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Brand management and new media marketing in UAE


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It is a marketing research report on the trends of brand management and online marketing in UAE.

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Brand management and new media marketing in UAE

  1. 1. Brand Management &New Media Marketing 2010An insight into brand management trends and the usage of New Media as amarketing tool in UAE
  2. 2. Brand Management and New Media Marketing SurveyExecutive Summary Branding is an integral part of any organization. It is branding which makes a company stand out from the crowd based on intangible benefits. A properly managed brand can impact the bottom line, drive revenues and growth, and set the upward future growth trend. A well managed brand can help the organization sustain more effectively and efficiently in times like recession and they recover faster. This survey was conducted to find out the trend in brand management in UAE. UAE has become a global village where you will find professionals from almost all nationalities. This cultural diversity brings with it some unique challenges when it comes to Brand Management. Additionally survey also tries to find out the trend of organizations based in UAE and the organizations with regional offices in UAE using the conventional as well as new media tools to manage their brand and to market their products and services. 2|P a g e
  3. 3. Brand Management and New Media Marketing SurveyThe Experts The survey was mainly targeted towards the top and midlevel managers. 69% of respondents were involved in marketing related functions. Total 60 respondents took the survey and completed 100% of the questionnaire. The participants were invited to take part in the study using social How ma ny people work in your organization? network websites. It had a fair mix of respondents representing B2B and B2C sectors with 39% from B2C and 61% from B2B. The companies surveyed were almost all from medium to large scale enterprises as you can see in the Graph ii. Graph iiThe Findings • Branding is no more considered a manual and brand manual among the superficial makeup but its considered an vastly used. integral part of the marketing strategy. • Cultural differences, language/translation Majority of the organizations have a issues and lack of local expertise are some formal brand management policy which of the main barriers in effective brand gets top management’s backing and also management. get implemented. • Due to the economin downturn companies • As UAE is becoming a regional hub for are exploring more cost effective foreign companies with their regional alternatives to advertising like PR, direct offices and distribution centers established marketing, and new media/online tools to here, most of the brand management is market their products and services. goverened through centralized brand • Website, email marketing, online feedback management. forms, and online advertising are the • Companies use different tools for brand mostly used new media tools for management with corporate identity marketing activities. 3|P a g e
  4. 4. Question 1: How much your brand influences your customers buyingbehavior?Scale 1-10. 1 being No Influence, and 10 being High Influence72% voted 7 or higher which shows how big of a heirarchical process which is achieved overrole brand plays in consumer preference. time. An excellent product without properConsumers like to buy the products with brand branding could be a failure but it would still gainnames they trust. It is the perception about a the momentum because of the goodbrand that trigers people switch from other experiences of early adopter. However a flopbrands or buy it at first place . Once the brand product with excellent branding would be alives upto the promises made, it develops trust. bigger failure as after having bad experienceAs a happy consumer we become loyal to that once consumers will never buy the same brandbrand and later an advocate of that brand. It is again even with a better/improved product.Question 2: We have a formal brand management policy.82% say they have a formal brand management value of brand management and that they havepolicy which shows that UAE companies see the invested resources to establish a formal 4|P a g e
  5. 5. management policy. Now how well that policy not having a formal brand management policyis being impleneted will be more clear from the will be reconfirmed later in another questionproceeding questions. Another fact to be noted which proves the validity and accuracy of thehere is that 16% don’t have a formal brand data produced in this policy. This fraction of companiesQuestion 3: Does your organization offer brand-specific guidelines?This question further breaks down the “type” of management program whether it is in the formcertain brand specific guidelines organizations Brand Manual or Corporate Identity Manual orhave. 87% do have some sort of brand Behavioral guidelines.Question 4: how well does your firm follow brand guidelines?Scale 1-10. 1 being Not Well, and 10 being Very WellWith the Mean Value of 7.4 and 88% voting 5 orhigher, it shows the brand guidelines are not Last three questions show that companies domerely the part or marketing documents follow brand guidelines and they do have awihtout implementation but these brand brand management programs but what exactlymanagement policies actually get implemented. they do in this regard will be discovered in theIt is a good news that UAE companied pay following two questions.attention to the vital concept of brandmanagement from concept to 5|P a g e
