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Send it to Mrs. Obama

18 Apr

In a lighthearted, but definitely interesting, piece published by the ‘Harvard Business Review, Nov. 2010,’ David Yermack has collected data to show that the brands that Michelle Obama wears in her public appearances tend to gain higher values in stock markets. Let me repeat this, whenever Mrs. Obama wears a brand in a public appearance, the brand she wore would start scoring returns that cannot be attributed to normal market variations!

On average, the brands she wears generate a value of about $14 million per appearance. And as a total of 189 public appearances, 29 brands scored about $2.7 billion in stock market value. And if you are a lady and reading this, you might be interested to know that in those 189 appearances, she wore about 245 items of apparel; so do you still think your closet collection is fashionable? …  yeah, right!!!!

So why this post? It is to stress on the importance of celebrity endorsement in marketing, branding, and eventually generating value. Mrs. Obama is definitely a special case. For instance, she is not paid to wear what she does. This is giving her a credibility that is pretty hard to establish in any celebrity endorsement campaign. Mr. Yermack goes further and attribute this huge impact of Mrs. Obama on the fashion industry to three reasons: her personal and authentic interest in fashion, her position as the first lady, and the power of social internet and e-commerce that makes such effects almost instantaneous; you could watch what she is wearing live, and start ordering it online right away!!

Now, reflecting that on the Saudi market, and the whole Arab market if you would, our celebrity endorsement campaigns are dreadful, to say the least. For a lot of marketers in this part of the world, unfortunately, it is only about getting the celebrity using the product in front of a camera and … that’s all!!! So for us, the consumers, it is a lousy performer, hugely paid, trying to convince us that this is the best juice, shampoo, telecom network out there!!! There are no common traits that the brand and the celebrity share and try to communicate to the consumers. Now I am saying this just assuming that those ads are created based on a branding strategy!!

To get the right picture, just think of Nike and its famous tennis players sponsoring/celebrity endorsement campaigns, or even better, check out the “elegance is an attitude” campaign of Longines watches and the beautiful Indian actress Aishwarya.

Having said that, there is one campaign that I would exclude from the Arab misfortunate celebrity endorsement campaigns. That is the campaign of Coca Cola and, the Lebanese singer, Nancy Ajram. Although the most favorable drink in the world, Coca Cola is usually facing a hard time, or a tough competition, from Pepsi in the Middle East and in the GCC countries to be more specific. Having Nancy on board, Coca Cola definitely scored high returns in all; market share and loyalty (I hope I’m in possession of hard numbers to support this argument, but I, unfortunately, do not). So why Coca Cola and Nancy were successful? because they both communicated the same message, having fun (read my latest post!). They knew how to mix the attractiveness of Nancy, who some would attribute to her childish appeal and some would attribute it to her explosive femininity, with message of being happy while having a bottle or a can of Coke (see some examples below)

Now, to conclude this post, if it happens that you are into fashion designing, you may want to consider sending some of your designs to Mrs. Obama!

 
4 Comments

Posted in Advertisement, Branding, Marketing

 

It is Not about the Marketing Budget

15 Apr

I do not have hard figures to support this, but after the telecom companies, I guess Al Marai is one of the biggest advertising spenders amongst the Saudi companies. Its products are everywhere. TV ads, billboards, newspapers ads, etc. It is O.K. to have such a huge marketing budget, but this budget is better to be used wisely!There is a major problem with Al Marai, at least from where I see it, you just do not know what is the message they are trying to deliver. Their brand has no personality or consistency.

Having said that, it is important to admit that Al Marai is one of the exemplary Saudi companies when it comes to strategy. They managed to break away from merely being a ‘Milk’ company, so to speak, to become one of the biggest ‘food’ companies in the whole region. Its portfolio of products has grown exponentially in the recent years to the degree that it is on the verge of having a monopoly on a number of sectors.

But when it comes to the brand … mmm … let’s put it this way … it is tasteless.

Just take a moment and think of how many ads for Al Marai that you could recall right now!!! Notice that their ads are all over the place, all the time. And if it happens that you are one of those who have super memories, can you specify the message in that ad!!

