In 1970, Oman had 10 miles of paved road, no organized educational or health care system, and its fledgling oil economy was faltering. Sultan Qaboos Bin Said took the throne at the turn of the decade, and was faced with a looming economic dilemma: diversify or begin to witness the decline and decay of a once oil-rich Middle East economic power. Part of this dilemma also included major issues with Islamic traditions. Bin Said recognized that he had to incorporate every member of his society, even if it meant going against what his culture had traditionally done. He knew that by incorporating this one factor, potentially even a major competitive advantage, he could gain ground on neighboring nations and their quickly diversifying economic planes.
Bin Said began to introduce women as his front-runners to lead his economic overhaul and expansion.
Fast forward to present day, and the 3.5 million citizens share an enviable prosperity, women have training and career opportunities equal to men, traditional culture and Muslim religious practices are honored, and international differences are respected. Better yet, bin Said has chosen a woman to head the new Ministry of Tourism - Oman's new economic powerhouse.
I am beginning to notice a trend after my latest research into Oman. I am finally beginning to understand, from a culmination of my international business courses (a majority of which coming from my research on the Middle East), intercultural communication training, and overseas experience, that globalization has nearly reached its peak in world affairs. This globalizing trend, comprised of a migration of ideas, individuals, education, language and commerce are affecting every area of our small world. From Rwanda to Oman to Siberia to Abu Dhabi, billions upon billions of the earth's citizens are becoming more and more dependant on one another. The trend, however, that I am noticing is a combination of the keen competitive advantage factor and the assimilation of cultural differences across international borders. Individuals in every reach of society are slowly, but surely, beginning to realize the importance of incorporating the world's accepted ideas and perspectives with expansion within their own societies, traditional cultures, businesses and governments. In order to be accepted, and at least considered, by the international community, an entity such as a government or a corporation must adapt, reformat and include. It is inevitable that the world will only continue to become smaller, flatter (term keyed by Thomas Freidman) and more accessible by a majority of its inhabitants.
The nations of the "Other Middle East" have recognized this trend, and jumped on before it has gotten too late. Other nations, such as Saudi Arabia, have held on firmly to their roots, specifically religious traditions. They are a very conservative nation, barely allowing women to enter the general work force. This has not only unfortunately tarnished their international image by not treating every member of society as equals, but forbade many multinational companies from penetrating this market, thus preventing many potentially lucrative investment opportunities.
We individuals who have been exposed to this international community, worked with "foreigners," witnessed the differences, begun to accept them and adapt to them understand that as other nations will not allow certain things, we likewise have to be wary of upsetting or offending them with our apathy and ignorance. As universal understanding becomes more prevalent, differences will become more relevant and noticeable, but I feel that with such channels and resources like the Internet, we will witness a general acceptance by a majority of individuals in our world. Wars are inevitable, and some people will never emerge from their "bubbles," but that is another story. This may happen many decades, or centuries into the future, but we are truly witnessing the one of the largest transitions of global understanding in history.
With that tangent tackled and off of my mind, I would like to re-introduce Oman in all of it's glitz an glamor. Virtually every ambitious Omani has gone abroad to study, work and live, only to return to their homeland with a better understanding of the world, its cultures and exactly what people want. With Oman's oil reserves virtually tapped, their tourism industry is on the rise, and is their dominant economic sector. Historic Muscat, the nation's capital, is bustling with visitors from every reach of the globe. Europeans are attracted to the grandeur of the capital's castles, only to rest their heads in one of the 2 dozen 5 star hotels.
Just as bin Rashid Maktoum did in Dubai, bin Said has realized the tremendous economic potential by basing his national economy on the justice and principles of a free economy. Bin Said has done such a tremendous job in transforming the face of his nation's economic stance. He began in 1970, introduced a basic 5-year plan to introduce new facets of the economy. Then in 1995, he held a conference titled "Vision Conference: Oman 2020." This 25 year plan outlined his economic goals for Oman, including the reshaping of the role of the government in the economy, the broadening of private sector participation, diversification of the economic base and sources of income, and to ultimately globalize the Omani economy as much as possible. He even posted a 15% raise in worker's salaries, placing Oman in the category of high-medium income countries of the world. It is tremendous economic plans and historic transformations such as this that nations across the world are in dire need of. As risky as they may be, they are almost necessary to keep up with and compete with today's global economies.
