Annexure: A

A STUDY TO ASSESS THE “IMPORTANCE OF EFFECTIVE MARKETING IN

RETAIL WOMEN FASHION INDUSTRY” WITH SPECIAL REFERENCE TO

KINGDOM OF SAUDI ARABIA

Project Report submitted in partially fulfillment of the requirements for the aware of Degree of

Master of Business Administration

Submitted by:

NASSAR JALALUDDIN

Registration Number: 540796680

Under the guidance and supervision of

Dr.K. SHAHUL HAMEED. MBA, M.Sc (Healthcare Mgt.), PhD Assistant Professor,

Submitted to

FACULTY OF MANAGEMENT STUDIESSIKKIM MANIPAL UNIVERSITY

OF HEALTH, MEDICAL AND TECHNOLOGICAL SCIENCE

August – 2009

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Annexure: B

ACKNOWLEDGEMENT

First and foremost I would like to thank Almighty for His blessings that have been showed

upon me for the success of the project.

I express my sincere thanks with gratitude to my faculty Dr.K. SHAHUL HAMEED.

MBA, M.Sc (Healthcare Mgt.) PGDHM. P.hD . Assistant Professor, for his able

guidance, advice, valuable suggestion and support, which he imparted to me in the

completion of the project

I am also thankful to, Centre Manager of Sikkim Manipal University Learning Centre –

Jeddah. I would also like to thank the respondents who rendered their help in responding

to my interview schedule.

I am thankful to Dr.Mohammed Amin Jefri, President, Al Batool Intl. Trading Company, who has given me moral support & motivation to complete this course.

Last but not the least I would like to thank Mr. Saleem Ahmed, Business Development

Manager, Al Batool Intl. Trading Company, and my Colleagues for their valuable Support and help.

“My sincere prayer goes to my Mother (Passed away December 28, 2008), who has always an inspiration in my life”

NASSAR JALALUDDIN

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Annexure C

DECLARATION BY THE CANDIDATE

I hereby declare that the dissertation report entitled “IMPORTANCE EFFECTIVE

MARKETING IN RETAIL WOMEN FASHION INDUSTRY with special

reference to Saudi Arabia”. Submitted in partial fulfillment for the award of Maser of

Business Administration to the SIKKIM MANIPAL UNIVERSITY, is a record of independent

research work carried out by me under the guidance of Dr.SHAHUL HAMEED. MBA, M.Sc

(healthcare Mgt) PGDHM. PhD. Assistant Professor, I also declare that this dissertation report is

the result of my own effort and has not been submitted earlier for the award of any gather degree /

diploma / associate ship and price by any other university.

Place: Jeddah

Date: August 2009 NASSAR JALALUDDIN

3

Annexure D

Dr.K. SHAHUL HAMEED. MBA, M.Sc (Healthcare Mgt/), PhD

Assistant Professor

GUIDE CERTIFICATE

Certified that this project titled “IMPORTANCE OF EFFECTIVE MARKETING

IN RETAIL WOMEN FASHION INDUSTRY with special Reference to Saudi

Arabia” is the bonafide work of NASSAR JALALUDDIN under my supervision.

Certified further, that to the best of my knowledge the work reported herein does not

form part of any other 0roject report or dissertation on the basis of which a degree or

award was conferred on an earlier occasion on this or any other candidate

Place: Jeddah

Date: 10.05.2009 Signature of the Guide

FORWARDED

External Examiner Internal Examiner

4

COMPANY CERTIFICATE

Will be provided

5

INDEX

Chapter Number Title Page Number

1 Introduction 10 – 24

1.1 Industry Profile 25 – 37

1.2 Company Profile 38 – 52

2 Methodology 53 – 56

2.1 Need for the study 57

2.2 Objective of the study 58

2.3 Scope of the study 59

2.4 Method of data collection 60

2.5 Sampling Method 61

2.6 Tools used for the study 65

2.7 Schedule of the work /Period of the study 66

2.8 Universe / Population 67

2.9 Limitation of the study 68

3 Literature Review 69 – 74

4 Data Presentation and Analysis 75 - 90

5 Findings, Suggestions and Conclusion 91 - 94

APPENDIX 95 - 96

SPECIAL CONCEPT 97 - 101

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GLOSSORY 102 - 108

BIBILOGRAPHY 109 - 110

LIST OF GRAPHS

Graph Sl. No Title Page No.

1.1 Organizational Chart 52

3.1 Geographical scene of Saudi Arabia 71

4.1 Demography of respondent 76

4.2 Brand attributes 77

4.3 Brand awareness 78

4.4 Ranking of Brand 79

4.5 Brand Promotion Awareness 80

4.6 Different Kind of Promotions 81

4.7 Influence of Media 82

4.8 Single Brand Users 83

4.9 Frequent weekly Shoppers 84

4.10 Branded Cloth Users 85

4.11 Reason for Using Branded Cloths 86

4.12 Customers Want and Needs 87

4.13 Communication preference 88

4.14 Influence of Advertisement 89

4.15 Features of Brands 90

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LIST OF TABLES

Table Sl. No Title Page No.

1.1 Alshaya Brand List 40

1.2 Al Hokair Brand List 42

1.3 Al Sawani Brand List 43

1.4 Al Batool (Savola Group) Brand List 45

1.5 Anwal Group Brand List 46

1.6 Rubaiyyat 47

3.1 Saudi City Population List 70

4.1 Demography of respondent 76

4.2 Brand attributes 77

4.3 Brand awareness 78

4.4 Ranking of Brand 79

4.5 Brand Promotion Awareness 80

4.6 Different Kind of Promotions 81

4.7 Influence of Media 82

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4.8 Single Brand Users 83

4.9 Frequent weekly Shoppers 84

4.10 Branded Cloth Users 85

4.11 Reason for Using Branded Cloths 86

4.12 Customers Want and Needs 87

4.13 Communication preference 88

4.14 Influence of Advertisement 89

4.15 Features of Brands 90

SYNOPSIS

“Importance of Effective Marketing in Retail Fashion Industry with special reference to Kingdom

of Saudi Arabia”

Today no business can survive without having proper marketing. It is become more and more

essential as the competition is heating up, new entries to the existing market, increasing cost of

maintaining the standards…

The franchise fashion retailing market is crowded with many players. However, the top segment of

the market is controlled by a limited number of major players that has the largest share of the

market either in sales turnover or in the number of international brands they represent.

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It should be noted that eight fashion retailing companies hold more than 100 brands in the market,

with each brand being represented by several outlets in the major cities. It is obvious that these are

financially and organizationally strong companies.

The fashion franchise retailing market is currently witnessing great activity in the number of new

entrants into the market. As the competition heating up, all the companies are forced to introduce

new marketing activities/promotions to attract the customers and retaining the positions in the

retail market.

The Objective of this study to explains the different types of Promotional activities adopted by

retail brands to market their product in Saudi Arabia.

Major Fashion brands and its marketing styles adopted

Pricing, Different types of Promotions, Service (post & pre transactions)

Geographical Characteristics, Demographic Variables influencing Marketing strategies

Different techniques used by international Fashion Brands

This study aims to get an overview of effective marketing performed by international Retail

Fashion brands with special reference to Saudi Arabia.

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CHAPTER - 1

INTRODUCTION

Research is essentially conducted to investigate about a problem or an objective, simply means a

search for facts - answer to question and solution to problems. It is a purposive investigation. It

seeks to find explanation to un-explained phenomenon, to clarify the doubtful facts and to correct

the misconceived facts. The encyclopedia of social science defines research as “the manipulation

of generalizing to expand, correct or verify knowledge”.

Research design is the detailed blue print used to guide a research towards its objectives. This is a

part of marketing research. Marketing research is systematic design, collection, analysis and

reporting data and finding relevant to a specific marketing situations facing by the company.

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Marketing research is likely to provide a fuller appraisal of the brands strength, brand

ambassadors, promotional factors of the product with character and uniqueness than the brand

owner may possess through his/her own experience and collection of anecdotes. It can certainly

compare and contrast the brand with competitors in an objective way.

The primary focus of the study was to determine the various attributes of advertisements which

influence the customer’s attention and buying behavior. The research design employed for the

purpose of the study was directive in nature and a sample survey was conducted for the purpose of

the generation.

This research is to know the advertisements and promotional activities that essentially form a

powerful communication force, highly visible and one of the most important tools of market

communications that helps to sell products, services, ideas, images etc.

The study conducted to know how effective is the advertisements and the promotional activities

was successful in the Retail Fashion Market. They are seen on the walls, back of the buses, in

playing grounds on the occasion of sports events, road shows also in television, print medias,

magazines, internet and are heard in radio.

The below two points are very helpful for this project

Company practices and methodology helped me to built questionnaire, and the research

helped for further survey.

The real market challenges and implications in promotions were perceived by the study. It

helped in understanding the market share of different brands selling fashion.

Marketing

Marketing is so basic that it cannot be considered as a separate function. Marketing has been

defined in various ways. The definition that serves our purpose best is as follows: “marketing is a

social and managerial process by which individuals and groups obtain what they need and want

through creating, offering and exchanging products of value with others.”

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This definition of marketing rests on the following core concepts, needs, wants& demands,

products, value, cost & satisfaction, exchange and transactions, relationship and networks, markets

and marketers and prospects.

“Marketing management is the process of planning and executing the conception, pricing,

promotion & distribution of ideas, good and services to create exchanges that satisfy individual

and organizational goals.” This definition recognizes that marketing management is a process

involving analysis, planning, implementation and control; that it covers goods, services and ideas;

that it rests on the notion of exchange, and that he goal is to produce satisfaction of the parties

involved.

Marketing management takes place when at least one party to a potential exchange thinks about

the means of achieving the desired responses from the other parties. Marketing management has

the task of influencing the level; timing and composition of demand in a way that will the

organization achieve its objectives. Marketing management is essentially demand management.

Overview of Companies Marketing Activities

Saudi Arabia is definitely on its way to becoming am international hub for the retail fashion

Brands. The Brands are reaffirmed its focus on high volume low value category of fashion stocks.

It has achieved a remarkable success in the Industry and is the toughest competitor of the leader

brands.

Marketing Mix of the Company

Marketing mix is a set of controllable marketing variables that the firm plans to produce the

response it wants in the target market.”

“Marketing mix is an optimum combination of all marketing components which facilitates

realization of company’s objectives.”

“Marketing mix is a set of marketing tools that the firm uses to achieve its marketing objectives in

the target market.”

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“Marketing mix is the blending of 4 inputs or sub-mixes, which form the core of marketing

system. They are:

Product

Price

Promotion &

Place.

Marketing Matters

Marketing is a way of managing your business so that every business decision achieves positive

impact on customer relationships. Marketing creates connections between your business (your

products and services) and potential customers. Effective marketing is a continuous process that

involves identifying customers and their needs and promoting, selling and distributing your

products or services.

1. Marketing is about knowing your customers

It is about discovering the needs and wants of your customers and responding with appropriate

products and services. Marketing is not about trying to sell to everyone. It is about understanding

who you can better serve than anyone else.

2. Marketing is about building good relationships with customers

You will retain the loyalty of your current customers and attract new ones if you:

• Treat them with respect as valued customers

• Ensure good value, good service and good follow-up

• Perform consistently better than anyone else

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3. Marketing is about communicating with your customers

Economic, competitive and social environments are constantly changing; so are the needs of your

customers. Staying in touch will help you stay current about their needs and wants thus enabling

you to attract and keep customers.

4. Marketing is an ongoing process

Make marketing part of your regular business activities—connect every business process to

marketing outcomes:

• Product or service quality

• Staff communication with potential or existing clients

• Performance of sales, service and aftercare

You need to routinely review which markets to pursue and how to reach your customers. Also

routinely monitor the effectiveness of your marketing program. This will help you to stay attuned

to what your customer’s want, note changes that impact your marketing approach, identify

business opportunities and resolve issues.

Identify Your Market

There are two key components to look at as you identify your market: your customers and your

competitors. To succeed, you need to understand both. This means doing some research about both

customers and competitors as outlined in the information to follow.

Focus on Your Customers are a group of people with wants and needs, values, expectations,

money to spend and willingness to spend it. To satisfy their needs and wants, customers look for

five key benefits from their selected service provider (you):

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• To save time

• To save money

• To receive the best quality product or service

• To gain peace of mind (treated with respect by business with integrity, problem solved)

• To feel good (fun, adventure, enjoyment from a product or service)

No business can be all things to all people. The cost of promoting and advertising directed to

everyone is cost prohibitive for small business. Focusing on a manageable number of people who

might want or need your product or service is more reasonable. It is important for you to

understand the Overall Market for your product or service and to choose a Target Market.

