Case Study: Huge Marketing budget doesn’t mean Sales!!!

Generally, most Middle Eastern FMCG and Retail brands spend enormous amount of money on communications each year to sustain survival or grow by a small fraction. Most of these Brands hardly double their digits over the years; some claim that they’ve doubled their sales, HOW? You need to grow in channels to double your sales but it’s merely impossible to double your sales from the previous two years without Channel Reach. We witness price increase every few years and that should not be the comparing yardstick with previous years. Only by Innovating values to address different segments of the Market, over extending SKUs, can add to growth

Now most marketers base their decision on Market Research, hardly any that I’ve met or known is thinking outside the box to move away from the long repetitive patterns that we all witnessed throughout the past generations. For example, what Nescafe started as a trend is followed by many local Brands, what Pampers started as a trend is followed by many to this day

The look and feel of Brands are relatively the same across the board and since most professional marketers in the region are graduates of the two multinational schools i.e. P&G and Unilever, they intend to follow the same pattern of their respective experience at local level, even the practice remains the same. Now, we understand at the local level that the scope is different as it requires all sort of development unlike the previous experience on both Brand and Marketing strategy as well as Tactics

Most of the local Brands hardly own any Brand strategy; they carry two types of strategies:  ‘Design’ and ‘Communication’ (both are extremely evident on their Brands). Now, most require a massive Communication budget in order to maintain the current level of sales or increase by few percentages each year, why? In most cases if you don’t own a relevant Brand or Marketing Strategy, you’ll depend on Advertising to push your message forward, for example: Management and Advertising agencies are aware of Rabea’s new Positioning and Promise but is the public aware? Did Rabea educate the public on their recent evolution? Not from what I saw but apparently this seems to be the current logic which is commodities over Brands

If we look deeper, into the local FMCG Brands, their 2 major problems are their ‘Brand Strategy’ and ‘Marketing Mix’ that’s resulting in a small fraction in growth which is between 5-10% because most are missing the point that Brands are about Values and not Market Research Data that dictates what they should do next. For instance, if we take Cofique and Rabea as local brands from FMCG sector, hardly their audience can understand their Market Positioning, Brand Promise or even the single idea they’re trying to sell, they are relatively offering the same values of their Direct Competitors who are also the category owners, Nescafe and Lipton respectively

If you take Al Nahdi as a Retail Brand, hardly their audience is connected with their Repositioning, though their goal is to move from Pharmacy to Lifestyle (to grab Market share from Faces, Paris Gallery etc.), that’s a Category Shift in which the Brand must resonate before the Marketing Mix. Today after 3 years, customers still think of Al Nahdi as a Pharmacy same as before (with only a face lift and addition of more product categories). The incredible amount  Al Nahdi spent on communication at the launch with the message ‘Hope’ addressed a particular value, NOT all of values that Al Nahdi  had planned to offer. It had a message but lacked the Brand strategy that could’ve helped the evolution. If one plans to apply the Boots model, then you need to apply the model across the board. I must say that they’ve done an incredible work if compared with their past

There are reasons why would we use massive Communications budgets, there are reasons why we need them and how will they support our overall goals. If the single goal is to help deliver your tactical strategies (promotions) then fine because it’s relevant to be in store (customer experience).  There are fundamental issues here, so what will a huge communication budget do? Rabea for instance has over 40 SKUs, Cofique has a good number of SKUs for a Brand that launched 5 years ago, I mean the Brand never fully matured and the management already extended their SKUs. Cofique is offering Nescafe’s values and that’s very evident but management need to understand that to solve the problem is to offer different values as consumers find Nescafe relevant and preferred, not Cofique.  Cofique spent enormous amount of money on Marketing since its launch and yet for the past 5 years the brand suffered enormously. I predicted Cofique’s failure from the day they launched. I advised the management of their approach but they seemed to take things personally and they ignored my advice, the sad reality in our region is that no one likes to be corrected or be recipients of advice from subject matter experts

Let’s looks at sales of the following brands for 2015 and you, the readers, be the judge. This case study is based on 4 different Brands (3 FMCG & 1 Retail). The Brands are Rabea, Cofique, femi9 and Code Red (the energy drink)