In the coming decades, we will certainly witness a shift in economic power, mainly (middle) East, and far East. Oman is a prime example of a successful step, one which has the next 12 years of its economic life planed out and molded perfectly for economic success.
Monday, February 25, 2008
Dubai World: An International "Dubai-ification"
Dubai World. When I was first introduced to this company by professor Nik Dholakia, I imagined something along the lines of Disney World, or simply another out-of-this-world, multi-billion dollar tourist attraction in the heart of the U.A.E. that would take me a few minutes to truly grasp and visualize. To my astonishment, Dubai World is just the opposite. It is an investment firm that manages and supervises a portfolio of businesses and projects for the Dubai Government across a wide range of industrial segments and projects that promote Dubai "Free Trade Zone" as a hub for commerce and trading. It was established by the Vice President & Prime Minister of UAE and Ruler of Dubai himself, his highness, Sheikh Mohammed bin Rashid Al Maktoum in March, 2006. Just a few months later in July, it was officially launched as a holding company with more than 50,000 employees in over 100 cities around the globe. The companies managed by Dubai World include DP World, the world's third largest port operator, Jafza, Nakheel, Dubai Drydocks, Limitless, among many others international firms. It also has extensive real estate investments in the US, the UK and South Africa.
Dubai World has now entered a new and very challenging market: Djibouti, a small East African country that boasts high rates of poverty, unemployment and a tortured and scared countryside. The nation has witnessed horrific suppression from cutthroat Somali military dictators from the neighboring war-torn nation of Somalia. It sits directly on the Southern tip of the Red Sea, with Yemen just a few miles across the busy straight separating Africa from the Middle Eastern peninsula. Not many individuals have ever heard of this small nation of under half a million inhabitants, but when Sultan Ahmed bin Sulayem, co-founder and chairman of Dubai World came witnessed its prime location and great economic potential, he made a move. Not many investors would make the plunge into a nation plagued with poverty and military and political uncertainty, but Dubaians see the greatest challenges and risks offering the largest potential economic return.
Sulayem looks at a large prehistoric, desolate salt lake over an hours drive from electricity and fresh water and envisions a luxury resort, complete with hotels and a golf course. He relates Djibouti to Dubai just 30 years ago; a city of sand, poverty and uncertainty. Many look to Sulayem as a genius venture capitalist, heading the operations of one of the fastest growing and most successful holding companies the world has ever witnessed. Others see him as a genuine bringer of good-will, and certainly good fortune, transforming cities once considered doomed and untouchable by the outside world into high class luxury centers of bustling commerce and tourism. His vision is unique, so say the least, and his ventures even more unprecedented, but the reality is that Dubai World has hit more than enough goldmines. He imagines that virtually any city, under any circumstances, has the potential for greatness, with a few billion dollars of investment capital of course.
Djibouti is just one of the latest examples of his venture and vision for rebuilding an entire city and transforming a nation's economy. This is just a snapshot of the current holdings and major investment projects underway by Dubai World:
Dubai World has now entered a new and very challenging market: Djibouti, a small East African country that boasts high rates of poverty, unemployment and a tortured and scared countryside. The nation has witnessed horrific suppression from cutthroat Somali military dictators from the neighboring war-torn nation of Somalia. It sits directly on the Southern tip of the Red Sea, with Yemen just a few miles across the busy straight separating Africa from the Middle Eastern peninsula. Not many individuals have ever heard of this small nation of under half a million inhabitants, but when Sultan Ahmed bin Sulayem, co-founder and chairman of Dubai World came witnessed its prime location and great economic potential, he made a move. Not many investors would make the plunge into a nation plagued with poverty and military and political uncertainty, but Dubaians see the greatest challenges and risks offering the largest potential economic return.
Sulayem looks at a large prehistoric, desolate salt lake over an hours drive from electricity and fresh water and envisions a luxury resort, complete with hotels and a golf course. He relates Djibouti to Dubai just 30 years ago; a city of sand, poverty and uncertainty. Many look to Sulayem as a genius venture capitalist, heading the operations of one of the fastest growing and most successful holding companies the world has ever witnessed. Others see him as a genuine bringer of good-will, and certainly good fortune, transforming cities once considered doomed and untouchable by the outside world into high class luxury centers of bustling commerce and tourism. His vision is unique, so say the least, and his ventures even more unprecedented, but the reality is that Dubai World has hit more than enough goldmines. He imagines that virtually any city, under any circumstances, has the potential for greatness, with a few billion dollars of investment capital of course.
