Market Study Four Seasons Me Lb Beirut

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    Market Study Four Seasons Me Lb Beirut - Presentation Transcript

    1. FIRST CLASS 03/11/2008 LEO BURNETT BEIRUT FOUR SEASONS TORONTO MIDDLE EAST MARKET STUDY
    2. TABLE OF CONTENTS TRAVEL BEHAVIOUR ................................................................................................ 2 Middle East Travel Patterns....................................................................................... 2 The Customer .......................................................................................................... 3 Common Travel Behavior.......................................................................................... 4 Popular Travel Destinations ...................................................................................... 5 Taking the Decision .................................................................................................. 6 ADVERTISING .......................................................................................................... 7 Cultural Considerations:............................................................................................ 7 1) Female Imagery Restrictions: ............................................................................ 8 2) Female Dress Code: ......................................................................................... 8 3) Context of Setting: ........................................................................................... 9 4) Inappropriate Scenario: ...................................................................................10 5) Opposite Sex Interaction: ................................................................................10 6) Relevancy of Ethnicities: ..................................................................................11 WLFP Brand Ad Review ...........................................................................................11 FS Communication Relevancy ..................................................................................23 1
    3. TRAVEL BEHAVIOUR In wanting to uncover consumer insights and gain a greater understanding of the Four Seasons’ Middle Eastern target customer, the subject needed tackling from different angles. For this reason, not only were knowledgeable FS staff interviewed, but travel agents were also called upon to volunteer their thoughts, as well as, most importantly, typical upscale Middle Eastern travelers. The panel of interviewees contributing to the study is composed of: Cesare Rouchdy – Senior Director of Marketing – FS Egypt David Crowl – Vice President Sales & Marketing – FS Europe/Middle East/Africa Shaker Akbar – Regional Director of Sales – Middle East Ashraf El Zahed – Director of Sales & Marketing – FS Doha Jane Burnell – Regional Director of Sales – Europe Amer Kassem – Founder – Sun Holiday Tours (Lebanon) Nicholas Phaller – Travel Agent – Pagasus (Lebanon) Khalil Ghossein – Managing Director – Al Moumayazah Art of Travel & Tourism (KSA) Lamia Taha – Sales Supervisor – Thomas Cook (Egypt) Kamil Kuran – Managing Director – Leo Burnett Levant Maher Achi – Chief Operating Officer – Leo Burnett MENA Farid Chehab – Chairman & Chief Creative Officer – Leo Burnett CEEMEA As a result of this qualitative research, in which there are no right or wrong, yes or no answers, all findings have a degree of subjectivity. We hope they do, however, serve our purpose in being constructively enlightening and directional in nature. Middle East Travel Patterns As David Crowl put it, “Four Seasons has experienced a jump in regional demand over the past year in terms of leisure travel and especially business travel”. This is expected to also be true of the upcoming year. “The number of trips to conferences and exhibitions are expected to increase during this time indicating that more junior staff is likely to be traveling”.1 A new trend that is emerging and will probably pick up more speed in the years to come, is the number of cruise trips and private yachting travel. One reason for this is probably fueled by the creation of waterfront properties such as the Dubai Marina and Palm properties, coupled with the fact the Gulf is considered safe and ideal for boating. This in turn has encouraged major boat manufacturers to establish distributers in the region, which has consequently led to a steady supply of sea craft.2 Cruising is also becoming an increasingly affordable luxury, with Dubai and often Muscat playing host to ships such as the QM2 and Holland America’s Rotterdam. The seas have always had an appeal to the A class Mediterranean market, but nowadays they seem to be all aboard in the Gulf! 1 "Middle Eastern Tourists Spend Up Big." goldcoast.com.au. Available from http://www.goldcoast.com.au/article/2008/09/19/16518_gold-coast-news.html. Internet; accessed 13 October, 2008. 2 Salian, Neesha. "Owning Your Dream Boat." gulfnews.com. Available from http://archive.gulfnews.com/articles/06/03/14/10025448.html. Internet; accessed 13 October, 2008. 2