Their ads (check some samples below) are so old style. It is like saying we have a butter, a milk, a juice go ahead and buy it!!! These kinds of ads are soooooooooooo dead. brands now have personalities and messages that they are trying to portray and deliver. They want to leave certain feelings and trigger certain images in the consumers hearts and minds. They want to ‘communicate’ with their consumers, they want to engage them, and turn them into loyal customers. Not only telling them about products!!

Let me give you an example; the most famous drink ever, Coca Cola. In a study by Zaltman and Zaltman in their book ‘Marketing Metaphoria: What Deep Metaphors Reveal About the Minds of Consumers,’ they found Coca Cola is usually associated with ‘having fun and being happy’ in the minds of its consumers. That’s why there is a consistency in Coca Cola ads. Most of them revolves around celebration, surprises, signing and dancing. Most of them revolves around people who are having fun and being happy!

 
3 Comments

Posted in Advertisement, Branding, Branding, Marketing

 

At the Finishing Line

09 Apr

It was a normal Friday afternoon. Relaxing before hitting the road to have launch with my family. Being on the era of a digital easy reach, I clicked my iPhone to check for new emails. Then, there it was. An email from unfamiliar address, but it was starting with ‘Dear Mr. Al Dosari’ …

It was the long waited email … it was from my University telling me that my dissertation has been accepted and thereby I complete my master’s degree requirements. A Master of Business Administration.

You can go wild and imagine all possible reactions to that email, I hardly remember them myself. Maybe danced, jumped, prayed, and God only knows what else!!

Reaching the finishing line after a tough and daunting journey fills you with satisfaction. The sorrow of challenges and time constraints suddenly turn to the sweetest feelings you could ever have.

Coming from an engineering background where numbers are … you know numbers. Where the world is mount to the precision of design, physics, and mathematical equations. The University of Leicester taught me how to break out and think freely as you should in the business world. It taught me how to engage in debates and weight different points of views and respect them all even I have to take a side; a side that is eventually taken based on an objective judgment rather than a generalized view.

To put it shortly … compared to two years ago when I started the program, I am definitely a new man looking to the world in a new light.

 
14 Comments

Posted in Personal

 

Staff Comparison

07 Apr

If parenting 101 says not to compare your kids, then management 101 says not to compare your staff!

Comparison shatters self-esteem and allow doubts to haunt one’s mind about his/her skills and capabilities.

I had unfortunately witnessed the consequences of such practice on a friend of mine. He called me once to chat about his story with his the-so-called-manager. Let’ call my friend Mr. H. So, Mr. H once decided to open up for his the-so-called-manager about the heavy increase in his workload without an adequate increase in resources. He was no longer able to keep up with the various job responsibilities with the same level of effectiveness and quality. And I know Mr. H, he is so meticulous when it comes to his job. Surprisingly, instead of listening to his staff and try to understand the situation, the-so-called-manager started to attack Mr. H. And the biggest frustration of all was when the-so-called-manager started to compare Mr. H to his colleagues in the same department but from different areas. Despite the obvious differences between the areas’ workloads and tasks, the-so-called-manager continued to name team members and directly compares them to Mr. H. ‘If they did not complain, then you do not have the right to’!! The workload is different but the-so-called-manager did not care, the problem for him was in Mr. H, not in the work itself!!

I cannot even begin to describe how Mr. H felt when he was talking. I know him as a team player, a good one, but I do not want to imagine how his team will continue to work harmonically with a so-called-manger on the driving seat. Such mentality will create nothing but obstacles on the team’s path and uneasiness amongst its members.

Listen to your staff, understand their problems and situations so you could be able to motivate them. The language of attack and comparison cripples the team and distort its harmony. Each and everyone of them has his/her own strength, personality, and a set of skills. You want to take advantage of this mix of competences to enrich your team, you do not want a team of copies of the same mentalities and potentials!

