo also has its own blog and YouTube account.)

3. Engage. It’s vital to engage with pa-tients as well as the internal workforce. As traditional media reaches saturation and as regulation steps up, how can healthcare brands begin to engage people? “Social media will become vital to the medical industry,” Ronson says. “Even now, as engagement becomes significant, it’s still very erratic at best. But there is a growing realisation of the need for more interactive and social campaigns.”

Internal branding is equally important, as staff retention is key to creating long-lasting relationships with patients. This drives trust, loyalty and confidence in the brand when patients are able to consist-ently consult with the same practitioner – whether it’s a doctor or nurse.

Moving forward, engagement should also include building good relationships with insurance companies, which can help with endorsements and expansion of your audience reach.

…[healthcare] advertising messages don’t do anything to drive consumer belief…

Right note: Marlow and Frances cowan became Youtube sensations after their piano performance at Mayo

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healing hands: consumers feel deep emotional connection with healthcare products and services. that’s why transparency is key

social media will become vital to the medical industry...

4. Execute. Sweat the details. Healthcare firms need to look at how they are going to bring the brand to life. Everything up to this point is more ethereal. This is where it becomes hands on.

Working on internal branding and actual execution of the brand strategy is when a detailed plan of how things are going to be done differently is a must. More importantly, the execution should cover every touchpoint within the customer journey, mapping out the experience under strict budget management.

5. Be open. Create participation and recognise that the people are moving from being consumers to participants.

“While healthcare brands are compara-tively more conscientious about spend-ing on marketing and communications, they need to start looking at budgets for these as long-term investments,” Ronson says.

The arrival of digital communica-tions platforms has eased this budgeting

burden a bit. Emotional connection is arguably deepest with healthcare products and services, and that’s why transparency and open communication is the way forward.

With the explosion of the different social platforms – some with more value than others – companies need to find out how they can embrace them and use them to their benefit.

Besides having a strong presence in social networks, Mayo Clinic has also

created an advisory service and teamed up with famous chefs to create healthy food options.

Ronson admits some of these ideas will happen organically – not overnight but at a generational level. A first step in the region, he says, is a collaboration with educational institutions in educating children and their parents in a range of topics – from having a healthier lifestyle to discussions on diseases.

Additionally, technology plays a role in extending a healthcare brand’s reach beyond the clinic or hospital. Dubai Healthcare City recently launched an iPhone application, which is already the third most downloaded healthcare app.

Omnia is also looking at the possibil-ity of teaming a healthcare client with a GPS brand. Plans are to programme the GPS systems with directions to the nearest medical facilities and gift them to patients.

“Technology will play a huge part in the progress of branding in healthcare as it creates a consumer benefit as much as a brand benefit, while en-suring long-term financial returns,” Ronson says. n

ambient nature: Philips’ healthcare unit has devised a lighting concept for hospitals to create a relaxing environment for patients.

mood lighting

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S E C t O R a N a L y S I S

JEWELLERy & WatCHES

NEXt mONtHFRaGRaNCE aNDCOSmEtICS

Common currency 59Let’s celebrate 60man’s weakness 64Changing times 66Boosting UaE sales 68Online sentiment 70attention grabbing 72PaRC analysis 76PaRC data 78

Boasting a melting pot of cultures, the GCC is home to a host of giftgiving. We take a closer look and dis-cover all that glitters really is…gold

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Whether it’s a safe haven, status symbol or both, when it comes to consumer preference, gold speaks volumes. Rania Habib reports.

EloquEnt mEtal

It may no longer be used as currency, but gold has never lost its lustre; the precious metal remains one of today’s most valu-able investments. It’s long been held that in times of crisis people look to purchase gold, even when the price is high.

“As a general practice, gold as an in-vestment is going up, again and again,” says Dhanji Dedhia, marketing director of Damas. “Why? Because there’s the rational aspect of gold as an investment, and the emotional aspect of gold as jewellery. There’s always a good split between the two.”

The intrinsic value of gold provides cer-tainty in uncertain times, says Anuraag Sinha, managing director of Liali Jewellery.

“Gold has never been more relevant and important than now. It is a valuable and versatile commodity, covering jewel-lery, investment and industrial demand,” Sinha adds.

According to the World Gold Council (WGC), jewellery accounts for more than two-thirds of annual gold demand, with domestic demand of gold jewellery rising by 73 per cent in volume terms for the first nine months of 2010.

India, the largest consumer in terms of volume, is estimated to have accounted for 15 percent of global gold demand last year.

The UAE, Japan, Vietnam and Turkey, meanwhile, recorded slightly lower figures in the first nine months of 2010, compared to 2009.

“By default, the Asian culture is more value-conscious, and more future-forward looking, so a higher proportion of people perceive gold as an investment.

“O f c ou rs e, when p r i c e s a re volatile, people stay away; but when it’s within a certain range, as it has been [over] the past few months, between $1.400 and $1.600 per ounce (at the time of writ-

ing), people are more comfortable looking at it.”

Dedhia says Damas customers regularly invest in gold coins and bars.

At Liali Jewellery, Sinha says the launch of a gold collection in the last quarter of 2010, in association with the WGC, proved extremely successful.

“The tremendous success of this col-lection, at a time when gold prices are high, has proven that gold is not just key to preserving wealth and lifetime value benefits, it can be used to entice young,

fashion-conscious women to redefine self-indulgence,” he says.

Rani Al-Khatib, managing director of Rasas, Damas’ Dubai-based advertising agency, calls gold an eloquent metal, and says advertising gold – recession or no recession – is easy, thanks to its intrinsic lustre.