    4. When studying the different nationalities' travel patterns, it can be concluded that the Saudis travel the most often, having spent approximately $18.7bn on tourism in 2007.3 “Some 57% of Saudi travelers are expected to spend more than US$3,000 on their personal air travel in the next 12 months compared to Kuwaiti travelers (50%), UAE travelers (35%) and Lebanese travelers (27%)”.4 It therefore follows that Ramadan affects their pattern of travel, meaning that Middle Easterners will not be flying out of the region during this period, opting to stay home close to relatives to celebrate this time of Eid. In the words of Jane Burnell, since Ramadan will fall during the summer for the next couple of years, it will undoubtedly affect hotels in cities like Paris and London that typically like to fill up with ME travelers during the summer months. Another travel pattern specific to this region is related to royal families. The biggest chunk of hotel business is being generated from government. This is due to the fact that delegations and royal families of the GCC demand the premium suites whenever they’re in town. It also represents leisure opportunities; In summer when royal families travel to hotels like Cairo and are paid by their embassy, they request the biggest suite, bringing a whole entourage, a couple of wives and a group of children with the servants and drivers. The Customer A traveler from the Gulf is hugely different to another from Jordan/Lebanon (the Levant area), especially when it comes to service style preferences. GCC nationals, for example enjoy being over pampered and indulged. Travel agents and hotel staff agree on the fact these travelers do not like being told "no", feeling that the power of their money speaks louder than the rules and regulations everyone else abides by. Levant travelers on the other hand, are much more direct people who appreciate convenience and practicality above all else and do not always feel comfortable with hotel staff’s “obsessive” behavior, considering it to be almost fake and unnatural for the sake of a tip. All Arabs though, whether from the Gulf or a non-GCC country, share a lot in common and expect to get the premium they paid for, insisting on flexibility for check in and check out timings, and harboring a sense of entitlement. It is much more difficult to impress them than a foreigner because they are already accustomed to the natural hospitality the region is famous for having, so their uncompromising standards are extremely high. Hotel staff, therefore, has a huge challenge in striking a fine balance in service and meeting the different expectations of the different Arabs from different regions. 3 AME Info. "Saudis Target Domestic Tourism." www.ameinfo.com. Available from http://www.ameinfo.com/news/Detailed/157937.html. Internet; accessed 13 October 2008. 4 Business Intelligence Middle East. "MasterCard Consumer Lifestyle Survey Details National Profiles." www.bi-me.com. Available from http://www.bi-me.com/main.php?id=2307&t=1&c=34&cg=. Internet; accessed 13 October, 2008. 3
    5. Common Travel Behavior Middle Easterners are extremely family-oriented and grow up with a lot of placed emphasis on the importance of family. This is why when it comes to leisure travel, chances are the family is also involved and factored into the plans. Where the Middle Eastern family has typically 3-5 children, Gulf families tend to have more than 5. Not only do they like to travel, and travel with large families, but they also like to take lengthy vacations. For example, on the Australian gold coast, Middle Eastern tourists spent an average of 36 nights while Japanese tourists only stayed an average of 4. From a booking standpoint, their travel behavior is extremely short term. “A lot of the hotel business is generated in the month for the month” David Crowl said. Many European and American travelers plan their family vacations almost a year in advance. This is unheard of here, as no one practices long term vacation planning. Though the Four Seasons target is exposed to the world and the FS brand, it is still extremely important for Gulf customers to feel that the staff understands all the cultural sensitivities of this region, specifically because they feel quite misunderstood by foreigners from the West. To FS Middle Eastern loyal customers, their comfortable stay is as important as the things they see in the country they visit. This is why they like to see the destination through the eye of the hotel, so to speak. They like to benchmark themselves based on the list of FS properties they have visited. It has become the measurement of social status alongside Chanel and Mercedes. “They talk about the amazing latest FS in Budapest or Istanbul, and how the FS NY property is gradually becoming outdated. They talk about them like they talk about milestones. I think I personally convinced more people to visit new FS around the world than anybody else” said Farid Chehab, “and I strongly suspect that many others do the same in their own circles”. It goes way back in our history and is deeply ingrained in our culture: One must negotiate an offer to feel satisfied about getting a deal, something of unexpected value in return. For this reason, according to Shaker Akbar, rounds of negotiation take place as the Sheikh's travel manager attempts to haggle his way to an offer