Page 70 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

54 Dubai & Co.

The clear lesson from the Danish boycott is that multinationals
must recognize that political crises, if not managed carefully, can
expose their GCC business to serious risk. What’s most striking
about the Arla Foods example is that the decline in sales was not
related to anything the company had done itself—the boycott was
related to a cartoon published in Denmark. Fortunately, the crisis
passed after a few months, and Danish products slowly returned to
store shelves.
Yet the long-term question remains: How can a firm operating
in the GCC countries manage risks associated with the politics of its
home country? Savvy business leaders will work diligently, inde-
pendent of any crisis, to build authentic franchises in the GCC that
build trust in the local community. They will ensure—as we discuss
in Chapter 6 of this book—that marketing messages and branding
show respect for the local culture while maintaining the global
“edge” at the core of their value proposition. Firms that are seen to
be genuine partners, invested in the region, are less likely to suffer
in the event of a politically motivated boycott.
No global executive should assume that his or her firm is not
relevant to the GCC simply because it bears a foreign or Western
brand. Abundant examples show the success of global brands in the
region when they are managed effectively. Realizing that a global
brand can be an asset and not a liability should propel more firms
to explore making a deeper commitment to GCC markets.

Misconception 4: Women don’t matter—female consumers,
employees, and decision makers are marginal to the
economy.
Reality: Female consumers are key decision makers.
Ignoring the economic power of these savvy consumers
can be a fatal mistake.
Around the world, marketers are increasingly crafting their
strategies with a deeper understanding of a market reality: that
female consumers control the bulk of purchase decisions. This fact
has long been understood in the realm of household products such
as groceries, home maintenance and decoration items, appliances,
and children’s clothing and toys. Recently, many firms have
observed that women’s purchasing power and influence extend far
beyond the above categories and well into stereotypically male