 
2 Comments

Posted in Communication, General Management, Leadership

 

SCTA; Dreaming is Not Enough

30 Mar

I do not want to sound so harsh on the Saudi Commission for Tourism and Antiquities (SCTA), but I have to honestly say that I cannot relate to, or should I say believe, most of their advertising and PR campaigns!! I mean … come on people … are we using the same dictionary to understand what the word ‘tourism’ means? or you have your own definition of it?!! (check out this earlier post about SCTA.)

Now check out this piece of news with me, SCTA is saying that by the year of 2020, the tourism sector in the country will be creating more than 2 million jobs! Now seriously, 2 million jobs!! Where and how? Reading such news would leave you under the impression that the tourism is actually booming in the country, the question is, where? I cannot see it!!

On the other hand, read about these 44 graduates with tourism management diplomas who cannot find a job in the claimed to be booming sector!! I said 44, not 44 thousands or any thing!!!

What is the point of this post?

The point is that we want to see real improvements, we would really love to see our country filled with tourism facilities and activities, real ones! and would love to witness its heritage and mixed cultures put into appropriate presentation. And all this being surrounded with a true tourism culture and services.

What we do NOT want to see or hear is promises after promises without anything that could be seen or touched first hand. It is more than 10 years now since the start of SCTA, and I believe 10 years are enough to start witnessing something real. Dreams are good to start with, but they have to be realized sometime soon!

 
4 Comments

Posted in Culture, Public Relations, Saudi business

 

Doubling the Salaries, or Not!

21 Mar

The generosity of the Saudi government with its workforce left the private sector in a very awkward position. Just after the series of royal decrees that carried in one of them the good news of the two months bonus, the speculation game started amongst the private sector employees. Will there be a salary doubling, or not?!!

The big cats in the Saudi market followed suit almost immediately and started announcing the same bonuses for its staff. Aramco, SABIC, Saudi Airlines, STC, and more. But still, the majority of companies did not, and their employees kept wondering, hoping, and asking for some good news, but their managers kept saying that the big bosses are in a closed meeting, and in some companies, the meeting is yet to finish!!

Now the question is, should they double the salary, or not?

The fact of the matter is that it goes both ways; there are reasons supporting the doubling decision, and there are arguments that just go against it. But before that, it should be highlighted that when talking about private sector, it is inevitable to differentiate between the big and well known cats, I just mentioned some of them above (although some of these companies are not totally private), and the rest of companies which vary in size from medium to small. Someone could argue that the employees working for the big cats do not actually need such a bonus, they already have relatively high salaries and a strong bonuses system. For those arguing this point just be reminded that some of the big, I mean, HUUUUUGGGGE cats, those who profit in millions, do no actually give high salaries or anything, you can call them cheap if you want! And you don’t want me to give you examples, I am sure you know plenty of them!!

Now; these are some of the most important reasons why a company could decide to double:

  • Playing the patriotic card: in times like these, playing on patriotism could send some gratifying signals to customers, staff, and, of course, the government itself. I am not trying to imply that such patriotic waves of feelings should not be true or sincere, I am just saying that playing such a card scores sometimes. Now add to the mix the unrest already taking place in the area, the normal card just turns to be an Ace!
  • Engaging employees: It is a message that you care, you do not want your staff to feel less happy or disadvantaged. Consider it a motivating surprise.
  • Adding to the brand value: getting the word heard that you care about your staff and that you actually have some good cash to distribute around could add some edge to your brand. Customers could trust you more, regulators could love you more. Also, your whole working environment might seem more appealing to top talents everywhere, you know how to take care of your staff, right!

Now what about the arguments supporting the decision of not to double:

  • It’s too late: most of the Saudi companies already prepared their 2011 budgets. It is just not practical to disturb the whole year’s plans and start playing with the cash flow and reserves. That’s a strong argument especially for the medium and small organizations.
  • I am fair: some companies might argue that their salaries and bonuses system is robust, and that its employees do not need any extra incentives, they are happy and satisfied. The tricky part in this argument is that the employees themselves should be believing in such claims, not only the managers! If this I-am-fair-card played very well, it could lead to both employees engagement and brand value addition as just mentioned above.

