Business & Money | Wednesday 29 March, 2017 10:08 am |

As Saudi Arabia embarks on a hugely ambitious and far-reaching program to transform and diversify its economy, the evolution of strong Saudi national brands will be crucial to its success. That is a key conclusion of the first BrandZ Top 20 Saudi Brands ranking produced by WPP’s marketing and brand consultancy, Kantar Millward Brown.

With a population more than double that of the other GCC states combined, and national purchasing power greater than the sum of its five Gulf state partners, the opportunity exists for home-grown Saudi brands to power the national transformation.

It isn’t simply the size of the Saudi population of 32 million which should appeal to brand builders, it is its youth. 46 percent of the population are aged under 25 and, while they are respectful of tradition, they are also highly attuned to brands. They are passionate about technology and seek out products and brands that deliver innovation.

In common with other countries that are either less economically developed or, as in the case of Saudi Arabia, are only just beginning to open, there are many brands in the Kingdom which are either not readily recognized or are not well understood. These are known as ‘clean slate’ brands. In Saudi Arabia, 30 percent of all brands fall into this category, compared to a global average of 14 percent.

BrandZ findings indicate that Saudi consumers are sophisticated and selective, and they have a readiness to pay a premium but also seek value. The most successful brands create a connection with consumers to generate a significantly greater return on their brand investment which positively impacts sales and bottom line.

The reality is that many Saudi businesses are currently underinvesting in brand-building. The opportunity for these brands is to relaunch, reinvent or reposition themselves, and make it clear to consumers what they promise. They must make their proposition highly relevant to their target audience, and build brand visibility to reinforce awareness, build credibility and deliver sales.

The challenge of brand building is to understand social and cultural norms and achieve a delicate balance between reflecting deeply held cultural values while, at the same time, be sufficiently bold and creative to make a lasting impression and connection.

Marketers need to consider both their product and communication strategies. Depending upon the extent of standardization or localization of each, their strategy could ultimately be “truly global”, with both a standard product and standard communication, or it might be “totally local”, with both local product and communication. Perhaps it will be “glocal” – a blend of local and global that many multinational corporations have found they can best connect with consumers in an unfamiliar world.

Brands can punch above their financial weight in the BrandZ rankings by focusing on making meaningful connections with consumers. These connections are about more than being top of mind when people think of a category, or delivering dependable quality and value.

Meaningful connections are based on emotional links, and the most successful brands bring meaning to consumers’ lives through their products but also through their communications, with emotion driven and memorable messages that are clearly relevant to the audience. The key is making a locally relevant connection with consumers.