Djibouti is just one of the latest examples of his venture and vision for rebuilding an entire city and transforming a nation's economy. This is just a snapshot of the current holdings and major investment projects underway by Dubai World:
Sunday, February 17, 2008
Attack of the SWFs
Some business journalists are having a field day writing about SWFs -- they cheekily get the attention of readers by throwing in this abbreviation and then go on to explain that, no, they are not talking about Single While Females looking for dates. Rather, they are talking about Sovereign Wealth Funds.
Yes, the SWFs of the second type, especially from the Middle East, are on a strident march.
From the perspective of this blog, it is interesting to note that some of the biggest Sovereign Wealth Funds are based in what we are calling "The Other Middle East". The grand-daddy of SWFs is the one from Abu Dhabi, whose asset base is approaching $1 trillion.
In late 2007 and early 2008, Sovereign Wealth Funds pumped in money to buy stakes in Citigroup, Merrill Lynch, Morgan Stanley, and UBS. Nearly $60 billion flowed to troubled Wall Street banks, mostly from SWFs in the Middle East and Asia. Citigroup alone got a money injection of $7.5 billion investment from the Abu Dhabi Investment Authority, the world's richest sovereign fund.
Qatar is also on the move.
Qatar's state-controlled fund is accumulating shares in Credit Suisse. Qatar plans to spend $15 billion on European and U.S. bank stocks during 2008-2009.
With a population of less than 1 million, Qatar owns the world's third-biggest natural gas reserves and 1.3 percent of global crude oil-reserves, generating surpluses for investment by the investment authority. Qatar's state investment fund managed $60 billion in early 2008.
Sheikh Hamad bin Jasim bin Jaber al-Thani, Prime Minister of Qatar, also serves as the CEO of the Qatar Investment Authority. At a conference in Washington DC in February 2008, Sheikh Hamad also indicated some strategic diversification plans for Qatar Investment Authority. Qatar is creating funds of a $1 billion each in Finland and Malaysia, and Indonesia is next on the anvil. In this way, Qatar will have strong local access to investment opportunities in the EU and ASEAN.
Because of growing political concerns, especially in the United States where military and homeland security issues are often on front burners, officials from "the Other Middle East", such as Sheikh Hamad, seem to be on a diplomatic overdrive to reassure the U.S. that these investments are coming from Middle East countries that are friendly to the U.S., and that there are no intentions to grab control of strategic U.S. business entities. They also point out, quite rightly, that for decades U.S. firms have been investing in these countries.
Now, perhaps it is time for the SWFs to stalk the SWMs - Strapped Western Multinationals!
Nik Dholakia
Professor
University of Rhode Island
Yes, the SWFs of the second type, especially from the Middle East, are on a strident march.
From the perspective of this blog, it is interesting to note that some of the biggest Sovereign Wealth Funds are based in what we are calling "The Other Middle East". The grand-daddy of SWFs is the one from Abu Dhabi, whose asset base is approaching $1 trillion.
In late 2007 and early 2008, Sovereign Wealth Funds pumped in money to buy stakes in Citigroup, Merrill Lynch, Morgan Stanley, and UBS. Nearly $60 billion flowed to troubled Wall Street banks, mostly from SWFs in the Middle East and Asia. Citigroup alone got a money injection of $7.5 billion investment from the Abu Dhabi Investment Authority, the world's richest sovereign fund.
Qatar is also on the move.
Qatar's state-controlled fund is accumulating shares in Credit Suisse. Qatar plans to spend $15 billion on European and U.S. bank stocks during 2008-2009.
With a population of less than 1 million, Qatar owns the world's third-biggest natural gas reserves and 1.3 percent of global crude oil-reserves, generating surpluses for investment by the investment authority. Qatar's state investment fund managed $60 billion in early 2008.
Sheikh Hamad bin Jasim bin Jaber al-Thani, Prime Minister of Qatar, also serves as the CEO of the Qatar Investment Authority. At a conference in Washington DC in February 2008, Sheikh Hamad also indicated some strategic diversification plans for Qatar Investment Authority. Qatar is creating funds of a $1 billion each in Finland and Malaysia, and Indonesia is next on the anvil. In this way, Qatar will have strong local access to investment opportunities in the EU and ASEAN.