  6. 6. Question 5: What have you done to define and articulate yourcompany’s brand over the past two years? This question ads further credit to preceeding question and show what kind of activities companies have done in terms of brand management over the past two years. Companies have been involved in a range of activities from training emplyees to engaging a brand consultancy firms. It signifies that brand management affair if taken seriously by companies in UAE.Question 6: What is your typical approach to managing brands? 1. Centrally managed, with consistent global implementation 2. We have global brands, but they can be slightly adjusted to local needs 3. We have global brands which are heavily tailored at a country level 4. We develop distinct local branding for each market 5. We don’t have a special brand management program 6. OtherUAE being a multi cultural country and having manage their brand in this multiculturalestablished its status as a regional hub for environment. 41% centrally manage theirdistribution for many foreign companies it was brand with consistent global implementation,equally important to know how 6|P a g e
  7. 7. while 28% have the global brand but with the flexibility of tweaking it to local needs.Question 7: What are the main barriers to managing your brandeffectively in international markets? exist. Being culturaly diverse posses the biggest challenge for brand managers. Same message could be percieved differently even if it is in the same lanuguage for example english. Now imagine that message having translated into regional languages. So as expected cultural diversity is one of the main barrier to manage brand effectively followed by lack of local market expertise and translation issue among the others. These challenges would be easier of overcome only if companies get local expertise but as I mentionedNothing is free of challenges and such is the the whole idea of Marketing, leave thecase with brand management as well. However brand management aside, is new to this regionthe set of challenges and the magnitude of so it not quite easy to find the right talentthem might be a different but they definitely tailored to this 7|P a g e
  8. 8. The ToolsHaving discovered companies take on brand out the new media/internet tools companies inmanagement It wold equally important to know UAE have been using, or, on the other handwhat tools companies have been using and are which unconventional tools they could use butplanning to use in future to manage their are not really using them effectively.brands. Beside conventional tools I tried to findQuestion 8: In 2010, do you expect spending to increase, decrease, orremain the same in each of the following marketing disciplines?From 2005 untill end of 2008 we saw taking piggie back ride on construction industryunprecedented increase in adverts, bill boards, closed down with few months and some a yearbaners, and posters. Companies were spending later. As expected the survey reflected theand in some instances competing on ad space. sentiment of the business leaders in UAE.After recession hit and as construction industry Budget constraints have pushed businesstook the nose dive, the biggest customers of ad leaders to steer away from expensivespace, so did the advertising industry along with advertising and incllined more towards PR,it. We witnesed many Ad agencies who were Direct Marketing and Digital/ 8|P a g e
  9. 9. Question 9: How regularly you work with these agencies?Unlike western world direct marketing and responsible for sales and marketing asdigital/online media concepts are still new to marketing is not considered important enoughthis market. PR is catching up quite fast as more which needs a separate department, leaveand more people see value in public relation alone the separate budget. Therefore toactivities, whereas advertising being more of achieve monthly sales targets these managerstraditionally core and important to marketing focus mainly on gorilla type marketing whichgets the biggest chunk of marketing budget. But produce immidiate results i.e Advertising. PRthen I believe the whole concepr of “Marketing” and Digital/Online marketing which should be ais still very young in this region as people still part of Integrated Marketing Communicationslargely confuse sales with marketing functions. strategy is often neglected.The trend here is to have one 9|P a g e
  10. 10. Question 10: Which of these online/new media techniques do you useoften to market your brand ?As expected website ranks the highest among an established medium for over a decade, toother tools that companies use with Email social networking. Social networking is catchingMarketing the 2nd most often used, followed by up quiet fast as marketing gurus realise the roleonilne feed back forms and web statistics. Most it plays in openion making. Social networksof the companies use a mix of tools to maximize make up an important aspect of a producttheir online presence and to gain higher search launch especially when it comes to FMCG. It isengine ranks which results in higher sales leads. even more relevant for UAE as more than 74%There is a very interesting trend we see here of its population uses internet according towhen you compare online advertising,which is stats from 10 | P a g e
  11. 11. About the author Noor Ul Ain Mohammd is a Markerting Professional with over 10 years of B2B and B2C Marketing Experience. He is also a Chartered Marketere and Member of Chartered Institute of Marketing. He has been involved with a range of industries like water treatment and desalination, Chemicals, fire fighting and safety equipment, industrial gases, air purification, electronic article surveilance, Rental and Maintenance, and technical training. Every effort has been made to verify the accuracy of this information. The facts and figures are scientifically based on survey results. It was a non profit study and the information presented here is strictly for education purpose only, not to be used in any other 11 | P a g e