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What are the differences in trade dynamics of uae vs. ksa which effect trade marketing strategies of global companies in this region?

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Question added by Umer Usmani , National Sales And Distribution Manager , Ali Gohar & Company - L'Oreal Division
Date Posted: 2013/10/19
MAHMOOD RAHMAN
by MAHMOOD RAHMAN , Assistant Marketing Manager , ZAD HOLDING

KSA is a way larger market than of UAE, hence trade marketing in KSA is more of a challenge since there are different types of socio economic region and different need of the customer in different states whereas UAE is clearly defined as a premium market other than Sharjah and Al Ain. which are a mixed market.

 

the spend per customer is different in both the regions, although KSA has its own local brands of most of the commodities in consumer goods, which is not the same in UAE.

therefore the MNC's shall have larger costs and intense strategies in KSA which in turn will be more profitable due to the volumes it will generate.

Umer Usmani
by Umer Usmani , National Sales And Distribution Manager , Ali Gohar & Company - L'Oreal Division

Fair point...

if we analyze Channel mix; more spend in Hypermarts is done where major sales are concentrated in UAE.

whereas in KSA; these companies have started focusing and developing retail channel more and have devised distribution penetrative strategy to reach to maximum customers. also they keep their current sales base intact in Hypermarts.

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