“No matter what the economic situ-ation, gold talks to people,” he says. “It reaches out, grabs them, and slowly but steadily draws them in. This is further heightened when the gold happens to be in jaw-dropping designs or coupled with diamonds. This is on the product level, and that’s what gets people hooked. That’s already half the job done.

“The rest – the communication – is just a nudge in the right direction; as far as jewellery advertising goes, the communication will always take second place to the jewellery. So our challenge is not so much to give jewellery a plat-form, because it will always be right up there, more a voice – a seductive, insistent voice.” n

Going for gold: Consumers regard gold as a safe investment

Investment: Dhanji Dedhia, marketing director of Damas

goldEn ERa

Intrinsic value: Rani al-Khatib, managing director of Rasas

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The multicultural demographic of the region provides a host of celebrations, which is great news for retailers.

GifT To reTailers

The GCC is home to people from all over the world. With a large number of Asian, Arab, and western expats, its cities have turned into interesting cultural melting pots, with a host of eth-nic and religious occasions to celebrate.

Christmas, Eid Al-Fitr, Eid Al-Adha, Diwali and Valentine’s Day are just a few of the many occasions enjoyed in the region. And with so many reasons to celebrate comes gift-giving, a fact capi-talised on by jewellers.

Dhanji Dedhia, marketing director of Damas, says that along with religious and cultural holidays, there are other reasons to celebrate, such as the Dubai Shopping Festival (DSF).

“During DSF, the entire city comes alive and it’s a time to shop, so people

are looking for the best deals,” says De-dhia. He adds that Christmas, although a religious holiday, has become more “neutral” as it coincides with the end of one year and start of a new one.

“People want more generic designs that would appeal to larger communities, so we launched 16 collections during Christmas that appeal to everyone: old, young, modern, classic.”

Anuraag Sinha, managing director of Liali Jewellery, says purchasing gold or other precious metals during a special occasion or festival has become the norm in this part of the world.

“Eid is, of course, culturally known to be a time to buy gold out of the Eidi (cash gift) received from the spouse or parents,” Sinha says.

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

heart-felt: Damas has launched a range spe-cifically for brides. Dhanji Dedhia, marketing director, Damas Jewellery, says: “Over the years, Damas has shared some of the most special and happy moments in the lives of its customers. Its stunning bridal collections have captured and united hearts, and been part of a woman’s most memorable and cher-ished moments.”

Bridal attraction

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“Today this is replaced by fine jew-ellery as it is more attractive – either in diamonds, pearls or precious and semi-precious coloured stones set in gold. The same is true for Diwali and Christmas, which are celebrated by all and reserved as occasions to buy that special, big piece of jewellery. Globali-sation has added new occasions for women to receive jewellery as gifts – on

Valentine’s Day and Akshay Tritiya, for example. However, these purchases are generally smaller, more casual pieces of jewellery.”

“We know there are trends before holidays, because it’s very important to gift,” says Lise Anenn, associate me-dia director, MediaVest MENA, whose clients include a luxury jewellery and watch group.

“We break down target groups in or-der to reach them during the relevant holidays. However, brands send us mar-keting briefs from their headquarters with very strict international guidelines. The international plan might not think of the local market, so it’s up to us to recommend different sets of advertis-ing dates, without contradicting the international brief.” n

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

Historic/Forecast • Us$ mn • constant 2009 Prices • Fixed 2009 excHange rates

investments seasonality

2009 2010 2011 2012 2013 2014

Consumer expenditure on jewellery, silverware, watches and clocks, travel goodsmena 14,167.50 12,244.60 12,749.60 13,314.90 13,834.30 14,368.70Saudi arabia 4,086.90 4,309.10 4,536.80 4,773.50 5,004.70 5,232.00morocco 1,691.20 1,843.30 1,995.90 2,174.00 2,363.70 2,544.70Egypt 1,441.80 1,555.40 1,650.10 1,777.80 1,905.40 2,043.80iran 844.9 956.5 1,066.80 1,164.90 1,254.00 1,333.70United arab emirates 816.3 831.1 855.8 887.2 920 953.3algeria 594.2 641.8 691.5 736.5 777.2 820.4Kuwait 362.9 366.1 377.2 394.4 411.1 427.4Qatar 270.3 303.2 352.6 382.2 394.6 410.1Jordan 115.8 120.6 126.1 132.4 139.2 145.1Bahrain 63.5 66.3 69.9 73.9 78.1 82.6tunisia 54.2 56.4 59.5 62.9 67.3 71.6

Sources: National statistical offices/OECD/Eurostat/Euromonitor International

Sources: : IPSOS Statex

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While males are more inclined to take a more rational approach to jewellery shopping, they do have a weakness.

Watchmen

Think jewellery and women come to mind, or men buying jewellery for women. The relationship between jewellery and men is rarely a direct one, especially in the region. Broadly speaking, women indulge in luxurious, highly ornamental pieces of jewellery, while men are conditioned to err on the side of discretion. Dhanji Dhedia, marketing director of Damas, says that when it comes to jewellery, the male ver-sus female perspective debate is justified.

“Without sounding discriminatory, men are more rational, while women are more emotional when it comes to purchasing jewellery,” he says. “Men look at value from an investment perspective, while women look at how to be the centre of attention. This is a relationship that has existed for a long time.”

On the other hand, Anuraag Sinha, managing director of Liali Jewellery, says men’s desire for jewellery is increas-ing, with the company recently dedicating three collections to them: gold, diamond and accessories.

“Within gold, men’s jewellery is limited to chains and bracelets. Cufflinks and tie pins in gold have become very dated,” Sinha says. “However, men do like to use good cufflinks; we now offer them in high-grade ceramic and stainless steel.”

