Pitching to today’s Power Women

Outgoing, daring, free-spirited and ambitious, the modern day woman is a force to reckon with, both in the boardroom and outside. She is a rapidly emerging economic powerhouse and an avid consumer. How are marketers leveraging this growing ‘power of the purse’ and capitalising on women’s wealth? Nathalia Jones reports

“She’s – not – just a pretty face
She’s – got – everything it takes
She has a fashion line –
a journalist for “Time”
Coaches a football team
She’s a geologist – a romance novelist
She is a mother of three
She is a soldier – she is a wife
She is a surgeon – she’ll save your life
She is your waitress – she is your judge –
She is your teacher
She is every woman in the world”

When pop-star Shania Twain wrote this song for her album Up, she was not only creating a chart-topper that celebrated womanhood, she was also profiling the world’s fastest-growing economic powerhouse. With more women coming into the workforce and with increasing disposable income as careers take precedence over more conservative obligations of home and family, women have become key players in every country’s economy, a force to reckon with. Take a look at some of these interesting facts. In America alone, women make 80 per cent of all buying decisions. They wield control over US$7 trillion worth of purchasing power and surveys have forecast that by 2010, they’ll control more than US$13 trillion in private wealth.

Globally too, the scenario is fast changing, as companies the world over are sitting up and paying attention to this rising seat of power. Brands such as McDonalds, Kodak, Fair and Lovely, Pepsi have had to do a complete re-think on strategy, for fear that the ladies would otherwise not loosen their purse strings. McDonalds, for instance, suffered a drastic sales slump in 2002 when its advertorials just used women as a vehicle to reach children. But since their recent revision in strategy – their new campaigns now target the ‘woman inside the mom’ – their efforts have resulted in the creation of a premium brand of salads and healthier, more figure-friendly happy meals. What’s more, even their play areas have been upgraded to include wireless workstations in recognition of the needs of moms on the go. This willingness to listen and understand that women don’t just perceive themselves as mothers helped the fast food brand build a better relationship with its female clientele, while winning over more customer patronage. You’ll find many such examples extending over a wide variety of products, goods and services across various segments from shampoos to fast cars that seek to tap the growing consumer power of women.

Says Diane Girard, Founder and Managing Director of Canadian-based Global Links Network, “I find there’s been a tremendous shift in the past 10 years; I’ve travelled to over 40 countries and have had the benefit of seeing that there is an increased awareness of women’s economic power and it shows in the advertisements. Women are increasingly being considered; the colours are more appealing to a female audience. It’s very noticeable now that there is a gender balance in advertisements. Women not only have that participating power, they influence very much the decisions marketers make. In home décor, for instance, it is the women who influence the purchases that are going to be made. Women are buying more automobiles than men, so it’s something that manufacturers are increasingly aware of. It’s the same with mobile phones.” Diane was among the motivational speakers at the second annual Women in Business conference held last month in Muscat.

Even when a brand is not exclusively meant for a woman, it certainly is targeted at getting her attention. Advertisers know that women today wield considerable clout and influence over household purchases. For instance, 80 to 90 per cent of campaigns in the white goods segment are targeted at catching the female eye and over 50 per cent of all marketing campaigns are directed at women. “Women are today being projected as opinion makers, when companies strive to market products bought by men. For example, cars, men’s perfume, men’s clothing, etc., most of the ads project that women approve of a particular brand in either or all of these categories,” says Haider Jawad Sultan, Managing Director, Capital Stores.

Ajay Ganti, General Manager of SARCO, calls the modern-day woman an ‘important catalyst’ in any buying decision where she is valued as an advisor and consultant, who can enable informed and sensible decisions. Women, he says, “represent 100 per cent of the white goods markets, as they are the actual end-users in most categories; white goods are like a must-have accessory in a woman’s life, irrespective of her lifestyle.”

In her corporate bestseller, The Power of the Purse, Fara Warner identifies three reasons why women are a key driving force in the world of advertising and marketing. An economic powerhouse, CPO of the household and thirdly, women’s entry into the workforce has had more impact on the global GDP than China, India or the internet.

In the Arab world too, women are stepping up and taking charge, with the result that corporates and FMCG distributors are now positioning power women as a conduit to their brands. “Woman in the GCC are, therefore, a key focus for many marketers as they are the key decision-makers when it comes to choosing brands for the family and then, of course, for themselves. Although some countries like Yemen and Oman are seen to be slightly under-developed, the case remains the same. It is estimated that an Arab female spends on an average $345 per month on beauty care products and is fast forming a solid bonds with our goods,” says Iain Potter, VP HPC for Unilever, North Africa and Middle East.

However, the region is still making progress in recognising the increasing buying power of women, as its female citizens are still breaking out of the mould and often find themselves torn between domestic and social obligations, and their own personal
aspirations.

