Content

Executive Summary

Shopper behaviour in the news

Industry news

Best in store

HFS – High Frequency Stores

Hypermarkets Lulu Hypermarket

Geant

Panda

Carrefour

City Center

Union Coop

Gas Stations Eppco & Enoc

Emarat

Meed

Pharmacies Boots

Executive Summary

Looking back on the second quarter of 2010, it was definitely the quarter of „World Cup

Mania‟. It seemed that every brand somehow had saved its in-store budget and wanted

a piece of the action.

Some brought football fields to the store while others pushed their claims to the

forefront, a clear acknowledgement that the shopper needs to be wooed all over again

when put in front of competing brands.

Similar the previous quarter, we‟re seeing less innovation in terms of design, but a lot

more examples of full roll outs and experiences that invite shoppers to spend time with

brands.

As the retail engagement practice gains popularity, we anticipate more support from

retailers, advances in technology and tighter integration of campaigns through-the-line.

For now we go from the World Cup season to the Ramadan season, and hopefully

towards multi-channel shopper marketing. Interesting developments ahead we‟re sure!

Shopper Behaviour in the news

Online shopping catching on with Saudis

Saudi consumers fed up with the low quality of products and seasonal price

increases on items that are traditionally purchased before and during Ramadan and

Eid Al-Fitr are opting to buy earlier and online.

"I have already ordered some appliances needed for Ramadan cooking and clothing

for my children as well as some Eid gifts from online shopping sites based in the US

and Europe," said Renad Bassam, a 28-year-old mother of two.

According to a survey carried out by the Arab Advisor's Group, online shopping in

the Kingdom has really been catching on with SR12.3 billion ($3.28 billion) being

spent by online Saudi shoppers in 2008.

The survey also showed that 3.5 million people, or 48 percent of the total Internet

user base in the country, have purchased products or services online; 41 percent of

these shoppers made these purchases using credit cards.

Zawya.com, 31/07/2010

EMKE Group to open 5 new Lulu stores in Oman

UAE-based retailer EMKE Group has said it plans to open five new Lulu stores worth

Dhs900m in Oman in 2010. The new stores will be located in Wadi Kabir, Khaborah,

Khasab, Salalah and Nizwa. The group already has six stores in Boushar, Darsait,

Barkha, Sohar, Al Seeb and Salalah.

AME Info, 28/04/2010

Industry news

CARREFOUR UAE opens in-store pharmacies

Carrefour has opened an in-store pharmacy in Carrefour Deira City Center, Dubai in

partnership with UAE pharmacy chain BinSina Pharmacy. The pharmacy, which

offers comprehensive pharmacy services, occupies 1,200 square feet. It is the

second pharmacy outlet to be incorporated in the Carrefour chain in the Middle

East, after the one that was opened in Carrefour Mall of Emirates.

Planet Retail, 22/04/2010

Hershey's Chocolate World opens store in Dubai

North America's largest chocolate manufacturer, Hershey's has announced the

appointment of “Retail Is Detail” to open its first Middle East Hershey's Chocolate

World store at The Dubai Mall. Retail Is Detail has signed exclusively with Hershey's

for the expansion and franchise rights of Hershey's Chocolate World in the Middle

East and South East Asia. The company plans to launch more Hershey's Chocolate

World concept stores in both continents within the coming months.

AME Info, 3/07/10

WHITBREAD Costa Coffee looks to Middle East expansion

Whitbread-owned Costa Coffee has earmarked the Middle East as a “critical” area for

growth, according to reports in local press. The chain currently has 228 outlets in the

region and saw year-on-year sales increase 20% in Saudi Arabia.

Managing Director John Derkach said: “The Middle East is absolutely critical to Costa

and certainly critical to our international growth ambitions.” Derkach added: “We‟ve got

just over 30 stores in Saudi now and we‟re growing our like-for-like sales there at over

20% per year. That gives us strong encouragement to move on with our franchise

partner and open more stores.”