Because of growing political concerns, especially in the United States where military and homeland security issues are often on front burners, officials from "the Other Middle East", such as Sheikh Hamad, seem to be on a diplomatic overdrive to reassure the U.S. that these investments are coming from Middle East countries that are friendly to the U.S., and that there are no intentions to grab control of strategic U.S. business entities. They also point out, quite rightly, that for decades U.S. firms have been investing in these countries.
Now, perhaps it is time for the SWFs to stalk the SWMs - Strapped Western Multinationals!
Nik Dholakia
Professor
University of Rhode Island
Wednesday, February 13, 2008
Is Qatar the Next Dubai?
In Doha, the capital of Qatar, hundreds of cranes peak the skyline. To some, views of the city may even be mistaken with the skyline of Dubai City. This seems to be the theme on the East Coast of the Arabian Peninsula, but why? The race to become the largest, most recognized economic city in the world is most certainly on. With only 7-8% of this region's economy funding rapid construction and historic economic growth, where is the rest coming from? When I search for new and interesting articles and sources on Middle Eastern economic expansion, I continue to stumble upon record growth in the tourism industry. It seems as if every major city in the region is frantically building up, towards the sky, with high hopes of attracting the world's most affluent. It is working quite well, with the largest concentration of 5 (and beyond) star hotels in the world, the world's wealthiest with seemingly bottomless wallets and a keen craving for luxury are arriving in droves.
But what can cities such as Kuwait City, Doha and Dubai create, innovate or build to set them apart from each other? In today's globalizing world, the tourism industry is becoming one of the most aggressive. Shifting demographics are giving rise to a greater distribution of wealth and disposable income. Coupled with pressure from the international community, cities, not just companies, require a unique competitive advantage to attract the best of the best.
Cities all around the globe certainly have their own distinct symbols that tourists and traveling business people alike can recognize in an instant. New York City has the Statue of LIberty, Rome the Colloseum, Paris the Eiffel Tower and Sydney the Opera House. These are all historical landmarks that have been around for ages, but cities in the Middle East are essentially "new." They must create symbols that the international community will learn to recognize, and associate with pristine fame and fortune. In Dubai, the unofficial symbol is the Burj al Arab; the 7 star hotel shaped to resemble the sail of a dhow. Doha has their own unique "symbol" as well. The Pearl, a $2.5 billion, 985-acre artificial island loaded with five-star hotels, two million square feet of high-end shopping is currently under construction. It will attract more than 1 million visitors per year upon completion.
Dubai is certainly shooting for the recognition of the world's pemeir tourist destination, but it will face some serious competition from Doha in the next few years. With a population of 400,000 and investment reaching into the tens of billions, the city has significant room to grow. It seems as if Qatar is mirroring the growth of the UAE, implementing every idea of new construction, attraction and super structure in from Dubai in their city of Doha. Qatar Airlines, a 5 star, first class airline, is experiencing incredible growth in the international marketplace, on par with Emirates Airlines. Will projects such as the Pearl be enough to attract some potential out of towners to Qatar instead of the UAE? Only time will tell. More on Qatar (pronounced CUT-er) and photos in the near future.
-KD
But what can cities such as Kuwait City, Doha and Dubai create, innovate or build to set them apart from each other? In today's globalizing world, the tourism industry is becoming one of the most aggressive. Shifting demographics are giving rise to a greater distribution of wealth and disposable income. Coupled with pressure from the international community, cities, not just companies, require a unique competitive advantage to attract the best of the best.
Cities all around the globe certainly have their own distinct symbols that tourists and traveling business people alike can recognize in an instant. New York City has the Statue of LIberty, Rome the Colloseum, Paris the Eiffel Tower and Sydney the Opera House. These are all historical landmarks that have been around for ages, but cities in the Middle East are essentially "new." They must create symbols that the international community will learn to recognize, and associate with pristine fame and fortune. In Dubai, the unofficial symbol is the Burj al Arab; the 7 star hotel shaped to resemble the sail of a dhow. Doha has their own unique "symbol" as well. The Pearl, a $2.5 billion, 985-acre artificial island loaded with five-star hotels, two million square feet of high-end shopping is currently under construction. It will attract more than 1 million visitors per year upon completion.
