SAUDI Life
May 18
Loading

Marketing strategies for Saudi market Print E-mail
By Ali Shah | Saudi Life
Saturday, 29 May 2010 09:31

saudi-mobile-phone

THOUGH the nature of any business is what defines its marketing strategy, the market to dictates some requirements from it. The Saudi Market is in reality unpredictable for a foreign entity. It can respond in any way at any time. But, the Saudi market gives one thing that no market in this world may give – respect where it is due.

To gain business in Saudi Arabia, a company must first gain respect. As strange as it may sound, market intelligence in Saudi Arabia is very high. Companies often make the mistake of underestimating its intelligence.

What matters in the end is the quality of service and the sincerity in its offing. If these two factors are missing, no matter how big the marketing campaign is, the company will undoubtedly fail. I can give a list of existing companies that have failed terribly for this reason alone. No matter what the argument maybe, successful service providers are those that maintained these two things: quality of service and sincerity. We are, of course, talking only about foreign companies, and not the local ones. Nothing much can be done about services that one is forced to take – good or bad.

Foreign companies must realize two things. First: Though wealth is in abundance here, consumers are no longer ready to spend on just about anything.

Second: The expatriate population is very large now. So, the combined market of Saudis and non-Saudis has created a collective atmosphere that is not only money conscious, but also demands high standard of service for the money it pays. Thus, a marketing campaign worth millions of riyals will alone not do the trick. Success will never be immediate, no matter what the brand name maybe. It will be gradual, but definite.

Investments should first be on quality of service/product, good human resources, better management and research systems, and then on reasonable marketing campaigns. The advertisements should be there to remind people of the quality they already have experienced. This will add to word of mouth promotion and will be more effective than mere descriptive and flashy advertisements that are worth millions of riyals.

Companies that do not adopt the right approach may find success, but it will be short-lived. Then to cover for losses, they start marketing aggressively, which further destroys their image in this market. The difficult part of the Saudi market is that it will never give you an immediate feedback. It will patiently play along with services one may think are selling like "hot cakes." But it will suddenly put a halt to all activity if enough time passes by without improvement. So, initial feedback means nothing. Companies have to go deep into research to understand correct results and the feel of what is to come. The quality of staff matters a lot.

Another serious mistake some foreign companies have made in the past is they get into competition with local establishments with similar services. It is better to adopt the cooperate-and-not-compete policy in Saudi Arabia, if not around the world. The perception of company owners and their marketing strategists needs to change. To perceive someone providing a similar service as a competitor results in aggressive marketing and corporate wars that never do good for anyone. It is better to share the market and services where possible. To give an example, let's compare the three main telecom service providers in the kingdom: STC; MOBILY; and ZAIN.

The STC is a local company with national backing. It is well-established and strong. The other two companies should not consider competing with STC. Here is why: They will never win with STC period. Among the two foreign companies, Mobily was smarter. It started small and focused on its services, its systems and customer satisfaction.

During the launch of Mobily, its website too was not fully functional. And it did not spend such a huge amount on marketing. Its marketing was reasonable and matched the launch. As the company grew, and as its services gained reputation, it increased its marketing. Now it is well-established and enjoys a good share in the Saudi telecom market.

Consider ZAIN. Its marketing campaign was huge. It was all over. There were thousands of Zain promoters with flashing t-shirts all over the kingdom. Result: Good initial response, but gradual decline. Its service was not competent. The service neither matched the launch nor met the customer expectations.

Bottom line: Come with a perception based on sincerity and care for the Saudi society more than mere love for money. You will find success for sure in Saudi Arabia.

 

Comments  

0 Jim Veihdeffer 2010-05-30 14:02 #
It's interesting to me that you chose the three telecoms giants in the KSA because I find that at least two of them are prime examples of the very worst customer service in the world, possibly the universe. Anyone who has ever tried calling either Mobily or STC will undoubtedly agree that you might as well try calling a camel for all the luck you will have getting someone to answer, much less getting your complaint resolved.

The woes of dealing with Mobily are detailed in a recent essay called "Annals of Bad Customer Service" at http://jveeds.blogspot.com/2010/05/annals-of-bad-service-mobily.html
Reply | Reply with quote | Quote
0 ascs 2010-05-30 19:34 #
Yes well customer dealing is another subject. We were dealing with service launch strategy here.
There is no doubt that customer service in ksa is the worst in the middle east and that has to do with wrongly placed and ill trained staff. There are solutions to that too and we will talk about them next week, but I doubt that they will be adopted by either stc, mobily or anyone.
Reply | Reply with quote | Quote

Add comment

Saudi Life reserves the right to edit or delete any comment it deems inappropriate.


Security code Refresh

News image

What Earth Hour taught me

A lot has been made about the recently concluded “Earth Hour” (EH). On the one hand were the ‘wanna-do-something-for-EH’ enthusiasts, and on the other, were t...

Read more
News image

Fuller view on women driving in Saudi Arabia

Comments by Faraz Omar appended below. Not being able to drive has been a bone of contention with me ever since I arrived in Saudi Arabia three and a half ye...

Read more
News image

Here's why we should get rid of the exit-re-e

TODAY when countries have become interdependent, when communication has become so easy, when the flow of information can be instant and accurate, and when sec...

Read more
News image

The solution to owning business in KSA

Saudi Arabia is a huge market which has stood strong through the still ongoing global recession. You have every chance of succeeding if your product is good a...

Read more
News image

Beard Annoys Corrupt Corporates

A MUSLIM man not being hired for the beard on his face would have been a story totally ‘understandable’ anywhere but here. But this is precisely what happened...

Read more
News image

Blaming expats won't help Saudi Arabia

Arab News published “Seminar suggests strong steps to curb illegal business” Friday. The story began: Foreigners are increasingly engaging in illegal tra...

Read more

Warning: getimagesize() [function.getimagesize]: Filename cannot be empty in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 114

Warning: imagesx(): supplied argument is not a valid Image resource in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 178

Warning: imagesy(): supplied argument is not a valid Image resource in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 179

Warning: Division by zero in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 184

Warning: imagecopyresampled(): supplied argument is not a valid Image resource in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 214

Warning: imagepng() [function.imagepng]: Unable to open '/home/faazz/public_html/modules/mod_news_pro_gk1/cache/' for writing: Is a directory in /home/faazz/public_html/modules/mod_news_pro_gk1/gk_classes/image.class.php on line 218
News image

13-year-old's experience of Janadriyah

By Sarah Al Hajjar | Contribution to Saudi Life I COULDN'T have been less enthused about a family car ride to a Saudi historical festival. But my dad insiste...

Read more
News image

A Saudi Wedding

I PREVIOUSLY told you all about the process of a melka in Saudi; now let’s get down to the fun stuff, the actual wedding. As you see in my picture above, the ...

Read more
News image

I'm a Foreigner but Saudi Arabia is My Land

By Talal Tashfeen Qayyum | Contribution to Saudi Life I'M a foreigner - an Ajnabi as the Saudis would call me. To them, I can never be a citizen of this grea...

Read more