The overall market is basically, all people with the ability to buy a product/service like yours. Your

target market is a piece of the overall market that is most likely to buy your product or service.

Segment the Overall Market

To identify your potential target market, divide the overall market according to selected

characteristics. This is called market segmentation. Use one or more of the following methods to

determine possible target markets.

Geography

Select based on location (i.e. where the customer lives, works, shops or travels). Within your

overall market area, you can segment the market based on several geographic variables, such as:

• Size of the neighborhood, city, region, country

• Urban, suburban or rural

• Climate and terrain

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Demographics

Divide the market based on population characteristics such as age, gender, education, Income,

occupation, marital status, number and age of children, ethnic or religious Background, etc.

An example of this marketing segment is: households with full-time working parents between the

ages of 25 and 45 with children living at home, who own their own home and are middle to upper

income earners.

Psychographics

This is the use of personalities, lifestyles and attitudes in determining the behaviour profiles of

different customers. Divide the market into segments based on the following:

• Lifestyle (for example: conservative, exciting, trendy, and economical)

• Opinion (for example: followers or leaders)

• Activities and interests (for example: sports, physical fitness, shopping, books)

• Attitudes and beliefs (for example: environmentalists, security conscious)

Customer Benefits

In this approach, divide the market according to the benefits the customer is looking for from your

product or service. Here are some examples of common benefits those customers seek:

• Product quality: product features, brand name, warranties, durability, ease of use, image, prestige

• Customer service quality: reliability, responsiveness, employee friendliness, empathy

• Experience-based quality: Retail atmosphere/décor, in-store promotion, advertising and publicity

Select Your Target Market

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Now that you have identified specific groups of potential customers, decide which ones are best

matched to your product or service. These can then be your target market. Choose carefully. If you

focus on too narrow a group of segments, you may fail to reach the volume of sales and profits

needed to operate. If you select too broad a group of segments, it may spread your marketing

efforts too thin to be effective.

Use the following criteria to choose the segments you should concentrate your marketing efforts

on:

a). Size— Is it worth going after?

b). Expected growth— Will this segment grow or decline in the near future?

c). Competitive position— Is there a lot of competition now or is there likely to be in the

future?

d). Cost of reaching the segment— a segment that is hard to market to should not be pursued.

e). Compatibility with your objectives and resources— if a segment requires you to modify

your product or service, it may not be economically feasible to pursue.

Develop Your Marketing Plan

Once you know who your potential customers are, you can plan how to connect with them through

marketing activities. Be strategic in your approach. Remember the four Ps of marketing: product,

place, price and promotions.

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1. Product

Does the quality product or service meet the needs of your target market? How does it compare to

that of competitors? How do you package and present your product or service?

2. Place

Is your business location convenient and accessible to customers, suppliers and staff?

Does it suit your company’s image? Is it affordable and does it meet your business’ needs?

Do you have an on-line presence? The location you choose will greatly affect how you distribute

your product or service to your customers.

3. Price

What does it cost to produce your product or service? What is your break-even point (when

revenues equal expenses)? What are your profit goals; what kind of return do you want on your

investment? What prices are your competitors charging? How does the quality of your product or

service compare with the competition? Is there a high or low demand for your product or service?

For further information about price, see The Business Link’s documents Setting the Right Price

and Pricing for the Costing of a Service.

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4. Promotions

This is the way you become visible in the marketplace. How you promote your product or service

to your customers is key to getting and keeping your market share. This includes the appearance of

our business cards, brochures and stationery, as well as advertising campaigns, personal selling

and customer service. These promotions strategies enable you to communicate your message

directly to your target market.

Although all four Ps are important to your marketing plan, this study focuses on brand promotions.

Advertisement:

Advertising is defined as any paid form of non-personal communication about an organization,

product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact

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that the space or time for an advertising message generally must be brought. An occasional

exception to this is the public service announcement (PSA), who’s advertising space or time is

donated by the media.

The non-personal component means that advertising involves mass media (e.g., TV, radio,

magazines, newspapers) that can transmit a message to large groups of individuals, often at the

same time. The non-personal nature of advertising means that there is generally no opportunity for

immediate feedback from the message recipient (except in direct-response advertising). Therefore,

before the message is sent, the advertiser must consider how the audience will interpret and

respond to it.

Advertising is the best-known and most widely discussed form of promotion, probably because of

its pervasiveness. It is also very important promotional tool, particularly for companies whose

products and services are targeted at mass consumer markets.

Advertising can be used to create brand images and symbolic appeals for a company or brand, a

very important capability for companies selling products and services that are difficult to

differentiate on functional attributes.

Measurement of Advertising Effectiveness

Advertising can be used to create brand images and symbolic appeals for a company or brand, a

very important capability for companies selling products and services that are difficult to

differentiate on functional attributes. The four primary sequential functions of finding the

effectiveness of any advertisements are as follows

Perception.

Persuasion.

Reinforcement.

Reminder.

The very important function of advertising is to increase the perceived value of a brand by giving

it a symbolic meaning that makes more valuable to customers. Advertising is the most effective

method of nurturing a brands image in a long run its different functions are summed below.

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Stimulates demand.

Strengthens other promotional mix elements.

Develops brand preference.

Cost Control.

Competitive weapon.

Benefits of Advertising:

The important economic function for the advertiser affects for economic decisions of the audience

and is an integral part of the entire national and international economic system. Another advantage

of advertising is its ability to strike a responsive chord with consumers when differentiation across

other elements of the marketing mix is difficult to achieve. Popular advertising campaigns attract

consumers’ attention and can help generate sales. These popular campaigns can also sometimes be

leveraged into successful integrated marketing communications programs.

The nature and purpose of advertising differ from one industry to another and/or across situations.

The targets of an organization’s advertising efforts often vary, as do advertising’s role and function

in the marketing program. One advertiser may seek to generate immediate response or action from

the customer; another may want to develop awareness or a positive image for its product or

services over a longer period.

The following are some of the benefits of advertising.

Information

Brand image building

Innovation

Growth of the media

Sales promotion :

Sales Promotions are short-term incentives to encourage purchase or sale of a product or service.

The next variable in the promotional mix is sales promotion, which is generally defined as those

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marketing activities that provide extra value or incentives to the sales force, the distributors, or the

ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken into

two major categories: consumer-oriented and trade-oriented activities.

Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and

includes Gift Coupons, sampling, Discounts, contests, sweepstakes, and various point-of-purchase

materials. These promotional tools encourage consumers to make an immediate purchase and thus

can stimulate short-term sales. Trade-oriented sales promotion is targeted toward marketing

intermediaries such as wholesalers, distributors. And retailers, promotional and merchandising

allowances, price deals, sales contests, and trade shows are some of the promotional tools used to

encourage the trade to stock and promote a company’s products.

Among many consumer packaged-goods companies, sales promotion is often 60 to 70 percent of

the promotional budget. In recent years many companies have shifted the emphasis of their

promotional strategy from advertising to sales promotion. Reasons for the increased emphasis on

sales promotion include declining brand loyalty and increased consumer sensitivity to promotional

deals. Another major reason is that retailers have become larger and more powerful and more

powerful and are demanding more trade promotion support from companies.

Promotion and sales promotion are two terms that often create confusion in the advertising and

marketing fields. As noted, promotion is an element of marketing by which firms communicate

with their customers; it includes all the promotional-mix elements we have just discussed.

However, many marketing and advertising practitioners use the term more narrowly to refer to

sales promotion activities to either consumers or the trade (retailers, wholesalers). In this book,

promotion is used in the broader sense to refer to the various marketing communications activities

of an organization.

Promotional Mix:

The promotional mix constitutes the specific group of marketing activities concerned with the

communications aspect with existing or potential customers, and relevant public. An advantage of

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publicity over other forms of promotion is its credibility. Consumers generally tend to be less

skeptical toward favorable information about a product or service when it comes from a source

they perceive as unbiased it involves some important elements there are as follows.

Advertising

Personal selling

Sales promotion

Direct marketing

Sales Promotional Tools:

Promotion and sales promotion are two terms that often create confusion in the advertising and

marketing fields. As noted, promotion is an element of marketing by which firms communicate

with their customers; it includes all the promotional-mix elements we have just discussed.

However, many marketing and advertising practitioners use the term more narrowly to refer to

sales promotion activities to either consumers or the trade (retailers, wholesalers). In this book,

promotion is used in the broader sense to refer to the various marketing communications activities

of an organization.

Communication:

They gain attention and usually provide information that may lead the customer to the product.

The communication medium works phenomenon in the present market scenario.

Incentive:

Attractive cash benefits offered to the sales team in the retail outlets. Specific measurable

targets has been set for them. It is one of good method to increase the brand sales.

Invention:

They include a distinct invention to encourage in the transaction now. Like bundling

offers,Gift Coupons while buying a specific amount in a single transactions. This encourages the

customers to buy the product without missing the opportunity. 24

Some Methods of sales promotions:

Sales promotion can be done in many forms to enhance the business prospects so its very essential

that the companies focus more on the promotional activities thus the business finds some new

ways of expanding its market share.

The following are some of the promotional activities carried out in the present scenario.

Price deals

Quality deals

Discounts (50% off and 75% off)

Gift Coupons (SR 100, SR 200 free while you shop for SR 400)

Buy 1 and Get 1 free offers

Weekend offers (Wed, Thu and Friday only)

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1.1 Industry Profile

Retailing

26

Retailing is nothing but the shopping means the act or process of buying different individual

products as one of more than one. Most of the times this is done to provide necessities such as food

and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves

window shopping (just looking not buying), bulk purchase different individual products separately,

individually priced services, browsing and does not always result in a purchase.

Definition

Retailing consists of the sale of goods or merchandise for personal or household consumption

either from fixed location such as a department store or kiosk, or from a fixed location and related

subordinated services.

Why?

When individuals or groups left their community and settled elsewhere, some of them missed

foodstuffs and other goods that were only available in their birthplace. They arranged for some of

these goods to be sent to them. Others, in their newly adopted community enjoyed these goods and

demand grew. This soon turned into a regular trade. Although such trading routes expanded mainly

through the growth of traveling salesmen and then wholesalers, there were still instances where

individuals purchased goods at long distance for their own use.

A second reason for the increase in distance selling was WAR. As armies marched through

territories, they laid down communication lines stretching from their home base to the front. As

well as garnering goods from whichever locality they found themselves in, they would have also

taken advantage of the lines of communication to order goods from home.

Etymology

Retail comes from the French word ‘retaillier’ which refers to “cutting off, clip and divide” in

terms of tailoring (1365). It first was recorded as a noun with the meaning of a “salein small

quantities” in 1433(French). Its literal meaning for retail was to “cut off, shared, paring”. Like the

French, the word retail in both Dutch and German (Detailhandel and Einzelhandel respectively)

also refer to sale of small quantities or items.

Retail Industry27

Retail is one of largest industries worldwide. Retailing was established in Hawaii in the early 19th

century but grew somewhat slowly as much of the economy centered on plantations rather than

diversified business and occupations. In the early 20th century, retailing began to diversify along

with economy. Locally operated stores such as Arakawa’s and Star Market emerged in this period.

In the 1930s, Hawaii retailers experienced their first taste of serious mainland competition with

entrance of Kress and Sears department stores.

The post-World War II recovery period was marked by the emergence of the first major shopping

in Hawaii, culminating in the opening of the giant (for its time) Ala Moana shopping Center in

1959. By the late 1950s, retailing had overtaken agriculture’s share of the total jobs. More local

chains, such as Foodland, also emerged in this period, and there were new entrants from the US

mainland including Longs Drugs and F.W Wool Worth.

The US retail clothing industry includes 100,000 stores with combined annual revenue of more

than $150 billion. Large companies include TJX Companies (TJ Maxx, Marshalls); Gap; Limited

Brands; Ross; and Abercrombie & Fitch. The industry is concentrated: the 50 largest companies

account for 65 percent of industry revenue.

The industry generally includes clothing accessory stores, but not shoe stores or jewelry stores.

Personal income and fashion trends drive demand for clothing. The profitability of individual

companies depends heavily on effective merchandising and marketing. Large companies can offer

wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small

stores can compete by offering unique merchandise, targeting a specific demographic, providing

superior customer service, or serving a local market. The industry is labor-intensive: annual

revenue per worker is about $130,000.

Competition includes department stores, mass merchandisers, and Internet and catalog retailers.

The clothing retail industry includes stores specializing in family clothing (50 percent of industry

sales); women's clothing (25 percent); or men's clothing (6 percent). Stores may also specialize in

children's clothing or accessories. Children's clothing stores include infant wear. Accessory stores

may specialize in hats or caps, costume jewelry, gloves, handbags, ties, wigs, or belts. Within their

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specialty, stores typically sell a full range of items including clothing, outerwear, and underwear.