Dubai is certainly shooting for the recognition of the world's pemeir tourist destination, but it will face some serious competition from Doha in the next few years. With a population of 400,000 and investment reaching into the tens of billions, the city has significant room to grow. It seems as if Qatar is mirroring the growth of the UAE, implementing every idea of new construction, attraction and super structure in from Dubai in their city of Doha. Qatar Airlines, a 5 star, first class airline, is experiencing incredible growth in the international marketplace, on par with Emirates Airlines. Will projects such as the Pearl be enough to attract some potential out of towners to Qatar instead of the UAE? Only time will tell. More on Qatar (pronounced CUT-er) and photos in the near future.
-KD
Sunday, February 3, 2008
Today's Show Is Brought To You By The Number 5 - For A Cost Of $6.8 Million
I had to refrain from doing it again, but I almost started this post with the opening "imagine." Now that I think of it, every aspect of "The Other Middle East" is seemingly unimaginable, so unreal that we have to sit back, close our eyes, and picture a world unlike any other we have ever witnessed. I suppose the only way to truly appreciate the prestige of a city such as Dubai, is to experience it first hand. Sometimes I cannot beleive everything that I discover about this region, the construction, the international influence and the plans that are sure to build this part of the world up to become the most attractive destination for business and leisure seeking travelers alike. I will begin to post more photographs and videos to deliver yourself just a bit closer to the "real" experience, because half of what I post probably seems overly embellished anyways...
Enough dreaming, but will you please just "imagine" yourself at an auction in the heart of Dubai City. This isn't an ordinary auction; there are dozens of incredibly successful businessmen bidding on numbers. Yes numbers. The lower the number, the higher the bid. If the number may fall into the double digits, or even single digits, prepare yourself for a heated battle ending with the winning bidder shelling out as much money Tiger Woods makes in one year of his professional career. What exactly are these men bidding on? Vanity license plates.
The video will explain everything, but I wanted to prepare you for the shocked reaction that is sure to ensue. The brief interview follows an incredibly wealthy stock broker in Dubai, bidding on a vanity license plate for his new Rolls Royce. I wont spoil the outcome, so here's the link:
Vanity Plate Auction
Now that you have hopefully viewed the video, you can begin to realize the scope of the wealth within the UAE. It is not just from big oil executives, because only 6% of the UAE's revenue is derived from fossil fuels. Hard working, high class citizens such as this stock broker are running the city, and it seems as if Dubai will soon turn into the new Hong Kong, or NYC, or Singapore.
On a side note, I cannot imagine what it must be like to drive around the city of Dubai, and how many 6 and 7 figure cars you would see. The only image that I can draw up in my mind is driving down the new strip in Las Vegas, only on steroids. Only this is what every major road in Dubai would look like.
-KD
Enough dreaming, but will you please just "imagine" yourself at an auction in the heart of Dubai City. This isn't an ordinary auction; there are dozens of incredibly successful businessmen bidding on numbers. Yes numbers. The lower the number, the higher the bid. If the number may fall into the double digits, or even single digits, prepare yourself for a heated battle ending with the winning bidder shelling out as much money Tiger Woods makes in one year of his professional career. What exactly are these men bidding on? Vanity license plates.
The video will explain everything, but I wanted to prepare you for the shocked reaction that is sure to ensue. The brief interview follows an incredibly wealthy stock broker in Dubai, bidding on a vanity license plate for his new Rolls Royce. I wont spoil the outcome, so here's the link:
Vanity Plate Auction
Now that you have hopefully viewed the video, you can begin to realize the scope of the wealth within the UAE. It is not just from big oil executives, because only 6% of the UAE's revenue is derived from fossil fuels. Hard working, high class citizens such as this stock broker are running the city, and it seems as if Dubai will soon turn into the new Hong Kong, or NYC, or Singapore.
On a side note, I cannot imagine what it must be like to drive around the city of Dubai, and how many 6 and 7 figure cars you would see. The only image that I can draw up in my mind is driving down the new strip in Las Vegas, only on steroids. Only this is what every major road in Dubai would look like.
-KD
Saturday, February 2, 2008
Emirates Airlines
"Know you before they trust you, trust you before they fly you."
