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Marketing Communication Adaptation of

Western fashion brands to Middle Eastern

cultures

By Mathieu Vanderheyden Supervisor: Anne Gammelgaard Jensen Department of Language and Business Communication Aarhus School of Business Aarhus University 2010

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Summary The thesis starts with an introduction. The introduction gives the reasons to look at the

communication adaptation of the fashion industry to meet the local cultures in the

Middle East. It describes briefly the situation in the region and touch upon the cultural

aspects around the topic. The objective of the thesis is to find out how does the

fashion industry succeeds in selling western brands in a complicated market having a

different culture than the one the brands are created for.

The following part covers the structure and method of the thesis. The method used is

inductive, based on case studies. The section underlines why this method is the more

appropriated in the case of my thesis.

The section about theories follows, and lists that I will use theories from the

marketing field, adapted to cultural aspects, based on Kotler, De Mooij, and Darouni

mainly. These 3 authors cover most of the field I need in order to answer the problem

statement. Articles and other books will be used when needed in order to combine

successfully marketing communication concepts with cultural aspects.

The Theories section is followed by the delimitation of the thesis. It explains why I

will use interviews and internal material of the companies I decided to look at to

answer the problem statement. It also explains some key issues I decided not to

include, or partially include only.

The theories start with the cultural theories. In this section, 'culture' is defined and the

link between culture and communication is explained through the concept of selective

perception. The concept of globalization of cultures is defined and explained in the

specific case of the Middle East. When the implication of culture in communication is

drawn, I move on the marketing concepts adapted to cultures, starting with the global-

local paradox of marketing. The section covers the concepts global branding, culture

and consumer behaviour and brand loyalty. The last concept is explained and put in

perspective by the effect of group influence in collectivistic cultures.

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The theories of marketing are then complemented by elements of culture influencing

the way advertisement and media work, with the difference in purpose of

advertisement to the difference of use and perception according to cultures. This

includes the appeals working in different cultures, based on Hofestede's dimensions.

I will then cover pure marketing theories, like segmentation and targeting, as this will

be a key issue on the Middle Eastern market.

The theories are implemented in the following section, case by case. 3 cases are

considered: Ashti, Bestseller and H&M. The three cases cover different aspects of

the market and will refer to different theories since they represent 3 different

approaches taken by companies in the area. Ashti is a local company, selling luxury

brands. Bestseller is the second case and the last case, H&M, is to illustrate the

sensitivity of the region to political choices.

The conclusion summarizes the findings based on the theories applied to the cases. Word count: 53 942

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Table of Contents

1 Introduction 7 1.1 Problem statement 8 1.2 Structure and Method 8 1.3 Theories 9 1.4 Delimitation 10 2 Cultural Theories 11 2.1 Definitions of culture 11 2.2 Selective perception 12 2.3 Globalization and the Middle Eastern cultures 13 3 Global Marketing Communications 15 3.1 Paradoxes in global marketing communications 15 3.1.1 The global-local paradox 15 3.2 The global-local paradox in global branding 16 3.3 Culture and Consumer Behaviour 17 3.3.1 Group influence 19 3.3.2 Brand loyalty 20 3.4 Advertising and the media 20 3.4.1 Communication and culture 20 3.4.2 The purpose of marketing communication 22 3.4.3 Models of how advertising works 22 3.5 Advertising appeals and culture 23 3.5.1 Advertising appeals by dimension 24 3.5.1.1 Power distance 24 3.5.1.2 Individualism/collectivism 24 3.5.1.3 Masculinity/feminity 25 3.5.1.4 Uncertainty avoidance 25 3.5.1.5 Consequences of appeals by dimension on advertising concepts 25 3.6 Executional Style and Culture 26 4 Marketing theories 27 4.1 Market segments 27 4.1.1 Patterns of market segmentation 27 4.1.1.1 Homogenous preferences 27 4.1.1.2 Diffused preferences 27 4.1.1.3 Clustered preferences 28 4.1.2 Market segmentation procedure 28 4.1.3 Segmenting consumer market 28 4.1.3.1 Geographic segmentation 29 4.1.3.2 Demographic segmentation 29 4.1.3.3 Psychographic segmentation 29 4.1.3.4 Behavioural 29 4.1.4 Global communities 30 4.2 Market targeting 30 5 Implementation of theory 32 5.1 The world of Ashti 32 5.2 Bestseller United ME 36

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5.3 H&M 38 6 Conclusion 39 7 Bibliography 41 8 Appendices 43

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1 Introduction The Middle East is an inevitable market in the world economy, with a population over

250 million, and enormous natural resources. The region is fast growing, with some

countries having an annual GDP growth higher than the one of China1.

The Middle East includes 17 countries2, with a GDP per capita in 2008 ranging from

2,412$ in Yemen to 85,867$ in Qatar3. With a highly unequal repartition of the

resources, the market represents a very high potential for luxury goods, more than

Russia, Japan, or China. (Hutchinson, 2009; 46)

Western companies, when they invest in the region, face major challenges in their

marketing communication strategies. Many languages are spoken in the region, plenty

of cultures and contrasted communication patterns are produced. All monotheist

religions are present in the area. Each culture has its own relation to the Occident,

sometimes complex and instable depending on events, crises, or conflicts. As Middle

Eastern people might love or hate the west, they show the same relation to the

products of our civilisation. (Darouny, 2002; 292)

The interesting point in looking at the communication and the strategies adopted by

Western companies while they create their brand identity and communicate their

marketing in the Middle East is to look at the level of adaptation made in their

communication and strategies in order to meet the various cultures present on the

local markets.

As the main field of interest of my research is communication, I realized that it was

important to look at an industry showing a high need for adapting its branding,

marketing communication, and PR. In other words, I wanted to study an industry

being active in a sector where it is highly dependent on its perceived image to be

1 http://www.cia.gov (2009 report) 2 Appendix 6 3 http://www.data.un.org (2008)

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successful in culture having different needs and wants. Because I lived in Lebanon for

a year, and saw how fashion is different from one end of Beirut to the other end of the

city, I realized how the fashion industry was put to a challenge to meet the local needs

in the region. More than just reach their customers, they must make sure not to go

against local cultures/religions to avoid pitfalls.

1.1 Problem statement

How does the fashion industry adapt its marketing communication to sell

Western brands in the Middle East, while dealing with culturally diversified

populations having sometimes complex and ambiguous relations to the

Occident?

1.2 Structure and Method

I will use an inductive method to answer the problem statement; I will take specific

cases of study, and use them as examples of best practice in the region. The field is

too broad to be entirely covered, and therefore, if well chosen, the examples can

represent best practices in the industry. Concomitantly, though the field is broad, the

key players in the fashion industry are very few. They then have a great knowledge in

their very own field, and can be used as basis to generalize from their practices. From

those cases, I will then draw conclusions in order to answer the problem statement.

The approach I decided to use is to look at cases and example of the Western fashion

industry in the Middle East. I will look not only at luxury brands by looking at the

Ashti group (as it can be seen in Appendix 5, Ashi includes almost all major luxury

brands in fashion). The other brands I will look at are the brands owned by Bestseller,

to analyse the strategies adopted by brands of lower perceived value, as defined by

Kotler (2006; 312). The key players are very few in the Middle Eastern markets, and

only three or four companies are in charge of most brands in the region. Therefore,

looking at two companies only already covers almost half the brands on the market.