At the recently held Women in Business conference in Muscat, one of questions discussed was ‘What drives the Arab woman?’ The ensuing debate described her as ‘being an integral part of a very long tradition and having a clearly prescribed role in society’. While that is a very basic account of who and what an Arab woman is, it is a perception that is undergoing a sea change as more women in the region are empowered to enter the workplace.

As a result, they now have greater spending power and with it comes the freedom to spend and splurge. They are doing this and how! In Saudi Arabia alone, around 30 per cent of all new car purchases were made by women according to researched reports. “Today’s Arab woman is aware of international trends and new launches. She cannot be misled or misinformed. She is constantly in touch with the media of all kinds. Most Arab women travel overseas and visit international retail chains such as Harrods, Saks, 5th Avenue, etc. They read international magazines. Therefore, it is essential to update product collection in stores. It is also imperative to offer adequate ambiance and services,” says Jawad Sultan of Capital Stores.

What women want
When it comes to a particular brand or product, what women really want is ‘reliability,’ according to sources from the advertising and marketing world. “Peer group, word of mouth and constant advertising are what drives their choices. As does the fact that they can now stand up to the rigours of the economic world and make a name for themselves. Then there’s also the reduced dependency on their male counterparts that make women a driving force across the globe spanning industries, politics and so on,” say company sources. Women increasingly want to be trendsetters as far as consumption habits are concerned; they want to eat well, dress well and travel. This is a reflection of their bold and outgoing spirit; a sign that they are ready to take risks in terms of product usage; they are ready to explore and experiment with different brands and products all the time. “This, in turn, drives marketers to showcase their products to the female audience.”

Another major determining buying criterion when it comes to women is the luxury quotient that goes beyond just functionality and durability. According to Dr Concetta Lanciaux, Strategy Luxury Advisor, Advisor Groupe Arnault, and one of the speakers at last month’s Women In Business Conference, “while commodities are function specific, luxury goods create dreams; these refer to products that respond to people’s dreams as opposed to their needs.”
The availability of luxury products is being underpinned by larger disposable incomes of women, according to Potter of Unilever. An example of this is the fast pace of growth of the face care market in Arabia. It is valued at US$156 million and is growing at a whopping 12 per cent (2006 vs. 2007; AC Nielsen). More women are investing a more in skin and beauty products, specially as external appearance is directly linked to personal image and confidence. “Unilever is currently the market leader in the GCC, with its face care brand Fair and Lovely,” says Potter. “We find marketing to women is essential in driving category growth and consumption of our brands. Take ‘Fair and Lovely’, for example, a personal choice brand that we can safely say has captured the local female population through a very vigorous research process that understands what female needs are,” he adds.

Opting for luxury brands
In the Arab world, the luxury ratings of any product are given serious consideration and are a crucial factor in buying. “The Arab woman’s need for luxury branding is higher,” said Sangeetha Pendurkar, Chief Marketing Officer – Middle East, HSBC Bank, and also one of the participants at the Women in Business Conference.

That statement just begs the question why are luxury brands accorded such a high degree of preference and priority among Arab women? Well according to Adelina Mustata, Client Service Director, Synovate, premium brands and luxury “are used as a means to overcome the feeling of inferiority and demonstrate self-worth”. Adelina who discussed ‘Arab women and luxury’ at the Marketing to Women conference, explained this gravitation towards premium products as the Arab woman’s portrayal of herself as one who is ‘smart, up-to-date, knowledgeable, distinguished and original’. Above all, it is a sign of success. The four key emotional pillars for what she calls ‘premiumness’ are strength/power, beauty, prestige and comfort.

A comparative study between two major GCC markets – the UAE and Saudi Arabia – on what drives women’s choices in luxury brands threw up some interesting and insightful revelations at the conference. While in the UAE, it was found choices were more personality driven – that is how much of a reflection of one’s personality the product was – in Saudi Arabia comfort and high standards that were still nonetheless strongly grounded in social values were the drivers. The choices here leaned more towards femininity and beauty as opposed to the UAE where ambition and career aspirations ruled many of the luxury purchases by women.

“From the point of view of the marketer, how does your product/brand engage with these women?” was one of the questions put forward by Sangeetha of HSBC. The answer lay in designing brands that delivered on comfort, confidence and control; ‘brands that drove confidence and those which helped women to meet challenges in the new world’.

No discussion on luxury and the Arab woman can be complete without a reference to cars. Almost everywhere in the GCC, and certainly in Oman, you’ll find it’s often a woman behind the wheel of all top-end models. Top-of-the-range automobiles spell freedom, independence, good taste, verve and vitality. And it’s this combination of speed-propelled power and stylish elegance that seems to drive choice. According to Adelina, the fundamental meaning of cars to Arab women centres on five core principles – individuality, social identity, mobility, a source of power and social positioning, its acquisition gives her a feeling of strength and freedom. Again a study between the UAE and Saudi Arabia on the subject found that while in the UAE owning a vehicle meant being independent for transport, in Saudi Arabia the same car gave the woman some authority and say in actually buying the vehicle, even though she was not going to be in the driver’s seat. Either way, it allowed the Arab woman to stay on top of trends, which was her way of compensating for a lack of self-confidence and often low self-esteem. Not surprisingly, owning an automobile gave her a sense of control in her life and in many ways it brought about gender parity.