before finally settling on a compromised group price. Even if the person has all the money in the world, getting a good price is still of the essence. Ashraf Elzahed believes that one common travel behavior of Gulf people is their heavy sweet consumption. They like to not only taste but experience the local "sweet life" and make sure to leave town with the best collection in tow. Everyone agrees across the board that spa visits are growing in popularity and will continue to grow for Arab travelers, specifically amongst the women who are increasingly keen to learn about spa treatments and beauty therapies. According to travel agents, this is not always the case for all, but many Saudi men like to travel for a few days of "leisure", just before traveling again with family on a vacation. With no one to be accountable for, full freedom gives them the opportunity to spend their time being "entertained" however they wish. While on the plane, frequent traveler Kamil Kuran has noticed many young wives step into the bathrooms as soon as the plane crosses over the Saudi border. They walk in fully veiled in black and walk out unrecognizable in tight jeans and full make up. 4
    6. Popular Travel Destinations For business there is a lot of interregional travel. A lot of investment is taking place as Kuwaitis and Saudis are investing in Lebanon and Syria, getting involved in projects in Jordan, traveling between the Gulf, from Dubai to Saudi to Doha and back and forth. Everybody goes to Riyadh because it’s the money capital of the ME. This is also true for foreigners because a lot of multinational corporations are headquartered in Dubai or Bahrain. When business takes them outside of the region, it is usually to destinations such as New York, Paris and London. The top influencer on the choice of travel destination cited by respondents in the MENA region was their familiarity with the destination.5 People in this region care a great deal about word of mouth. If someone higher up the ladder stayed there, they want to follow the same example. They are interested in being where their peers are and belonging to the same jet setting crowd. When traveling outside of the region, they look mostly to go to London, Paris/the French Riviera, and Geneva. Many already have homes there. Also, but to a lesser extent, they enjoy traveling to Malaysia, LA, NY, Spain, Italy, Greece, and Morocco. When it comes to a family vacation, the ultimate destination depends on the purpose of travel. Eg. For the older generations, they mainly consider visiting the known European city destinations because of the shopping opportunities they offer. Their adult children on the other hand, are more curious about more adventurous locations and plan vacations either as honeymooners or a group of friends to places like Mauritius, the Maldives, Bali and Thailand. As long as there is a private plunge pool like those at Anahita, where the ladies can enjoy a secluded dip, they’d be interested in visiting. The Levant people are the most adventurous and daring in comparison to their Gulf neighbors and love exploring relatively unconventional destinations such as Amsterdam and the Far East. From the whole Middle East, they would be the ones most open to the idea of traveling to rising new regions like central Europe (eg. Prague, Budapest, etc). Though there will always be the elite crowd that vacations nowhere other than in Europe, after 9- 11 when visas became harder to obtain, there was a total shift irrespective of class towards spending more vacation time in the region. As a result, Cairo, Beirut, and Dubai benefited the most. Though Dubai's guests have the shortest stay period, it was one of the most popular destinations last year alongside Egypt. But now that Beirut is back on the map this year, it leads the pack in terms of regional travel popularity. Tourists like to enjoy the lavish side of life whilst taking pleasure in the different entertainment venues, the seasonal temperate climate, and free spirited atmosphere. An interesting finding uncovered a surprising story about Turkey's growing popularity amongst GCC families. A widely viewed and famous Turkish soap opera called “Noor” on Arabic channels contributed to showcasing the country and attracting the female viewers. This translated itself into an unexpected surge in demand at FS Bosphorus due to the women's obsession with the show, leaving Egypt baffled at how August was the worst month of the year for them. Separate from business travel and leisure travel, the Middle East is witnessing a growing trend of Health travel, which Munich is benefiting from the most since it can additionally offer the element 5 Business Intelligence Middle East. "MasterCard Consumer Lifestyle Survey Details National Profiles." www.bi-me.com. Available from http://www.bi-me.com/main.php?id=2307&t=1&c=34&cg=. Internet; accessed 13 October, 2008. 5
