© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Jan-Benedict E.M. SteenkampC. Knox Massey Distinguished Professor of

Marketing and Marketing Area Chair

BIFEX 2015

Beirut, May 14, 2015

Positioning Lebanese and Arab Brands Overseas on Positive

Cultural Associations

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Select examples of strong Arab brandsBrand Industry Domicile Brand value

($ million)Brand rating

Brand/firm value

Emirates Airlines UAE 5,481 AAA -

STC Telecom Saudi Arabia 4,975 AA- 17.4%

Etilasat Telecom UAE 3,452 AA- 14.7%

Sabic Chemicals Saudi Arabia 2,079 AA 2.1%

QNB Banking Qatar 1,811 AA 5.4%

Qatar Airways Airlines Qatar 1,806 AA+ -

Al Rajhi Bank Banking Saudi Arabia 1,724 AA 5.7%

Almarai Food Saudi Arabia 1,666 A+ 18.9%

Zain Telecom Kuwait 1,206 AA 9.9%

DP World Commercial services

UAE 412 A+ 2.5%

Agility Logistics Kuwait 380 A 14.9%

Orascom Engineering & Construction

Egypt 324 A+ 3.3%

Kuwait Foods Food Kuwait 304 AA- 36.1%

Leveraging cultural resources

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

• In some categories, a specific country may have unique positive associations among Western consumers. If the emerging market brand can be positioned on these specific attributes, its country of origin can be turned into an advantage.

• Examples: Natura (Brazil), Shanghai Tang Mandarin Oriental Hotels, (China), Jim Thompson (Thailand), Taj Hotels and Resorts, Dabur (India)

Leveraging cultural resources

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Transfer of Associations from the Culture to the Brand

Cultural associations with the brand’s country of origin

• History • Space • Rituals • People • Values

Key: Location of cultural association

Cultural associations – Time & space

• History – ancient versus modern, man-made landmarks (e.g., Taj Mahal or the pyramids), epochal historical events and stories, temporal orientation (past, present, future)

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

• Space: urban versus rural, natural landmarks (e.g., the Saudi desert or the cedars of Lebanon), water versus land, rivers, high mountains versus wide plains (Himalayas versus Argentinean pampas), crowded versus empty (Singapore versus Mongolia)

Cultural associations – Rituals, people and values• Rituals: festive versus somber events, life cycle events

(e.g., weddings, births), religious practices and holy days (Ramadan, Christmas), festivals and national commemorations, colors, numbers, and symbols

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

• Values: gender roles, autonomy (independence, individualism) versus social embeddedness (collectivism), hierarchy versus egalitarianism, achievement, success, and materialism versus well being, caring for the weak, humility, tradition versus modernity, rights of the individual versus the role of the government, social norms.

• People: ethnicity, personality, physique, family units (nuclear versus extended), tribe, native tongue versus national language, popular sports, distinctions of class or caste, status or rank, gender, age, and occupation

Using cultural associations with the Himalayas

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Step 2: Select cultural associations for your brand – Key principles

• Globally recognizable

• Credible

• Unique - not already claimed by others

• Relevant

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Arabian cosmetics, incense, oils

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Leveraging cultural resources

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Transfer of Associations from the Culture to the Brand

Cultural associations with the brand’s country of origin

• History • Space • Rituals • People • Values

Branddevelopment

Key: Location of association Instrument of cultural association transfer

Cultural loading of brand

Brand development by Arabian Oud

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Leveraging cultural resources

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Transfer of Associations from the Culture to the Brand

Cultural associations with the brand’s country of origin

• History • Space • Rituals • People • Values

Branddevelopment

Brandcommunication

Key: Location of association Instrument of cultural association transfer

Cultural loading of the brand

Brand communication – Using the store Front as permanent billboard

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Leveraging cultural resources

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Transfer of Associations from the Culture to the Brand

Cultural associations with the brand’s country of origin

• History • Space • Rituals • People • Values

Branddevelopment

Brandcommunication

Brandreinforcement

Key: Location of association Instrument of cultural association transfer

Cultural loading of the brand

Brand reinforcement by Arabian Oud - Assortment

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Brand reinforcement by Arabian Oud - Pricing

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Reinforcing the luxury position

Price: $1,600Leather box

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Reinforcing the luxury position: Store interior

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

The results

• Arabian Oud wins Perfume Of The Year Award in Dubai

• Arabian Oud wins 5 of 14 awards at Fragrance Oscars

• Arabian Oud among the 50 strongest brands in UK

• Arabian Oud ranked as the 11th perfume brand worldwide, and the 1st in The Middle East

• Arabian Oud gets 97% satisfaction on amazon.com and the customers aren't only Arabs

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

SWOT analysis of Arabian OudStrengths• Brand (name, image, heritage)• Variety of perfumes that satisfies many

tastes• Credibility – fit with cultural

associations with the Arab world

Weaknesses• Low brand awareness, especially

outside Middle East• No much advertising for the brand and

its products• Unfamiliarity with Oud• Low distribution in the West –

including Amazon• Sufficient perceived differentiation in

product assortment?

Opportunities• A leading business in the region• Increased interest in “new,” yet

authentic, experiences• Arabic perfumes resonate with

upscale consumers• Brand proposition and product

category well suited to reach mainstream consumers in the West

• People are longing for good news coming from the Middle East

Threats• Competition is top notch • Political events may overshadow

business proposition• Resources to invest in the brand

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

What about…• Dyes?

• Foods?

• Fast food franchising?

• Furniture?

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Fusion of the ancient and the 21st century –Cedar wood furniture from Lebanon

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

What about…• Dyes?

• Foods?

• Fast food franchising?

• Furniture?

• Sailing boats?• Jewelry

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Indian, Polish jewelry

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Ancient Arab jewelry – “The Ur collection”

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Modern Arab jewelry –

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

http://nadiadajani.com/

What about…• Dyes?

• Foods?

• Fast food franchising?

• Furniture?

• Sailing boats?• Jewelry

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

• Banking?

What about…• Dyes?

• Foods?

• Fast food franchising?

• Furniture?

• Sailing boats? • Jewelry

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

• Banking?• Consumer goods?

Hookah products and bars

BBSURF.

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Putting the ideas in practice - I

Survey the categories of cultural associations. To leverage cultural associations in international branding, managers should first survey five aspects of their country’s culture: history (e.g., major events and sagas, landmarks), space (e.g., geography, nature), rituals (e.g., life cycle, religious and national festivals), people (e.g., demographics), and values (e.g., social systems).

Select cultural associations for transfer. Managers should choose only one or two cultural associations that the target segment will recognize anywhere in the world and will regard as credibly linked to the nation’s culture, that no other brand has claimed, and that are relevant, or that the marketer can make relevant, to the product.

© Prof. J-B.E.M. SteenkampNot to be used or reproduced without permission

Putting the ideas in practice - II

• Brand development: developing the brand name, logo, slogan, and writing style that convey the intended cultural meaning;

• Brand communication: determining the setting, the characters, and the media to use in storytelling; and

• Brand reinforcement: aligning the other elements of the marketing mix—pricing, product placement, promotion, distribution, and packaging—so that they amplify the cultural meanings.

Transfer cultural associations to the brand. Marketers can transfer cultural associations to their consumer brand through three interrelated activities:

The potential for cultural branding is significant for Lebanon and the Arab world.

The world is longing for good news emanating from the Middle East