  • Rabea tea is a heritage tea brand with over 60 years in the business, founded by a family with great legacy in the tea business. Today in 2015, Rabea’s annual sales stand at SR. 400 million ($ 107 million) with 40 SKUs more or less. Rabea’s annual sales 5 years ago were approximately SR. 300 Million, an additional hundred million increase since five years is partially due to Price increase. Rabea annual marketing budget is relatively good amount of money that goes across all activities. Here’s the breakdown:
    • Rabea Sales 2015: SR. 400 million
      • Loose Tea: SR. 150 million
      • Tea bags: SR. 150 million
      • Other SKUs: SR. 100 million

Loose Tea is losing sales because of Tea bags as they are considered more trendy and convenient by younger generation

Tea as a category is losing 2% to Coffee because the latter is becoming more favored by the younger generation due to its variety of tastes (Mocha, Espresso, Cappuccino etc.) plus it’s also considered as a trendy drink due to growth in café culture that is adding to this perception. Rabea should own the tea category but that’s not the reality today. 5 years ago with a SR. 30 million budget, Rabea was growing 5% and bottom line 10%, on average. Today, Rabea has aggressively evolved the proposition and introduced different SKUs like long leaf in Tea bags, yet sales are not very high compared with past levels

  • Cofique is a local coffee brand which since its launch has went through aggressive Brand visit exercise for the past 5 years and yet suffers to connect with the audience till today, why? Well the sales values that are owned by Nescafe. Their total annual Sales are almost 10 to 15 million with over 20 SKUs. Sounds crazy, doesn’t it? Well they’ve spent enormous amount of money since launch and one will expect that in their 5th year they’ve reached maturity in their sales. In 2010, I had the honor of meeting the head of Marketing and I advised him NOT to go ahead with his plans but he felt offended, took things personal and decided to go ahead anyway. A free advice could have saved a lot trouble. They should’ve launched a subcategory than go head to head with the category owner
  • Code Red is a local energy drink focused mainly on Marketing Mix and a defined audience. Their total sales in 2015 have been SR. 350 million from one single SKU, Code Red spent around SR. 100,000 on Advertising in the past 10 years, they don’t own a website, nor they are active on Social Media. In fact all the videos and social media pages are created by their ‘loyal customers’, Code Red offered a unique set of values to their audience. Many might argue and say, Code Red is not in modern trade, therefore not much Marketing budget is required but the reality is that Code Red had a clear Marketing strategy addressing the entire Mix. It focused on a target audience more relevant to Code Red i.e. which doesn’t shop for energy drinks in modern trade

    Branding and Marketing is all about relevance which is why today Code Red is a Brand!

  • Femi9 is a Saudi fashion retail outlet focused on women casual wear that started from a humble beginning with two stores in Riyadh. The owner is a visionary and ambitious, today Femi9 operates in most of GCC, North Africa and Switzerland with total approx. sales of SR. 200 million. The Brand spent less than SR. 10 million on advertising in the last 15 years. Its growth continues to this day

So I beg to ask, what would a huge Communications budget achieve? Great results? No! Can any of the Marketers work without a Communications budget? Well, a brilliant Brand and Marketing strategy would achieve enormous growth. Code Red and Femi9, both local Brands, are able to continuously grow with minimal Marketing budget and yet both Brands have their loyal customers that advocate for them. Today out of one SKU Code Red earns 75% of what Rabea earns with over 40 SKUs, you would expect Rabea to sell more given the fact that they spend more on Marketing. Cofique which also spends a lot on its Marketing but with such sales, it needs to re-visit their proposed values and the Brand itself  

Some might discount this case study because I consulted both Femi9 and Code Red in the past which is why I favor them but that’s not true. I intend to speak on huge Communications spendings that should equal results i.e. SALES, therefore logic must prevail for businesses to grow. A brilliant Brand and Marketing strategy is more than enough to create short and long term growth which is why Brands are supposed to be sustainable unlike commodities. Create Your Space and evolve from the old school of Marketing

*All figures obtained from Euromonitor, Nielsen and other sources

 