My thesis will mainly be articulated around marketing communication theories from

Philip Kotler and Marieke de Mooij. The relevant stages of both theorists will be

developed, analysed, and complemented by articles and other theorists. The relevant

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theories will be applied to cases from the fashion industry in the Middle East, and

mainly from Lebanon. Lebanon will be my starting point to the Middle East, as most

cultural aspects of the other countries in the area can be found in Lebanon alone, as I

will develop later. Furthermore, most advertising companies and offices of companies

in the region are located in Beirut. Interviews and material provided by the two

companies will be used to collect data from different actors in the field. Aspects from

marketing communication will be combined to cultural theories in order to answer the

problem statement.

I will shortly add an extra example; the case of H&M to illustrate the pitfalls

companies can meet in the region due to the local political situation.

1.3 Theories

Philip Kotler, in his marketing management book provides a comprehensive approach

to marketing principles and is widely recognized as a valid source in the field. Kotler

is distinguished Professor of International Marketing at the Kellogg School of

Management at Northwestern University.

His theories cover general concepts of marketing, from understanding marketing

management, to developing marketing strategies, shaping marketing offering and

management and delivering marketing programs. (Kotler, 2003)

I will throughout the thesis focus on the theories related to the communication part of

marketing.

Kamal G. Darouni is professor at Notre Dame University in Lebanon, in addition to

be member of the Lebanese Advertising Agencies Association (LAAA), the

International Advertising association (IAA) and the Internationl association of

business Disciplines (IABD). He published the second edition of his book

Advertising and Marketing Communications in the Middle East in 2002. I will use

some of his theories in order to have a Middle Eastern approach to marketing

communication. His book I chose to use is mainly based on Kotlers Marketing

Management book, but applied to the specific situation of the Middle East, with other

element added thanks to his valuable experience on the regional market.

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Marieke de Mooij Ph.D. (Netherlands), is a consultant in cross cultural

communications, and visiting professor at various universities, such as the University

of Navarra in Spain, Vaasa University in Finland and European University Viadrina

in Germany. In the Netherlands she teaches at a postgraduate course of Groningen

University (Academie voor Management). She is the author of several publications on

the influence of culture on marketing and advertising (www.sagepub.com). I will use

her book (Global marketing and advertising: understanding cultural paradoxes) as a

source of theories, linking the culture part to the marketing communication part of

this project.

Other articles and books will be used to supplement the above-mentioned main

theories when relevant.

1.4 Delimitation

I will not pretend to have a comprehensive approach of the Middle Eastern cultures; I

can only focus on the marketing communication adaptation. The research is only

selective in order to give a snapshot of the situation in the region, without actually

analysing each single culture. It is a compilation of selected cases in order to illustrate

how adaptations are made, and to reach a conclusion answering the problem

statement.

As the region I am focusing on is rather difficult to penetrate, and it is even harder to

collect data, the approach used will be qualitative rather than quantitative. It is

impossible in this part of the world to have reliable sources concerning facts like

income, wealth repartition etc. Governments do not have those numbers, and even if

sometimes they are available, they are not reliable. Most countries in the Middle East

do not even know their exact population. I will therefore have to make assumptions

when it comes to these facts, as defined in the method section, I will use the inductive

approach to generalize from chosen specific cases.

The qualitative approach also provides me with the advantage of being more in depth

in the findings. I will not conduct a market research, but more a analysis on how do

they key actors deal with the situation, what is their insight, and I will focus on how

they adapt their marketing communication in order to meet the local cultures.

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Most sources of information relating to the local market are private, and very

secretive due to commercial competition. Very few actors are active on the market

(e.g. The fashion industry is almost entirely covered by 3 major franchisees, selling

all brands on the local market). There is very little public and academic research on

the market conditions and local strategies. That is why interviews of the key players

and material from those companies are the only and best way to gather practical

information concerning the decisions and approaches made by local companies.

Companies conduct their own research and are the most aware of the local situation.

I should add one more limitation to the scope of my thesis. I would have appreciated

to have a chance to look at how traditional religious people use luxury brands and

integrate them to their own culture, but this would alone have taken me another thesis.

Such consideration would not have had communication as main focus, but rather

social sciences. Furthermore, this part of the market is very small and specialised; I

decided to focus on the large western style communication of companies in the

region.

2 Cultural Theories I will start by defining what culture is, and then use various theories to explain the

implication of cultures in the relationship between the Middle East and the West. This

is important to understand, since most fashion brands available in the region are from

Europe.

2.1 Definitions of culture

According to Darouni (2002; 287), cultures can be defined in many ways. The most

common definition is that a culture is all learned and shared human patterns or

models for living or shared beliefs, values and customs. He defines cultures as

covering all aspects of human existence: religious, political, ethical, social educational

etc. He adds as well that culture affects our intelligence, cognitive development and

personality.

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Hofstede (1991; 5) defines cultures as the collective mental programming of the

people in an environment. Culture is not a characteristic of individuals; it

encompasses a number of people who were conditioned by the same education and

life experience.

Individuals are products of their culture; they are conditioned by their sociocultural

environment to act in certain manners. Cultures include shared beliefs, attitudes,

norms, roles and values found among speakers of a particular language who live

during the same historical period in a specific geographic region. Language, time, and

place help define culture. Culture is to society what memory is to individuals. The

term culture may apply to ethnic or national groups, or to groups within a society, at

different levels: a country, an age group, a profession, and a social class. (Triandis,

1995)

Western marketing and advertising professionals tend to embrace the idea that there

are cultural universals. Those universals are always formulated in abstract terms, like

happiness or love. But what makes people happy or the way they express love

varies with cultures. The more values are formulated in abstract terms, the more

universal they are. But in marketing communications, we have to express values and

motives in a concrete way. Then most universality disappears. (De Mooij, 2005; 35-

37)

2.2 Selective perception

When we look at the implication of culture in the marketing communication context,

it is important to evaluate what is the impact of culture on the way people read and

understand messages, depending on their culture.

Perception is the process by which each individual selects, organises and evaluates

stimuli from the external environment to provide meaningful experience for himself.

What people see is a function of what they have been trained or have learned to see in

the course of growing up. Perceptual patterns are learned and culturally determined.

(De Mooij, 2005; 39-40)

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We expect and see things from our own cultural frame of mind. We are prisoners of

our own culture. Consumers are, and so are creative directors who follow their own

cultural automatic pilot when developing advertising. This phenomenon enables them

to develop effective advertising in their own culture, but limits their ability to develop

effective advertising ideas, including meaningful values, for other cultures.

Advertising in which the values do not match those of the culture of the receiver will

be less noted, or misunderstood and thus less effective. (De Mooij, 2005; 39-40)

2.3 Globalization and the Middle Eastern cultures

Could we argue that with globalization Western culture is becoming universally

understood and applied?