    7. of shopping. Many people, especially those who are overweight or suffer from diabetes, are deciding to combine their vacation with medical checkups/treatments at clinics, checking themselves into a health resort. FS in the region receives a lot of calls questioning whether there is a FS hotel in Munich, for this very reason. Prague is another up and coming health destination which is beginning to appeal to the ME market. In fact, the health ministry of Qatar is promoting Prague and the Czech Republic as being one of the best health destinations throughout the world. Taking the Decision When it comes time to take a decision on where to travel for business, it is already dictated by where the business travelers' work takes them. But when it comes to leisure travel, the ladies have a strong influence on where the family goes on vacation, which is certainly the case with Istanbul for example, much to the chagrin of the Egyptians. One of the biggest mistakes would be to follow the widespread misconception that family decision making is the exclusive domain of men, who enjoy by default the legal status of "head of household." Though it is true that the Middle Eastern man is the breadwinner and financier, in no way is the family dynamics any different than that of an American one. She is the major influencer. He is the income provider. Who takes the final decision though is up for grabs. But at the end of the day, if the lady ain't happy, you can bet that a destination change will promptly follow! 6
    8. ADVERTISING After having taken a look at our customers in the region, it is important to incorporate the findings and insights in such a way so as to make the brand’s advertising more relevant and meaningful to them. The first step would be to respect the cultural norms by which they live their everyday lives. Cultural Considerations: First and foremost, it is important to point out that this is an extremely subjective topic, with no definite clear-cut boundaries. It is far from being scientific or even logical at times. Yet it is also just as important to delve deeper into cultural considerations, to beware of the perceptions communication might trigger and to respect the subtle or obvious sensitivities to things we all take for granted. What is easily noticeable is that there is a wide range when it comes to levels of conservatism amongst the countries of the region. Below is a rough scale of where each country lies with regards to this subject. Conservative Liberal The Mediterranean and Levant area is relatively open in comparison to the Gulf and has been exposed to foreign and Western concepts. In Lebanon, the most liberal country of the pack, there are very few restrictions and almost anything goes. Yet at the same time, there is still a lot of resistance amongst some groups. This is a region of contradictions, where you will find women in bikinis and black veils sitting alongside each other on the shores of the UAE. But when it comes to pan-Arab communication of our brand, the biggest limitation is undoubtedly Saudi conservatism, and we are only as strong as our weakest link, as they say. So it is most beneficial for us to specifically focus on the limitations they set and the issues we should take into consideration to suit their cultural taste. 7
    9. 1) Female Imagery Restrictions: At the end of the day, many choose to push the envelope. But to be on the safe side, the rough rules to follow would be: No woman can be displayed in purely Saudi publications unless as a dark silhouette (eg. Alexandria ad to the left) or in the far off vague background. Must be barely distinguishable. A woman can be displayed in magazines entering Saudi, but with a downplayed visual presence (i.e. not looking into camera, face turned sideways, not center of attention, not alone in picture) If the visual is to be inserted in a women’s magazine, she can be displayed decently dressed. But for everywhere else, showing a woman means she must be accompanied by her family in the picture. 2) Female Dress Code: How should a woman be dressed to be “decently” dressed? This is a difficult question. What is acceptable and what will pass is greatly subjective and unpredictable. The perfect example would be the below scanned images, all from the same Kuwaiti Marie Claire October issue. You will notice that a photo shoot of cocktail dresses is done with clashing jackets or shawls to cover up any exposed skin. You can also notice how some dresses underwent retouching on the upper chest area and arms whilst another dress on the same page is left surprisingly bare. 8
    10. What we can draw from our previous experiences is that Saudi censors usually rule out the following: low-cut tops bare arms above the elbows bare legs above mid-calves/shins bare shoulders bare feet 3) Context of Setting: How much skin can be shown also heavily depends on the context of the visual. Sometimes the same amount of exposed flesh is rejected in one instance and passed in another because of the setting and/or context. When showing women in a visual for Saudi, they cannot be swimming in a pool or having a shower or bath for example. Even though the UAE is thought to be quite liberal in many ways, they are still unpredictable when it comes to these issues. To give you a sneak peak of what UAE censorship feedback we received for our Herbal Essences client, we were told the following for each case… NO WAY! NO! Yes. JUST! The UAE, and especially Saudi, is much more strict when it comes to a provocative context. Another setting that is also completely off limits and difficult to pass by censorship would be bar locations as alcohol is frowned upon by conservative Saudis (even though many Saudis like to travel to be able to consume alcohol abroad). 9
