Page 298 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

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half that of Qatar. Like all markets with large middle classes, the
Kingdom is ripe for the mass-marketing of everyday goods of rea-
sonable quality at modest prices. Luxury goods are, of course,
important for higher-income segments, but Saudi Arabia is by no
means a market only of millionaires.
Conservative social regulations also differentiate Saudi Arabia
from some of its neighbors. Women are still not allowed to drive
and, therefore, often shop with their families or send someone else
to the store to make purchases on their behalf. In certain product
categories, this may limit the potential for “impulse” purchases.
Print and billboard advertising must conform to conservative social
norms, as ads are screened by the Ministry of Information and
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Culture. Satellite television has given Saudi households access to
a much broader range of programming and ads, but local media is
far more constrained. The Internet is also carefully censored.
Marketers, intent on ensuring that materials produced for the Gulf
can reach the widest possible audience, will often design print ads
in a manner that conforms to Saudi norms and regulations to avoid
needing to create multiple versions.
Recognizing the importance of the Saudi market, multinational
consumer goods companies have allocated significant resources to
bolster their in-market presence. Procter & Gamble’s Arabian
Peninsula head office is in Saudi Arabia, giving the firm’s senior
management direct access to the region’s core consumer base. 9
Unilever, another massive consumer goods company, treats Saudi
Arabia as a market separate from the other GCC markets. The other
five GCC states and Yemen report through a Dubai head office,
while Saudi Arabia has its own reporting line. 10 For both firms,
Saudi Arabia represented their very first foray into the Middle East,
as early as the 1930s. Placing senior executive, marketing, and busi-
ness support teams in Saudi Arabia helps ensure that the country
receives adequate focus. Even firms that choose to maintain their
head office in Dubai will often have large market-facing teams in the
Kingdom to keep a finger on the market’s pulse.
A presence is Saudi Arabia can be a real challenge, especially
for expatriate staff and visitors. Travel in and out of the country is
difficult, with a lengthy visa application process requiring a letter of
invitation certified by a local chamber of commerce. The infrastruc-
ture is modern, but built less recently than those of the UAE, Qatar,