Cultures differ around the globe, but cultural diffusion takes place. The effects of one

culture on another are a common phenomenon. Examples can be seen in the amount

of words of French origin found in the English language. (Darouni, 2002; 287)

Globalization is a radical transformation of social relations and activities, resulting a

palpable sense of worldwide interconnectedness. (Wheeler, 2000; 433) Globalization

is a world being moulded by economic and technological forces into a shared

economic and political arena. (Darouni, 2002; 287)

Globalization can be perceived as positive or negative. The negative approach is to

consider that globalization is a compression of the world, while the positive approach

considers it as being a worldwide structure linking distant localities in such a way that

it closes gaps between rich and poor nations, and that local happenings are shaped by

events occurring many miles away.

Darouni (2002; 291) considers that globalization is a democracy-capitalism Western

process influencing political behaviour throughout the world. Regardless of how

strong local ethnic/cultural traditions are, international borders of nation states have

been compromised by the greater globalization of production, trade and finance.

As example, Saudi Arabia is a state governed and characterized by strong Islamic

cultural tradition, and it tried to resist globalization by banning the use of Internet

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inside the kingdom. In January 2000, the banned was lifted, compromising the

national borderline in favour of the nation-less but global means of communication,

the Internet. (Darouni, 2002; 291)

Globalization can create a pattern of clustering in some countries. Some states loose

their identities to civilisation, and they have no choice but ally with states of the same

civilization. Second, some countries face internal division because they straddle

civilization fault lines (e.g. Cyprus, Lebanon) or because their leaders tried to imprint

Western values upon their societies and only partially succeeded (e.g. Iran, Turkey).

(Huntington, 1998; 304-305)

All Arab states gained their independence from the western occupation between

WW2 and the early 70s. Prior to their independence, they were under direct

occupation or the mandate rule of Britain and France. For centuries before that, the

populations of the Arab states were under the hegemony of the anti-Arab Ottoman

Empire. Thus these peoples have not had the luxury of revolutions: political,

economic, industrial, and technological which the West has experienced. The Western

concept of democracy as a result and with the exception of Lebanon, is not politically

viable to them. The formation of the so-called parliaments generally reflects the

will of the current ruler, in place, by inheritance (e. g. Saudi Arabia, Jordan), by

military coup dtats (Iraq, Syria, Sudan), or by rigged re-elections of 99,99%

(Egypt).

(Darouni, 2002; 292)

Cultures are affected differently by globalization. Some embrace the new global

culture in its totality, emulating Western practices to the detriment of the local

tradition, while some other culture are trying hard to absorb globalizations benefits

and incorporate them within their own cultures, where the change will not be as

drastic on their social setup. (Darouni, 2002; 300)

Shayegan (1992; 22) defines the cultural schizophrenia in Islamic cultures by stating:

Without even being aware of the underlying contradictions, we want to be

both modern and archaic, democratic and authoritarian, profane and religious,

ahead of the time and behind it. This might have been possible had we

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accepted the need for adjustment and separation, albeit only externally of the

two modes of life whose compatibility generates contradictions on all levels.

Islamic culture is very different from other cultures. Islam, in its integrist form at

least, makes imperious demands: it wants to rule everything, manage society, to

regiment minds and make them impermeable to the swamping tides of technological

mutation. More than this, it tries to make them resistant to research and innovation.

(Shayegan, 1992; 23)

Non-Western cultures are living through a time of two paradigms: their own, and the

one which emerged from the great scientific revolutions. The collision of two

different paradigms lies behind the conflict between modernity and tradition as well

as the pervasive psychological and aesthetic displacements. (Shayegan, 1992; 50)

These theories show the conflict present inside the Arab world when it comes to

embrace the products of our society. Western brands have one image, and people can

either embrace the modernity, or resist because it conflicts with their culturally

learned behaviours. This is the reason why I will now look at how marketing

communication can deal with those cultural paradoxes, what are the influences of the

cultural differences on the communication made to promote brands and products.

3 Global Marketing Communications

3.1 Paradoxes in global marketing communications

3.1.1 The global-local paradox

As I already mentioned in the section above: Think global, act local is a paradox.

Someone who thinks globally is still a product of his or her own culture. People of

another culture may easily perceive global thinking as cultural imperialism. One

cannot think globally. Every human being think according to his own culturally

defined thinking pattern. One can act globally, and that is what global companies do.

When they globalize, they produce and distribute globally. For global

communications, however, thinking must be local; to be effective it must focus on the

particular, not the universal. (De Mooij, 2005; 1-3)

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Markets are people, not products. There may be global products, but there are no

global people. There may be global brands, but there are no global motivations for

buying those brands. The decision to standardize has more to do with corporate

culture than with the culture of markets and nations.

Theories of marketing and communication are generally drawn from the social

sciences: psychology, sociology, and economics. Those theories are developed in one

particular culture (mainly the USA), and are presented as universal.

(De Mooij, 2005; 5)

This is a limitation in the use of theories such as from Kotler, since they do not

always match the culture I am looking at. Actually, the Arab culture is sometimes

very close to the Anglo-Saxon culture, sometimes very far from it, as I will explain

later on.

The creator of the advertisement selects the elements of the advertisement according

to his or her expectations about how the audience will respond assuming shared

cultural conventions. Receivers of the message must use the same conventions to

evaluate the stimulus in order to be able to formulate the response.

For cost efficiency reasons, companies prefer to standardize products and advertising.

However, products might be the same, but motives for buying it will differ. (De

Mooij, 2005; 7-11) I will later look at how the same campaigns used in the West and

in the Middle-East appeal to very different elements, though they are exactly similar.

3.2 The global-local paradox in global branding

In most cases, companies do not compete with products, but with brands, augmented

products that are differentiated and well positioned versus other brands in the

category.

A global brand is defined as being available in most major markets in the world,

having a similar positioning in all markets, and carrying on brand name and/or logo.

(De Mooij, 2005; 13-16)

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De Mooij here sets the basis for what will be the key issue in my research, that the

same brand carries a very different image in the Middle East than in the country it is

produced.

A global brand has usually originated in a particular country, and will not be

perceived as global worldwide by the consumers. In some cases, in spite of being

global, it is associated with that nation. The local environment plays a strong role in

the perception of global brands and the values consumers attach to these brands. For a

short time, opening markets attach high appeal values to a foreign brand or global

brand, but as time goes by, people return to their own values.

People increasingly prefer brands with a strong identity rooted in their own history,

which can be national or regional. (De Mooij, 2005; 16-18)

I would argue that the idea that people prefer brands with an identity rooted in their

own history should be challenged. In some cases, the brand coming from abroad, the

international aspect of it is an advantage, and even local brands in the Middle East

would tend to try to give themselves an international connotation to build trust among

the local population.

Kotler (2003; 395) insist in his theories on the importance on branding when entering

a new market. Even though he disagrees with De Mooij on the fact that a global

brand can actually exist, he underlines in his 10 commandments of Global branding

that it is important to understand the differences and similarities at the international

level. He also emphasizes that it is important to balance local and global control, so

that the management in the country of origin has still control over the situation, but

benefit as much as possible of the local knowledge of regional actors.

3.3 Culture and Consumer Behaviour

Culture, subculture and social class are particularly important in buying behaviour.