Dhedia maintains that when a man looks at metal, he looks at it as cash, not jewellery.

“Jewellery is prominent among men in some cultures, such as those in Asia, for example. People wear small chains, bracelets and rings. Interestingly, design is becoming simpler. But from our perspective, most cultures in the Middle East do not allow men to wear jewellery.”

However, Dhedia says men do have a weakness. “I would say what jewellery is to women, fine watches are to men. It has always been a very strong relationship, as it’s a man’s way of indulging himself.”

When it comes to marketing to men, Rani Al-Khatib, managing director of Rasas advertising, says it is about communicating with them differently.

“Put an Arab man in front of you and try to persuade him: you’ll mostly be using wit and humour. On the other hand, talking to a woman involves the use of softer words, higher emotions, and warmth overall. With a man, you address the heart in his mind. With a woman, you tickle the mind of her heart.”

As for men being the principle buyers of jewellery for women, Dhedia says their role, in this case, is purely transactional.

“There is very little of a surprise el-ement, as the woman is very strong-ly involved in choosing jewellery,” he says. “The man only comes in to pay. The man being a budget facilitator is a trend that is similar among different nationalities.”

Sinha says as women have become increasingly independent, they are begin-ning to choose jewellery on their own.

“However, when it comes to high-ticket purchases, it is usually a joint decision with men, who may either be their fa-thers or their partners.” n

S e C T O r A n A l y S i S


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How watchmakers are moving with the digital tidesign of tHe times

There’s liTTle use in talking about a digital revolution when digital has swept across every nook and cranny of the marketing world.

“We can’t stay behind”, says Roland Streule, president of Rado. “We have to use communication channels used by our consumers. So it’s logical that we are there.”

“There” is online, where every mar-keter wants to be. But how are regional jewellers and watchmakers – perceived as more traditional luxury providers – moving with the digital tide?

Streule says Rado, being a 54-year-old brand, highlights the need for it to remain relevant. “If you’re one of the early brands in the market, you run the risk of growing old,” he says. “You have to continuously update yourself, and

stay desirable and actual.” This comes especially in light of Rado consumers’ changing demographic.

“The young population is growing quite strongly,” he says, solidifying the brand’s need to be online, where this younger population frequents.

At Swatch, chief executive, Arlette-Elsa Emch, says the Swiss company is increas-ingly using social media as a marketing tool.

“We are doing a lot of social marketing,” Emch says. “We are using everything elec-tronic because it’s Swatch, which is a very creative brand. We are aggressively using social media with Twitter and Facebook.”

Swiss watchmaker Tissot has modernised its communication to suit its evolving brand strategy. With NBA player and captain of the French national basketball team,

Tony Parker, as the global ambassador of Tissot since September 2010, the brand felt it necessary to move with the digital tide.

“We have to adapt the Tissot DNA to new challenges, and try to be ahead of time,” says president Francois Thiebaud.

“Omega [a watch manufacturer that also operates under the Swatch group] has an iPhone application [the feature makes it possible to browse Omega’s complete collection, presenting images and technical data for all of the brand’s wristwatches. The Watchfinder function lets users select timepieces which have exactly the specifications they are look-ing for] and we’re also working on a lot of things involving social media that we cannot discuss yet.”

Alternatively, Lise Anenn, associate media director at MediaVest MENA, says brands within the Richemont group tend to be more conservative when it comes to digital media.

“The brands are very conservative when it comes to any media at all, actually,” Anenn says. “When it comes to digital, social networks are okay, but they don’t match the image of the Richemont brands; one of the key rules for them is exclusivity.”

Liali Jewellery, a Dubai-based retailer, began looking into online marketing in 2009 with Facebook advertisements, but managing director Anuraag Sinha says this is only the beginning.

“As a jewellery retailer, we have been one of the very early users of social me-dia for advertising, and it is also a great medium to communicate specific events,” says Sinha.

“We started this activity using our own in-house resources, and while we have seen some success with it, we believe that this is only the tip of the iceberg. We have a lot to do, and this media will take us a very long way into the future.” n

s e C T O r A N A l Y s i s

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Consumers from the east are helping to keep UAE sales buoyant, writes Rania Habib.

AsiAn Upswing

In September 2009, after The China National Tourism Administration relaxed the restrictions on travel, Chinese travel agencies began sending tour groups to the UAE for the first time.

The number of Chinese visitors to the Emirates is expected to more than double within the next 12 months. Today, more than a year later, an interesting trend has emerged in luxury brand stores: the pres-ence of Chinese sales staff.

Anuraag Sinha, managing director, Liali Jewellery, says the retailer has adjusted to this change.

“Today, Indians and Chinese form the largest group of Asians spending on premium pieces of jewellery,” he says. “Therefore, in-store, we have specific merchandise that addresses their needs, as well as staff that can facilitate the process.”

“We focus on the Chinese because their impact is big,” says Lise Anenn, associate media director at MediaVest MENA, who handles the Richemont group brands. But they are not the only ones who can afford premium pieces, says Anenn, and brands are catering to other groups as well.

There are many Arabs who “are very rich and can afford premium pieces,” she says. “There can be an ad in the newspaper for a watch, they will call the retailer and say they want it, even if it costs half a million dollars. The Chinese are becoming more and more like that as well, and the Russians are like that too. So it’s not only the Chinese, but they are very important.”

Dhanji Dedhia, marketing director of Damas, says that segmenting consumers based on demographics works mainly at lower affluence levels.

“The minute price points go up, consumer segmentation is no longer valid on demographics,” says Dedhia.