Many clothing stores also sell shoes, accessories, makeup, and perfumes.

Middle East Retail Sector Analysis

The retail sector in the Middle East region is growing rapidly. The increasing household

consumption, affluent population, and booming services industry (tourism, banking and trading

sectors) and the Fashion Industry are propelling growth of the region’s retail industry. Also, the

modern shopping malls anchoring state-of-the-art hypermarkets, international fashion brands and

various shopping events like Dubai Shopping Festival, Jeddah shopping Festival makes the region

a highly profitable destination for retail players.

The research report helps clients to analyze the opportunities and factors critical to the success of

the retail industry in the Middle East.

Middle Eastern countries examined in this report include those of the Gulf Co-operation Council

(GCC), the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Oman and other countries that are

part of the Middle East, like Turkey, Egypt, Jordan and Iran.

Key Findings

Increasing population and growing economy will remain one of the major key drivers for the

growth of retail industry in the Middle East Region.

Per capita consumption of cosmetics and fragrances in the Gulf region is one of the highest in the

world.

Large availability of retail space in the Middle East makes the region all the more attractive for

industry players. Dubai is alone expected to see a growth of over 263% in Gross Leasable Area by

2010 from 2006.

Various shopping events like Dubai (Dubai Summer Surprises and Dubai Shopping Festival) and

Dubai Duty Free (DDF) is the major contributor in the UAE’s retail industry, with retail sales in

DDF accounting for more than 9% of total retail sales in the UAE.

The trend of shopping at modern retail formats is growing in Middle East.

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Preference for international brands among consumers in the Middle East is increasing.

Prevalence of lifestyle-related diseases offers opportunities for dietetic and health foods.

Major Players

This section covers the key facts about players currently operating in the Middle East retail fashion

industry, including Alshaya International Trading Company, Al Hokair Group, Al Sawani Group,

Savola Group, Al Batool Intl. Trading Company, Rubaiyyat, Farouq Jamjoom Establishment, and

Zahid Trading etc.

In a research paper covering the retail sector and the Kingdom's leading fashion retailer Al Hokair

(Fawaz Abdulaziz AlHokair & Co), Global Investment House says the Saudi apparel retail

industry is one of the high-growth markets in the Arab region especially in the women and

children segments.

The apparel business grew rapidly over the last few years as people became more fashion-oriented.

The growth in the sector is attributed to the high young population and increasing purchasing

power in the backdrop of the recent economic boom. Growth of this sector is evidenced by the

growth of fashion retailers.

In fact as per Colliers International, Riyadh has 2.5 million square meters of gross leasable

shopping mall space in the city, compared to 1.1 million in Jeddah and 1.7 million in Dubai as of

2007.

Considering the clothing style in Saudi Arabia, men mostly wear the traditional white thobes along

with the red shemaghs. Women on the other hand, wear the black abayas and tarhas for everyday

use. Despite the fact that all women wear the traditional abaya on top of their clothes, underneath

the abaya, Western dress is most common. Western dress is adopted more by the younger Saudi

generation outside of school. Non-Saudi adults usually wear the Western dress code.

The market for apparel sales in Saudi Arabia is still made up of varied products not representing

global brands in addition to unbranded items, which are generally imported from Asia. However,

with the maturing of the market, there has been a shift towards branded apparel sold through

international retail chains. Sales of braded apparels are estimated to be around 25% to 30% of total

apparel sales. This share continues to increase as evidenced by the expansion of the number of

30

outlets and the number of malls specialised in international retail chains, with these modern malls

spreading to smaller cities and towns.

The market share of branded apparel has witnessed a steady increase in the last decade due to

changes in consumer tastes and converging global fashion trends. Saudi consumers have become

increasingly sophisticated, demonstrating brand awareness and brand loyalty, demanding quality

service and value for money and carefully looking out for new product lines from their preferred

brands.

The Saudi Arabian apparel market is heavily reliant on imports especially when it comes to fabric,

cloth, accessories and ready-made Western style clothes. These imports come from all over the

world depending on price range and quality. There is a noticeable distinction and a clear line

between the high-end and low-end types of clothes. European and American clothes are usually

classified as high-end and targeted towards the upper social class, whereas, garments imported

from the Far East especially from China offers much lower prices and quality and is geared

towards the lower social class, which represents the largest section of the pie. Saudi manufacturers,

on the other hand, mainly supply military uniforms and traditional abayas.

Apparel outlets in Saudi Arabia range from exclusive boutiques carrying true haute couture and

top international designer labels to souq stalls. In Saudi Arabia, Riyadh is currently the largest

market for retail apparel in Saudi Arabia accounting for around 40% of total apparel sales, and is

followed by Jeddah (around 30%) and Dammam/Khobar (around 20%).

The growing presence of international branded apparel in these big cities has contributed to growth

in branded apparel sector. Jeddah is larger on the mid-tier segment due to the large number of

pilgrims it receives during the Hajj and Umrah seasons, while Riyadh is more important for the top

end of the market due to the presence of a larger base of wealthier consumers.

Dammam/Khobar comes in the third place, although it does gain some seasonal importance during

Hajj and Umrah seasons when pilgrims coming from Bahrain and Kuwait stop over for shopping

on their way back form the pilgrimage. Though going forward the smaller cities are expected to

grow at a higher rate, the larger cities like Riyadh, Jeddah and Dammam will continue to

contribute bulk of the sales, according to Global Investment House.

31

Market segments

The major market segments in retail apparel include womenswear, footwear, childrenswear and

menswear.

Some segments of the market like womenswear are more developed whereas other segments are

yet to catch up. Menswear represents a small segment of the ready-made clothing sector in

comparison to womenswear and childrenswear.

Women and children are the majority shoppers in the apparel market. They are mainly targeted by

providing excellent service, wide variety and quick turnover of products and regular promotional

campaigns to win their loyalty and regular visits. The smaller segments are expected to grow at a

higher rate in the coming years relative to the mature segments due to their lower base. This

growth will stem from the effective targeting of hitherto underdeveloped sectors, namely eyewear

and menswear, while the more mature areas of womenswear and childrenswear will remain the

backbone of the market and continue to experience healthy growth.

Saudi Arabia is a major market for women and children’s clothing. The market is segmented

between the high-end branded sector, the mid-market branded sector and the lower-priced market.

The high-end and mid-market sectors of the apparel market are dominated by imports from Europe

and the United States. The lower end of the market is characterised by imports from the Far East

and South East Asia, some of which are styles copied from European and American brand names.

Womenswear is the largest retail apparel segment in the Saudi market. Womenswear accounts for

around half of the total branded retail sales, and is considered the most mature segment of fashion

retail. In the Womenswear, casual and evening dress accounts for the major share. Womenswear

has been the main driver of growth of branded retail apparel sales over the past few years. The

sector is highly competitive due to the constant flow of new brands and quick stock turnover in

existing chains. The sector is well-segmented with international brand representation in market

niches such as out size clothes, lingerie, accessories, teens, and maternity.

Footwear is the second largest sector after womenswear, accounting for around one-fifth of apparel

sales. The footwear segment is well segmented with shops covering a range of prices, branded and

32

unbranded merchandise. For men, while spending on clothing is low due to a continuing

preference for traditional clothing, spending on shoes and accessories is higher.

Sales of childrenswear are high in Saudi Arabia due to the young population and the high birth

rate. Childrenswear account for around 15% to 20% of total sales. The influence of global media

on the young population (representing around half of the total population in Saudi Arabia) is also a

driving factor. This segment is becoming more fashion-oriented and brand-conscious, demanding

the presence of ophisticated international brands to satisfy their changing tastes and styles. In the

childrenswear segment, babywear, newborn, and pre-natal clothing are all relatively under-

penetrated.

Menswear is a minor segment in the Saudi fashion retail market accounting for less than 10% of

total apparel sales. Men still prefer to wear the national traditional clothing at home, at work, and

in public. With the majority of the Saudi population at a young age, a shift in consumer tastes may

be the catalyst for the future growth in this segment.

Economic growth an important driver of retail sector

The Saudi economy has witnessed an economic boom over the past few years thanks to the high

crude oil prices, which have risen from US$25 per barrel in 2003 to exceed US$130 per barrel in

2008. This oil boom led to the increase in government revenue and expenditure, which in turn

boosted the economy. Furthermore, the government is investing revenue surplus in building

infrastructure and growing the manufacturing and services sectors in the long term. This in turn

will help in preserving the country’s economic strength for the upcoming years.

The impact of a healthy economy on clothing spending is notably positive. With higher levels of

disposable income, and consumer confidence, Saudi consumers are spending more money,

particularly on non-necessities such as mass market branded clothing. Continued growth in GDP

for the short to medium term will have a positive affect on the growth of purchasing power for

consumers.

Government initiatives like Saudization are expected to have a positive impact on retail sector.

Saudization will impact the composition of workforce and therefore will increase income levels for

Saudis nationals. This in turn may increase expenditures on consumer products as a whole and

primarily expenditure on clothes and accessories.

33

Shopping malls a growth enabler

The construction boom of residential, commercial, and leisure projects, which has taken place all

over the kingdom in the last few years, has led to the availability of large retail space. The rise of

the modern shopping malls in Saudi

Arabia has been taking place at a fairly steady rate over the last ten years, with malls becoming

increasingly sophisticated. Openings of numerous shopping malls and the ease and convenience

this has provided shoppers with has contributed to growth in branded apparel sector. This trend is

expected to continue in the near future with the openings of new shopping malls, providing retail

companies with thousands of square meters to do more business in Saudi Arabia. Mall

development is likely to be extremely important to the future of the branded fashion market. Mall

development is expected to spread to smaller cities during the forecast period.

Competitive scenario

The branded retail apparel market is quite competitive in Saudi Arabia. The competition is further

set to as more business families who were quite successful in other retailing areas are actively

seeking to enter this potentially lucrative market.

The big players in this sector focus on acquiring franchise agreements with well-known

international suppliers. Currently there are four large companies dominating the branded apparel

market, each representing a considerable number of international franchises: Al Hokair, MH

Alshaya, Al-Sawani and Nesk Group of Trading Projects (Al Jedaie).

In addition to these, there are a few smaller companies with just less than five international

franchises. Brands offered by Al Hokair include Marks & Spencer, Zara, Promod, Monsoon and

others. Brands offered by Al-Sawani include Guess, Esprit, Levi’s, Fossil, Benetton. Brands

offered by MH Alshaya include BHS, Debenhams, Mothercare, River Island and NEXT. Well-

known brands of Nesk include Mango, Gerry Weber, OUI, Taifun and Okaidi.

Additionally, an important segment in this market is the small retailers who own one or more

shops. With their low overheads, these retailers are able to offer very competitive pricing on their

products especially in the medium to low category.

34

The competitiveness of the market is shown in the results of AlHokair for 2007-2008. The gross

margin of the company has come down over the past few years. In the past couple of years, the

gross margin has been impacted due to decline in US Dollar (to which Saudi Riyal is pegged)

against major currencies. With the weakening of US Dollar against major currencies in recent

years, the profit margin of the company has been impacted. This is due to the fact that like the

other major retailers, AlHokair sources a significant amount of merchandise from the countries

whose currencies have gained against US Dollar, notably the Euro.

Strategic locations

One of the most important factors in fashion retail business is location of the stores, and relations

with the mall owners. In Saudi Arabia, there is a high demand for quality retail spaces. AlHokair

has been able to position its stores in prime retail locations on premier commercial streets, and in

upscale shopping centers. This has been helped by the fact that the sister concerns of AlHokair are

engaged in the business of shopping mall development and management. Therefore, AlHokair has

been able to secure a good number of strategic locations in upscale malls.

Fawaz AlHokair Group (which consists of AlHokair and other companies of the group) owns and

operates over 5 million square feet of premium retail real estate across the Kingdom. The malls

owned by Fawaz AlHokair Group include Mall of Dhahran, Salaam Mall, Aziz Mall, Khurais

Plaza, Sahara Plaza, Al Nakheel Plaza and Ibn Khaldoon Plaza.

Mall of Dhahran is one of the largest malls in Saudi Arabia’s Eastern Province with Gross

Leasable Area (GLA) of 150,000 square meters. The upcoming malls of the Group include

the Mall of Arabia, Al Noor Mall, Yanbu Mall and Al Ehsa’ Mall. Mall of Arabia in Jeddah, which

will open in September 2008, has a GLA of 185,000 square meters (including an extension). This

will give a big boost to AlHokair as it plans to open a good number of stores in Mall of Arabia.