Culture is the fundamental determinant part of a persons wants and behaviour. Each

culture consists of smaller subcultures. Subcultures include nationalities, religions,

racial groups and geographic regions. (Kotler, 2003; 185)

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The existence of classes as part of the culture is very important in countries where the

power distance is big. In the Middle East, generally the middle class4 is inexistent or

very little, while a fringe of the population (15% in the case of Lebanon) is considered

as the upper class, being wealthy to extremely wealthy, and the rest of the population

is considered as working class to under poverty standards.

Another controversial theory is the concept of self and consumer behaviour. This

concept does not travel across cultures. According to De Mooij (2005), consumer

behaviour is defined as the study of the processes involved when people select,

purchase, use or dispose products, services, ideas or experiences to satisfy needs and

desires. In this definition, consumer behaviour is viewed as a process that includes the

issues that influence the consumer before, during and after the purchase. The concepts

of self, on what is based consumer behaviour are all typical Anglo-Saxon and

northwest European culture and not applicable to other cultures without modification.

(De Mooij, 2005; 106-113)

The concept of self takes for starting point the fact that individuals are autonomous

entities, with a distinctive set of attributes, qualities and processes. This model is not

applicable to the Middle East, where it is a collectivist model of self to be applied.

Persons are fundamentally interdependent with one another. The Middle Eastern

culture is very collectivistic; each person relies on his network.

The self cannot be separated from others and the surrounding social context. A person

is an interdependent entity who is part of an encompassing social relationship.

Behaviour is a consequence of being responsive to the others with whom one is

interdependent and behaviour originates in relationships. In collectivist cultures,

youth development is based on encouragement of dependency needs in complex

familial hierarchical relationships, and the group ideal is being like others, not being

different. (De Mooij, 2005; 106-113)

The absence of concept of self in collectivistic cultures, has another side effect on

branding: 4 www.economicexpert.com

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In collectivist cultures, people are not used to describing themselves in abstract terms,

they are likely not able to do so for brands either. People of individualistic cultures

are more likely to buy brands they have heard before but have not tried, while in

collectivistic cultures, a brand out of context is less relevant. In individualistic

cultures brands have to be unique and distinct with consistent characteristics, whereas

in collectivists cultures the brand should be viewed as being part of a larger whole, a

product of a trusted company. (De Mooij, 2005; 110-113)

3.3.1 Group influence

In collectivist cultures belonging and safety will converge: it is very risky to

distinguish oneself from the group. Security or safety is likely to prevail over other

needs where uncertainty avoidance is strong. In collectivistic cultures, that are also

expressions of large power distance, people have the need to conform, and luxury

brands provide social status. When combined with high masculinity, like in the Arab

world, status needs are reinforced to enhance group identity, to show that you belong

to an important social class. (De Mooij, 2005; 115-118)

In collectivist cultures, members of the inner circle are part of ones identity. They are

not selected; they are part of your being. In high power distance and collectivistic

culture, group members are highly involved in the decision making process. The

reference group is defined as an actual or imaginary group that is relevant for an

individuals evaluations, aspirations, or behaviour. The use of reference group will

vary from cultures to cultures, but also with the type of product. Privately consumed

products will see the opinion of others to be less important, than if it is a publicly used

product, like luxury goods. (De Mooij, 2005; 119-120)

As anecdote to illustrate the power of group influence in Middle Eastern culture, I

would mention a personal experience, when a Lebanese friend asked me why I did not

have a Blackberry smart phone, and I said I had no use for it, she told me: Its so big,

I dont know how to use it, but everyone has one, you should get one, its supposed to

be so practical! This little story leads me to the following point, the strength of brand

loyalty in the Middle Eastern cultures. This aspect of the group influence will have

implications on brand loyalty, as I will explain in the following section.

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3.3.2 Brand loyalty

Conformance and harmony needs make collectivists more brand-loyal. Choosing

another brand is risk taking, and distinguishes one from the rest of the group it

belongs to. It is preferable to choose the popular or perceived popular brands.

Furthermore, the large power distance will reinforce the respect of status quo of the

brands with the highest market share. Being big automatically provides trust. This

trust, combined with harmony and conformance needs of collectivistic cultures, leads

to high brand loyalty. Consequently, it will be difficult for new entrants in these

markets to gain market share. (De Mooij, 2005; 128-129)

3.4 Advertising and the media

Styles of communication vary by cultures. One of the clearest distinctions is between

high-context and low-context communication. Related to this distinction, is the way

people process information and their expectations of the role, purpose and effect of

communication. Is advertising persuasive by nature, or can it have another role in the

sales process. The practice and philosophy of public relations, which involves

managing relationships between organizations and publics is also related to culture.

(De Mooij, 2005; 135)

3.4.1 Communication and culture

The traditional model of communication is the following:

In this communication process, a message is selected and encoded in order to transfer

meaning. The receiver of the message must be able to receive the message via the

medium and decode it. Generally, the sender of the message wants to get feedback to

find out if the message has been received and understood.

The sender who formulates and shapes the message uses his cultural framework that

will be reflected in the content and in the form of the message. Similarly, the media

are shaped by the culture of the people who produce them.

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In low context communication, information is in the words; in high context

communication, information is in the visuals, the symbols, and the associations

attached to them. Because in high context communication the meaning of the message

is difficult to assess by outsiders, such communication is also considered to be

inaccessible. (De Mooij, 2005; 135-139)

Advertising style can be characterized by four elements, each of them varying

according to cultures. The sender crafts the message in anticipation of the audiences

probable response using shared knowledge of various conventions. The receivers need

the same body of cultural knowledge to read the message, evaluate the content and

formulate a response. If advertising crosses cultures, it lacks the shared convention.

The four elements distinguishing advertising styles are the following:

1: Appeal (motives and values)

2: Communication style (explicit, implicit, direct, indirect, )

3: Basic advertising form (drama, entertainment, )

4: Execution (outfits, )

(De Mooij, 2005; 139-144)

The Arab world having a high uncertainty avoidance, collectivistic culture, indirect

and implicit communication style, uses more aestheticism, entertainment and

emotions in advertising. (Hofestede, 2001)

Meaning is in the context. Communication is subdued and works in likeability or on

bonding, building an emotional relationship between brand and consumer without too

much focus on the product attributes. The use of aesthetics and entertainment as an

advertising form is characteristic of this communication style. If celebrities are

involved, they are not likely to address the audience directly. They play more a

symbolic role and associate more with the product then endorse it in a direct way.

Visual metaphors and symbols are used to create a context and to position the product

or brand is its proper place. Whereas drama in the US is like a slice of life, in the

Arab world, drama is entertainment, meant to build a relationship between the

consumer and the brand or product. (De Mooij, 2005; 143)

22

3.4.2 The purpose of marketing communication

Westerners view communication as means to persuade others, to change attitudes, and

to influence or condition behaviours. The role and purpose of marketing

communications vary across cultures, in particular between individualistic and

collectivistic cultures. In individualistic cultures, advertising must persuade, whereas

in collectivistic cultures, the purpose is to build relationships and trust between seller

and buyer. People of high context cultures used to symbols, signs and indirect

communication, will process information in a different way than people of low

context cultures who are used to explanations, persuasive copy and rhetoric. (De

Mooij, 2005; 145)

3.4.3 Models of how advertising works

Giep Franzen (1994) described 7 different models of how advertising works:

1: Sale response model: direct message with the only objective being direct sales

(buy now strategy). This is an Anglo-Saxon model, based on short-term benefits. It

fits cultures of small power distance, high individualism, high masculinity, weak

uncertainty avoidance, and short-term thinking (US, UK)

2: The persuasion model can be compared with the injection needle theory of how

communication works. The objective is short-term shift of attitude, buying intention,

and brand preference through providing arguments. Fits low power distance,

individualism, and masculinity (US, UK, Germany)

3: The involvement model builds relationships between consumers and brands by

creating emotional closeness. The brand must become a personality. Advertising must

transfer association from the brand to the consumer. Fits individualistic and feminine

cultures (Netherlands, Scandinavia)

4: The awareness model is based on creating awareness in order to differentiate the

brand from similar brands. This model makes us of associations, metaphors, humour

and other forms of indirect advertising. This is a more cross cultural model, but might

not work in cultures were persuasiveness is needed: masculine and individualistic

(UK, US, Germany).

