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Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
Ao m presentation. fashion marketing in saudi arabia ms 2010
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Ao m presentation. fashion marketing in saudi arabia ms 2010

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Academy of Marketing Conference Cardiff 2013

Academy of Marketing Conference Cardiff 2013

Published in: Marketing, Travel, Business
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  1. Academy of Marketing Conference 2013 The title of the paper: The Fashion Marketing Scene in Saudi Arabia: Standardisation vs. Adaptation By Izzudin Busnaina University of Benghazi Mrs Baraah Rawas University of King Abdulaziz Mrs. Liz Watson Nottingham Trent University
  2. Outlines • Marketing in global arena … why go global? • Classification of Fashion Markets • The fastest emerging market … the Arab World! • International marketing decisions … Standardize or Adapt? • Research context and methods • Results; marketers’ point of view • Results; Arab customers’ point of view • Conclusions and future research 2
  3. Marketing across the World ‘Go Global!’ … Why?  No way to play safe even in domestic markets (Kotler, 2008)  Low costs and economies of scale (Ryans et al., 2003)  The rich world will continue to suffer from anaemic growth; the emerging world, by contrast, is witnessing a remarkable growth level (Wooldridge, 2010) 3
  4. Fashion Marketing 4
  5. Fashion Marketing International fashion markets can be classified into three types (Grail Research, 2009)  Global Fashion Hubs  Growing Fashion Markets  Emerging Fashion Markets The Fastest … more than 15% growth annually (GAN, 2010) 5
  6. The Arab World … ‘Emerging Markets’ 22 Countries 358,000,000 People Majority are Muslims Arabic (Official Language) GDP > $2.3 trillion (2011) World’s eighth-largest economy Per Capita Income > $6,700 More ½ the population < 25 years (Mahajan, 2013; Harvard Business Review) 6
  7. Research Area … Saudi Arabia? • • • • The 2nd largest Arab countries Middle Class 65% Real Growth Rate 6% (2012 est.) GDP – per capita $25,700 (2012 est.) (World Bank’s World Development Indicators database, and CIA’s The World Factbook, 2013) 7
  8. Research Area … Saudi Arabia? • Consumers spend > 10% in global fashion • Younger generation has become Westernized • Highly global fashion brand conscious • Attractive fashion market • Contextual differences between its local regions 8
  9. Marketing across the World Standardize or Adapt? The Globalization of Markets, 1983 In Homogeneous Markets In Heterogeneous Markets Operating Efficiencies and Economies of Scale Better Satisfy Local Circumstances 9
  10. Fashion Marketing Decisions ‘How to brand a product?’ is a crucial question in marketing (Kotler, 2003) The brand image is a mirror reflection of the brand personality or product (AMA, 2012) What’s the effect of brand’s image in Fashion Marketing?    Purchase intention & choice A determinant variable in advertising designing A major component of brand identity 10
  11. Research Framework • The factors of marketing programme decision (i.e., the degree of standardisation/adaptation) • Market influencing factors (i.e., mode-of-entry and competition) • A brand personality might produce 2 different brand images Home Markets Consumers - Attitudes - Perception Brand Personality Marketing Programme Degree of Standardisation /Adaptation Foreign Markets Consumers - Attitudes - Perception A Perceived Brand Image B Perceived Brand Image Influencing Factors (Adapted from: Mrugank and Thakor, 1996; Jain, 1989; Kotler, 2003) 11
  12. Research Questions & Aims Using Saudi Arabia as a proxy of ME fashion markets, we address two questions; 1. To what degree do global fashion companies actually adapt/standardise their brands offerings for Saudi Arabia? 2. Do Arab consumers perceive the global fashion brands in Arabic countries differently than in brands’ home markets? Research Objectives   Determine the standardisation/adaptation degree of the fashion global brands offerings in Saudi Arabia. Explore how Arab customers perceive the fashion global brands’ personality and image. 12
  13. Research Methods & Measures Using 3 fashion products categories … Clothing Accessories Jewelry Structured interviews with 4 brands’ agents in Saudi Arabia   To establish how they had conceptualised the notion of adaptation/standardisation Their actual marketing practices in Saudi market 13