“At higher levels, we don’t look at Chinese versus Europeans versus Arabs; when it comes to higher-end pieces, it’s more taste-driven across nationalities.

“Still, it is worth noting that China and India are performing very strongly, coming up with more millionaires and billion-aires, while other parts of the world are struggling. So we promote ourselves in Chinese and in Russian, but as affluence levels go up, the chances of consumers speaking English are higher too. It’s very rare that those who come to our stores don’t speak English.”

Anenn says being able to communicate with the customer is key.

“We translate visuals into Mandarin, Russian, or Arabic, when needed,” says Anenn. “There is a will to get closer to those people, and it’s work we’re doing on a worldwide level. It’s our strategy to follow people from the minute they leave their country until they get to their destination with our communication.” n

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

needs: Anuraag Sinha, managing director, Liali

jEwEl lAngUAgE

Focus: Lise Anenn, associate media direc-tor, mediaVest menA


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When it comes to watches and jewellery the UAE’s consumers are very engaged, with online generating 59,000 searches in a month.

By comBining search and social me-dia data, Sekari was able to analyse search behaviour and review how watch brands are regarded in the UAE’s online market.

Sekari’s first task was to identify the number of searches on Google.ae for jewellery and watch terms. Out of an extensive list of initial keywords the term ‘watch’ showed a disproportionally high volume compared to the other top 20 keywords.

This is because people who type in ‘watch’ includes those who want to look at online videos, as well as surfers seek-ing information about timepieces.

The term, therefore, is more likely to be indicative of search intent for the items, with 59,000-plus searches in one month.

The volume provides an interesting insight into search behaviour and what people are looking for when it comes to jewellery and watches.

Interestingly, ‘engagement ring’ is No 11 out of 20 search terms, with

jewellery and luxury watches retailer Damas being the seventh most-searched-for term.

This suggests a high brand recognition, as many people are directly searching for the jeweller.

Taking the top-20 searched-for-terms, we then tried to find out which watch brands were being talked about in social media, and how consumers related to them.

Sekari’s sentiment analysis enabled it to identify Rolex as the most talked about watch brand in the UAE, followed by Cartier.

Generally, sentiment across luxury watch brands was either fairly neutral or quite positive, and where some fell on the wrong side of the sentiment graph, the reading, on average, was not too negative.

Damas had the highest sentiment across all mentions regarding watches and jewel-lery, coupled with the considerable search volume for its brand name. It is a positive

statement regarding its brand recognition in the UAE.

However, the jewellery retailer could make far more out of this start by engag-ing with online audiences and increas-ing the reach of the sentiment that is being expressed.

If they are not already doing so, watch retailers should monitor online conversa-tions, listen to what is being said about them and react to the needs of these potential customers.

It is somewhat ironic that retailers are not paying attention to the social media space. Brands should develop the research required to delve deeper and identify what is being discussed – because, in the end, conversations will take place with or without them. n

Lee mancini head of Sekari SEODubai

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

WAtch OUt

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Search and Social luxury Watch Brand analySiS

# Keyword (uae) Search volume1 Watch 537,6362 Watches 59,7273 Jewellery 30,9184 Gems 23,5095 diamonds 5,7276 Jewellers 5,4187 damas jewellery 3,2558 Bracelets 2,8279 earrings 2,40010 Pendant 2,32711 engagement rings 2,00012 Jewels 1,87313 Gold jewellery 1,62714 Wedding rings 1,38215 Watches for men 1,16416 White gold 1,13617 engagement ring 1,09318 necklaces 1,06519 diamond rings 1,02220 Sports watch 132

Brand Sentiment Volumerolex 0.26 47cartier 0.14 22omega 0.25 16chopard 0.43 14casio -0.25 12damas 1.09 11ebel 0.00 11Breitling 0.00 10Piaget -0.10 10longines 0.33 9hublot 0.38 8Seiko 0.25 8citizen -0.29 7oris -0.17 6tag heuer 0.50 6armani 0.20 5Swatch 0.40 5tissot -0.25 4rado 0.00 3titan 0.00 2Bulgari 0.00 1Perrelet 2.00 1

Search engine results Pages (SerPS). research conducted on Google.aetop 20 keywords with the most amount of searches last month based on local results from Google.ae number of mentions in social media in the past two months

top 20 keywords, jewellery and watches market top watch brands by volume of social media sentiment

Source: Sekari SEO 2011

Social media – Volume VS Sentiment GraPh

cartierrolex (47 mentions)

damas

tag heuer

Swatch

radotitanBulgari

hublotSeikocitizen

orisarmani

tissot

longines

omega

casioebel

BreitlingPiaget

25

20

15

10

5

0<2.00 <1.50 <0.50 0 <1.50 0.50 1.00 1.50 2.00

hiGh Volume neGatiVe Sentiment

loW Volume neGatiVe Sentiment

hiGh Volume PoSitiVe Sentiment

loW Volume PoSitiVe Sentiment

chopard

num

ber o

f men

tions

range of sentiment

70-71-GMR196-SA Lead 10 SEKARI.indd 71 2/24/11 6:25 PM


Jewellery and watches continue to attract significant media attention.Shining through

Favourable government policy frame-works and active participation of the private sector have helped the re-gion’s retail sector become one of the world’s most desirable retail environ-ments in terms of investments and revenue generation.

According to an RNCOS report published in January, changing market dynamics, rapid economic development, balancing crude oil prices, rising pur-chasing power and strong confidence are further strengthening the region’s retail sector.

In 2009 the sector was valued at more than $425 billion. Not all of the countries reacted in the same way to the economic downturn, however. While

some economies such as Kuwait slumped, others such as Qatar thrived thanks to high demand for its gas. The UAE and Saudi Arabian markets, however, have sustained their dominance for more than a decade and that looks likely to continue.