On which side do you stand?

 
2 Comments

Posted in Communication, Culture, General Management, Saudi business

 

The Friday of Royal Decrees

18 Mar

Beside its religious importance for Muslims, Friday seems to be taking another level of significance for Arabs nowadays. It is the day of change or, at least, cries for change.

For Saudis, this Friday was the day of royal decrees. A series of decrees that touched down on most of the ‘operational’ hot topics currently discusses by Saudis everywhere. And I am saying ‘operational’ just to differentiate those topics from the ‘organizational’ ones that are also discussed especially on the more elite levels!

From where I stand, I see these decrees as another leap forward. They have been strategically thought through and have been designed to give immediate, short term, and long term returns.

These are the most important points which sopped me:

  • According to the analysis of Saudi-Fransi bank (mentioned in this tweet), this Friday’s decrees would need about SAR 350 Billion to be covered. Adding this to the measures taken less than one month ago, about SAR 485 Billion (about 29.7% of the last year’s GDP) is entering the Saudi Economical cycle. That is a huge amount of money that should be looked at by both enthusiasm and caution. Enthusiasm because this amount of money means new projects, stronger infrastructure, healthy flow of cash, new jobs, and new economical opportunities. Caution because such huge amount of money could lead to inflation and commodity prices increase. The Saudi financial authorities are certainly up for a challenge this year; let’s just not open the topic of budget and reserves now!
  • The most important decree, in my opinion, was the one dictating the creation of the governmental anti-corruption committee. It is the committee that is supposed to be fighting both administrative and financial corruption and misbehaving within the governments’ work. I would like to stress on the administrative part of this committee work. It’s just about time we truly think about our project management practices in contracts awarding, quality of work, and I hope they will add the principle of ‘citizen services’ to this committee’s list of duties. Let their slogan be ‘to modern management and less bureaucratic practices.’
  • The health care sector took a lion share of the incentives as well. Again, with the new hospitals and research centers, the principles of quality medical services should be integrated to the formula.
  • The 500,000 housing unites all over the country are a good start. I wish this move would prove itself worthy and can be generalized on a later stage to be a project of citizens housing similar to what is happening in UAE and Qatar.

Now the success of these points, and the rest mentioned in the remaining decrees, are subject to the sincere implementation of those entrusted with the work as ‘public servants.’ This is the time for innovative ideas and creative new ways of getting the job done. Saudi Arabia and Saudis have all potentials to positively change and catch up with the rest of the world.

 
2 Comments

Posted in Culture, General Management, Saudi business

 

Resign before being Hired

16 Mar

I have read this story in the article of Ali Al Zamel published in Okaz on the 20th of February. I have to say that it is one of the strangest stories I have ever came across in my management studies and readings!!

The story could be summarized in few words; before signing the new job contract, you should sign your resignation first!! Yes, you read it right!! This new and extraordinary and innovative hiring method is the brainchild of one of those who thinks that they are true leaders, and Allah only knows how did they reach their positions!

The justification provided by this super-leader is that ‘I will ensure your loyalty and dedication to work, If I did not like your performance at any time, I can easily dismiss you!’ … wow, what an environment that is full of motivation!

I am usually astonished by such kind of managers who for a moment totally forget the responsibilities of their job and start acting as if they are actually owning people and that the work place is their own backyard!

I am quite sure that the work place where this super-manager is controlling is nothing far off a graveyard of souls. I am sure staff are mostly disengaged, live in fear, unmotivated, totally burned, and their performances must lack the basics of quality standards. And I really hope that their job does not involve face to face customer service!

I am inclined to believe that the manager in the story is working in the public field (I guess we got a hint now on why most of public servants are underperforming!!) and I really hope someone would complain and make a fuss about this manager, and anyone similar to him. We really need to clean our managerial environment from those incompetent performers and under qualified mentalities.

