Positioning Lebanese and Arab Brands Overseas on Positive Cultural Associations Jan-Benedict E.M. Steenkamp C. Knox Massey Distinguished Professor of Marketing and Marketing Area Chair BIFEX 2015 organized by the Lebanese Franchise Association

1. © Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Jan-Benedict E.M. Steenkamp
C. Knox Massey Distinguished Professor of
Marketing and Marketing Area Chair
BIFEX 2015
Beirut, May 14, 2015
Positioning Lebanese and Arab
Brands Overseas on Positive
Cultural Associations

2. © Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Select examples of strong Arab brands
Brand Industry Domicile Brand value
($ million)
Brand
rating
Brand/firm
value
Emirates Airlines UAE 5,481 AAA -
STC Telecom Saudi Arabia 4,975 AA- 17.4%
Etilasat Telecom UAE 3,452 AA- 14.7%
Sabic Chemicals Saudi Arabia 2,079 AA 2.1%
QNB Banking Qatar 1,811 AA 5.4%
Qatar Airways Airlines Qatar 1,806 AA+ -
Al Rajhi Bank Banking Saudi Arabia 1,724 AA 5.7%
Almarai Food Saudi Arabia 1,666 A+ 18.9%
Zain Telecom Kuwait 1,206 AA 9.9%
DP World Commercial
services
UAE 412 A+ 2.5%
Agility Logistics Kuwait 380 A 14.9%
Orascom Engineering &
Construction
Egypt 324 A+ 3.3%
Kuwait Foods Food Kuwait 304 AA- 36.1%

3. Leveraging cultural resources
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
• In some categories, a specific country may
have unique positive associations among
Western consumers. If the emerging market
brand can be positioned on these specific
attributes, its country of origin can be turned
into an advantage.
• Examples: Natura (Brazil), Shanghai Tang
Mandarin Oriental Hotels, (China), Jim
Thompson (Thailand), Taj Hotels and
Resorts, Dabur (India)

4. Leveraging cultural resources
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Transfer of Associations from the Culture to the Brand
Cultural associations with the brand’s country of
origin
• History • Space • Rituals • People • Values
Key: Location of cultural association

5. Cultural associations – Time & space
• History – ancient versus modern, man-made
landmarks (e.g., Taj Mahal or the pyramids),
epochal historical events and stories, temporal
orientation (past, present, future)
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
• Space: urban versus rural, natural
landmarks (e.g., the Saudi desert or the
cedars of Lebanon), water versus land,
rivers, high mountains versus wide
plains (Himalayas versus Argentinean
pampas), crowded versus empty
(Singapore versus Mongolia)

6. Cultural associations – Rituals, people and values
• Rituals: festive versus somber events, life cycle events
(e.g., weddings, births), religious practices and holy days
(Ramadan, Christmas), festivals and national
commemorations, colors, numbers, and symbols
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
• Values: gender roles, autonomy (independence,
individualism) versus social embeddedness (collectivism),
hierarchy versus egalitarianism, achievement, success,
and materialism versus well being, caring for the weak,
humility, tradition versus modernity, rights of the individual
versus the role of the government, social norms.
• People: ethnicity, personality, physique,
family units (nuclear versus extended), tribe,
native tongue versus national language,
popular sports, distinctions of class or caste,
status or rank, gender, age, and occupation

7. Using cultural associations
with the Himalayas
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

8. Step 2: Select cultural associations
for your brand – Key principles
• Globally recognizable
• Credible
• Unique - not already claimed by others
• Relevant
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

9. Arabian cosmetics,
incense, oils
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

10. Leveraging cultural resources
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Transfer of Associations from the Culture to the Brand
Cultural associations with the brand’s country
of origin
• History • Space • Rituals • People • Values
Brand
development
Key: Location of association Instrument of cultural association transfer
Cultural loading of brand

11. Brand development by Arabian Oud
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

12. Leveraging cultural resources
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Transfer of Associations from the Culture to the Brand
Cultural associations with the brand’s country
of origin
• History • Space • Rituals • People • Values
Brand
development
Brand
communication
Key: Location of association Instrument of cultural association transfer
Cultural loading of the brand