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 13th January, 2016

Category, Brand & Unique Values

Always, Category leaders face those that replicate their values on the same propositions. As they say: one success story copied by many BUT always the biggest part of the story is that which one sustains continues growth. On many case studies of existing Brands we’ve seen values evolve to maintain continued growth and those values eventually are replicated by the second and third leading ones within the Category. One of the strongest values is Price but again that’s defined on which segment you’re addressing. In case of candy bars such as Mars, Snickers etc., it’s irrelevant to address a specific target audience as they’re for all demographics that wish to consume frequently or occasionally whereas with respect to timings of consumption, the segment differs on the basis of psychographics i.e. the older segment of the audience is less motivated to consume frequently and to consumer on particular kind of day while the younger audience has no preference when it comes to timing at all. Brands with a single unique set of values and those with more than one, matter but few that have ‘Signal Values’ can easily over shadow a Competitive Category. For example:

In the Saudi market, Al Baik addresses all audiences and not a specific one, is it because of Price? The values are much greater today as a Brand than just Price. Al Baik is not a Commodity; Al Baik is purely a Brand with clear Core Values. If we look at the Fried Chicken category in which Al Baik operates, it is the undisputed owner and champion of the category and many have tried to copy and sell the same values of Al Baik but the Brand is fundamentally deep rooted within the hearts and minds of the audience. To add more, Al Baik is one of the very few timeless Brands easily inherited through generations. Al Baik created its space and the only single way that it can lose that space is when they stop innovating their values or their current values start deteriorating

Countless times we’ve seen the no. 2 within a Category either upholding to Category leader’s Brand values or offers Price as a value. We’ve seen this example with many of the local/regional Brands as latter entrants to any of the FMCG categories. Price as single strong value can turn a Brand into a Commodity, just walk into any supermarket aisles and see the amount of tactical approach to push products off shelves. Brands are about values and great brands improve their values. Look at Apple in general or its iPhone, look at Google, Emirates, Visa, Mercedes-Benz and other great Brands; see the unique values these Brands hold and ask why their customers or users are willing to find them to be the most relevant/preferred. The value of owning a Mercedes-Benz is extremely different than the value of owning a Lexus, the value of owing Samsung is completely different than the value of owning an iPhone, the value of having a Starbucks coffee is different than the value of having Duncan Donuts coffee, the value of owning a Mac is much different than the value of owing a PC

Another great local examples is Rabea. In my previous article about the Brand, I touched a bit on the evolution of Rabea Tea to address the current generation. The management decided to evolve across most of their SKUs and introduce one more (SKU or Brand) named Kick. Let’s analyze the current situation:

149cf45Rabea evolved the entire value proposition but left the Brand as is. This might serve the short-term goal but in the long-term, Rabea would have to rely on the Brand and not commodity. Rabea looks at tactical approach and immediate returns over a long-term strategy that would evolve both the Brand and the (Marketing) Mix. The recent launch of Kick (SKU to management, Brand to consumers) is a sign of both evolution and the quest for immediate returns. Kick by Rabea tea is an extra caffeine tea that keeps you awake, the concept is brilliant but the core problem is that Kick tried to own strong Coffee values, namely:

  1. Caffeine
  2. Keeping You Awake

These two values are well-Branded with Coffee so how did Rabea Marketing planned to evolve these two values which are too strong to hold on to? That’s just mission impossible because it’s a war with an entire Coffee Category. Kick clearly lacked a fundamental Brand strategy; even the visual communication had functional attributes such as ‘Alarm clock’

Suggestions:

Kick by Rabea Tea is a brilliant idea but the trouble is that Tea is not inspiring it’s boring to most youth and that requires behavior change. Tea is much healthier than coffee, there are 190 or more type of teas Rabea needs to address within the Wellness segment which is one of the fast growing population, globally

Rabea needs to revisit their Brand strategy to align with their current proposition and align the essence of the Brand with the core values

I’m not attacking Rabea, l’m addressing where I see the mistake and am suggesting the way forward. Most in our region hate to be corrected; in fact they ride on what’s wrong that’s why we’re several decades behind in almost everything

Brands are about unique sets of values. Each of these values is a reference to the owned Category. Evolving values owned by a Category is an impossible task in Branding unless several supporting unique sets of values are associated
Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 21st December, 2015

What comes first: Category or Brand?