Retailing in Saudi Arabia

The Saudi apparel retail industry is one of the high-growth markets in the Arab region especially in

the women and children segments as the business grew rapidly over the last several years as people

became more fashion-oriented, Kuwait-based Global House Investment said in its report on the

“Saudi Apparel Retail Market.”

35

The growth in the sector is attributed to high young population and increasing purchasing power in

the backdrop of recent economic boom. Growth of this sector is evidenced by the growth of

fashion retailers.

It said as per Colliers International, Riyadh has 2.5 million square meters of gross leasable

shopping mall space in Riyadh vs. 1.1 million in Jeddah and 1.7 million in Dubai as of 2007.

Considering the clothing style in Saudi Arabia, men mostly wear the traditional white thobes along

with the red shemaghs. Women on the other hand, wear the black abayas and tarhas for everyday

use. Despite the fact that all women wear the traditional abaya on top of their clothes, underneath

the abaya, Western dress is most common. Western dress is adopted more by the younger Saudi

generation outside of school. Non-Saudi adults usually wear the Western dress code.

The market for apparel sales in Saudi Arabia are made up of varied products not representing

global brands in addition to unbranded items, which are generally imported from Asia. However,

with the maturing of the market, there has been a shift towards branded apparel sold through

international retail chains. Sales of braded apparels are estimated to be around 25-30 percent of

total apparel sales. Its share continues to increase as evidenced by the expansion of the number of

outlets and the number of malls specialized in international retail chains.

The market share of branded apparel has witnessed a steady increase in the last decade due to

hangs in consumer tastes and converging global fashion trends.

Saudi consumers have become increasingly sophisticated, demonstrating brand awareness and

brand loyalty, demanding quality service and value for money and carefully looking out for new

product lines from their preferred brands.

Saudi Arabian Apparel market is heavily reliant on imports especially when it comes to fabric,

cloth, accessories and ready-made Western style clothes. These imports come from all over the

world depending on price range and quality.

There is a noticeable distinction and a clear line between the high-end and low-end types of

clothes.

European and American clothes are usually classified as high-end and targeted towards the upper

social class, whereas, garments imported from the Far East especially from China offers much

36

lower prices and quality and is geared towards the lower social class, which represents the largest

section of the pie. Saudi manufacturers, on the other hand, mainly supply military uniforms and

traditional abayas.

Apparel outlets in Saudi Arabia range from exclusive boutiques carrying true haute couture and

top international designer labels to souq stalls.

Riyadh is currently the largest market for retail apparel in the Kingdom accounting for around 40

percent of total apparel sales, and is followed by Jeddah (around 30 percent) and Dammam/Al-

Khobar (around 20 percent).

Growing presence of international branded apparel in these big cities has contributed to growth in

branded apparel sector. Jeddah is larger on the mid-tier due to the large number of pilgrims it

receives during the Hajj and Umrah seasons, while Riyadh being more important for the top end of

the market due to the presence of a larger base of wealthier consumers. Dammam/Al-Khobar

comes in the third place, although it does gain some seasonal importance during Hajj and Umrah

seasons when pilgrims coming from Bahrain and Kuwait stop over for shopping on their way back

form the pilgrimage.

Though going forward the smaller cities are expected to grow at a higher rate, the larger cities like

Riyadh, Jeddah and Dammam will continue to contribute bulk of the sales.

The major market segments in retail apparel include womenswear, footwear, childrenswear,

menswear and eyewear.

Some segments of the market like Womenswear are more developed whereas other segments are

yet to catch up. Menswear represents a small segment of the ready-made clothing sector in

Comparison to womenswear and childrenswear

Women and children are the majority shoppers in the apparel market. They are mainly targeted by

providing excellent service, wide variety and quick turnover of products and regular promotional

campaigns to win their loyalty and regular visits. The smaller segments are expected to grow at a

higher rate in the coming years relative to the mature segments due to their lower base. This

growth will stem from the effective targeting of hitherto underdeveloped sectors, namely eyewear

37

and menswear, while the more mature areas of womenswear and childrenswear will remain the

backbone of the market and continue to experience healthy growth.

The Kingdom is a major market for women and children’s clothing. The market is segmented

between the high-end branded sector, the mid-market branded sector and the lower-priced market.

The high-end and mid-market sectors of the apparel market are dominated by imports from Europe

and the United States. The lower end of the market is characterized by imports from the Far East

and South East Asia, some of which are styles copied from European and American brand names

38

1.2 Company Profile

Major Players in Saudi Retail Market

39

This section covers the key facts about players currently operating in the Saudi retail fashion

industry, including Alshaya International Trading Company, Al Hokair Group, Al Sawani Group,

Al Batool International Trading Company, Rubaiyyat, Farouq Jamjoom Establishment, Zahid

Trading etc.

Let us have brief outlook to company profile of each company,

Al Shaya International Trading Company

Alshaya Retail covers a wide variety of sectors, including the latest and best recognized names in

Fashion, Footwear, Kid's clothing, Health and Beauty, Homestyle, Casual Dining, Prescription

Eyewear, Pharmaceuticals and Sports fashion.

By bringing top Retail concepts to local malls and high streets we ensure the delivery of a truly

unique international shopping experience.

Alshaya's international and forward-looking approach is supported by traditional values of

integrity and honor. Our regional expertise, market knowledge and mutually profitable business

partnerships have enabled us to build the most dynamic and successful retail business throughout

the Middle East, Turkey, Cyprus, Russia, Poland, Egypt and more recently Slovakia and Czech

Republic.

Al Shaya Brands

40

# Brand Name Brand Profile

1. Debenhams Department Store for Fashion, accessories, home furnishing, etc

2. Mothercare Fashion for Mother-to-be and her child up to 8 yrs

3. Next Young Casual wear for Male & Females, kids

4. Bhs Department stores for Family Fashion and home furnishing

5. H&M Fashion for Men & Women

6. Milano Footwear and accessories for men & Ladies

7. Elena Miro Ladies with larger sizes

8.Topman Top shop

Male & Female Fashion

9. Oasis Ladies Fashion

10. Claire's Ladies accessories

11. Justice Teens Fashion up 18 years

12. Evans Ladies with larger sizes

13. Dorothy Perkins Medium priced ladies Fashion

14. Coast Ladies fashion

15. Peacocks Ladies fashion

16 Wallis Ladies fashion

17. Principles Ladies fashion

18 Express Ladies & Men fashion

19 Faith Ladies Footwear

20. Va Va Voom Makeup and perfumery

Table 1.1

Saudi retailer Al Hokair Group

41

Clothing and accessories retailer Al Hokair plans to float a 30% stake of its capital in the first half

of this year, probably April. With some 550 outlets and an annual turnover of SAR1.0 billion

(US$267 million), the firm is Saudi Arabia's leading fashion retailer.

Al Hokair represents numerous international brand names in the Kingdom, including Marks and

Spencer and fashion store Zara, owned by Spain's Inditex and Massimo Tutti from Italy. The

group's investments also extend to Arabian Centers, a major shopping mall developer in the

Kingdom.

Al Hokair is also the fastest-growing retail landlord in Saudi Arabia with Arabian Centers, the

Property and Real Estate Management Division of the group. To date it has control of seven large-

scale shopping malls opened and in the pipeline, including Dhahran Shopping Center, Khurais

Plaza, and the Mall of Arabia on the gateway to Jeddah from the international airport.

In just over 18 years Fawaz Alhokair Group has transformed the retail landscape of Saudi Arabia

through successfully pioneering international retail franchising. Starting with just 2 menswear

stores in 1990, today we are a well diversified corporation with core businesses in retail and real

estate, as well as investment interests in 6 lines of emerging business.

Our strength lies in not only attracting established global brands to the kingdom but also in

forming long-lasting and mutually beneficial relationships based on trust, expertise and

commitment.

It is through diversification that we see our 07/08 turnover of SAR 8 Bn tripling in the next 5

years. The exponential growth of our business will also reflect in a significant expansion of our

current 12,000 strong human capital base, further enriching our cultural diversity and creating new

job opportunities for Saudi nationals.

Corporate

Group turnover in excess of SAR 5 billion in year 2007-08

Over 12000 employees

Over 18 million satisfied customers

Fashion Retail

Over 50 international fashion brands

Over 750 fashion stores

Over 4000 employees in the fashion sector alone

42

Leading Market share in Women’s and Kids Wear

Al Hokair Major Brands

# Brand Name Brand Profile

1. Adams Children wear

2. Ceilio Young Casual wear for Male & Females

3. La Senza Girl Lingerie and Nightwear, Female

4. Nine West Shoes and Handbags , Female

5. Promod Formal wear , Ladies

6. Zara Casual wear, Males & Females, Shoes & leather accessories.

7. Marks & Spencer Casual wear, Female, Leather accessories

8. Aldo Shoes , Male and Female

9. Nike Sports wear

10. Wool Worth Department Stores

11. Camieu Casual wear

12. Barratts Footwear

13. La senza Lingerie, Female

14. Ann Harvey Up market Ladies wear

15. Burton Men’s wear, casual & formal

16 In Wear Casual wear

17. Jenneyfer Casual wear

18 Kekos Children wear

19 Monsoon accessories Female accessories

20. Fochini Female casual wear

Table 1.2

Al Sawani Group

43

Incorporated in Saudi Arabia in 1976, Al Sawani Group is one of the Middle East's foremost

fashion, accessories and home collection goods pioneers with a successful 30 year track record.

Since it's inception, it has expanded into 13 countries, including Saudi Arabia, Kuwait, Bahrain,

Qatar, Iran, United Arab Emirates, Jordan, Lebanon, Syria, Egypt, Sudan and Morocco.

As a marketer and distributor, Al Sawani has exclusive distribution rights to over 30 world-

renowned brand-names. The Group distributes these products through a network of Al Sawani

stand alone stores and shops-in shop, as well as third party retailers.

As a retailer, Al Sawani has carved a retail network encompassing various retail concepts and

incorporating over 450 free standing and department stores in the Middle East to date.

Brands under our group include:

# Brand Name Brand Profile

1. Espirit Female Casual wear

2. Sisley Female Casual wear

3. Benetton Casual wear, Males, Female & Children

4. U 2 Female & Male Casual wear

5. Fossil Accessories, Watches and leather goods

6. Max Mara Fashion

7. Marina Rinaldi Larger size Female wear

8. Replay Up-Market Italian Jeans wear, Males & Females

9. Max & co. Larger size Female wear

10. Coccinelle Up-market leather Bags, Shoes & Belts

11. Betty Barclay Formal ladies wear

12. Guess Female casual wear

13. La Perla Lingerie

14. XoXo Female Casual wear

15. Marella Low priced female wear

Table 1.3

Al Batool International Trading Company (SAVOLA GROUP)

44

The Savola Group is one of Saudi Arabia's leading industrial companies, with a strong presence in

the Gulf and the Middle East Region, also penetrating North African and Central Asian countries,

with a wide portfolio of businesses including Edible Oils, Sugar, Noodles/Pasta, Packaging, Real

Estate and Franchising.

The company was established in 1979 with an initial SR 40 Million Capital & grew significantly in

subsequent years to SR 5 Billion. Savola's first business was in the edible oil industry in Saudi

Arabia. It is now one of the most successful and fastest growing multinational food groups.

Savola also has a Franchising Unit which has exclusive rights in Saudi Arabia for Six

internationally renowned brands of fashion wears from different countries.

The Franchising Division, which was initiated back in year 2004, has been able to build strong

foundations for the business during the course of the year 2005. This division is a natural extension

to Savola Group’s mega real estate projects. The main responsibilities of this division are to sign

and roll out new retail concepts in the Saudi retail market through signing exclusive franchise

agreements with prominent international brands.

The business also aims to create job opportunities for young Saudis in the growing retail sector and

to fulfill its social corporate responsibility towards the local community

The division has signed several franchise agreements with international brands from Europe, South

Africa and the Far East in various business sectors such as restaurants, footwear, Home

Improvement, Body care and fashion clothing. The division has already opened its first fifty stores

and a total of 200 stores by the end of 2010 in Saudi Arabia.

The division is now embarking on introducing further new franchises during the year 2009 and to

launch several new stores in the cities of Jeddah, Riyadh and Dammam.

Today, the Group has a work force of more than 16,000 employees, around 160,000 shareholders

and is listed in the Top 20 companies in Saudi Arabia.

Retail Fashion & Footwear Brands

45

1. Jacqueline Riu French ladies Fashion Brand

2. Bonia Malaysian Footwear Brand

3. Carlo Rino Malaysian Footwear Brand

4. Yves Rocher French Cosmetic Brand

5. Tom Tailor German Fashion Brand

6. Mugg & Bean South African Coffee Brand

Table 1.4

Anwal United Trading Company

46

Anwal United Trading Co. is a professional and dynamic company that was set up in the late

eighties as a partnership company. With aggressive growth and ambitious plans, it was converted

into a Limited Company in 2001. Today it has a commanding presence in the arena of ladies and

children's apparel, and an ever-increasing share of the cosmetics, shoes, accessories and children's

room furniture markets.

