Page 195 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Making Your Pitch: Marketing to GCC Buyers 179

While product development and launch of the McArabia burger
was managed from Kuwait, the sandwich has appeal far beyond
the Gulf. In fact, the sandwich is now marketed elsewhere in the
Middle East and even in Indonesia, a nation of 240 million. Any
fixed product development costs have therefore been spread over a
much wider base of customers than could be accessed in Kuwait
alone—or in the entire GCC market.
These two factors—capabilities and cost—are fundamental
issues that firms must consider when weighing the option of
reaching the fourth degree of adaptation. Firms that do not cus-
tomize products anywhere in the world—presumably for reasons
of efficiency and standardization—will naturally have difficulty
doing so solely for the GCC market. Further, product development
costs in some sectors, especially those that require sophisticated
engineering or intense research and development, may make
customization unprofitable. Heavy industry and pharmaceuticals,
for example, are two areas in which developing a product exclu-
sively for the Gulf market may prove neither financially viable nor
necessary if a customized product mix is possible.
When appropriate, however, product-level customization can
have a significant impact in making a global firm’s appeal to a GCC
market more genuine. The McArabia sandwich is a bestseller, and its
presence—along with many other signs of cultural awareness and
sensitivity—enhances McDonald’s position as highly connected to
the local community. Perhaps this is one reason why, despite deep-
seated opposition to US policy in the Middle East, McDonald’s restau-
rants have continued to thrive in recent years. Consumer demand has
remained strong even as political tensions have ebbed and flowed.

HELP FROM A FRIEND
While the challenges of marketing to GCC buyers may appear
somewhat daunting, multinationals can take comfort in the fact that
nearly all leading global marketing firms—including the world’s
top six in earnings—are active in the Gulf and able to support local
21
activity. The global firms often work through local affiliates, who
adopt the high standards and best practices of the global parent.
Table 6.3 illustrates the presence in the Gulf countries of leading
global marketing firms, including marquee ones.