5: The emotions model is to create a positive attitude and the brand loyalty. It builds

an emotional bond between consumer and brand. Fits collectivist and feminine

cultures.

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6: The likeability model assumes that if the receiver likes the message he/she will

like the product as well. The objective is to make friends with the consumers and get

them to trust and depend on the seller. This is achieved by telling a story or by

entertaining the audience to put the consumer in a good mood, to induce him or her to

go to the shop where real information about the product is available. Fits collectivistic

cultures.

7: The symbolism model turns the brand into a symbol, a code, to help distinguish

the consumer from other consumers. It gives cohesion to a group. This model is very

culture-specific. Symbols reflect culture: they can be symbols of status, success, self-

expression, stability or any other reflection of culture. Symbols are the

communication mode of cultures of large power distance combined with strong

uncertainty avoidance but also of collectivistic cultures (South Europe, Middle East

and Asia).

3.5 Advertising appeals and culture

Wells, Burnett, and Moriatry (1992; p249) defined an advertising appeal as

something that makes the product particularly attractive or interesting to the

consumer, such as security, esteem, fear, sex, sensory pleasure,

De Mooij (1995; 163) argues that appeals reflect the core value of culture and uses

them as illustrators of how the Hofestedes dimensions can explain what makes

advertising culture-bound. Advertising appeals do not necessarily follow the norms of

a culture. They may even go against them.

To explain the paradox between what is appealing and the norms of a culture, De

Mooij (1995; 164) uses the concepts of the desirable and the desired:

The Desirable The Desired

The norm, what ought

Words

Approval, disapproval

What is good, right

For people in general

Ideology

What people want for themselves

Deeds

Choice

Attractive, preferred

For me and for you

Pragmatism

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The desirable and the desired represent the distinction between what people

think ought to be desired and what people actually desire, or how people think

the world ought to be versus what people want for themselves. The desirable

refers to the general norms of a society and is worded in terms of right or wrong,

in absolute terms. The desired is what we want, what we consider important for

ourselves. (De Mooij, 2005; 164)

For example, in the American society, the desirable, core value of the society, as

individualistic society is independence. Because of too much individualism, leading

to loneliness, the desired or actual behaviour is opposed to the desirable: belonging. In

collectivist societies on the other hand, belonging is part of the basics of society, and

therefore, expressing your individuality might become the desired. (De Mooij, 2005;

165)

3.5.1 Advertising appeals by dimension

(Section based on De Mooij, 2005; 163-188)

3.5.1.1 Power distance

Status symbols are more used in large power distance cultures than in small power

distance cultures. Independence is an appeal reflecting the desirable in small power

distance cultures. In large power distance cultures, it reflects the desired. Power

distance also influences the way ads are created, as large power distance culture

wouldnt appreciate or understand an advertisement where a school child lacks

respect to his teacher or elder person. The same would go for an employee and his

boss.

3.5.1.2 Individualism/collectivism

The difference between the independent and interdependent self has an important

impact on advertising appeals. Member of individualistic and collectivistic cultures

will respond differently to advertisements emphasizing individualistic or collectivistic

appeals. In collectivistic cultures, appeals focusing on in-group benefit, harmony and

family are more effective, whereas in individualistic cultures, advertising is more

25

effective that appeals to individual benefits and preferences, personal success and

independence.

Individuals in collectivistic cultures would tend to like to share more with their pairs.

They will also have a polychronique way of doing. Members of a collectivistic

society will usually dislike spending time alone, and wont cherish privacy as members

of individualistic societies.

Popular appeals in collectivistic cultures are modern and international, because

they appeal to the need to conform, belonging to a new and greater world.

3.5.1.3 Masculinity/feminity

Masculine cultures, such as the ones of the Middle East, like to reflect

competitiveness. There is a strong wish to win and show it in those cultures. Status is

important; mediocrity is the proof of failure.

Appeals in masculine cultures are more task or success oriented than in feminine

cultures whereas appeals will be more about affiliation and relationships.

3.5.1.4 Uncertainty avoidance

Strong uncertainty avoidance translates into the need for explanations, structure,

testing, test reports, scientific proofs, experts, but also high regard for technology and

design. The competence of the manufacturer must be demonstrated. In high

uncertainty avoidance cultures, people tend to be better groomed than in low

uncertainty avoidance cultures, and emotions can be shown. Emotion as word itself is

considered attractive. Stability and explicit expression of anxiety and tension relief

are also well perceived in strong uncertainty avoidance cultures.

3.5.1.5 Consequences of appeals by dimension on advertising

concepts

In masculine cultures, with a high power distance, status as a strong appeal in

advertising, while it will be of no effect in feminine culture with low power distance

like the one of Scandinavia or the Netherlands.

Feminine cultures are characterized by modesty and jealousy, and therefore, the use

of status would be counterproductive.

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Cultures scoring high to both masculinity and power distance, such as the Arab world

and the Middle East, will find both power and success drivers for status brands and

appeals in advertising.

3.6 Executional Style and Culture

A number of basic advertising forms that are used in different variations can be

distinguished. Major international advertisers have used a single form

indiscriminately across cultures. Certain forms have prove to be effective in some

cultures but not in others. (De Mooij, 2005; 191-192)

Franzen (1994) defined seven basic forms of advertisement, each of them having

subcategories:

Announcement

o Pure display

o Product message

o Corporate presentation, documentary

Association transfer

o Lifestyle

o Metaphor

o Metonymy

o Celebrity transfer

Lesson

o Presenter

o Testimoniale/endorsment

o Demonstration

o Comparison

o How to

Drama

o Slice of life

o Problem-solution

o Vignettes

o Theatre

Entertainment

o Humour

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o Play or act around product

Imagination

o Cartoons

o Film properties in action

o Other, unrealistic acts

Special effect

o Product in action, animation

o Film, video techniques, artistic stimuli

The basic forms are not mutually exclusive, so a commercial or a print advertisement

may represent more than one main form or subcategory. The forms can be recognized

in layers: there may be a dominant form, but the underlying tone of the advertisement

may represent another form. Some combinations are more common than others.

4 Marketing theories

4.1 Market segments

A market segment consists of a group of customers who share similar sets of wants.

However a segment is partially a fiction, as not everyone wants exactly the same

thing. (Kotler, 2003; 282)

4.1.1 Patterns of market segmentation

4.1.1.1 Homogenous preferences

All consumers have roughly the same preferences. The market shows no natural

segments.

