Page 200 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

182 Dubai & Co.

It is evident from Table 6.3 that all firms with a presence in the
Gulf have offices in both Saudi Arabia and the UAE, and some in
places beyond. This phenomenon reflects the simple but powerful
reality that, in consumer terms, Saudi Arabia is the core market of
the GCC. No credible consumer marketing firm can ignore it: its
population is twice the size of that of the other GCC states com-
bined, and its $400 billion economy is half the GCC states’ total. On
the other hand, restrictions on creative expression and experimen-
tation throughout all media in Saudi Arabia mean that the
UAE, with its business- and expatriate-friendly environment, is a
natural choice for a headquarters location, as we will discuss later
in this book.
The GCC represents a major growth engine for marketing
firms. Local marketing talent is in high demand, and global firms
are investing in people, infrastructure, and research in order to
strengthen their regional propositions. WPP, the world’s second-
largest advertising company, reported in its April 2007 earnings
statement that “the Middle East continues to be the fastest-growing
area.” 23
Multinationals with strong global brands often engage one of
the leading marketing firms with a global mandate. Pepsi, for
example, works with Omnicom to maintain brand consistency and
leverage best practices worldwide. The fact that the marketing
agencies are now equipped to serve clients in the GCC states is
another enabling factor that makes entry and growth in the region
more feasible.

KEY LESSONS
● In marketing to GCC buyers, multinationals must choose
from Four Degrees of Adaptation; no single strategy will
work for all companies.
● Noncustomization can be effective when the value
proposition of the product or service is international or
global in nature.
● Adapting the message can be crucial for consumer
propositions and spans beyond mere translation to
culturally appropriate images, themes, and approaches.