The Company has successfully commissioned and operates more than 125 shops all across Saudi

Arabia. On the international front as well, the Company's 12 brands have made a name for

themselves, notching up impressive sales. The strong popularity of the shops is the direct result of

their strategic locations in the biggest and well- known malls. Working closely in tandem with

international companies, Anwal United Trading Co. has gained keen insight of the market and

comprehensive support to expand it. The Company is now poised to take advantage of the growing

demand for ready to wear clothes, by forging new alliances with a wider spectrum of brands and

expanding its present operations.

Brands include,

# Brand Name Brand Profile

1. Jacadi Children wear

2. Orchestra Kids up to 14 years

3. Etam Concept Hot Fashion

4. Etam Ready to wear fashions

5. 1-2-3 Up-Market ladies

6. Tammy Teenage Girls Fashion

7. Trucco Women’s wear

8. Migaino Ladies Fashion

9. Cache-Cache Young women fashion 18 to 30 years

10. Bottega Verde Cosmetic Products

Table 1.5

Rubaiyyat

47

Rubaiyyat was founded in 1986 by the Binzagr family, one of Saudi Arabia’s leading commercial

dynasties, and remains in family ownership to this day.

Developing over the period to its current dominant position with exclusive representation of more

than forty top fashion houses, the company has recently embarked on a new period of expansion

and more than doubled it's size within the last three years with more new brands and store

openings scheduled throughout 2008 and 2009.

The business operates both multi-brand stores offering a range of top fashion names under one

roof, as well as branded boutiques that offer the exclusive selections of our major fashion partners.

We employ over 400 staff of many nationalities who are all trained to the highest international

standards of customer service and act as trusted advisors to our many regular customers.

# Brand Name Brand Profile

1. Gucci Leather Bags, Accessories & Perfumes

2. Emporio Armani Ladies Fashion

3. Polo Ralph Lauren Ladies Fashion

4. Lanvin French Ladies Fashion

5. Giogio Armani Ladies and men’s Fashion

6. Gianni Versace Ladies Fashion,Watches, Home collections

7. Ermenegildo Zegna Ladies Fashion,Watches, Home collections

8. Dolce & Gabbana Men’s wear

9. D & G (Dolce Gabbana) Men’s & Ladies Fashion, Accessories, Perfumes

10. Yves Saint Lauren Men’s & Ladies Fashion, Accessories, Perfumes

Table 1.6

SWOT ANALYSIS

48

This section provides a SWOT analysis of the franchise Fashion Retailing Market.

Strengths

The area that may be characterized as points of strength in this market include:

1. Large Population :

The Saudi population while may be not the largest in the middle east, remains to be the

strongest in terms of purchasing power and it is definitely the largest in the GCC countries. It is

characterized with a growth rate that is considered to be among the largest in the world.

2. Young Population :

The Saudi population is mostly young in terms of age. This indicates the presence of a

sustained demand on fashion products and accessories.

3. Strong Saudi Economy :

The Saudi economy is witnessing a boom due to the massive amount of cash that made its way

back into the country and due to the increased oil prices. This growth is expected to be

sustained, though at slower rates depending on changes in oil prices, over the near future. The

implications of this strong economy are higher spending power resulting in more purchase of

various products including fashion and accessories.

4. Shopping Centers :

The current surge in the number of new and modern shopping centers in main cities in KSA

works to sustain the demand on fashion products by shoppers. However, this at the same time

puts financial pressures on retailers to be present in these new shopping centers.

5. Large Urban Centers :

Saudi Arabia is large in terms of area. However, urbanization is strong is limited number of

cities including: Jeddah, Riyadh, Dammam/Khobar, Makkah and Madinah. This makes it

relatively easier for retailers to reach their target customers and reduces costs associated with

establishing many management regional offices.

49

Weaknesses

1. Low entry Barrier :

The franchise fashion retailing market is characterized by a low entry barrier. It is relatively

easy for new retailers to obtain the franchise rights for new international brands and establish

retail outlets in the new shopping centers, especially when the new shopping centers tend to

seen new brands in order to attract shoppers to their malls. Mall Of Arabia, RedSea Mall,

Hayat Mall, Granada Center and Dhahran Mall are good examples.

2. The Presence of Large Capital :

The amount of current capital seeking various investment opportunities in the Saudi market is

huge. We are already witnessing new players coming into the market some of which are new to

the industry. This puts a timely pressure on existing major players in the market to respond and

protect their market positions and market share.

3. A Discriminating Customer :

The market is dealing with spoiled customers who are young, travels a lot, easily bored by old

brands and always seeking new brands and styles. As indicated in the report, brand loyalty is

not as strong in this market as it is in other market, and shoppers can easily switch from one

brand to another. However, we should emphasize that each shopper retains a number of core

brands that satisfies her/his requirements. But this span of loyalty does not usually extend to

more than few years and the shopper starts replacing this list of core brands by another list.

4. Large Cost of Expansion:

Retail space is generally expensive interms of rent. Coupled with the large investments

required to establish modern and appealing fitting for new shops, retailers are generally faced

with the need for large investment to meet the highly dynamic market and to be able sustain

enough presence to protect their market share.

Opportunities

50

1. New Franchise Brands:

One of the important growths opportunities in this market is the continuous influx of new

franchise brands. Al Hokair has demonstrated the importance of this factor by growing the

number of international franchise brands it represents to more than 44 brands over a span of

only 9 years.

The SAVOLA franchise divisions has brought 10 international brands within a span of 4 years

and made it success. Al Batool International Trading Company is the franchise division of

SAVOLA GRAOUP.

2. Development of New Local Brands:

Zahid Trec;s success with its new “Life styles” brand is worth noting. This brand created

focusing on the young generation. Brand extensions are also being developed including

“Lifestyle Accessories”. It should be noted that the brand is actually an outlet brand that houses

many well known fashion brands.

3. Expansion through Sub-Franchising:

Depending on the agreement with their master franchisors, local companies may want to

consider offering sub-franchises to other small investors wanting to enter the market based on

geographical locations. This will enable current companies to establish a larger network of

shops at the minimum. The experience of Ice Crème parlors in the Saudi Market is a good

example including “Cone Zone”

4. Customer Service Programs :

Establishing sophisticated customers service programs and credit facilities for member

customers is a standard way of retaining a core of loyal customers to specific franchises. Major

players holding a large portfolio of franchise brands may want to consider this option as a way

of differentiating themselves in the market. The development of credit facility system with

specific banks is necessary to reduce the risk of bad credit among customers.

Threats51

The threats facing players in the franchise fashion market are summarized as follows;

1. Launching Failure Brands:

Although consumers research indicated low brand loyalty among customers, there is a threat

that some new franchise brands may not receive the required level of success in the market. A

continuous assessment of the performance of brands is necessary in order to constantly weed

out poor performers and supporting good performing brands. This puts a great deal of financial

pressures on existing and new players alike.

2. Entry of another larger player in the existing market:

The current surge in the number of new players makes the market open to another potential

success story similar to that of Al Shaya and Al Hokair Companies.

ORGANIZATIONAL CHART

52

EXECUTIVE DIRECTOR (President)

Vice-president

General Manager

Finance Operation Manager Brand Manager H.R. Manager

Manager

Brand Buyers Secretary & PRO

Area Manager

Store Manager

Sales Man

53

CHAPTER - 2

RESEARCH METHODOLOGY

54

Description of the Research Design

Research design is a formal investigation or specification of methods and procedures for acquiring

the information needed to store the problem. A research design is the arrangement of condition for

collection and analysis of data in a manner that aims to combine relevance to the research purpose

with economy in procedures.

The research design used for this study is Exploratory Research.

The objective of exploratory research is to explore or search through a problem or situation to

provide insight and understanding. As the major purpose of exploratory studies are the

identification of problem (including the identification of relevant variables) and the formulation of

new alternative course of action. The focus of the study is mainly based on new idea and

innovation.

Qualitative research is done for the study by adopting survey method for collecting relevant

information to analyze the behavior and attitude of respondents towards international Fashion

Brands. The sampling design followed in the survey is random sampling and convenience

sampling in which each population elements has a known and has equal chance of selection.

Generally customers as a source of primary data collection have been surveyed for the purpose of

obtaining information. For this research work I have considered customers walking into Fashion

brands, the sample size of customer’s is 150. Consumers have been surveyed through the

questionnaire in personal.

The purpose of the study is to know and give ideas to develop the promotional activities performed

by international fashion brands. The study helps in improving existing customer’s satisfaction

level and retaining the existing customers.

From the study we expect to know what extent, the study helps in knowing the competitive

advantage of marketing tactics. The study helps in knowing the existing customer’s satisfaction

towards Fashion Brands and new customers wants and services, and company’s services for the

existing customers. The study also helps in improving service provider, aggressive marketing,

more value good services, broad vision to ultimate marketing tactics.

55

The Encyclopedia of social science defines research as “The manipulation of generalizing to

extend, correct or verify knowledge”. This definition highlights the primary purpose of research,

via…. arriving at generalization and the method of manipulation, which is an aspect of

experimentation adopted for the purpose.

Marketing research is the systematic collection of the information from sources outside the

business or research organization.

Collection of data is the process of enumeration together with proper recording of results. The success of an enquiry is based upon the proper collection of data. Literature was extracted from various sources, which includes web sites, company brochures, annual reports and dissertations.

Secondary data are those which are already collected by some one for some purpose and are available for the present study. For instance, the data collected during census operations are primary data to the department of census and the same data, if used by a research worker for some study, are secondary data.

Secondary data are those data which have been already collected and analyzed by some earlier agency for its own use: and later same data are used by a different agency. A secondary source is a publication, reporting the data

Which have been gathered by other authorities and for which others are responsible.

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Sources of secondary data

The various sources of secondary data can be divided into two broad categories:

Published sources

Unpublished sources

Published Sources: Various governmental, international and local agencies publish statistical data.

Unpublished sources: They are records maintained by various governments and private offices, the researches carried out by individual research scholars in universities or research institutes.

Various books, magazines are been used to collect the data and to have knowledge on the topic chosen.

Websites:

1. Company profile: www.alshaya.com; www.savola.com; www.alsawani.com; www.alhokair.com; www.anwal.com;

2. Product profile: Direct study

3. Other data: www.google.com

Company brochures:

1. Annual circulars

2. Company reports

57

2.1 Need for the study

The study concentrates on Retail Fashion industry, the Promotional activities performed by

international brands and how to build up a successful brand.

The study also shows the perception and awareness of people towards some brand names, and

which brand they want to deal with most. The study reveals the retail company’s chance of

viability in the market to tap the potential customers and to increase their market share, as well as

its position in the customers’ mind.

The need of the study emphasises on the market research of the brands. The study helps in

analysing the viability of some fashion brands in Saudi Retail Market.

During the study, I tried to find out the potential customers and collect relevant information, as

well as to analyze the information which may help retail companies to formulate their brand

building strategies in accordance with customers’ mind and perception, therefore make

contribution to their market share increase in the future

During the study, besides using my own market researching result, text books, and reference

materials, I also carried out my analysis and interpretation based on unconventional sources of

information like cyber reference materials, e-opinion poll.

58

2.2 Objectives of the study

a) Primary objective

The Objective of this study to know whether there is a need of effective Marketing/

Advertisement for promoting retail fashion brands to sell their product in Saudi Arabia.

b) Secondary objective

(a) To know the pricing strategies adopted by different brands

(b) To compare the competitive and promotional strategies of Retail Fashion Brands

and sales with competing brands.

(c) To know the attributes in advertising and promotional activities as an efficient tool.

(d) To know the influence of Geographical variables affecting the retail market

(e) To know the Demographic variables influencing brand sales

59

2.3 Scope of the Study

The scope of the study in this project relates to find the following.

1. To determine the importance of advertisements and promotional activities impacting

fashion products and its utility in the present market scenario.

2. The advertisements and promotions which enhance brands in revenue generation.

3. How retail brands competes other players in the Saudi market which determines the

competition in the Retail Sector.

4. The advertisement influencing the product and promoting the same.

The study helps in improving customer’s satisfaction level and retaining the existing

customers.

The study also helps in improving Customer Service, aggressive marketing, more value

good services, broad approach towards retail market and promotional activities.