(Kotler, 2003; 283)

4.1.1.2 Diffused preferences

Consumer preferences may be scattered throughout the space, indicating the

consumers vary greatly in their preferences. If several brands are in the market, they

are likely to position throughout the space and show real differences to match

consumer-preference differences.

(Kotler, 2003; 283)

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4.1.1.3 Clustered preferences

The market might reveal distinct preference clusters, called natural market segments.

The first firm to enter the market gas three options. It might position in the centre,

hoping to appeal to all groups. It might position in the largest segment. It might

develop several brands, each positioned in a different segment. If the first firm only

introduced one brand, competitors would enter and introduce brands in the other

segments.

(Kotler, 2003; 283)

4.1.2 Market segmentation procedure

(Kotler, 2003; 286)

Need-based segmentation: Group customers into segments based on similar need and

benefits sought by customers in solving a particular consumption problem

Segment identification: For each needs-based segment, determine which

demographics, lifestyle, and usage behaviours make the segment distinct and

identifiable.

Segment attractiveness: Using predetermined segment attractiveness criteria

determine the overall attractiveness of each segment.

Segment profitability: Determine segment profitability

Segment positioning: For each segment, create a value proposition and product-

price positioning strategy based on that segments unique customer needs and

characteristics.

Segment acid-test: Create a segment storyboard to test the attractiveness of each

segments positioning strategy.

Marketing mix strategy: Expand segment-positioning strategy to include all aspects

of the marketing mix: product, price, promotion and place.

4.1.3 Segmenting consumer market

The major segmentation variables for consumer markets are geographic,

demographic, psychographic and behavioural. (Kotler, 2003; 287)

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4.1.3.1 Geographic segmentation

Geographic segmentation calls for dividing the market into difference geographical

units such as nations, states, and regions. The company can operate only in one

geographic area, or operate in few or all but pay attention to local variations. (Kotler,

2003; 287)

4.1.3.2 Demographic segmentation

In demographic segmentation, the market is divided into groups on the basis of

variable such as age, family size, family lifecycle, gender, income, occupation,

education, religion, race, generation, nationality, and social class.

Demographic variables are the easiest to measure. Even when the target market is

described in non-demographic terms, the link back to demographic characteristics is

needed in order to estimate the size of the market and the media needed. (Kotler,

2003; 289)

4.1.3.3 Psychographic segmentation

In psychographic segmentation, buyers are divided into different groups on the basis

of lifestyle or personality or values. People within the same demographic group can

exhibit very different psychographic profiles. (Kotler, 2003; 293)

4.1.3.4 Behavioural

In behavioural segmentation, buyers are divided into groups on the basis of their

knowledge of, attitude toward, use of, or response to a product. Buyers can be

classified according to different behaviours.

Buyers can be classified according to the occasions when they develop a need,

purchase a product or use a product. Occasion segmentation can help firms expand

their product usage.

Buyers can be classified according to the benefits they seek. People vary considerably

in the benefits they seek from the same product.

Markets can be segmented into nonusers, ex-users, potential users, first time users,

and regular users of a product. This is called user status segmentation.

Usage rate segmentation is when the markets is segmented into light, medium and

heavy product users.

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Loyalty status segmentation is defined as the classification of consumer having a

varying degree of loyalty to a specific brand, store, or company. Four levels of loyalty

are usually defined:

Hard-core loyals (consumers who buy one brand all the time)

Split loyals (consumers who are loyal to two or three brands)

Shifting loyals (consumers who shift from one brand to another)

Switchers (consumers who show no loyalty to any brand)

Segments can also be defined by buyer-readiness stage: some people are unaware of

the product, some are aware, some are informed, some are interested, some desire the

product and some intend to buy it.

The last behavioural segment defined is according to the attitude of the consumers in

the market: enthusiastic, positive, indifferent, negative, and hostile.

(Kotler, 2003; 292-294)

4.1.4 Global communities

A global community is a homogenous global segment across border with similar

values. Global communities are market segments where people have similar lifestyles

and values.

If youngsters of eastern cultures may be typically western on the surface, but strong

local values are still present. They respect their parents, live together in a family, and

remove their Nike shoes before entering a place of religion.

Global homogenous markets, like business people, youth, or rich people, exist only in

the minds of western marketing managers and advertising people. Even people with

similar lifestyles do not behave as a consistent group of purchasers because they do

not share the same values. Marketing communication cannot use similar motives and

arguments because these groups do not have the same values across cultures.

(De Mooij, 2005; 21-23)

4.2 Market targeting

Once the firm has identified the market-segments it has to decide how many and

which one to target. According to the attractiveness of each segment, a company can

decide to follow one of the five patterns of target market selection. The attractiveness

31

of a segment is defined by its size, growth, profitability, scale economies, and low

risk.

The firm can decide to concentrate on a single-segment. This concentration makes the

company able to enjoy high profitability with specialisation, but also involves a

higher level of risk, since if there is a swift in market, the company might lose its

target segment.

The company can decide to follow the selective specialization strategy, by targeting

multiple segments, each of them objectively attractive and appropriate. There might

be little or no synergy among the segments, but each promises to be a money maker.

The advantage of this strategy is to reduce risk by increasing the diversity of action of

the company.

The product specialization strategy is recognized when the company decides to

develop a certain product and sell it to different segments.

The company can decide to follow the market specialization strategy, and would then

concentrate on serving on markets needs. The risk with this strategy is if the

customer group suffer of budget cuts.

Companies of larger size can decide to attempt to reach full market coverage. The

firm would then attempt to serve all customers group with all the products they might

need. The firm would then have to decide whether to go for the undifferentiated

marketing communication or differentiated marketing.

(Kotler, 2003; 299-300)

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5 Implementation of theory

5.1 The world of Ashti

The first case I decide to look at is the communication around the Ashti brand. Ashti

is a Lebanese company, having the franchise for most luxury brands on the Lebanese

market.

Before looking at the case, I need to make few remarks about the Lebanese situation.

With the divisions and the presence of different cultures in the country, it is possible

to have the feeling to go from a lifestyle very close to the Western world, with night

clubs and bars and no limits to how seductive can the outfit be on a night out, to other

parts of the country, where conservative Christianity or Islam are very strong and

dictate behaviours. For a more detailed idea of the geographic splitting, a map is to

find in Appendix 8.

Ashtis strategy is to have one major communication style, and they do not adapt it to

the different culture present in Lebanon. They are only present in Beirut (East-West-

Centre), and therefore, they follow a western style dressing code.

The surprisingly amazing idea of Ashti in its brands communication is instead of

promoting each single brand they are selling, from Dior to Dolce&Gabbana via Gucci

(Full list of brands in Appendix 5), they decided to promote Ashti as one brand for all

the others: they created a super brand. As I assessed in the section about the concept

of self, in collectivistic cultures, on exists through his her relationships to other. This

is also true for brands, and therefore, by creation a relationship between the Ashti

brand and the various luxury brands, Ashti created a network of brands to make its

own brand exist and be reliable in a context understood by the Middle Eastern people.