This was the sales pitch to Emirates Airline executives used by Bob Minihan of ISM Travel Lifestyle Marketing. Imagine one of the most premier luxury business class airliners, Emirates Airlines in the world attempting to penetrate an entirely new market. Imagine this market being the United States of America, the largest economical power in the world. Imagine the date of the planned marketing push: March 1st, 2002; just 6 months after 9/11/2001.
As an airline based in the United Arab Emirates, and its international hub being the bustling, booming city of Dubai, Emirates had a lot going for it during the summer of 2001. It enjoyed a 95% booking rate on all of its major international flights out of Dubai. Its customer service was ranked among the best in the world and its airlines were rated 5 star ultra luxury. They were one of the most desired airline to fly on by the most prestigous businesspeople in the world, and they were the fastest growing airline in the Middle East. Then 19 men from the Middle East hijacked 4 airplanes and created one of the most unfortunate and tragic days in the United States history.
Emirates Airlines had no idea how to enter the US market at this point. This is when they turned to Boston's top marketing agency, ISM, to prepare them for penetration in the US, and most importantly convince American citizens that this airline was 100% safe, reliable and unique.
I had the pleasure of attending a presentation at an American Marketing Association meeting in Providence two nights ago. Bob Minihan represented his company, and made a truly fascinating presentation on repositioning Emirates Airlines and marketing them in America post-9/11. He gave us a brief background on his company, and the other accounts they have, such as Four Seasons Hotels. He is a photographer, which made for some incredible shots of him and his team in Dubai on their multiple visits for photo shoots and meetings with Emirates executives. He had absolutely no prior knowledge of UAE or Dubai for that matter, and I found his perspective on his first experiences very interesting. He discussed the tremendous urban development, such as the Palm Islands, the Burj al Arab and the Burj Dubai, the 7 star hotel that he had the fortunate opportunity to stay in. Bob mentioned how congested the streets of Dubai were; that they had not planned an efficient transportation infrastructure during the the construction boom, and that it often took over one and a half hours to get from one end of the city to the other. He enjoyed his tour guides, and sticking to true Middle Eastern tradition, he and his crew were chauffeured around the city, exposed to all of the major sights and sounds, and experienced the lifestyle of pampered tourists days before the actual business negotiations took place.
The nightlife was incredible, and he had the opportunity to speak with many locals concerning their perspective on America, and American commerce. He found that "Dubaians" have issues with America, but not with Americans. He was well received, and treated with tremendous respect. He also noted that shopping in Dubai is a national hobby. He attended the Dubai Shopping Festival at 11PM one evening, and noted that everything and everyone was entirely in order. He attributed this conduct to the fact that not many people drink in Dubai. There were no shortages of incrediblly state of the art bars, but most of the dominant religions in the city, Islam and Hindu, forbid the use of alcoholic beverages. Bob had a successful meeting with the executive at Emirates, and returned to the states with a multi million dollar account, and the most grueling marketing project he had ever taken charge of.
ISM's plan was to begin their marketing push by holding a handful of focus groups in New York City. The participants were all businesspeople, who generally fly business class on international flights. Bob showed us clips from one of the focus groups, and it was evident that there was significant distrust, fear and uncertainty among the participants concerning an "Arabic airline." They asked, "how do I know who is flying the plane?" and "why would I chose an airline from the Middle East where the 9/11 terrorists came from when I can chose an Asian or a European carrier?" All of these were valid questions, but some statements were more intense, including, "I refuse to fly on Emirates because I would feel as if everyone working on the plane is a terrorist." It was apperent that New Yorkers posessed a lot of hatred, and mainly fear cocnerning anything Middle East-oriented, and the they had a lot of difficult work to do. Emirates main focus was initiating non-stop service from NYC to Dubai, posing an even more difficult obstacle, getting through to New Yorkers who just witnessed, many first hand, the attacks just 6 months ago. How could they convince Americans to fly on Emirates?
I am currently in contact with Bob Minihan, and will soon be posting some of the incredible Emirates advertisements used post 9/11 in America during this marketing campaign. It was unfortunate that Bob and his marketing team had to work so hard to reposition such a wonderful company in America, but the circumstances were understandable. Their first ad campanigns included showing the pilots of Emirates Airlines walking around New York City. The pilots represent over 90 nationalities, with a majority being highly experienced veterans from British Airways. Bob flew one pilot, an Australian who flew with British for 26 years, to New York for a photo shoot. This was the beginning of the campaign, and a healthy start to penetrating New York City. Another idea was to show the multinational/multilingual crew of Emirates in other ads. They showed photographs of two beautiful flight attendents onboard an Emirates flight, both originally from California, in another ad. These ads would answer the question "who is flying this plane?" and "who is working to make my flight the best possible experience?"