RNCOS anticipates growth at a CAGR of 13 per cent (2009 to 2013) to reach $682 billion by 2013.

According to an April 2010 study by Jones Land Lasalle, the focus on luxury brands within existing and future shopping malls in Dubai is likely to diminish as the retail sector put increased emphasis on competitive pricing, creative market-ing programmes, convenience shopping and value for money.

This trend is likely to result in the repositioning of both existing and new retail centres away from the previous focus on luxury brands towards value merchandising.

The UAE is a hotspot for luxury retail trade, (Zawya, July 2010) with 15 per cent of residents viewing luxury items as part of their lifestyle, says Synovate.

The number of designer shops, high-end hotels and upscale shopping malls is also on the rise, especially in Abu Dhabi, placing the UAE capital among the top locations for upmarket goods.

meDIa CoverageJewelleryWe evaluated January 2010’s MENA me-

SeCtor analYSIS

00-GMR 195-SA-Mediastow.indd 72 2/24/11 6:29 PM


Shining through dia coverage of 10 brands in the luxury jewellery and watches segment: Bouch-eron, Bulgari, Cartier, Chanel, Christian Dior, Fendi, Gucci, Hermes, Swarovski and Van Cleef & Arpels.

Van Cleef & Arpels took the lead in the jewellery segment, achieving the highest volume of coverage, OTS NCS (newspaper coverage size in cc) and MCS (magazine coverage size in pages).

While Boucheron achieved the second highest volume of coverage, it came third in terms of MCS with 25.1 pages. Christian Dior was second in terms of OTS with 1.97M, and Swarovski came second in terms of NCS with 153 cc.

The language penetration was highly mixed for the 10 brands. While there was a much higher Arabic penetration for Van Cleef & Arpels, Christian Dior and Chanel, English took over for Boucheron, Bulgari and Swarovski.

All other brands displayed further variety in the language penetration

with French, Russian and Mandarin, with the exceptions of Fendi, Hermes and Swarovksi.

Overall, in terms of market penetra-tion, the UAE was the most favourable market, followed by Pan Arab, Lebanon, Bahrain and Egypt.

In media-type penetration, maga-zines were a clear winner, followed by newspapers.

Publication genres’ diversification showed interesting results. While there is a clear focus on genres such as lifestyle and general interest, fash-ion and shopping, and celebrity and society, as would be expected, a few brands displayed greater diversification in

other publications such as homes and properties, architecture and interior design, business and catering and hospitality.

WatchesRegarding watches, while Van Cleef & Arpels ranked first in terms of volume of coverage and NCS, it ranked second in terms of OTS.

Christian Dior ranked first in terms of OTS and Bulgari in terms of MCS. Christian Dior ranked second in terms of volume of coverage and MCS. Bulgari was third in both volume of coverage and OTS, while Cartier was third in terms of NCS and MCS.

… other brands displayed further variety in the language penetration with French, Russian and Mandarin…

s

Jewellery – January 2011

watcheS – January 2011

Volume of coverageOTS (Opportunities

to see)Newspaper coverage

size – in ccMagazine coverage

size – in pagesReview

Advertise-ment

Press release

Boucheron 57 1,359,944 0 24.19 4 2Bulgari 36 968,061 0 25.1 5 11Cartier 17 516,318 73 8.1 1 1Chanel 41 1,390,150 73 14 2 2Christian Dior 36 1,970,159 136 17.06 5 3Fendi 0 0 0 0 0 0Gucci 8 532,721 0 2.38 0 0Hermes 1 140,073 0 0.13 1 0Swarovski 5 352,923 153 0.75 0 0Van Cleef & Arpels 73 2,875,706 195 33.14 3 4

Volume of coverageOTS (Opportunities

to see)Newspaper coverage

size – in ccMagazine coverage

size – in pagesReview

Advertise-ment

Press release

Boucheron 12 387,000 0 4.44 4 2Bulgari 26 1,140,263 0 22.57 5 11Cartier 25 568,723 73 8.19 1 1Chanel 12 355,473 90 3.56 2 2Christian Dior 28 2,420,102 0 13.32 5 3Fendi 13 601,923 0 4.25 0 0Gucci 2 70,000 0 0.19 0 0Hermes 12 654,600 0 1.69 1 0Swarovski 4 180,000 0 1.25 0 0Van Cleef & Arpels 30 1,961,426 149 7.73 3 4

Source: Mediastow January 2011



The language penetration for the watch-es segment was more evenly balanced between Arabic and English, relative to the jewellery segment.

Boucheron, Hermes and Van Cleef & Arpels displayed the greatest language penetration variation in January 2011.

In terms of publications’ genres, once more lifestyle and general interest, fashion and shopping and celebrity and society were among the favourites. However, there was a greater focused penetra-tion with men’s, sports, business and women’s publications.

Content analysis January 2011MessagesThe majority of media coverage for all of the 10 brands were a combination of advertisements and product place-ments. However, there were a few press releases, reviews and interviews.

ClippingsClippings ranged from ads, advertorials, product placements, reviews, interviews and press releases.

In jewellery, Cartier displayed a high focus on product placements, while Fendi focused on both product place-ments and press releases. Bulgari was very diverse with seven press releases, five ads, three advertorials and 36 product placements.

It is worth noting that Gucci and Hermes did not achieve any press releases in January 2011, while Boucheron, Bulgari and Cartier also featured interviews within their coverage.

In terms of watches, Boucheron was the most diversified, while Bulgari fo-cused on product placements, press releases and ads. Fendi, Gucci, Hermes and Swarovski did not achieve any press release coverage.