60

2.4 Method of Data Collection

There are two principal techniques available to researcher who is responding to a research question or considering what data to collect in order to anticipate future information needs:

Primary Method of Collecting Data

Secondary Method of Collecting Data

The staring of this study was provided by the use of secondary data. The first step was to collect relevant information for the study to be conducted by referring business books, project reports, and other articles from news paper, internet. Secondary data provided enough information to resolve the problem being investigated. Examining available data is a perquisite to collecting primary data. It helped to define the problem and formulate hypotheses about its solution.

Primary data are those that are collected for the first time and they are original character. The two basic method of collecting primary data are questioning and observing. Former being reliable and time saving so in this study questioning method was adopted for that survey was conducted.

Actual Collection of Data:

Data processing is an intermediary stage of work between data collection and data analysis. Data processing involves classification and summarization of data in order to make them amenable to analysis. Data processing consists of a number of closely related operations-

1. Editing: The first step in processing of data is editing of complete schedules/questionnaires. Editing is a process to detect and correct errors and omissions.

2. Coding: Coding means assigning numbers or other symbols to the categories or responses. In the time of tabulation it is necessary. In this study the coding has been given during tabulation.

3. Tabulation: Tabulation is the process of summarizing raw data and displaying them on compact statistical tables for further analysis. For this purpose, computer has been adapted.

4. Graphic representation: Graphic representation involves use of graphics, charts and other pictorial devices. In this bar diagram and pie charts have been used to represent the result. Then it was analyzed and interpreted.

61

Exploratory Research is being used for this project work.

Sampling Method

The aggregate of all the units pertaining to a study is called population or the universe. Population

is the largest group to be studied; a member of the population is an element. It is the unit of study,

a part of the population is known as a sample. The process of drawing a sample from a larger

population is called sampling.

It is the process of learning about the population on the basis of Sample drawn from it. Thus in the

sampling technique instead of every unit of the universe only the part of the universe is studied and

the conclusions are drawn on the basis for the entire universe. A sample is a sub-set of the

population units. The sample design is essential and a pre-requisite to data collection and a definite

plan must be determined before any data is actually collected. In this specific study, the researcher

has adopted the random sampling as each and every unit of the population has an equal

opportunity of being selected. The aggregate of all the units pertaining to a study is called

population or the universe.

Population is the largest group to be the list of sampling units from which is taken is called the

sampling frame. For the present study purpose convenience sampling and random sampling

The total number of respondents selected for study is only one hundred fifty customers from small-

scale enterprise. Convenience and random sampling undertook the study.

Convenience sampling

Convenience sampling is a non –probability sampling. It means selecting sampling units in a just

hit and miss- fashion, example interviewing people whom I happen to meet

Convenience sampling, as the name implies, is based on the convenience of the researcher who is

to select a sample. This type of sampling is also called accidental sampling, as he respondents in

the sample are included in it merely on account of their being available on the spot where the

survey is in progress. Thus, a researcher may stand at a certain prominent point and interview all

those or selected people who pass through that place.

62

Random sampling

A random sample gives every unit of the population a known and non-zero probability of being

selected. Since random sampling implies equal probability to every unit in the population, it is

necessary that the selection of the sample must be free from human judgment. Random sampling

as each and every unit of the population has an equal opportunity of being selected.

Sampling size

The sampling size of the customer’s chosen for the study is only one hundred fifty customers from

small-scale enterprise. That is 150 respondents were surveyed and interviewed directly, keeping in

mind the time constraints. Convenience and random sampling undertook individuals consisting of

both men and women of the study.

Sampling frame

The target population for the study consists of customers from small-scale enterprises as per the

convenience.

63

2.5. Sampling and Sample Size

The purpose of descriptive research is to provide an accurate snapshot of some aspect of marketing

environment, such as consumer perception of the attributes of company’s product, Quality and

important aspects Customer Service. The principal survey options were questionnaires and

personal interviews.

Questionnaire is the main instrument in collecting primary data. It consists of a set of questions

presented to customer for their answers. Questionnaire consists of both open and close ended

questions. Before setting a questionnaire pilot study was conducted.

Sampling Plan:

The basic idea of sampling is that by selecting some of the elements in a population we may draw

conclusions about the entire population. Sampling is useful if the population size is large.

Sampling unit: Individuals.

Sampling Method: Convenience Sampling.

Sampling Size: 100 Customers.

Sampling Plan : Questionnaires.

Sample Area : Western Province ; Jeddah

Population:

Population can be defined as complete sets of people about which we wish to make some

inferences. Population for this study is in Jeddah. This study was restricted to only five major

premium brands of retail fashion.

64

Sampling Technique:

Since each sample unit is drawn individually from population at large, it is unrestricted sample.

The members of the sample are selected on a probability basis. Simple random sampling was used

in which each population element has a known and equal chance of selection.

Sample Size:

Sample size means the number of sampling units to be selected from the population for the

investigation. Due to time and cost constraints, sample size for this study was taking 100, which is

a proportion of total population.

Sample Description:

Sample unit is the entire population. The respondents are Customers, employee businessman, and

professional Sales men.

65

2.6 Tools used for the Study

The search for facts may be made through

1. Arbitrary or unscientific method.

2. Scientific methods.

1. Arbitrary method:

Arbitrary method of seeking answers to questions consists of imagination, opinion, blind belief or impression.

2. Scientific methods:

This is a systematic rational approach to seeking facts. It eliminates the drawbacks of the arbitrary method. It is objects, precise, and arrives at conclusion on the basis of verifiable evidence.

There are different types of research, they are

a) Exploratory Research

b) Descriptive Research and

c) Casual Research

a) Exploratory Research: The objective of exploratory research is to explore or search through a problem or situation to provide insight and understanding. The focus of the study is mainly based on new idea and innovative promotional activities.

b) Descriptive Research: The main objective of descriptive research is to describe something like market characteristics, relevant group, unit’s designation, salary limits, dependents etc.

c) Casual Research: A type of conclusion research where the major objective is to obtain evidence regarding cause and effect relationship. The study is based on finding the cause of current situation.

66

2.7 Schedule of the work

Sl # Description Period Taken

1 Selection of topic 1 Months

2 Construction of synopsis 2 Months

3 Collection of Literature Review 2 Months

4 Developing Methodology 1 Months

5 Data Collection 3 Months

6 Data Presentation and Analysis 2 Months

7 Finding and Suggestions 1 Months

Period of the Study

October 2008 to September 2009

67

2.8 Universe / Population

I have conducted the study in Jeddah region. A sample of 100 customers has been taken from

different category like Customers, Business men, Sales persons.

68

2.9 Limitations of the Study

Limitations are the boundaries wherein the researcher has to work. To make the research

successful a researcher should know his/ her boundaries. Any project done under the proper

guideline comes across les limitations.

This study purely focused in Saudi Arabian Retail Market. All the findings and recommendation

are based on the customers, sales peoples, and business men’s feedback in Jeddah, Saudi Arabia.

The total area of the study covers Jeddah, retail brands sales peoples and top management of the

business firms.

Some other drawbacks of the study

Time Constraint:

As the study was conducted as a part of the curriculum, the time available to procure data

restrained the sample to 100 consumers.

Area of Coverage:

As the study was restricted only to Major Malls of Jeddah region, we couldn’t make our survey in

other regions.

Biased Information:

As customers were reluctant and scared to provide actual information, response is likely to be

biased in some cases.

Improper exposure of the product

Some customers were unaware of some branded fashions and person who endorses.

69

CHAPTER – 3

70

REVIEW OF LITERATURE

SAUDI ARABIA CITIES POPULATION

CITYPOPULATION

CITYPOPULATION

Riyadh 4.0 million Al Jubayl 200,000

Jeddah 2.3 million Khubar 200,000

Makkah 1.4 million Hafar Al-Batin 190,000

Madinah 870,000 Thuqbah 180,000

Dammam 690,000 Yanbu 170,000

At Taif 590,000 Al Abha 160,000

Tabouk 350,000 Arar 150,000

Buraydah 350,000 Al Qatif 140,000

Hufuf 320,000 Najran 130,000

Mubarraz 310,000 Unayzah 130,000

Khamis Mushayt 300,000 Hawiyah 130,000

Hail 250,000 Dhahran 105,000

Al Kharj 220,000 Qurayyat 100,000

All figures are 2003 estimates.

Table 3.1

71

Geographical Scene

Chart 3.1

Arabian develops its people

Three years of development and planning at the leading Saudi retailer and mall developer Arabian

has created one of the most ambitious retail real estate expansion programmes in the Middle East.

To move the portfolio of a business from 500,000 square feet of gross leasable area (GLA) to

4,500,000 square feet in a period of four years requires extensive planning, financial commitment

and an enormous team effort.

A by-product of expansion of this nature is a substantially increased human resource requirement

and the development of industry professional capability to support the function. Expertise in

facilities management, including leasing, mall management and marketing are always being

72

identified as areas where demand is high in the region. Additional activities include asset

management, maintenance and engineers who can support such a multi-site development

programme.

Arabian Centers Facilities Management operates widely in the Kingdom, with malls in Riyadh,

including Sahara Plaza and Khurais Plaza, extending to Herra Avenue in the West, Ibn Khaldoun

Plaza and Khobar Corniche in the east. The commercial areas incorporate a range from

60,000 square feet to 600,000 square feet, and a total of six established operating malls.

The company is the real estate arm of the F A Al Hokair Group of Companies, Saudi Arabia's

number one fashion retailer. It is also a seasoned real estate developer, existing for 15 somewhat

trail-blazing years. There are four on-going mall developments throughout the region, and each of

these developments are 800,000 square feet plus, with key flagship projects developing to in

excess of 1,500,000 square feet.

Arabian Centers is seeking to promote its human resource development, which it says will be a

crucial factor the expansion of its business. It also has specific vacancies and individuals who are

successful will need to be industry professionals and wholly committed.

The FA Al Hokair Group of Companies consists of three subsidiaries in the field of fashion retail,

hypermarket, and real-estate development. A significant part of its vast real estate portfolio

includes shopping centre development and operations, the development of entertainment

operations and retail development. Arabian Centers is one of the largest mall developers and

managers in the Kingdom. But, it is best known for transforming the Eastern, Western, and Central

regions, from virtual desert lands into the premier fashion retail hubs that are visible today. 

 Its retail licencees include: Marks and Spencer, Zara, Promod, Nike, Aldo, Faces (Chalhoub

Group), Paris Gallery and ELC (Early Learning Centre) among others.

 

73

Majid Al-Futtaim to enter Saudi market with Jeddah Riviera Mall

A world-class shopping mall, estimated to cost SAR1.1 billion, will be built on Prince Sultan

Road in Jeddah as part of the Saudi-UAE joint venture that will launch a series of upscale malls in

the Kingdom over the next five years.

The project simultaneously marks the entry of the UAE’s Majid Al-Futtaim (MAF) Group in the

Kingdom that deals with over a 1,000 retailers across the globe and draws over 85 million

shoppers annually to its malls.

The joint venture agreement for the construction of Jeddah Riviera Mall was signed in Jeddah

recently between MAF Shopping Malls, Dubai-based leading developer of shopping malls in the

Middle East, and the Al-Ghazzawi Group, headed by Talal Al-Ghazzawi, chairman, Al-Ghazzawi

Group. The goal of this strategic alliance is to build a series of shopping malls and mix-used

properties across the Kingdom.

Jeddah Riviera Mall will span more than 100,000 square meters and house over 300 retail outlets

including Carrefour (by MAF Hypermarkets), the world’s second largest retailer and other key

anchor stores. The retail mix will include convenience, fashion, home, electronics, entertainment

and leisure categories, a variety of multi-cuisine restaurants among others. Multiple entries and

exits at different levels of the 4,000-plus parking lot will ensure that customers can easily access

the mall from all directions.

One of the highlights of this partnership will be the launch of the well-known City Centre brand in

the Kingdom. The first project, Jeddah Riviera Mall, will be built using Al-Ghazzawi Group’s

local expertise in real estate and mix-used projects in the Kingdom along with MAF Shopping

Malls' regional experience. It will be completed by 2010.

“The joint venture agreement with the Al-Ghazzawi Group marks MAF Shopping Mall’s debut in

Saudi Arabia,” Graham Dreverman, CEO, MAF Shopping Malls, said, adding: “We look forward

to working with our partners to build a world-class shopping mall that will meet the consumers

demand for shopping, leisure and entertainment.”

74

Providing an overview of the Saudi retails market, he said that in the next ten years, the retail

expenditure in the Kingdom is expected to rise to US$100 billion.

“Through this joint venture, we hope to build many projects in the Kingdom as part of the

company’s aggressive regional expansion plan. Our aim is to capitalise on this retail boom and

expand our footprint in the country by developing many City Centre shopping malls in the

Kingdom,” Dreverman observed.