The campaign was turning into more of an educational repositioning of the brand. ISM quickly began to saturate the New York market with images and phrases of Emirates Airlines. Emirates felt that it was time to initiate their non-stop service from NYC, and opened 5 daily flights between NYC and Dubai soon thereafter. ISM bought out Grand Central Station for one entire month, and New Yorkers were bombarded with over 3000 different ads for the airlines. One month later, the nonstop service out of New York was flying with over 90% booked capacity.
Emirates is now the fastest growing airline in the world, and when interviewed, 99% of first time flyers said that they would fly again. Emirates now flies non stop out of Toronto, Canada and Houston. They are planning a non stop out of LAX in the next few months. They just made a purchase of 50 Airbus A380s a few months ago, and will boast the world's largest fleet of this superjet. The next closest airline with the most A380's is Singapore, with 2. Emirates will be the first airline to bring the A380 to America this fall.
Bob and his team did a successful job of repositioning Emirates, and letting America know that Emirates is "not an Arab airline, but an international airline based in the Middle East." Bob is proactively working on the American Emirates account, but his work greatly influences other international marketing agencies that create campaigns for Emirates as well. In fact, the local Dubai marketing campaign recently boasted a 70 story high poster of the Statue of Liberty on the side of a building currently under construction promoting the non stop service from Dubai to NYC.
Other international agencies do not have any problems marketing Emirates in their countries, because 9/11 did not happen anywhere else. Americans also hold grudges and are greatly influenced by the media which generate stereotypical mentalities and are generally the origin of much racism present in the mainstream today. British citizens enjoy dozens of non stop Emirates flights every day to Dubai, as the most tourists in Dubai originate in the UK. Other nations don't have a problem with the Middle East; we do.
More on the ISM Emirates marketing campaign and images later.
-KD
This was the sales pitch to Emirates Airline executives used by Bob Minihan of ISM Travel Lifestyle Marketing. Imagine one of the most premier luxury business class airliners, Emirates Airlines in the world attempting to penetrate an entirely new market. Imagine this market being the United States of America, the largest economical power in the world. Imagine the date of the planned marketing push: March 1st, 2002; just 6 months after 9/11/2001.
As an airline based in the United Arab Emirates, and its international hub being the bustling, booming city of Dubai, Emirates had a lot going for it during the summer of 2001. It enjoyed a 95% booking rate on all of its major international flights out of Dubai. Its customer service was ranked among the best in the world and its airlines were rated 5 star ultra luxury. They were one of the most desired airline to fly on by the most prestigous businesspeople in the world, and they were the fastest growing airline in the Middle East. Then 19 men from the Middle East hijacked 4 airplanes and created one of the most unfortunate and tragic days in the United States history.
Emirates Airlines had no idea how to enter the US market at this point. This is when they turned to Boston's top marketing agency, ISM, to prepare them for penetration in the US, and most importantly convince American citizens that this airline was 100% safe, reliable and unique.
I had the pleasure of attending a presentation at an American Marketing Association meeting in Providence two nights ago. Bob Minihan represented his company, and made a truly fascinating presentation on repositioning Emirates Airlines and marketing them in America post-9/11. He gave us a brief background on his company, and the other accounts they have, such as Four Seasons Hotels. He is a photographer, which made for some incredible shots of him and his team in Dubai on their multiple visits for photo shoots and meetings with Emirates executives. He had absolutely no prior knowledge of UAE or Dubai for that matter, and I found his perspective on his first experiences very interesting. He discussed the tremendous urban development, such as the Palm Islands, the Burj al Arab and the Burj Dubai, the 7 star hotel that he had the fortunate opportunity to stay in. Bob mentioned how congested the streets of Dubai were; that they had not planned an efficient transportation infrastructure during the the construction boom, and that it often took over one and a half hours to get from one end of the city to the other. He enjoyed his tour guides, and sticking to true Middle Eastern tradition, he and his crew were chauffeured around the city, exposed to all of the major sights and sounds, and experienced the lifestyle of pampered tourists days before the actual business negotiations took place.