There was a very high focus on prod-uct placements for Van Cleef & Arpels, Swarovski, Cartier and Gucci.

ConclusionThe media coverage highlights Van Cleef & Arpels, Christian Dior, Cartier, Chanel and Bulgari as the most vocal ones, and it must also be noted that they had a good penetration of product placements, yet they also displayed clipping types’ diversification. The watches segment in general was better diversified.

Van Cleef & Arpels and Bulgari also generated a substantial amount of press release coverage with positive messages on sponsorship, participation, new launches and interviews.

Gucci, Hermes and Swarovski, on the other hand, had close to no press releases in January 2011. n

SeCtor analYSIS

Hisham elzubeir,research director, Mediastow, Dubai

The language penetration for the watches segment was more evenly balanced between Arabic and English…

Jewellery

watcheS

Brand Product placement Advertorial Interview Review Advertisement Press releaseBoucheron 36 3 1 1 11 5Bulgari 17 4 1 2 5 7Cartier 13 0 1 0 1 1Chanel 28 3 0 1 4 5Christian Dior 19 6 0 0 7 4Fendi 7 1 0 0 1 4Gucci 6 1 0 0 1 0Hermes 1 0 0 0 0 0Swarovski 3 1 0 0 0 1Van Cleef & Arpels 44 7 0 1 13 8

Brand Product placement Advertorial Interview Review Advertisement Press releaseBoucheron 4 1 1 0 4 2Bulgari 10 0 0 0 5 11Cartier 15 4 0 0 1 1Chanel 5 3 0 0 2 2Christian Dior 15 5 0 0 5 3Fendi 0 0 0 0 0 0Gucci 2 0 0 0 0 0Hermes 8 3 0 0 1 0Swarovski 3 0 0 0 0 0Van Cleef & Arpels 22 1 0 0 3 4

Source: Mediastow January 2011


27775icon GMR280x215 11/02/2011 15:05 Page 1


Ad spend on jewellery and watches is starting to gather momentum following a lacklustre 2009.

Gold rush

Ad spend on Jewellery & Watches in the region reversed the slide of 2009 by gain-ing seven per cent in 2010 to post a total spend of $153 million.

The sector was down by nearly 14 per cent in 2009 and in H1 2010 plunged by another 4.5 per cent, compared to H1 2009.

However, the sector witnessed a healthy rebound in H2 2010, posting a gain of 14.5 per cent over the same period.

Pan Arab Media contributed a quarter of the total ad spend as the sector relied more on local media to communicate its paid messages.

Measured spend on Pan Arab Media gained seven per cent in 2010.

Saudi Arabia retained its top spending market rank in spite of a three per cent fall in spend in 2010.

The UAE followed with a 31 per cent surge in spending in 2010 to be the second highest spender. Kuwait held the third rank amid a decline of two per cent.

Other markets’ spending variation were Qatar(+6 per cent), Lebanon(+1 per cent), Egypt(-10 per cent), Bahrain(+16 per cent), Jordan(+15 per cent) and Oman(-13 per cent).

Magazines continued to be the most preferred advertising channel as shares increased to 46 per cent of the total spend in 2010, up from 45 per cent in 2009.

Newspaper share also increased from 37 per cent in 2009, to 39 per cent in 2010.

Overall, print gained 11 per cent.Spending on TV was flat at a three per

cent increase that led its share decrease to 10 per cent from 11 per cent.

Watches account for 82 per cent of the category share with $126 million, with the remaining 18 per cent spending by jewellery and accessories.

Rolex retained its top spending brand position in 2010.

Cartier replaced L`azurde to gain second place, making it the third top spending brand in the sector.

The top three spenders in magazines were Rolex, Cartier and Chopard, while in newspaper, Rolex, Swatch and Cartier made the top three.

The top three spenders in TV were Rolex, L`azurde and Cartier, in order of spending.

Overall, the sector was affected severely in 2009, but the spending in the second half of 2010 indicates spending is likely to go up in 2011.

The ad spend is calculated on the media rate cards and does not account for incen-tives and discounts. The period covered is January to December 2010, compared with January to December 2009. n

shaharyar UmaranalystPan Arab research Centre, uAE

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

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CATEGORY: JEWELLERY & WATCHES

MARkETS RAnkinG & MEdiA SpLiT (000 US$)

Rank Market Name & Abbreviation

Television Newspapers Magazines Radio Outdoor Cinema

2008 2010%Var’n

YTD 2010%Var’n

YTD 2010%Var’n

YTD 2010%Var’n

YTD 2010%Var’n

YTD 2010%Var’n

YTD 2010%Var’n

YTD2009

1 Pan Arab Media PAN 46,278 36,454 38,911 7 13,942 4 343 -27 24,626 9 0 - 0 - 0 -2 Kingdom of Saudi Arabia KSA 33,340 35,351 34,466 -3 0 - 19,585 3 11,699 22 0 - 3,182 -52 0 -3 United Arab Emirates UAE 37,470 25,725 33,782 31 49 -58 14,523 49 16,350 14 26 333 2,791 83 43 20504 Kuwait KWT 12,539 13,088 12,762 -2 30 114 6,360 -7 6,372 2 0 - 0 0 -5 Qatar QTR 12,358 8,879 9,442 6 0 - 7,850 8 1,554 5 0 - 38 -31 0 -6 Lebanon LEB 10,040 9,228 9,362 1 1,219 -11 2,335 7 5,427 24 0 - 381 -66 0 -7 Egypt EGY 6,500 6,272 5,619 -10 96 -65 3,622 3 1,451 -17 0 450 -38 0 -8 Bahrain BAH 3,047 2,744 3,190 16 0 2,100 24 1,087 3 3 - 0 - 0 -9 Jordan JOR 1,722 1,800 2,067 15 0 1,223 23 844 5 0 - 0 - 0 -10 Oman OMN 1,821 2,268 1,967 -13 0 1,539 -16 428 -3 0 - 0 - 0 -11 Other Markets** OTH 2,553 2,001 2,357 18 739 146 377 69 1,195 -17 46 18 0 - 0 -