Speaking on behalf of the Al-Ghazzawi Group, Bilal Talal Al-Ghazzawi, Vice Chairman and

Managing Director said: “The real estate investment sector is growing in the Kingdom. The

Western Province has witnessed a substantial increase in investments for new projects, with

Jeddah being the major beneficiary of this boom. The Al-Ghazzawi Group has drawn up an

ambitious investment plan to implement a number of real estate projects that will contribute to the

economic development of the Western Province.”

Academy to train Saudis in retail business

Al Faisaliah Group will open an academy in the near future to groom young Saudis for careers in

retail business. Prince Mohammed K A Al-Faisal, CEO and President of the Al Faisaliah Group,

made the announcement on the occasion of the inauguration of the Bernardi showroom by Abdul

Rahman Al-Jeraisy, President of the Riyadh Chamber of Commerce and Industry (BI-ME,

30/11/06). Italian Ambassador Eugenio D'Auria was also present.

Prince Mohammed said the retail academy would set up training programmes for Saudis to help

them interact with customers. Al Faisaliah Group will also invest SAR500 million in the retail

sector over the next five years to strengthen its presence. This is aside from their decision to open

30 Bernardi department stores in the Kingdom in the next three years, in addition to expanding

outside Saudi Arabia.

Bernardi, a leading Italian department store, has over 167 stores spread across Italy. It is its first

showroom outside Italy and will operate in association with AFG as part of an ambitious plan to

open stores all over the Middle East.

75

CHAPTER – 4

76

Data Presentation and Analysis

1. Number of respondents in a sample size of 100

Chart showing the percentage of Demography of respondents

Chart No: 4.1

Description Number of respondents PercentageBusiness Men 7 7%Customers 53 53%Sales Persons 26 26%Others 14 14%Total 100 100%

Table No.4.1

Interpretation: -

The respondents were mostly customers and it was found that the ladies customers (most people)

were reluctant to give any insight of the research.

In All the malls we come across mostly customers and Sales persons. Business men sample taken

through direct interview method

2. Customer reply on Brands based on the attributes (quality and Price)?

77

Chart showing the type of brands preferred by customers in a sample of 100

Brand Attributes

Quality, 34%

Price, 25%

Quality and Price, 41%

Quality

Price

Quality and Price

Chart 4.2

Table 4.2

Interpretation: -

Most of the customers were insisting on quality same time they were interested in Price of the

products as well. The response was qualitative

Most of the customer insisting on Quality as well as the price and it is 41%

3. Customer reply on Brand awareness

Brand Attributes Number of respondents Percentage

Quality 34 34%

Price 25 25%

Quality and Price 41 41%

Total 100 100%

78

Brand Awareness

Yes94%

No6%

Yes No

Chart 4.3

Brand Awareness Number of respondents PercentageYes 94 94%No 6 6%

Table 4.3

Interpretation: -

Customers are looking at the brand advertisement and marketing activities.

Almost 94% of the respondents were aware about the ladies branded Fashions. Thus it’s clear that

the advertisement do makes an adverse affect in the buying behavior of the customers.

4. Awareness of the different Ladies Fashion Brands

79

Most brands recollected

62%

52%

45% 44%40% 38%

32%28%

22%

0%

10%

20%

30%

40%

50%

60%

70%

Za

ra

Ma

ng

o

Ne

xt

Pro

mo

d

Esp

irit

Eta

m

Wa

llis

Eva

ns

Ja

cq

ue

lin

e

Riu

Ranking of the Brands

Percentage

Chart No. 4.4

Brand Names Number of respondents PercentageZara 62 62%Mango 52 52%Next 45 45%Promod 44 44%Espirit 40 40%Etam 38 38%Wallis 32 32%Evans 28 28%Jacqueline Riu 22 22%

Table No. 4.4

Interpretation: -

It is clear that all the players in the Retail Fashion industry are giving more importance for the

advertisements and promotional activities. Compared to other brands Zara, Mango, Next is making

more product awareness among the customers.

5. Respondents reply on promotions made by these brands

80

Below graph indicate the percentage of customers recall the brands when we ask to tick the

below mentioned brands,

Chart 4.5

Brand Names Number of respondents PercentageEspirit 82 82%Promod 80 80%Next 78 78%Mango 72 72%Zara 70 70%Evans 35 35%Etam 34 34%Jacqueline Riu 32 32%Wallis 24 24%

Table 4.5

Interpretation: -

Table shows the brand names and the number of respondents given their response against each

brands. Loyalty programs really effective in Espirit and in survey most of the customer could

recall immediately the brand.

6. Customer reply on different kind of Promotions

Brand Promotion Awareness82% 80% 78%

72% 70%

35% 34% 32%24%

0%10%20%30%40%50%60%70%80%90%

100%Es

pirit

Prom

od

Nex

t

Man

go

Zara

Evan

s

Etam

Jacq

uelin

eRi

u Wal

lis

Number of respondents

81

Chart indicate the customer feedback on different promotions

Chart 4.6

Brand Names Number of respondents Percentage50 % Discount 95 95%Buy 1 Get 1 free 90 90%Gift With Purchase 72 72%Gift Coupons 45 45%Loyalty Programs 30 30%  100 100%

Table 4.6

Interpretation: -

Almost all the customers are aware of promotions made by these fashion brands especially

Discount offers.

95% of the customers are aware of the 50% discount promotions made by these fashion brands.

This is because of they are using SMS and E mails to inform the customers about promotions

7. Customer reply on media is influencing more for brand awareness

95

90

72

45

30

0 10 20 30 40 50 60 70 80 90 100

50 % Discount

Buy 1 Get 1 free

Gift With Purchase

Gift Coupons

Loyalty Programs

Promotion awareness

82

TV Ad

Banners

Newspapers

Internet

0

5

10

15

20

25

30

35

40

45

50

Chart 4.7

TV Advertisements Banners & hoarding

Newspapers & Magazines

Internet

45 19 27 9

Table 4.7

Interpretation: -

Most of the customers watch TV almost everyday.

It shows that TV advertisement has got very good impact on peoples mind. The first priority goes

to TV and then news papers.

Recently internet users have been increased in Saudi Arabia and the survey reflect the number of

customers checking for new fashion product through internet.

8. Respondents reply on Choosing Only One Brand.

83

The purpose here is to know the consumer Behaviour (i.e.)Is the consumer Behaviour steady to

one brand or varying regularly .The question also focuses on the different reason for which

consumer changes the brand. The Usage rate is also tabulated.

Flow chart showing the responses on the option provided by me in my report

Single brand user

No85%

Yes15%

Chart 4.8

Yes No Total

Single brand user 15 85 100

Table 4.8

Interpretation: -

From the above chart it is analyzed that majority of the respondent do not stick or are loyal to

particular One Brand. But they are frequently changing their brand.

64% of responses are not loyal to any brand where as 36% of respondents are loyal and stick to

only 1 brand. Those responses who said yes, out of them their buying frequency is mostly

moderate in a month

9. How frequent you visit these brands? Is it every week?

84

Customers Shopping Weekly

Yes76

84%

No14

16%

Yes No

Chart 4.9

Yes No

Number of respondents 76 14

Table 4.9

Interpretation: -

It’s a common phenomenon found that most of the customers visit malls every week.

Other entertainments are not there in Saudi; especially ladies spend their disposable time with

shopping with families and friends.

- 76 % of the customer goes to the mall every week

- Very few customers avoid shopping weekly

10. Customer reply on using branded cloths

85

Customers Using Branded Cloths

Yes98%

No2%

Chart 4.10

Yes No

Customers Using Branded Cloths

98 2

Table 4.10

Interpretation: -

The survey indicates that most of the customers are using branded fashion. In most of the malls are

having international fashion brands, so the availability is good enough.

98% of the customers are using Branded fashion cloths indicates that there is strong awareness of

brands in Saudi Retail fashion industry.

11. Reasons for using this particular brand for shopping

86

18

30

15

40

0

10

20

30

40

Price Quality SpecialOffers

Brand Image

Reason for using a Brand

Price Quality Special Offers Brand Image

28

Chart 4.11

Price QualitySpecial Offers

Brand Image Total

Reason for using a Brand 18 30 15 40 103

Table 4.11

Interpretation: -

Most of customers are very specifically looking for some brands which have a very good image in

the retail Market.

40% of the customers are brand oriented and those customers are not looking at the price. At the

same time branded fashions are giving good quality and this makes customers to go for Branded

fashions.

12. New customer’s expectation from these brands

87

63

28

9

0

10

20

30

40

50

60

70

Good services Good Quality Reduced Price

Customer’s wants and needs

Chart 4.12

Good servicesGood

QualityReduced

PriceTotal

Customer’s wants and needs 63 28 9 100

Table 4.12

Interpretation: -

Customers are more focused on Service rather than price or even quality. Same time they need

both together. Ie Good Service and Good Quality

Majority of the customers are looking for Good Service from the outlet they are shopping

63% of the respondents are interested in getting good customer service.

13 Best way to communicate with customers.

88

Communicating with customers

9%

87%

4%

Telephone SMS E-mail

Chart 4.13

  Telephone SMS E-mail Total

Communicating with customers 9 87 4 100

Table 4.13

Interpretation: -

Regarding communication customer doesn’t want to get disturb and they prefer mostly silent

method like SMS.

We can see 87% of the customers replied that they prefer SMS rather than any other mode of

communication.

14. Advertisement influence on customers while shopping

89

Influence of Advertisement

Partially3% No

8%

Yes89%

Chart 4.14

Yes No Partially Total

Influence of Advertisement 89 8 3 100

Table 4.14

Interpretation: -

Most of the customers are shopping in mall influenced by marketing done by companies. These

advertisements are strongly influencing customers while they do shopping

The study shows majority of the customers shopping in malls are influenced by marketing done by

the brands. 89% of the customers are doing shopping are influenced by advertisement.

90

15. Features making a difference from branded fashion and non-branded fashions in the

respondents point of view.

90%

55%

81%90%

0

20

40

60

80

100

Reliable Quality Durable Service

Feature of Brands

Features of Brands

Chart 4.15

Influence of Advertisement

Reliable Quality Durable Service Total

90 55 81 90 100

90% 55% 81% 90%

Table 4.15

Interpretation: -

Most of customers are interested in service, Durable as well as reliability. They like to have a

combined factor.

90 % of the customer believes that branded fashion will be reliable and durable. Same times they

assessing that they get good customer service also.

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CHAPTER – 5

[

Findings

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After undergoing detail study of the market, we found that the advertisement and sales

promotional activities of Brands is having much impact in the present market scenario,

people mainly concentrating on the quality and price of the merchandise, with respect to

the quality of merchandise and some of the people are effectively influenced by the

advertising and marketing activities of companies/ Brands.

Brands like ZARA, MANGO, NEXT, JACQUELINE RIU, PROMOD has created a lot of

brand awareness in the market and is successfully received the results.

Branded Fashions have created awareness in youth segments mayoral and geographically

also restricted itself to cities and towns.

In the Saudi Retail Market Al Hokair, Al Sawani, Savola Group, Al Shaya is having high

market share and good brand image because it is the oldest product in the market.

Most of the customers were insisting on quality same time they were interested in Price of

the products as well

It is clear that all the players in the Retail Fashion industry are giving more importance for

the advertisements and promotional activities

Majority of the respondent do not stick or are loyal to particular One Brand. But they are

frequently changing their brand.

Almost all the customers are aware of promotions made by these fashion brands especially

Discount offers.

It’s a common phenomenon found that most of the customers visit malls every week.

Customers are more focused on Service rather than price or even quality. Majority of the

customers are looking for Good Service from the outlet they are shopping

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Suggestions

By this study it can be concluded that the Fashion Brands are doing considerably well in

the market and the customers are aware of the branded Fashion merchandise.

Through the effective advertisements / promotional activities alone innovative strategy

implementation in the market.

The company should take into consideration the findings and recommendations given in

the project and try to improvise on it and grow in continuing for the market leader and

become the best.

Retail Brands should focus more on Marketing, Pricing & Customer Service.

Customers are influenced by marketing done by brands and they need Quality and Good

Service

This project which was undertaken for the study of effective marketing retail women fashion has a

great experience for me. This provided me an opportunity to understand corporate world and the

market in Saudi Arabia. I had an exposure to the external environment, which is very different

from our theoretical prospective and studies.

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Conclusions

To conclude with, I should say that the project enlightened me with each and every aspect

of the Retail Market details.

By using this study as a preliminary base, any brand management can review their existing

marketing and brand building activities.

Brand Marketing, Image building, Product Pricing, Good Customer service should be given

maximum attention.

Customers prefer SMS, this is good opportunity to communicate to customers regarding

New Stock launching, Brand Promotions, Discounts,...

Companies should given sufficient focus on Quality of the merchandise they are selling.