 
4 Comments

Posted in Human Resources, Leadership

 

Riyadh Book Fair; It is Raining Men

13 Mar

If I asked you about Rio de Janeiro, there is a huge chance that you would stand up and start to Samba dance right away remembering the infamous Rio’s festival, and If I asked you about Davos, most probably you will start remembering those demand and supply curves you took in economy classes because you will definitely remember The World Economic Forum.

This is how countries are branded, and this is how international events are branded as well. Such events turn into icons that contribute to the whole country brand image.

Now, if I asked you about Riyadh Book Fair, what are the first things that will descend to your mind?

Book fairs are meant to present a reading hungry public with its doses of books. It is there where publishing houses, and even authors, compete to present readers with the new and exciting. It is a celebration of culture, no doubt about it. On the other hand, it is a message sent by the organizing country that this land is open for new ideas and new debates. It is a message that the people of this country are open minded, hungry for knowledge, know how to engage in fruitful discussions. It is an attempt to portray an image of openness and stick it on the brand of the whole country. And if there is any country in the world that need such an image, it is Saudi Arabia!

Riyadh Book Fair has been founded to serve this purpose and to signal out those messages. I cannot say, however, that it has been successful reaching its desired goals. Despite the organizers efforts to convince us that this is the most successful book fair in the region because of its high number of visitors and sales, the book fair stands short of reaching the higher image of a culturally induced event. After all, number of visitors and sales would not mean much if put into context; in this part of the world, reading does not mean much for a lot of people, and let’s not forget the fact of the disposable income most of Saudis enjoy. It is not about how many books were sold, it is more about if those books have actually been read and what are the results. Have people progressed to be more open minded and culturally rich, or …. [I will leave it to you to fill this blank]!!

In the book fair opening, it was raining men! Men of ultra-extra-conservatism stormed the book fair arenas clashing with visitors and even with the minister of information himself trying to impose their monocular view of culture and how others should read and behave. And just before it ends, it was raining … you know … water this time! most of the publishing houses’ booths and their books were due for a mandatory shower … indoors!

You can reach your own conclusions about how others watching the event might think and feel about it. The lack of organization, the fierce clash of minds and ideas, and above all, the poor services represented in the rainy rooftops! Is that what Saudi Arabia and Saudis can do?!

Sometimes the efforts to strengthen the brand just go astray and come back to cause a bigger damage. Unfortunately, that what happened with this book fair!!

 
2 Comments

Posted in Branding, Culture, General Management, Project Management, Saudi business

 

From Professors to Leaders

07 Mar

The newly appointed Prime Minister of Egypt, Dr. Essam Sharaf, if a man of academia, he spent most of his career between University halls and corridors educating students about civil engineering. Also, the mayor of Jeddah, Dr. Hani Abu Ras, does not have much of a career out of the Industrial engineering department of King Abdulaziz University in Jeddah.

Now, the questions is, does the academic degree or being a professor at a university necessarily make a good manager or a leader or a politician for that matter?

I am afraid my answer to this question is a big-fat-NO!!

I am not trying to imply that the above examples make no good leaders or anything; actually, the first is still a brand new PM, and the second … mmm … let’s give him a chance (just for the records, I am not optimistic about this one although I wish I will be proven wrong).

My argument is that both fields require different set of skills. Between the University halls you should be spending most of your time updating your information, throwing yourself into researches, assisting students to become major players in their fields of study. While on the other hand, leaders spend most of their time thinking, communicating, and inspiring others. Definitely, there are some lines crossing the two fields, but still, the mechanics are totally different. This does not mean that a good professor cannot make a good leader, a poor preforming professor could be a good leader!! got my point, they are not related to each other!!

However, in the Arab world, such argument is mostly not considered. There is a strange belief that the best leaders are those coming from Universities; dig up the history of most ministers in the Arab world and those in important public positions to get a sense of what I am talking about. It seems that because we do not have R&D centers, where highly educated people should be exhausting their talents in, our PhD holders are competing for public posts!!

We just care about educating people, but I am not sure about creating leaders out of them!!

What do you think?

 
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Posted in Leadership

 
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