I had the chance to have a meeting with the General Manager of Leo Burnett

Lebanon. Leo Burnett is the company in charge of the marketing communication of

the Ashti group. They articulated the entire communication of the group around the

fact that the consumers of all the brands they are selling are part of the same social

group in Lebanon. She also emphasized the fact that Lebanese people are very fashion

33

conscious, they dont need to be made aware of the different brands; they just want to

learn what is new, trendy, and want the very last products to be available to them.

As I mentioned in the theories, in collectivistic cultures, people want to belong to a

group, they tend to show their status by purchasing certain known brands. Therefore,

the strategy Ashti has put in place is very adequate. By selling all the luxury brands

under one umbrella brand, people buying either Gucci or Prada for example, will still

belong to the same upper class in the society: the Ashti consumer. There is no risk

taking in the choice of brands since there is only one. Furthermore, this idea of one

group selling all brands shows success, it reveals that Ashti is the leader in the luxury

brand market, and therefore gains trust, since in collectivistic culture, being the leader

automatically builds a strong brand loyalty and trust.

Another interesting aspect in the choices made by Ashti, is the subtle mixture of

localness and international elements. Ashti produces a magazine, the Ashti

Magazine, and in this magazine, the world of Ashti is created. The magazine looks

like Vogue, but promotes all the brands sold by the group in Lebanon.

The content of the magazine includes interviews of fashion designers, trendsetters,

hotels, international and local events, architecture, leisure, travels etc. They

appropriate the brands and the image associated to those, to create a super brand,

more powerful in the mind of the Lebanese.

The shopping experience and the Ashti concept are described in those terms:

Aishti has become the ultimate Fashion Mecca in Lebanon due to its synchronization

with the fast paced, continuously evolving international trends.

It vibrates with people, music, fashion, social and cultural news. Its where you need

to be to get the breaking news.

Aishti is a lifestyle concept store, setting a whole new dimension to the shopping

experience.

In their marketing plan they created the Ashti person, typical to the local culture.

The description made of the Ashti person is the following:

34

They lead luxurious lifestyles (boats, summer houses, big hotels and clubs) and travel

to the happening places. They enjoy pampering themselves and aspire for and own

attractive things which make them feel and look beautiful. They desire and want to

prove to themselves that they are still desired in every way. And, although they are

very image conscious, they live a relatively smooth life with the knowledge that things

come easily to them.

Retail shopping becomes almost therapeutic as they breathe one global label after the

other. Peoples necessity to travel to Milan, London or Paris in order to obtain their

new seasonal wardrobe tones down when they realize that they can do just that

around the corner.

In this description of their customer, we can clearly see the segment they target,

people from the society with high income.

The description of their customer and the way they want to represent them and make

them feel are described by the following attributes:

They are BEAUTIFUL PEOPLE (in every way):

Charming

Charismatic

Confident

Seductive

Sensual

Glamorous

Successful

Genuine

Fun

Intelligent

Desired

Charismatic, confident, successful, intelligent are attributes appealing to masculine

cultures. It shows success and achievement. While charming, seductive, sensual,

glamorous, desired could be surprising at first in an Arab culture, but it represents the

desired. This contradiction between desirable and desired can explain why Ashti

advertisements are still proven to be effective on women following religious codes.

They desire other elements than the one the society tells them to desire.

35

The appeals they used in their last campaign are based on this upper-class concept of

luxury life and smooth comfort, in a world of beauty and travel. They use the

association transfer method, using symbols and lifestyle to transfer.

In the words of the Ashti, this campaign is based on those appeals:

Tell the story of the Beautiful People trendy lifestyle

More than shopping, get the sex appeal feel (=desired)

More than fashion, get a sense of happening (=feeling of belonging)

More than a store, live a vibrant experience (=emotions)

Beyond local, open up to the world (=internationalisation appealing to modernity in

a traditional society).

The last element is extremely relevant to the topic of this paper, that Ashti, as a Local

brand, tries to promote itself as open to the world. As described earlier, the local

culture would trust more an international company, well known, recognized by all, the

leader of the market. Ashti uses all these elements to its advantage in its

communication to make sure to remain the leader.

As I mentioned earlier, the symbolism model by Franzen turns the brand into a

symbol, a code, to help distinguish the consumer from other consumers. It gives

cohesion to a group. This is typically what Ashti is doing.

36

To conclude about Ashti, I would say that this case in a way totally contradicts the

assumption I made in my problem statement. Western brands do not see their

communication adapted to the Middle East in this case. A local company uses their

brands to create its own. Ashti has the rights over most luxurious brands, and uses

that as basis to create a whole new brand and a marketing communication on its own.

In that sense, there is no adaptation, it is a total recreation at the local level,

encompassing at best the local culture: the hegemony of one major leader,

representing success, defining a social status, and making the consumer feel desired

and sensual. Purchasing at Ashti is one of the signs you belong to a certain social

class.

5.2 Bestseller United ME

Bestseller in the Middle East is one of the only western companies to have chosen as

mode of entry the direct investment instead of the more common franchise mode of

entry in the region. They created a local company: Bestseller United Middle East.

They hire mainly local staff.

I interviewed Roula Nahas, Regional Marketing Manager of Bestseller United. She

pointed out that the advertisements used by bestseller in the region are the same than

in the rest of the world. They barely adapt the communication to the local culture.

They base they communication on the assumption that global communities do exist.

As I also mentioned in the theories above, the same message can have another

meaning when transposed to another culture. Bestseller with its international

advertisements5 positions itself as a universal international brand. This is a very

strong appeal for young people in the Middle East, since they aspire to modernity.

The have the desire to belong to the global community.

Bestsellers communication is very basic, without much code or message. They

design their advertisement in a way that the difference in culture would have the less

effect possible in the way the message is understood. There is no text, no humour, and 5 Appendix 2

37

no reference to social codes, just the clothes on people in a very simple setting as it

can be seen in Appendix 2.

Bestseller does not want to be attached to the country of origin since Denmark does

not have a very positive image (if it has any image at all) in the Middle East.

Therefore, they keep a low profile on that aspect, and try to be understood as an

international brand. Most people in the region think Vero Moda is Spanish and Jack

and Jones is from the USA.

In the marketing mix, the place element is a strategic choice for Bestseller. Since

they do not adapt their communication, they have to position themselves in places

where their communication will be affective: cosmopolite cities in the region. For

example in Lebanon, they are present in Beirut, and in the Christian suburb of Beirut

and in the two major Sunni Muslim cities of Lebanon (Tripoli and Sidon), where their

targeted segment is present.

The strategy Bestseller United used is to open many shop simultaneously in all trendy

parts of towns they start their business, to create the trend amongst the target group

that this is the new place to be. They invaded the market, in order to become big

enough rapidly, to take advantage of the strong group effect in the Middle Eastern

cultures. They located their shops where their target segment lives, advertised mainly

on the English speaking radios to reach the proper audience: young, active,

middle/upper class, well educated, with income growth potential, with a desire of

accessible international fashion brands

In the Gulf countries, their strategy is to target mainly expatriates. They account for a

big part of the population in the main cities, are usually all in the age segment targeted

by Bestseller and have high income. It is easy for bestseller to communicate to them,

since they have the culture the marketing communication has been designed for, and

as I mentioned in the theories, this is the basics for an efficient transfer of message.