13. Brand communication – Using the store
Front as permanent billboard
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

14. Leveraging cultural resources
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Transfer of Associations from the Culture to the Brand
Cultural associations with the brand’s country
of origin
• History • Space • Rituals • People • Values
Brand
development
Brand
communication
Brand
reinforcement
Key: Location of association Instrument of cultural association transfer
Cultural loading of the brand

15. Brand reinforcement by Arabian Oud - Assortment
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

16. Brand reinforcement by Arabian Oud - Pricing
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

17. Reinforcing the luxury position
Price: $1,600
Leather box
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

18. Reinforcing the luxury position:
Store interior
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

19. The results
• Arabian Oud wins Perfume Of The Year Award in Dubai
• Arabian Oud wins 5 of 14 awards at Fragrance Oscars
• Arabian Oud among the 50 strongest brands in UK
• Arabian Oud ranked as the 11th perfume brand
worldwide, and the 1st in The Middle East
• Arabian Oud gets 97% satisfaction on amazon.com and
the customers aren't only Arabs
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

20. SWOT analysis of Arabian Oud
Strengths
• Brand (name, image, heritage)
• Variety of perfumes that satisfies many
tastes
• Credibility – fit with cultural
associations with the Arab world
Weaknesses
• Low brand awareness, especially
outside Middle East
• No much advertising for the brand and
its products
• Unfamiliarity with Oud
• Low distribution in the West –
including Amazon
• Sufficient perceived differentiation in
product assortment?
Opportunities
• A leading business in the region
• Increased interest in “new,” yet
authentic, experiences
• Arabic perfumes resonate with
upscale consumers
• Brand proposition and product
category well suited to reach
mainstream consumers in the West
• People are longing for good news
coming from the Middle East
Threats
• Competition is top notch
• Political events may overshadow
business proposition
• Resources to invest in the brand
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

21. What about…
• Dyes?
• Foods?
• Fast food franchising?
• Furniture?
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

22. Fusion of the ancient
and the 21st century –
Cedar wood furniture
from Lebanon
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

23. What about…
• Dyes?
• Foods?
• Fast food franchising?
• Furniture?
• Sailing boats?
• Jewelry
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

24. Indian, Polish jewelry
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

25. Ancient Arab jewelry –
“The Ur collection”
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

26. Modern Arab jewelry –
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
http://nadiadajani.com/

27. What about…
• Dyes?
• Foods?
• Fast food franchising?
• Furniture?
• Sailing boats?
• Jewelry
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
• Banking?

28. What about…
• Dyes?
• Foods?
• Fast food franchising?
• Furniture?
• Sailing boats? • Jewelry
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
• Banking?
• Consumer goods?

29. Hookah products and bars
BBSURF.
© Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission

30. © Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Putting the ideas in practice - I
Survey the categories of cultural associations. To leverage
cultural associations in international branding, managers
should first survey five aspects of their country’s culture:
history (e.g., major events and sagas, landmarks), space
(e.g., geography, nature), rituals (e.g., life cycle, religious
and national festivals), people (e.g., demographics), and
values (e.g., social systems).
Select cultural associations for transfer. Managers should choose
only one or two cultural associations that the target segment will
recognize anywhere in the world and will regard as credibly linked
to the nation’s culture, that no other brand has claimed, and that
are relevant, or that the marketer can make relevant, to the
product.

31. © Prof. J-B.E.M. Steenkamp
Not to be used or reproduced without permission
Putting the ideas in practice - II
• Brand development: developing the brand name, logo, slogan, and writing
style that convey the intended cultural meaning;
• Brand communication: determining the setting, the characters, and the
media to use in storytelling; and
• Brand reinforcement: aligning the other elements of the marketing mix—
pricing, product placement, promotion, distribution, and packaging—so that
they amplify the cultural meanings.
Transfer cultural associations to the brand.
Marketers can transfer cultural associations to
their consumer brand through three interrelated
activities:
The potential for cultural branding is significant for Lebanon and the
Arab world.
The world is longing for good news emanating from the Middle East