    11. 4) Inappropriate Scenario: The body language or the scenario played out in the visuals can also stand as an obstacle in the way of publication. Visuals will not be passed if a woman is shown lying down, or sitting with her legs spread apart (even wearing pants), or if she was straddling a horse. Anything provocative in nature will not work. Other scenarios that may pass censorship but will not appeal to Middle Easterners would include visuals showing an adventurous situation out in the wild. Though there will always be people who would love an elephant ride at the Golden Triangle, especially amongst the younger generation, but most of the FS ME target would want a more refined experience, which is the reason why they especially like city destinations. 5) Opposite Sex Interaction: Even the slightest physical intimacy or interaction between men and women is strictly off limits, automatically ruling out all couples holding hands, cuddling in each other’s embrace, etc. In fact, we would be extremely hesitant to use a visual in which there is any physical contact at all between a man and a woman. Though some pictures might not have such contact, the concept behind the context of the picture might easily render it useless to us. For example, we cannot use the visual of the man taking a picture of the woman posing for his camera. We also have to sidestep the use of the pergola visual showing a “publicly loving” having morning coffee. Off limits to us would also be any picture in which a couple is staring into each other’s eyes. This is because, sometimes, there are beautiful romantic moments between couples that aren’t always physical, yet can still manage to be intimate. Either way, we have to greatly avoid intimacy of any kind, in order to take into consideration the Gulf’s touchy cultural sensitivities. 10
    12. 6) Relevancy of Ethnicities: Because a lot of money passes hands in the Middle East, and men with money feel they are fully entitled to all the luxuries in life, this harbors feelings of superiority in them over people they consider to be of a lesser class. These people they consider inferior are their servants who are ready at their beck and call and most are usually of far Eastern decent. The region, unlike the West, is not exposed to high income powerful far Eastern figures and business people who are highly educated, refined, and equally cultured. They also do not encounter many African American people and find it hard to relate to a visual of them. It took white Americans decades to reach a point in time when they could give their black neighbors a little of the respect they deserved. So the region is still lagging behind with this regard, seeing that there is only a handful in the region. And a family of blondes with blue eyes would also be representative of the West which is vastly different from the region, making it clear that the ad was not designed for the Middle East. WLFP Brand Ad Review Now that the cultural sensitivities have been covered, it should be easier and straightforward to understand the shortcomings of the When Life Feels Perfect corporate campaigns, from the point of view of a Middle Easterner. 11
    13. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Context of setting 4) Inappropriate scenario 5) Opposite sex interaction 6) Relevancy of ethnicities This visual would not work for Saudi of course, but for the whole GCC too. 12
    14. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Context of setting 4) Inappropriate scenario The woman’s ethnicity works perfectly for the region. Please note, the cast does not necessarily need to look Arab, but just be neutral looking at least. Not blonde, not black, not Asian. The context of this visual renders it useless for the Middle East corporate selection. Even outside Saudi, it would not work in the Gulf. 13
    15. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Inappropriate scenario This is a beautiful ad and would work perfectly for markets such as Lebanon. This is not the case unfortunately for the GCC and particularly the KSA. 14
    16. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Inappropriate scenario Underdressed woman. Tight pants. Horseback riding. Enough said. Could possibly work in Gulf. 15
    17. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Context of setting 3) Inappropriate scenario 4) Opposite sex interaction It is precisely the couple’s “closeness” as they cuddle up in a hotel room which ruins the ad’s prospects for the ME. Please note, without children in the picture, a couple cannot be displayed, as there is no way of knowing whether they are married. In case you’re wondering, having children out of wedlock is not common here. 16
    18. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Context of setting 4) Inappropriate scenario This is yet another example on where the casting works perfectly. The visual has passed in the GCC in publications not entering KSA. 17