Retail Planet, 6/07/10

SUBWAY to open 100th UAE outlet

US-based sandwich chain Subway plans to open its 100th outlet in the UAE by the end

of July, according to reports in local press. The company hopes to have over 115 outlets

in the country by the end of 2010.

Retail Planet, 8/07/10

Panasonic 3D TV to launch in Saudi

Alesayi Electronics, the sole distributor of Panasonic in Saudi Arabia, is to introduce the

new 50-inch VIERA Plasma Full HD 3D television to the Kingdom. The TV, which will be

available with one of Panasonic's 3D eyewear, offers cross-talk reduction, crisp and

clear high quality moving pictures, enhanced luminance efficiency and improved picture

quality even when viewing 2D content, the manufacturer said.

AME Info, 15/07/2010

Zawya to open convenience stores

Shops will offer 24-hour customer hotline, online and phone shopping with delivery

services

Dubai Zawya, a new chain of convenience stores, is set to open its first six outlets

across the UAE in the next quarter.

“These stores aim to be local convenience stores. The concept is popular

internationally and this city is still hungry for small stores. It looks like there‟s a big

scope for it in this part of the world,” Anil Verma, COO of Zawya Supermarket, a

division of the Al Ghurair group, told Gulf News.

The Zawya stores have ambitious plans to expand in the UAE with locations on

Shaikh Zayed Road, International City, Abu Hail and Emaar Business Park.

Verma said they are looking to open 90 outlets in the next five years across the region

and will also look into franchise possibilities.

The stores will also offer loyalty benefits and a delivery service where customers can

choose to order either by phone, in the shop or online. “What we‟re trying to bring to

the people is convenience. We‟re accomplishing this through professional home

delivery and offering a wide range of smaller stores that are conveniently located,”

said Verma.

Gulf News, 12/08/10

CHOITHRAM to expand with new format

UAE-based supermarket chain Choithram is set to almost double its number of

supermarkets across the country and will also open smaller neighborhood stores for the

first time. The group said it will add 19 new outlets to its portfolio of 27 stores across the

country. In the face of aggressive competition, Choithram has worked with a design

consultant to reinvent its image and come up with a new store format which is clean,

bright and uncluttered and more in line with the changing preferences in the region. The

group opened the first of its new smaller outlets earlier this month in Dubai‟s Jumeirah

Beach Residence.

Planet Retail, 21/06/10

Best in store

.

This quarter, our winning entry is successful for being a great idea, with simple

execution and distinctive design.

Considering people always look for some sort of object to reflect off after using tissue,

to make sure the job is done, Kleenex has just made our lives more practical by

providing a built in mirror on their packs.

The graphics chosen for this neat display cut through the clutter by using dark colors

to stand out against the typical bright displays found in store.

HFSHigh Frequency Stores

(UAE)

This simple usage of the boxes the chips were delivered in allows the shop-owner to offer shoppers easy access to typical impulse purchases.

Kellogg’s stacked neatly yet placed on the top shelf; not very accessible to all shoppers.

Al-Ain water bottles displayed close to the entrance of the shop.

(UAE)

Branding the entrance; it’s very catchy because it’s very colorful and it’s the first thing to see before you enter the mall.

At the entrance the sale signs are bigger than the “kingdom of dreams” sign.

Yet despite all the entrance branding there were floor stickers or banner ads in the rest of the store!

(UAE)

Nintendo decided to take advantage of the World Cup by promoting for their Wii Fit

Plus! They set a small football court in the videogame aisle and placed a TV attached

to a Wii so people could try it.

Galaxy managed to get great adjacency to canned foods and beverages. Great for

impulse purchases!

Pringles took their above the line campaign for the World Cup to the store and brought it to life with vibrant colors, distinctive

design and great location.

They also supported the effort by buying great spaces for impulse

buys throughout the store.