Total AGCC & Pan Arab 148080 125092 135698 8 14760 6 52582 12 62227 11 75 67 6011 -27 43 2050

SpLiT BY pROdUCTS – 2010All Markets Pan Arab Media GCC Markets Levant Markets

Watches/clocks Watches/clocks Watches/clocks Watches/clocksJewellery Jewellery Jewellery Jewellery

82%16%

18% 21%18%

79%82%

TOp BRAndS – ALL MEdiA (000 US$) – 2010

Rank1234567891011121314151617181920

BrandRolex Cartier Làzurde Swatch Omega Chopard Audemars Piguet Longines Patek Philippe Breitling Chanel Tiffany & Co. Piaget Van Cleef & Arpels Rado Aigner Dior Tissot TAG Heuer Cerruti 1881

Value15,5048,6994,7264,3093,6933,6463,4603,4513,3193,0392,7882,1272,0151,7811,7611,7591,6991,6591,6411,602

Rank1234567891011121314151617181920

BrandRolex Cartier Làzurde Breitling Longines Omega Chopard Patek Philippe Chanel Audemars Piguet Breguet Tiffany & Co. Hublot Titan Harry Winston Lamar Tissot Fortis Bogh-art Zenith

Value7,2133,2193,1811,7351,5891,4461,043

983822597526509489485407404391370366354

Rank1234567891011121314151617181920

BrandRolex Cartier Làzurde Swatch Chopard Audemars Piguet Omega Longines Patek Philippe Breitling Chanel Piaget Tiffany & Co. Aigner Van Cleef & Arpels Rado Mont Blanc Cerruti 1881 TAG Heuer Dior

Value13,9258,1274,4633,8653,4702,9882,9722,8712,6792,5412,4261,8841,8671,7581,7101,6371,5091,5011,4361,427

Rank1234567891011121314151617181920

BrandRolex Omega Patek Philippe Longines Cartier Breitling Audemars Piguet Swatch Nina Ricci Chanel Rosso Nero Ulysse Nardin Hublot Giantto Tissot Fendi Dior Làzurde Tiffany & Co. Breguet

Value1,579

721640580572498472444380362357352333318303290272263260254

GCC & LeVANT PAN ARAB MeDiA GCC LeVANT

Sour

ce: P

ARC

MiLLiOnS US$154 +7%

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

75%

50%

25%

0%Total

153925GCC

135698LEV

18227PAN38911

KSA34466

UAE33782

KWT12762

QTR9442

LEB9362

EGT5619

BAH3190

JOR2067

OTH2357

OMN1967

Television Newspapers Magazines Outdoor CinemaRadio

Pan ArabKSAUAEKuwaitQatarLebanonEgyptBahrainJordanOmanOthers

25%

2%1%

6%8%1%

2%4%

6%

22%

23%

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

84%

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

00-GMR196- SA-PARC.indd 78 2/24/11 6:49 PM

Supported by In association with Headline sponsor Co-sponsors

See the full speaker list and festival programme at www.dubailynx.com/festival_programme.

Register now at www.dubailynx.com

Dubai Lynx, MENA's leading event for the advertising and communications industry, takes place 27-29 March 2011 at the Madinat Jumeirah in Dubai. Following the Festival, MENA’s best work in creative advertising is celebrated at the Dubai Lynx Awards on the evening of 30 March 2011, also at the Madinat Jumeirah.

Dr. Naif A. Al-Mutawa THE 99

Simon Bond Proximity Worldwide

Armin Jochum Jung von Matt

Prasoon Joshi McCann Erickson

William Rosen Arc Worldwide

David Sable Wunderman

Mark Tutssel Leo Burnett Worldwide

Ronald Wohlman Lowe + Partners

Key speakers include:

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Dubailynx11_generic_280x215.pdf 1 09/02/2011 13:36


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

Product & AbbreviationMedia Split %

2008 2010%Var’nY10/09 TV NP MG RD OD CN2009 Sh%

Watches/clocks W&C 129,643 113,248 126,150 82 11 9 42 44 0 5 0Jewellery and accessories J&A 38,025 30,562 27,775 18 -9 15 25 57 0 2 0Total 167,668 143,810 153,925 100 7 10 39 46 0 4 0

CATEGORY: JEWELLERY & WATCHESAdvERTiSinG ExpEndiTURE fOR TOp pROdUCTS (000 US$) 2008 – 2010 (JAn - dEC) MiLLiOnS US$ 154 +7%

Media 2008 2009 2010 Var'n %Value Sh% Value Sh% Value Sh% 2009/2010

Television 19,467 12 15,631 11 16,075 10 3Newspaper 62,425 37 53,713 37 59,857 39 11Magazine 79,809 48 64,119 45 71,033 46 11Radio 177 0 238 0 75 0 -68Outdoor 5,755 3 10,107 7 6,842 4 -32Cinema 35 0 2 0 43 0 2050Total 167,668 100 143,810 100 153,925 100 7

OvERALL MEdiA SpLiT AnALYSiS (000 US$)