    19. Number of offences Committed in KSA: 1) Female dress code 2) Context of setting 3) Relevancy of ethnicities Though it does not work for Saudi, it can work for the GCC. It is obvious the lady is the mother, and since the visual is relatively zoomed out, the cast’s skin tone is a little faded/diluted and their African-like features aren’t so obvious. Also, from afar, no body parts on the female as well as the male are accentuated. However, due to the mother’s swimsuit, the ad lies on the borderline and pushes the envelope. In fact, we have faced its surprising rejection in an in-flight magazine all had expected to accept it. 18
    20. Number of offences Committed in KSA: 1) Female imagery restrictions This ad works everywhere in the region. In fact, it is one of the most appropriate scenarios for the Middle East since people are very family oriented. It might even have a slim chance of passing in publications for Saudi, but this would be taking a risk and pushing the envelope. Please note that sometimes it takes a slight change in the staging of the photo shoot to overcome some of the restrictions. Here, for example, we would have no problem with cast ethnicity because of the direction they are looking in. 19
    21. Number of offences Committed in KSA: NONE! We do not feel like this ad is ideal in showing a strong emotional scenario. And in a few instances, the man smelling the flowers could be interpreted as being too in touch with his feminine side. However, this is not a very strong enough reason to object to the ad, it passes censorship comfortably after the retouching/removal of the female statues, and shows the glamorous setting of FS which would appeal to the market here. Therefore, it is the best suited for running in the ME. 20
    22. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Context of setting 4) Inappropriate scenario The purple color renders this ad unappealing to the male readers. The image is inappropriate for the GCC as well as Saudi. All the faults are magnified by the fact that it seems like a public location. 21
    23. Number of offences Committed in KSA: 1) Female imagery restrictions 2) Female dress code 3) Context of setting 4) Inappropriate scenario 5) Relevancy of ethnicities This is an extremely inappropriate scenario for an ad, as if the lady sensually awaits a man lying on an alter-like bed whilst watching the flowers in a romantic setting. This is being mentioned because this is how the visual can be easily interpreted and misconstrued by many. Much like the previous purple ad, the predominant pink color would put off any male readers (yet they are attracted to the ad for “other” reasons). 22
    24. FS Communication Relevancy With regards to brand positioning, FS should always stand for what it does: Delivering an experience that transcends the hotel category into a lifestyle aspiration, with an environment and culture of personalized service capable of making life feel perfect, and capable of making the nature of the brand inimitable, Beyond Compare. This is a universally global positioning that works the world over, with no exception to this region, because it addresses the universal insight that everyone in life aims for perfection. And in that respect, by no means are Middle Easterners an exception. The positioning does not market Four Seasons as being perfect, but insinuates that guests can have experiences when life feels perfect to them, personally, whether they are Canadian or Qatari. On the other hand, answering the question of whether FS advertising creative approach is relevant to the ME market is a very tricky matter. This issue is much less clear cut and there is a thin line between what should be done and shouldn’t be done. What is clear is that the ads are simply not designed with this region in mind. All ads run in the ME are adaptations of themes developed for obviously different markets. We find many ads are developed to be relevant for Asians, and time and time again we find ourselves desperately trying to salvage pictures and retouch them to make them acceptable for the Arab market. Needless to say, it is not an ideal situation. Yet we’ve been managing to make ends meet so far. So what would be required to improve the situation for the future? Do we need to go to the extreme and give a purely local flavor to FS with a local backdrop and a local cast? We do not recommend going all out in this direction, but we do hope to achieve more of a balance in future Four Seasons’ regional advertising. The Middle Eastern target of the luxury segment we are part of means that they have been cultured and exposed to international glamorous locations, they’ve experienced the finest moments of life abroad, and have a certain refined taste in things. Going completely local would downgrade the internationally sophisticated and refined image Four Seasons has nurtured throughout the years. However, in wanting to create a stronger emotional connection and affinity with the brand we would need to have more meaningful and relevant advertising communication. So it is extremely important for us to jointly work together towards attaining just the right balance for the Middle East: something with an internationally glamorous feel yet locally relevant. 23

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