The nightlife was incredible, and he had the opportunity to speak with many locals concerning their perspective on America, and American commerce. He found that "Dubaians" have issues with America, but not with Americans. He was well received, and treated with tremendous respect. He also noted that shopping in Dubai is a national hobby. He attended the Dubai Shopping Festival at 11PM one evening, and noted that everything and everyone was entirely in order. He attributed this conduct to the fact that not many people drink in Dubai. There were no shortages of incrediblly state of the art bars, but most of the dominant religions in the city, Islam and Hindu, forbid the use of alcoholic beverages. Bob had a successful meeting with the executive at Emirates, and returned to the states with a multi million dollar account, and the most grueling marketing project he had ever taken charge of.
ISM's plan was to begin their marketing push by holding a handful of focus groups in New York City. The participants were all businesspeople, who generally fly business class on international flights. Bob showed us clips from one of the focus groups, and it was evident that there was significant distrust, fear and uncertainty among the participants concerning an "Arabic airline." They asked, "how do I know who is flying the plane?" and "why would I chose an airline from the Middle East where the 9/11 terrorists came from when I can chose an Asian or a European carrier?" All of these were valid questions, but some statements were more intense, including, "I refuse to fly on Emirates because I would feel as if everyone working on the plane is a terrorist." It was apperent that New Yorkers posessed a lot of hatred, and mainly fear cocnerning anything Middle East-oriented, and the they had a lot of difficult work to do. Emirates main focus was initiating non-stop service from NYC to Dubai, posing an even more difficult obstacle, getting through to New Yorkers who just witnessed, many first hand, the attacks just 6 months ago. How could they convince Americans to fly on Emirates?
I am currently in contact with Bob Minihan, and will soon be posting some of the incredible Emirates advertisements used post 9/11 in America during this marketing campaign. It was unfortunate that Bob and his marketing team had to work so hard to reposition such a wonderful company in America, but the circumstances were understandable. Their first ad campanigns included showing the pilots of Emirates Airlines walking around New York City. The pilots represent over 90 nationalities, with a majority being highly experienced veterans from British Airways. Bob flew one pilot, an Australian who flew with British for 26 years, to New York for a photo shoot. This was the beginning of the campaign, and a healthy start to penetrating New York City. Another idea was to show the multinational/multilingual crew of Emirates in other ads. They showed photographs of two beautiful flight attendents onboard an Emirates flight, both originally from California, in another ad. These ads would answer the question "who is flying this plane?" and "who is working to make my flight the best possible experience?"
The campaign was turning into more of an educational repositioning of the brand. ISM quickly began to saturate the New York market with images and phrases of Emirates Airlines. Emirates felt that it was time to initiate their non-stop service from NYC, and opened 5 daily flights between NYC and Dubai soon thereafter. ISM bought out Grand Central Station for one entire month, and New Yorkers were bombarded with over 3000 different ads for the airlines. One month later, the nonstop service out of New York was flying with over 90% booked capacity.
Emirates is now the fastest growing airline in the world, and when interviewed, 99% of first time flyers said that they would fly again. Emirates now flies non stop out of Toronto, Canada and Houston. They are planning a non stop out of LAX in the next few months. They just made a purchase of 50 Airbus A380s a few months ago, and will boast the world's largest fleet of this superjet. The next closest airline with the most A380's is Singapore, with 2. Emirates will be the first airline to bring the A380 to America this fall.
Bob and his team did a successful job of repositioning Emirates, and letting America know that Emirates is "not an Arab airline, but an international airline based in the Middle East." Bob is proactively working on the American Emirates account, but his work greatly influences other international marketing agencies that create campaigns for Emirates as well. In fact, the local Dubai marketing campaign recently boasted a 70 story high poster of the Statue of Liberty on the side of a building currently under construction promoting the non stop service from Dubai to NYC.
Other international agencies do not have any problems marketing Emirates in their countries, because 9/11 did not happen anywhere else. Americans also hold grudges and are greatly influenced by the media which generate stereotypical mentalities and are generally the origin of much racism present in the mainstream today. British citizens enjoy dozens of non stop Emirates flights every day to Dubai, as the most tourists in Dubai originate in the UK. Other nations don't have a problem with the Middle East; we do.
More on the ISM Emirates marketing campaign and images later.
-KD
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