Most confuse the process as they think that Brand comes before the Category. We’ve seen so many battles with this thought as most focus on the Brand than the Category while consumers think of the Category instead of Brand. Do you say I need to buy a new phone or an iPhone? Do you say I need to travel or I need Expedia or Thomas Cook? The strongest Brand will be the reference to a category. So what comes first: Brand or Category? Category comes first not the Brand. Whenever we say tissue we think of Kleenex, whenever when we think of information or search we think of Google, whenever we think of tablets we think of iPad and the story continues. Some of these Brands created their respective Categories and they’re the dominant players thereof

Let’s think how Brands can evolve a Category to own. The best example is Yahoo vs Google, Yahoo created the Search Engine, it was the reference before Google but Yahoo was everything not just search engine, the management decided to expand the portal and be the One-source Destination. Google came in with a new experience to search with great sets of values but Google (unlike its competitor) was focused on search and became relevant and preferred which is why today everyone says Google it, not search it. Yahoo Mail and hotmail faced the same scenario as that of search, Gmail came with new sets of values and took over which is why today Gmail is the largest Free Web based Email

Categories are created through Values, followed by Brand as a reference. Brands are ideas with sets of values as their core. If the Brand offers great sets of values as well as a very unique experience to consumers/users then the Brand is the reference to the Category

For example: in the US, the courier category within the shipping industry had many players till the mid-90s (Brands like DHL, Airborne Express, TNT and FedEx). When FedEx introduced the great value of delivering package overnight and before 10 am, it took over much of the local market making it the Category Reference. No one today says ship/courier the document in the US anymore; everyone says: FedEx It! Since then FedEx grew enormously and as a result DHL stopped serving the local US market while others like Airborne Express folded. FedEx evolved the category to own and they own it to this day

Today when we think of the category of smartphones, both iPhone and Samsung occupy our minds and not the operating systems iOS, Android or Windows. The Power of the Category serves the Brand in many ways as each of these Brands i.e. iPhone and Samsung; address two different target audiences. iPhone is more chic and appeals to intellectual and deep pocket users whereas Samsung appeals to Price sensitive users. So who owns the smartphone category? Both. Who owns the App category? Apple. Each Brand that owns a Category hardly spends money on Advertising e.g. Starbucks, The Body Shop and few others. Think of Kleenex, does Kleenex ever advertise? Does Starbucks ever advertise? Today Categories play a great role for those that create a Category or Sub-category. Yahoo created the Search Category, Google owns the Information Category, two different sets of values so what comes to mind first: Information or Search? Of course Search as its actionable followed by Information

Social Media had players like Friendster, My Space and others; today Social Media Category is dominated by facebook. It created new sets of values and therefore, is the first reference to the Category itself whereas Twitter, LinkedIn, YouTube etc. are Sub-Categories with each focused on its own purpose. Example: Youtube=Videos, Instagram=Pictures. The Social Media phenomenon comprises of two sets of environments and two different experiences i.e. Web and Apps. So focused Brands such as Instagram and Snapchat are creating great presence. Considering how dynamic technology is, everything could change overnight and different Categories and Sub-Categories will emerge

Things to consider:

  1. Think of the Category first and not the Brand
  2. Think of the Target Audience. Which segments you plan to address and concentrate more on Demographics and Psychographics
  3. Think of the Brand idea that’s relevant to your Audience (not to the Management)
  4. Plan both your short-term and long-term visions to own the Category or to create a Sub-Category
  5. Don’t battle within a Category that some other Brands own unless the Category is still maturing and your second or max third entrant in the market
  6. Research is a benchmark not a guideline to follow and most, unfortunately, fail to create but are clever to follow

If we look at the regional market, the biggest economy is Saudi Arabia. Most Category owners in the region are foreign Brands while very few are dominated by local Brands. This brings us the question: How rich is the region on Brand Knowledge and Experience? The obvious answer is that the region still works on Commodities while thinking of them as Brands. The region comes from strong trading mindset with short-term goals, completely opposite to its Western counterparts. Let me share both the prevailing Market logic and examples with reference to the regional behavior