MOnTHLY SpEnd AnALYSiS (MiLLiOnS US$) 2008 – 2010

2010 Media Split %

Overall Media Split 2008 – 2010 Total Category – Media Split %

Product Growth 2008 - 2010 (000 US$)

0% 20% 40%

W&C140000

120000

100000

80000

60000

40000

20000

0

J&A

900008000070000600005000040000300002000010000

02008 2009 2010

60% 80% 100% W&C J&A

Television Newspapers MagazinesOutdoor CinemaRadio

Television Newspapers MagazinesOutdoor

Television Newspapers Magazines Outdoor

2010 2009 2008

Month 2008 2009 2010 Var’n % Y10/09Jan 8 8 7 -14Feb 12 11 11 -2Mar 13 10 11 7Apr 13 11 10 -10May 16 13 13 -6Jun 17 14 14 -1Jul 11 9 9 0Aug 7 8 10 25Sep 19 15 17 11Oct 14 12 14 22Nov 19 16 20 26Dec 19 17 20 16Total 168 144 154 7

46%

39%10%

5%

Television Top SpendersRank Brand 2010

1 Rolex 40262 L`azurde 32673 Cartier 17804 Longines 11755 Breitling 11696 Omega 8747 Clark Ford 5748 Titan 4899 Lamar 39810 Tissot 344

Newspaper Top SpendersRank Brand 2010

1 Rolex 59292 Swatch 30913 Cartier 22164 Omega 15155 Audemars Piguet 14746 Patek Philippe 14307 TAG Heuer 10528 Longines 10279 Chopard 100310 L`azurde 943

Magazine Top SpendersRank Brand 2010

1 Rolex 54952 Cartier 45803 Chopard 23284 Chanel 21635 Audemars Piguet 19846 Patek Philippe 18897 Piaget 13198 Tiffany & Co. 12909 Omega 126310 Aigner 1216

Radio Top SpendersRank Brand 2010

1 Orient 262 Romanson 193 TAG Heuer 124 Layali 85 Diamond 36 Fifa 37 Pandora 2

Outdoor Top SpendersRank Brand 2010

1 Tissot 6032 Cerruti 1881 5063 Longines 3844 Gf Ferre 3415 R.cavalri 3416 Seiko 2887 Thierry Mugler 2738 Guess 2719 Citizen 261

10 Givenchy 255

Top brands 2010 (000 US$)

(000 US$ - Semi Logarithmic)

1009080706050403020100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2009 2008

Sour

ce: P

ARC

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00-GMR196- SA-PARC.indd 80 2/24/11 6:50 PM

Explore the latest trends in web and mobile

Meet industry leaders

Get funding for your start upor business plan

Register Now!for more information www.arabnet.me Tel: 00 961 1 751 180

Under the patronage of the President of Lebanon

H.E. General Michel Sleiman

Shift Digital Summit

Organized by: In colaboration with:

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Beirut 22nd- 25th March

Explore the latest trends in web and mobile

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Under the patronage of the President of Lebanon

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MarchAJWEX – Al Ain Jewellery & Watch ExhibitionAl Bader Exhibitions Date: March 7-12Venue: Al Ain Convention Ctr, Abu Dhabi, UAET: +971 3 7666780F: +971 3 7666790W: baderuae.com/ajwex

Cloud Computing World Forum MEAKeynote World MediaDate: March 8-9Venue: Grand Millennium Hotel, DubaiT: +44 845 519 1230W: cloudcomputinglive.com

Franchising ME Exhibition 2011International Expo- Consultants (IEC)Date: March 14-16Venue: Dubai Intl Convention & Exh CtrT: +971 4 3436108W: franchisingme.com

Gulf Print & Pack 2011F&E LtdDate: March 14-17Venue: Dubai Airport ExpoT: +971 4 2867755W: gulfprintpack.com

Global City, Abu DhabiReed ExhibitionsDate: March 15-17Venue: Emirates Palace, Abu DhabiT: +971 2 4446113W: globalcityforum.com

Big Boys Toys 2011Artaaj ExhibitionsDate: March 16-19Venue: ADNEC, UAET: +971 2 4490011F: +971 2 4490808W: bigboystoysuae.com

Successful Mall Merchan-dising & Strategic Retail Leasing workshop MECSCDate: March 20 – 21, 2011Venue: Pullman Hotel, Mall of the Emirates, DubaiT: +971 4 3597909W: mecsc.org

ArabNetIBAG GroupDate: March 22-25Venue: Habtour Hotel, BeirutT: +961 1751180/1/2W: arabnet.me

Dubai Lynx 2011International Advertising FestivalDate: March 27-30Venue: Madinat Jumeirah, DubaiW: dubailynx.com

Saudi Travel and Tourism Investment Market (STTIM) 2011Riyadh Exhibitions Company (REC)Date: March 27-31Venue: Riyadh Intl Convention & Exh CtrT: +966 1 2295604W: recexpo.com

The Bride Show, DubaiIIR MEDate: March 30-April 2Venue: Dubai Intl Exh & Convention CtrT: +971 4 3364227W: thebrideshow.com/dubai

Gifts ExhibitionKIFDate: March 31-April 9Venue: Kuwait Intl Fairs GroundT: +965 2 5387100F: +965 2 5393872W: kif.net

DIARY

Women 24/7: So, where’s your brand when she needs it?

Whether she’s young, older, married, single, profes-sional or housewife, local or expat, female consumers are more pre-occupied than ever in today’s always-on era. Nowhere is this more evident than in the Middle East where advances in socio-economic status, along with the seismic impact of digital media, are resha-ping women’s personal agendas, the structure of their daily lives, their brand relationships, and profoundly altering their need-states. Understanding core needs is key to effective, sustainable marketing communica-tions.

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