The targeted consumers are geographically concentrated around big financial poles,

such as Dubai, Abu Dhabi, Doha, Kuwait and Jeddah.

38

Based on the elements provided by the Marketing Manager of Bestseller, it is possible

to conclude that instead of adapting the communication, they decided to target the

segments where their communication would be effective: young Middle Eastern

aspiring for modernity and international products and expatriates.

This is very pragmatic approach since it reduces costs and the potential consumers

will find the appeals of the international advertisement relevant to them.

5.3 H&M

H&M opened several shops in the region, via a franchise given to Alshaya Group.

Their first shops to open were in the UEA and Kuwait, as it can be seen in Appendix

1.

The opened several shops in the whole region progressively and have been successful

at positioning themselves as fashion setters, through their magazine and pricing (50%

more expensive than in the EU). Their advertisements are the international ones, and

they used extra ads every time a shop was opening, with a full set of promotional

elements (bags, radio announcement, free clothes given, etc.) They made of H&M

openings big fashion events. It was well received in the market as it can be seen in

Appendix 3.

The Alshaya Group owns many major brands and is successful at leading them, with

good knowledge of the market. It creates a synergy between its brands, grouping the

brands, and mutually advertising for each of them. Furthermore, as for Ashti, this

grouping of brands creates sense in a collectivistic culture.

The problem they met, in the region is when H&M opened shops in Israel/Palestine.

As it can be seen in Appendix 4, Facebook groups have been created. Citizens have

been campaigning against the H&M brand since they opened shops in what is

considered by many in the region as the enemy of the Arab world, responsible of

crimes against humanity.

39

The consequences of the opening in Israel/Palestine is still not known to H&M in the

Middle East, since they only recently opened their branches, but if the citizen

movement goes on and gain power and the target group is substantially made aware

of that element, the sales in the region might drastically decrease. Therefore the

question is set, was it adequate to try to open at the same times in the Middle East and

in Israel? Will the small Israeli market compensate the losses made in the Middle

East? It is questionable if this decision was adequate, it might tarnish the image of

H&M, and not only in the Middle East, but also in the Islamic world in general.

6 Conclusion I took as implicit hypothesis in my problem statement that western companies would

adapt their marketing communication to efficiently meet the local cultures. After

looking at the different cases, it actually shows that such hypothesis cannot be

supported.

Companies, when they want to invest the region do not adapt their communication

they chose to communicate only with the segment able to understand and be

interested in their marketing and products. Those elements are seen when companies

only open shops in certain parts of the country/city, try to target expatriates in the

Gulf countries. If the companies sell their brands following the western style of

communication, they target only a little portion of the population: the population

having rather high income, the education, travelling, aspiring to a western lifestyle.

The most striking element I discovered doing my research, is the fact that companies

give their brands to local franchise, and have very little control over it. The local

branches use the international advertisements, but place them in their own magazine.

They create their own communication. They do not adapt their communication, since

the same message appeals to other elements in the local culture. Furthermore, because

most of the fashion communication is symbolist, this fits the local patterns of

communication.

40

Local franchises are very strong, because of their image and their market penetration.

Furthermore, due to the strong brand loyalty found in the Middle Eastern cultures, the

balance is unlikely to change. Launching one brand alone would be risky, a group of

branch is more appropriate, and this has been done, using at best the local knowledge,

like in the case of Bestseller.

To draw a conclusion on all these elements, I would emphasize that based on my

findings, Western brands have a bright future in the region, and since the local

cultures are so brand loyal, the first one to have entered the market have a huge

advantage to make the best out of the wealth available in this part of the world. Local

cultures embrace international/Western brands, they are aware of the last trends.

Consumers have the money to spend on it, and the wealth in the region is only

increasing. If western brands rely on strong local allies, franchises or local

management, they can benefit at best from the huge potential financial benefits the

Middle East has to offer.

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7 Bibliography

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Franzen Giep, Advertising, an act of belief or sales instrument, European Journal

of advertising, 71-82, September 1994

Franzen, Giep, Advertising effectiveness, NTC Business Publications, 1994.

Hofstede, C, Cultures and organizations: software of the mind, McGraw-Hill, 1991.

Huntington Samuel, Class of civilization and the remaking of world order,

Touchstone Books, 1998.

Hutchinson April. Very Hot Couture, Travel Trade Gazette UK & Ireland, , Issue

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8 Appendices

8.1 H&M opens in Dubai and Kuwait

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8.2 Vero Moda in Lebanon (Beirut)

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8.3 H&M opens in Lebanon Fashion blog

http://starscene.dailystar.com.lb/style-scene/2009/10/hm-opens-in-lebanon-at-abc-

achrafieh/

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8.4 H&M opens in Israel/Palestine

From http://bdshm.wordpress.com/ and Facebook group H&M, don't buy into

Occupation!

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Pictures from the streets of Beirut (Hamra)

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8.5 Brands by franchise and countries

Group Brands Countries HQ Aisthi Prada Lebanon Beirut, Lebanon aishti.com Miu Miu Yves Saint Laurent Docle&Gabbana Dior Sergio Rossi Roberto Cavalli Marc Jacobs Marni Burberry Fendi Chlo Minotti Misura Emme Cartier Gucci Celine Zegna Diesel Camper True Religion 7 for All Mankind Armani Armani Jeans The Alshaya Group American Eagle Poland Kuwait Alshaya.com Debenhams Slovakia Mothercare Czech Republic Next Romania Bhs Russia H&M Turkey Topshop Lebanon Topman Jordan River Island Egypt Oasis KSA Claire's Qatar Justice Kuwait Evans Bahrain Dorothy Perkins UAE Coast Oman Peacocks Cyprus Wallis Early Learning Centre Warehouse Express Miss Selfridge Foot Locker Azadea Zara Egypt Beirut, Lebanon Azadea.com Pull and Bear Irak Bershka Jordan Massimo Dutti Barhain Weekend KSA Xanaka Kuwait Promod Lebanon

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Jules Qatar Stradivarius Romania Prenatal Oman Marina Rinaldi UAE Mango Boggi Milano Pimkie PennyBlack Gymboree Piaza Italia Marella Max Mara Oviesse Punt o Roma Cool Cat Salsa Jeans Oysho Bestseller United ME Vero Moda Barhain Beirut, Lebanon Bestseller.com Jack&Jones Egypt Vila Jordan Only Kuwait Selected Lebanon Name It Qatar Outfitters Nation KSA Syria UAE Chalhoub Group Dior Bahrain Dubai, UAE chalhou-group.com Berluti KSA Bonpoint Kuwait Carolina Herrera Qatar Celine UAE Dsquared2 Ermenegildo Zegna Fendi Geox Lacoste Longchamp Louis Vuitton Marc By Marc Jacobs Marc Jacobs Marlboro Classics Mulberry Paul&Joe Paul Smith Ralph Lauren RL Polo Jeans Scarp Tagz Holdal Longchamp Lebanon Beirut, Lebanon holdal.com.lb Kipling Lacoste Lancel

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8.6 Delimitation of Middle East

Source: wikipedia.org

8.7 Major religions in the Middle East

http://www.jewishvirtuallibrary.org/

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8.8 Major religions in Lebanon

http://www.lib.utexas.edu