  • Logic: The region is a trade market more familiar with tactical approach than strategy. The region aims for short-term gains over long-term ones which put pressure on the entire organization thereby resulting in continuous changes to its business model in order to acquire immediate sales. You can hardly build Brands on these termsThe organizational behavior within the region with most companies is more relevant to Commodity selling than selling the idea of the Brand which facilitates the users’ experience

    Let’s use one great local example:

    • Al Nahdi, the local Saudi Pharmacy chain, decided to evolve and move from the category of Pharmacy to Wellness Lifestyle. The company has done a remarkable job in restructuring and building great fundamentals to support the new evolution of the Brand from Pharmacy to Wellness Lifestyle Category. As much as I think that Al Nahdi did a great development within the Pharmacy Category by bringing a new meaning to the overall Pharmacy Experience in the Kingdom compared to others, at the same time I think Al Nahdi’s evolution from Pharmacy to Wellness Lifestyle will take a longer period to mature as an idea for Audience to embrace it as a way of everyday experience, Why? In the past three years the brand sold “Hope” and not the Brand idea that supports the evolution
      1. Al Nahdi’s approach on Brand is clear: To Reposition the Brand as Wellness Lifestyle which is a lifestyle that means to Stay Healthy and Look Great
      2. The Repositioning approach lacked both Brand Idea and Purpose. If the idea was to sell to the public “Hope” then how would that support the Repositioning of the Brand? Hope is more of a community initiative than a Brand Idea. So what’s the Idea or the Brand Purpose? I pondered on both for long and I can’t seem to nail them. We all know that Positioning controls the entire Marketing Mix but the Brand Essence needs to be more aligned
      3. Since Al Nahdi planned to evolve into the Wellness Lifestyle Category, what experience did they offer? Usually experience comes from a single promise. Is that also Hope? If I have to agree on Hope then how do you apply it to Wellness Lifestyle? Or how do you bring hope to Makeup, Skincare or Haircare products? These are part of Al Nahdi’s evolutions and they’re its reality
      4. I think the company did a remarkable job on the Marketing Mix and I salute them for it but the Brand was completely disconnected from the entire Mix and both are about one single purpose
      5. How the name Al Nahdi resonates with the audience as Wellness Lifestyle? Well not today but if the Brand is focused enough and more aligned, they will eventually evolve to resonate but this approach takes longer to materialize (they will have to witness generation change). Today Al Nahdi, after three years of Repositioning, is still perceived as a Pharmacy
      6. In store experience needs tremendous amount of work. You have to ask a human being for directions as in store lacks proper guidelines

Suggestions:

  1. Al Nahdi (with such a name) and Repositioning the sets of values should’ve been extremely unique in order to influence change
  2. Entering a new category or evolving from an existing one takes a long time because during that process others competitors can respond fast. Al Nahdi should’ve developed a clear Brand Idea that serves the essence of the Brand i.e. Wellness
  3. The Brand needs more focus, it also needs to break away from Hope because it rarely serves all the values that Al Nahdi is trying to sell to their customers
  4. Bring the Brand promise to the store level. Let customers experience the values
  5. Align the Brand with the Marketing Mix: Opening in malls was brilliant because that enforces your evolution

Overall, Al Nahdi has come a long way and I’m hopeful that with the new CEO, growth will continue. To evolve a Brand from one Category to another Category is not an easy task. It requires time, investment, education and momentum until the Brand is recognized in the new position. Creating a new category is the same as evolving as it requires time, education and acceptance

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 17th December, 2015

Brand and Branding are everything in Business

Most companies in the Middle East fail to differentiate between Branding and Advertising or the Values they both provide. Most think that Branding is about logo and design or are completely puzzled on the Values and End Benefits that Brand and Branding provide

Many companies use Advertising and call it Branding, then the question arises: What is Branding?