Most of the respondents watch television regularly, so companies can use it as effective

media for brand building.

I hope that the efforts made by me to formulate the strategies and approaches will surely

benefit the growth of Advertising and promotional activities of Retail Brands with holding

the maximum market share of the international fashion brand users.

APPENDIX

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Questionnaire

Dear Sir/ Madam,

I am Nassar Jalaluddin, student of 4th semester MBA, Sikkim Manipal University, Doing a market

Research on “Study On need of effective Marketing strategies performed by Retail Fashion Brands

in Saudi Arabia”.

1. Demography of respondents

Customer □ Business Men □ Sales Persons □ Others □

2. How do you select the Brands based on the attributes?

Quality □ Price □

3. Mention any advertisement which made a real difference in your Brand preference.

Yes □ No □

4. Awareness of the different Ladies Fashion Brands

Zara, Mango, Next, Promod, Espirit, Etam, Wallis, Evans, Jacqueline Riu

5. Are you aware of promotions made by the above brands?

Zara, Mango, Next, Promod, Espirit, Etam, Wallis, Evans, Jacqueline Riu

6. What kind of promotions are you aware of?

50 % Discount, Buy 1 Get 1 free, Gift with Purchase, Gift Coupons, Loyalty Programs

7. Which media is influencing more for brand awareness?

TV Advertisements

Banners & hoarding

Newspapers & Magazines

Internet

8. Do You Choose Only One Brand?

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Yes □ No □

9. How frequent you visit these brands? Is it every week?

Yes □ No □

10. Are you using branded cloths?

Yes □ No □

11. What are the reasons for using this particular brand for shopping?

Rate- plan □ Features □ Special offers □ Others□

12. If you are a new customer, do tell us your wants and services towards brands?

Good services □ Good Quality □ Reduced Price □

13. Which is best way to communicate with you?

Telephone □ SMS □ E-mail □

14. Do you think advertisement influence you while you do shopping?

Yes □ No □

15. Finally, what are the features making a difference from branded fashion and non-branded

fashions?

Reliable □ Quality □ Durable □ Service □

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SPECIAL CONCEPT

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New designs, concepts entering Saudi retail market

More than 2.8 million square meters in rental space is available in shopping in Saudi Arabia’s two

largest cities, Riyadh and Jeddah, according to a real estate specialist.

“Total investment in the Saudi retail sector are estimated at around SAR 220 billion or about

US$59 billion,” said Ghassan Khalifa, Vice President for Commercial division in Kinan

International for Real Estate Development, in a speech at the Retail City conference in Dubai this

week.

“The real estate development market grew to a new level over the past ten years, and the era of

normal shopping has ended and new designs and ideas have entered,” said Khalifa. “At the same

time, the population of Saudi Arabia increased by 12%, and is expected to reach 27 million by

2010.”

Kinan International for Real Estate Development was participating in the Retail City exhibition on

the sidelines of the conference as platinum sponsor. The annual Retail City conference gathers real

estate retailers for discussions on the latest developments in the sector, such as new investment

opportunities and the challenges facing workers.

Khalifa said tourist arrivals in Saudi Arabia has been increasing by 5% annually and has crossed

the 9 million mark.

“The projected increase in population and tourists is an indicator of the investment volume in the

commercial sector,” he said, noting that, “the Saudi market is expected to be oversupplied with

commercial centers by the year 2013."

"The total area available for rent in commercial centers in Saudi Arabia is estimated at 2.8 million

square meters in 2006, out of which 57% were in Riyadh and Jeddah,” Khalifa said.

“With the facilities provided by Saudi Arabia for foreign investments, contrary to earlier times,

investments in the Saudi retail sector have witnessed great diversification that led to its maturity,”

he said.

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Most investments in the retail market and commercial centers in Saudi Arabia are sited to date in

Jeddah and Riyadh; however there are several other promising and emerging cities in the

Kingdom.

Kinan International For Real Estate Development won the award for the Best Real Estate

Developer for the retail sector in the Middle East in 2005 and 2006. Founded by Savola in 2004,

the company's assets are estimated at SAR3 billion. It owns 11 commercial centers having the

most famous local and international brands, in addition to the group's Hyper Panda hypermarket

centers.

One of the company's major ongoing ventures is a mega lifestyle project in Jeddah located at the

intersection of King Abdullah Street with Al-Andalus Street. The multi-purpose project consists of

two towers, one for offices and the other for residential purposes. In addition the project has

hanging gardens and a shopping center.

This is in addition to Al Basateen housing project in Yanbu Alsinaiyah, which consists of 240

housing units, plus a commercial and residential project worth SAR1.5 billion (US$400 million) in

Dammam.

Market Segments

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Urban Rich

Urban and Sub Urban Upper Middle and Middle Class

Rural Poor

Socio Economic Clusters

A B C D E

Income High Income Upper Middle Level Income

Mid Level Income

Lower Middle Income

Low Income

Education High Level of Education

Educated Slightly Less than Cluster A

Educated Slightly Less than Cluster B

Educated Slightly Less than Cluster C

Very Low Level of Literacy

Socio Economic Cluster Segmentation

In all retail organisations, identifying the right market segment is very important factor.

Companies Sales strategy is must be formulated based on market segmentation.

1. Identifying the right market

2. Segmenting the market according to the product companies is dealing with.

3. Finally marketing / advertisement must be focused on the particular segment.

Changing nature of fashion

One of the key risk features in the fashion retail business is its constantly changing nature. The

designs, which are widely accepted in one season, might be outdated in the next season. This

entails close understanding of the fashion sense of people. Due to this changing nature, one of the

biggest challenges faced by the fashion retailers is to sell its products. Redundant stock at planned

levels ties up capital and affects the potential growth of the business. Retailers have to remain

committed over the years to sell merchandise within the season it is purchased.

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Another market risk is the launch of a new concept/product, which is generally characterised by

relatively high start-up costs. The success of new products introduced depends on the ability to

anticipate the tastes and habits of consumers and to offer brands that appeal to their preferences.

However, there are possibilities that some brands may not perform up to the expectations or sales

may decline over a number of years, due to competitive activity or lack of partner support. This

poses a significant risk for the franchisee given the fact that they have invested in the brand. 

The key success factors in the market include the ability to bring new brands into Saudi Arabia and

to open the stores in strategic locations, and in particular the new upscale malls. Some big brands

like Gap, M&S and banana republic still have a long way to go with growth in the Saudi market,

which should be reflected in performance in the coming years. The local franchise partners also

continue to develop their infrastructure in terms of management, logistics and technology. In view

of the macro-economic trends, we can expect the market to continue to grow rapidly, though with

greater divergence between the placing of the high end and low end brands, and growth in the

middle.

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103

GLOSSARY

Marketing: “marketing is a social and managerial process by which individuals and groups obtain

what they need and want through creating, offering and exchanging products of value with others.”

Corporate strategy: Approach to future that involves examination of the current and anticipated

factors associated with customers and competitors (external environment) and the firm itself

(internal environment).

SWOT analysis: Situation analysis in which internal strengths and weaknesses of an organization,

and external opportunities and threats faced by it are closely examined to chart a strategy.

Situation analysis: The evaluation of strengths, weaknesses, opportunities, and threats affecting

the organization.

Marketing concept: The concept that by being more effective than competitors in advertising and

delivery of goods, that an increased market share can be obtained.

Marketing opportunity: An area in which a company can operate profitably.

Marketing mix: The marketing tools employed to achieve marketing objectives.

Marketing strategies: Sets forth specific tasks that will achieve the objectives of the marketing

plan.

Primary sources

· Focus groups; Surveys; Market observations; Interviews; Experiments

Secondary sources

· Internal reports

· External reports (Internet, libraries, universities, etc.)

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Share of market: The percentage of a target market that a company controls.

Brand competitor: A competitor who offers similar products to the same customers at similar

prices.

Industry competitor: A competitor who offers products in the same class, regardless of price.

Selecting target markets

Mass marketing: The mass production, mass distribution, and mass promotion of a product to all

buyers.

Segment marketing: The production, distribution, and promotion of products to groups of buyers

in a market.

Niche marketing: Entails marketing to a narrow field of consumers whose needs are viewed as

unsatisfied.

Local marketing: The selection of a relatively small geographical area to promote and distribute

products and services.

Individual marketing: The one-to-one selling of customized products, tailored to meet the needs

of individuals.

Patterns of market segmentation

Homogenous preferences: A market segment where all of the consumers share similar references.

Diffused preferences: A market segment characterized by consumers who share few preferences

Clustered preferences: A market where groups therein exhibit various homogenous preferences.

· Also known as natural marketing segments.

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Stages of market segment identification

1. Survey stage

2. Analysis stage

3. Profiling stage

Bases for market segmentation

Geographic: The division of markets into regions, such as nations, states, and cities.

Demographic: The division of markets into groups based upon societal factors.

· Age

· Gender

· Income

· Generation

· Social class

Psychographic: The division of markets based upon how they live.

Specialized industry: An industry where competitors face many opportunities, many of which

have potentially significant gains.

Competitive differentiation: The designing of a set of substantive differences in one’s product to

make it more appealing to discriminating consumers.

Features: Characteristics that augment a product’s basic function.

Performance quality: The level at which a product operates in comparison to the competition.

Conformance quality: The degree to which products meet stated qualitative levels of

performance.

Durability: Describes a product’s life-span in comparison with others’.

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Reliability: The measure of probability that a product will not malfunction within a specific time.

Style: Describes the products look and feel to the consumer.

Design: The specifications of the products construction.

Product classes

Durability

· Nondurable goods: Goods that are sold to be consumed.

· Durable goods: Tangible goods that are designed to survive repeated usage.

· Services: Intangible, variable, and perishable performed functions.

Pricing strategy

Selection of pricing objective Determination of demand Estimating costs

Analysis of competing prices Selection of pricing method Determination

of price

Promotion: The creation and presentation of advertising designed to make potential customers

aware of products.

Advertising: Any form of paid promotion of ideas, goods, or services.

Informative advertising: Designed to acquaint a market with a product, particularly a new one.

Persuasive advertising: Designed to convince consumers to select a particular brand or product

over that of a competitor’s.

Reminder advertising: Designed to keep mature products in the consumers’ minds.

Sales promotion: A diverse set of short -term incentives to encourage consumers to visit retail

locations and purchase merchandise.

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Market differentiation

· Promotion effectiveness

· Product quality

· Corporate image

· Brand awareness

Functional tactics in strategic marketing

Product/service strategy

· Promotion of flagship products

· Capitalizing on the most profitable products

· Selection of the most effective product/service image

· Promoting the product/service as needs-satisfying

Pricing strategy

· Identifying price-competition intensity

· Selection of appropriate rebates/discounts

· Pricing commodities commensurately with local standards

· Determining gross profit margins

Location Strategy

· Selection of geographic target market

· Positioning optimally for consumers and distributors

· Organizing sales force to target key geographic sub-areas

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Promotion Strategy

· Selecting the most effective advertising channel

· Identifying media that best support strategic plans

Summary reports: Provide management with averages, totals, key data, and abstracts of

organizational activities.

Random sample: A sampling done in such a way that each element has an equal chance of

selection.

Standard error: Statistic indicating the accuracy of an estimate.

Ratio scale: The ordering of data elements by relative comparison.

Gross Domestic Product (GDP): The value of all goods and services produced by an economy.

Market structure: Defined features of a particular market.

International business: Business with operations that span across national borders.

Franchising: A contractual agreement that allows a foreign company to operate a business under

strict the rules and controls of a franchising entity.

Market screening: A market selection technique that involves assessing environmental factors

and eliminating the less desirable markets.

Environmental scanning: A procedure whereby an organization searches the world for

environmental changes that might affect operations.

Market indicators: Economic data that is used to make comparative analyses of market strengths

and weaknesses.

Market factors: Economic data that directly correlates with product demand.

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1. http://www.google.com

2. http://www.savola.com

3. http://www.alshaya.com

4. http://www.alhokair.com

5. http://www.alsawani.com

6. http://www.anwal.com

7. http://www. arabnews.com

8. http://www.saudigezzette.com

9. http://www. Reportlinker.com

10. http://en.wikipedia.org

11. www.businessdictionary.com

12. http://www.the-saudi.net

13. www.timemagazine.com/us/business

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Books

a. Philip Kotler - Marketing Management

b. Kothari - Research Methodology (Himalaya Publication, April 2004 edition-13)

c. O.P Kanna - Marketing Management, S.P Publication, New Delhi.

d. Narasimha - Retail Marketing

e. Kelly Vinal - Fort Bragg, NC. (He teaches management sciences at Campbell

University and at the Central Texas College extension on Fort Bragg.)

111