(KSA)

In KSA, the retailers currently available do not have the capacity to launch and support private labels in the long run and still be competitive, at least not on the scale we have witnessed in Europe and the United States.

Panda is one of the retailers in KSA that has come ready to adopt a whole range of products under their umbrella. Their line includes:

‘Private Label’

Toilet paperWhitening detergent Laundry detergent Scented detergent Cream Rice Tahini Ketchup

Tomato paste Cooking oil Beans Shredded mozzarella Table salt Powder milk Light bulbs/ Energy saving light bulbs Electrical appliances

Bambini launched a new product in the Saudi market; a pure form of water, ready to be added to baby food. It is well packaged and sold at a premium price. Bambini is the only brand that has water for baby food preparation on shelves.

(UAE)

LG constructed a living room like stall that made their consumers feel at home. A TV stand with LG products on it, a table with LG 3D glasses and a chair (not seen) with surrounding speakers.

Snickers took a large spot area near the chocolate aisle and constructed a bilingual goal like stand attracting football fanatic fans.

Sony realized the FIFA build up and consequently built a mini stadium displaying its products and the brand’s love for football!

Cheerios leveraged the hype around the new Shrek movie with a fully branded lama stand.

Tefal was semi successful in attracting customers by installing a small a LCD screen showcasing their many household products.

Crest got a prime location in the supermarket and decided to go big!

A large display stand showing all their products.

Nothing is better than having a promotion where the consumers can win a CAR! Pepsi did that in, and to encourage the customers more, they put the car in Carrefour and surrounded it with Pepsi cans (including 7up, Miranda and Pepsi Max)

The whole theme of this promotion is great, since the way that the cans were distributed, appears as a small hill; and the Toyota FJ is well known as a strong 4 wheel drive.

(Kuwait)

Rexona teamed up with Clear and enhanced the World Cup fever with a football pitch display which also identified it as a product intended for athletes and sport junkies.

The unit in the middle was filled with free samples .

Sunsilk had an impressive display which could be seen from quite a distance due to its striking size and vibrant colors. The simple design also allowed the showcasing of the product lines.

They boasted having the worlds 7 hair gurus;“Co-created by the 7 best hair experts in the world” !

This colorful KDD display achieved great standout amongst other drinks and gave shoppers information with the built in screen. Such displays are highly disruptive in congested areas.

Pepsi, strikes again, and gave shoppers the opportunity to win several prizes with this display which included a Toyota FJ Cruiser.

Gillette Fusion Power used die-cuts on their display to attract shoppers. The vibrant new colors identified the product as something new from the normal range of products and displayed 3 easy steps to shaving using their product line.

We always look for some sort of object to reflect off after using tissue.Kleenex has just made our lives more practical by providing a built in mirror on their packs.The graphics chosen for this neat display cut through the clutter by using dark colors to stand out against the typical bright displays found in store.

(UAE)

Gillette set up a very blue and eye catching stand at a prominent location which, however, was cluttered up by numerous other promotions going on.

Aquafresh attracted consumers by setting up a very colorful and bilingual stand situated in the middle of the supermarket.

Panadol set up a dynamic and funky stall that reminded consumers that its your moment to do anything in life because Panadol works twice as fast.

and

(UAE)

A new energy drink, Insomniya, chose to think outside the box and develop messaging to get shoppers to their

products.

(UAE)

Coca Cola made a smart promotion that included a water bottle with every Coca Cola large bottle bought. This promotion was put at the beginning on the aisle so it caught customers’ attention.

Marlboro showed off its new Touch pack by placing it right in front of the cashier in a premium pack display.

(KSA)

The use of Mupis for in-store communication is new. Although the store is relatively small in size, they have 4-5 backlit MUPI’s displayed on the walls for brands to communicate.

(UAE)

Pink, beautiful, attractive and personalized to look like a girl’s dresser. A very smart execution and its located away from other make-up products so it stands out more.

For any enquiries,

please contact any member of the team.