Branding is about building relationships between the Brand ‘Idea’ and the Consumer/Customer/Users. Logos, Design and Messages are part of Brands, not Branding. Advertising stresses on persuading audience to take action, works very well with Promotions or Trade Marketing but not with Brand Building

Companies in the region believe in ENORMOUS Advertising spending to build Brands and if you personally request your Marketing department to do an audit on your existing Brands, you will realize most revolve around awareness which means you basically drained your budget to say “I’m here!” and nothing else. Advertising will fail to create (TOMA or Top OF Mind Awareness) if the Marketing Mix fails to own the category. One the other hand, Branding builds Loyalty in the form of actual customers buying from you and repeating the same experience over and over i.e. a focused segment

People Queue outside of Apple stores across the world for days to experience new Launches or log on to Apple.com to watch a live stream of new launches or announcements. Now that’s a ‘Brand’. Its competitor Samsung hardly gets the same amount of attention, why? because it’s less exiting as a Brand

People feel proud to wear Ralph Lauren attire during a golf game or a polo game. People feel inspired to fly on Emirates and pay extra for their service. These are Brands that can manage their loyal customers. These are Brands that can increase Price and customers will still remain loyal to them

Here are some points to consider:

  • A Brand is an ‘Idea’ that best fits the audience through a relationship (Branding). A Brand at launch needs to show genuine Essence and provide an Experience which the entire organization can deliver
  • Any newly launched Brand is like a new born baby which needs time to flourish, needs genuine relationship with first time customers or users, rather than persuading the audience to get engaged instantly through Advertising. Brands are like humans, they grow gradually in the ‘Minds of their Audience’
  • The most stirring problem in the Middle East are management and board members. Their basic understanding on Brand and Branding hurts the growth of their company. Usually boards are after quick wins, I’m sorry but you can’t build Brands on quick wins, you need time and focus
  • Most mistake Brand Positioning and Promise. If companies invest enough time on the science of their Brand, they’ll build great wealth of understanding to manage their Brand with their stakeholders
  • I have met Marketers who re-positioned their Brands with the understanding of Re-Branding. Another major issue in the region is Re-Positioning and Re-Branding. Re-Positioning is effected by Marketing Mix, adding new products or changing segments. Re-Branding is the change in naming, essence, promise, design and etc. The science that goes behind any Brand and Branding is far too critical which is why it’s best that the CEOs champions the Brand. If Re-Branding occurs without input of key stakeholders (for example company employees), disaster can happen
  • The target audience is not the single stakeholder in Branding. Most professional Branding consultants will demand stakeholder mapping and educate management on stakeholder Brand Management
  • The massive difference between Advertising and Branding should be taught to CEOs and CMOs or stressed on companies CEOs by board members to attain long term results. Most global Branding experts see Advertising as optional while Branding is a fact because it is dynamic and timeless. A successful company with clear vision never stops Branding, and please be reminded that Branding is not Advertising while Advertising and Branding are not TV, Billboards etc., those are just tools
  • Myself and many others are aware of Advertising’s strong presence in the Middle East, we are also aware of the forged understating on how Advertising can play a role in Brand Building. Advertising and Marketing entered the regional market through Multinationals which had one single goal: Sales!

    When Trade was the key Strategy at market entry, Advertising played an important role. Multinationals’ regional interest was basic Marketing and Sales till maturity. They created every single category in FMCG and other sectors

  • In the past two decades Multinationals started speaking about Brands in the Middle East but most were dictated from global business units in Zurich, London, Brussels or New York
  • The result of Multinational Trade Marketing in the region also produced Trader mindset Marketers with basic understanding on Brands and Branding (not all but majority). The results are visible when these seasoned professionals moved to local organizations
  • In the past 4 years several local and regional companies went through Brand and Branding exercises, the only new visible presence they offered was a new logo, most had to revisit their initial launch on several occasions
  • The Middle East at large is a very individualistic society, personal wealth, self esteem and personal gratification are far more important than fulfilling the organization’s vision
  • For CEOs, this is crucial. If they are not aware about basics of Brand and Branding or lack understanding about the Values and End Benefits, the chance for the organization to fail is highly possible. Sorry but ‘Brand’ is far too big to be managed by a CMO on his/her own. The Brand” should be every CEOs TOP Priority whereas Branding is what Marketers of every organization should focus on each and every single day of the year
  • Not all Marketers are fit to create or build Brands. Most in our region manage Brands but lack experience to create a Brand meeting global standards

Why do I care to share or advise? Well being from the region nothing will ever fulfill my career and my life more than to see Brands from the region in other parts of the world. CEOs in our region should be Brand champions to ensure that the entire organization delivers the Promise and lives and breathes the brand’s Core Values

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 16th January, 2015

Brand is Everything. Not just a logo!