  14. Research Methods & Measures Consumer’s point of view (≈ 50 customer questionnaires) 1. 2. Recently purchased these brands’ products And have a shopping experience in western markets. Using the cognitive approach (Thomas & Sekar, 2008) and previous research on branding (e.g., Aaker, 1997; Azevedo & Farhangmehr, 2005; Geuens et al., 2009), we measured …    Consumer’s attitudes toward the fashion brands Brand loyalty and personality Differences in brand image between Arab markets and brand’s home market 14
  15. Results: Marketing Implementations in Saudi Market There are remarkable differences of Brands under investigation – managers’ point of view customer characteristics between Saudi Arabia and the brands’ home countries Marketing Activities Market Research SaCo. 1 SaCo. 2 The key actual practice in Saudi SaCo. 3 market GUESS & Burberry H&M Levi’s Ready-made information about Arab consumers Adapted Adapted Adapted Product Decisions Some adjustments are applied on potential product Slightly Adapted Standardized Slightly Adapted Pricing Marginal Adapted Slightlyaccording to Saudi Adapted Slightly adjustment level Adapted Slightly market Promotion The most likely to be standardised Adapted Adapted Adapted Some changes are made on the advertising copy 15
  16. Results: Arab customers’ responses General level of similarity from customers’ point of view 1= Different / 5 = Similar Marketing Program 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 The most common features Product (3.36) Pricing (2.58) Similarity Levels (Mean Values) Promotion (2.57) 16
  17. Results: Arab customers’ responses Preferred fashion brands for Saudi consumers 37.8% 26.7% 26.6% 8.9% Factors on loyalty of Saudi customers to fashion brands   Brand’s history/heritage Fashion product’s quality 17
  18. Results: Customer’s Perception Vs Brand’s Personality Brand A Brand B Brand C  Rotated Component Matrix 18
  19. Conclusions and Implications  The 4 global fashion brands implement marketing adaptation in their programmes to Saudi Arabia. However, Arab consumers do not recognize such implementations.  Marketing adaptations produce undesirable influence on consumers in Saudi Arabia, as they perceived different personalities of the global brands to that which these brands promote.  International fashion marketers should implement and design their marketing programme based on a good understanding of buyer behaviour in this region.  Fashion marketers should consider Arab markets’ characteristic before deciding whether they have to create different brand image (e.g., Levi’s in USA and Europe; Roth, 1995) to target Arab markets. 19
  20. Limitations • Purposive sampling • Relatively small number of global fashion brands available for study, as well as small sample of Arab customers • This paper provides a useful initial insight into global fashion branding in Saudi Arabia and Arab consumers’ perception toward fashion brands. • And, it’s a point of departure for research to study a large number of international fashion brands across Arab countries. 20
  21. Thank you
  22. Fashion Brands Burberry a Brand Personality’s characters GUESS b H&M c Loading Mean Std. Deviation Loading Mean Std. Deviation Loading Mean Std. Deviation Honest .603 3.63 1.09 .946 3.50 1.09 .707 4.17 0.83 Caring about you .735 3.50 0.82 .925 4.00 0.85 .772 4.25 0.97 Exciting .693 3.75 1.00 .925 4.00 0.85 .696 4.17 1.19 Up-to-date .685 3.88 0.72 .614 3.83 0.72 .898 4.33 0.89 Reliable .729 4.06 0.93 .792 3.67 0.78 .696 4.17 1.19 Successful .841 4.13 0.72 .848 4.17 0.94 .950 4.58 0.67 Charming .851 3.88 1.02 .848 4.17 0.94 .890 4.25 0.97 Feminine .905 3.81 0.99 .594 3.83 0.83 .844 4.08 1.16 Active out door style .400 3.88 3.67 1.07 .679 4.50 0.67 Tough/strong .495 3.75 1.06 .776 3.75 0.87 .678 4.00 1.13 Pioneering .866 3.94 0.85 .693 3.58 0.67 .769 3.83 1.34 Feeling of energy .646 3.38 0.89 .966 3.42 0.79 .927 3.67 1.30 Global .877 4.06 0.77 .636 4.25 0.87 .897 4.33 0.98 Feeling young .833 3.44 0.96 .693 3.92 0.90 .772 4.25 0.97 Sexy .740 3.00 1.10 .549 3.75 0.75 .779 3.92 1.24 Pride .725 3.56 0.90 .594 3.67 0.78 .686 3.83 1.53 Personalized luxury .790 3.69 3.83 0.83 .847 3.67 1.61 0.50 0.79 .671 .685 Extraction Method: Principal Component Analysis; Rotation Method: Varimax with Kaiser Normalization. (a) Rotation converged in 6 iterations, (b) Rotation converged in 6 iterations, (c) Rotation converged in 3 iterations

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