For the past 3 years in Saudi as well as in rest of the region, I have witnessed quite a few campaigns (deemed as Brand strategy and Branding campaigns by local ‘Misstra Know-it-Alls’) that made my head spin. Someone I know recently posted on his Facebook the following:

Our local brands are globally competitive

If he thinks so, I guess he’s in a different world than most Branding experts

First, realizing our truth can only push us forward but denying or manipulating the truth can only falsify our reality. My thoughts on his Facebook post was:

Yes, we have the potential to be such but not till we admit and embrace the truth that our market and companies hold a false understanding on ‘Brand and Branding’

Local Market’s level of understanding:

A Brand is:

  • Logo
  • Design
  • Colors
  • Fonts

Few think of Positioning Statements and Brand Promise because both hardly work with their core Business models

While, Branding is: 

  • Advertising on Billboards/Outdoor Medias
  • Merchandising
  • Social Media

If the above was correct, then we should all expect to have the most competitive Brands roaming world markets. At times, coming to term with ourselves and setting our personal egos aside might serve the company and the community a better future

Once a Saudi Marketer said something that I found to be very true, he said:

You need to think of mature markets for Brand and Branding to work, the regional market is still on trading mindset

My lighthearted advice: 

  • Define your Audience (understand them really well)
  • Clear Goals, Vision and Mission
  • Define your Business Model
  • Hire professionals who know how to carry your Brand
  • Understand your Brand: Know its Values and Benefits
  • Understand your Marketing Mix, in line with your Business Model and remain Focused
  • Revisit the above every 6 months

In short, take your Brands VERY seriously if you wish to sustain growth because Brands are…timeless

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 5th January, 2015

Is Advertising the only tool in Communication?

Next time someone tells me that Advertising is a Strategy I will tell him: No! It’s a tactic

Communication is the Strategy. Advertising is part of Communication and every other Communication tool helps in delivering the Brand Awareness not necessarily Advertising. One more thing, Advertising helps in creating Awareness not necessarily in building the Brand. I have region and international clients that used Advertising as Brand champion and failed to deliver the purpose or felt that they wasted their Communication budget. I also have clients that used Advertising in the right medias with minimal spending as part of the general Communication and worked beautifully. So is Advertising the single awareness tool or Communication? NO. That’s why at AskBaaghil.com’s Strategy sessions we demand that CEOs to be coached on Brand, Branding and Communication because they are the champions not the heads of Marketing when it comes to their Brand(s). Very few CEO’s in the region are aware on how Brands work or which Communication strategy would best serve them

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

The article was first published on Linkedin Pulse on 18th October, 2014

Al Youm ‘Brand’, Al Watania ‘Commodity’

Al Youm the Saudi Poultry brand by Al Marai Group is more relevant than any other poultry brand in the Kingdom

Why?

Because every Poultry brand in the Kingdom offers both whole chicken and chicken parts, they share the same values and benefit with the customer who eyes only for reputation and price. Al Youm decided to create its space by adding more value to its current relevance in order to strengthen their position within the category

How?

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Al Youm offered ready-to-cook marinated chicken (similar to al Watania) and minced chicken to be more relevant (in terms of value and emotions) thereby becoming the most preferred brand whereas Al Watania (which set the trend by offering marinated whole chicken in the first place) failed to create its space because it lacked the Brand Relevance and self-esteem which Al Youm owns

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Brands can’t be preferred if they’re treated as commodities, today Saudi and Arab consumers understand their needs and wants, they’re intelligent not to follow false advertising claims. Brand’s are about values that resonates with the promise made to the audience

Said Baaghil is the ‘Unconventional’ Branding and Marketing Adviser to reputable companies in the Middle East, author of many reputable books including the ‘The Power of Belonging’ and a Speaker. Baaghil appeared in books published by America’s experts on Branding and Marketing such as Dan Hill and Libby Gill. Most recently Baaghil was interviewed by world renown Brand Consultancy firm Siegel+Gale on Branding in the Middle East

He can be reached on AskBaaghil.com

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The article was first published on Linkedin Pulse on 8th August, 2015