So what marketers need to look at, according to Adelina, are the different layers, which are first and foremost the meaning and the influence of the cultural context, the fundamental meaning of the category, their specific and individual needs and motivations regarding specific products.

For the best in beauty
The beauty and cosmetics segment is perhaps the largest selling segment when it comes to women, specially in the Arab world, where a lot of emphasis is placed on external appearances and personal image.

Says Unilever’s Potter, “With the influx of more women in the business arena, the power of spending on female based products is a lot more substantial in growing markets around the world. For instance, the beauty care market is seeing a global growth of around 17 per cent and is estimated at US$2.5 billion per annum.”

Apart from cosmetic products, long-term beauty procedures such as plastic surgery are fast gaining acceptance. “Oman’s booming economy has certainly contributed to the desire by creating a platform for wealth and exposure to the means of medical cosmetic services that women of all ages deserve,” says Dr Fatma Obaid Ali, CEO and
Managing Director of Emirates Medical Centre in Muscat. On what is fuelling the growing preference for medical cosmetic procedures, she says, “Even considering that Oman is a fairly young developing country, EMC’s growth has been nothing less than overwhelming. I would say that specific demand for the more serious medical cosmetic procedures started to boom in Oman around three years ago, with the most significant growth in the past 18 months or so. The medical approach to beauty today is fast moving towards a much more holistic approach, rather than just the cure. Anti-aging now includes advice on your mental health, your diet, exercise and a number of other influencing factors.” Women at the EMC, she adds, make up 80 per cent of the centre’s client base, while it serves approximately 4,500 clients very month.

But are marketers and distributors leveraging the potential of this market to get maximum mileage for their brands, or are women in this segment under-represented and under-marketed to? Says Dr Ali, “Even with very visible wealth creation due to the dynamic development of our country, in the past couple of years, women and their ever-increasing needs are not taken seriously enough.”

As mothers and career women nowadays, women have a lot move spending power than ever before and various stakeholders, like marketers have yet to become serious enough about the needs of the women in Oman regarding medical cosmetic services. One of the major constraints is that very little or no market research has been done in order to generate statistics on which small and medium enterprises can base their decisions. You either need to initiate your own rather costly investigations or surveys, or settle to base critical business decisions, either blindly or on perceived influences in the market. It has also been quite a challenge to acquire a suitable level of competence from marketing consulting firms in Oman,” Dr Ali concludes
This scenario, she adds, contrasts with other countries in the GCC, such as the UAE, where women have the advantage of operating well within developed environments where statistics are freely available. “Their environments are also a lot more exposed to globalisation and media infrastructures there are a lot more active, with a variety of high class women magazines and other media platforms like TV, which provide a much greater exposure than what we still experience in Oman,” she adds.

Staying in fashion
While the cosmetics and beauty segment in Oman may need to do a rethink on strategy for its female customers, the country’s fashion industry needs even more thought and strategy re-visioning to tap into women’s wealth. Considering that women in the region and certainly in Oman are gravitating towards hi-style and haute couture, designers feel that not enough is being done to capitalise on the interest. Says Samah Al Wahaibi, owner of Layali Al Asalah event management company as well as an employee at Oman Oil Company SAOC. “Marketing fashion to the Omani woman is still a challenge, specially with the case of designer wear because the Omani woman is still prioritising. Oman itself is new to the fashion world and so the industry cannot really compete on a regional or global scale. If you take the whole country itself, there is only Muscat where there is some sense of fashion or designer fashion, and one can hardly judge entire Oman by Muscat alone.”

Adds Diana Al Zadjali, another fashion designer, “I do recognise that Oman has a lot of business to offer because of this rising fashion consciousness among women, but we as designers are hampered by the lack of technology. Fashion, as you know, is heavily dependant on technology because it’s a global industry and Oman needs that kind of cutting edge technology for it to come to par with the industry on a global scale. What we also need is international expertise and skill for design development. This is what will give us better reach and understanding with our customers. Another important thing we need to understand is that because times and trends are changing in this industry, we need to adapt and adopt – adapt to the changing times in terms of technology and support infrastructure and adopt competitive skills to develop design competence. Yes, I do feel that the female market group in this sector is grossly under-tapped and we need more fashion shows and the like to showcase designer wear to the modern Arab woman.”

Samah feels that there has been a change in the mindset with globalisation and liberalisation, and yes, women out here are keeping abreast of the latest trends. But to say that they would invest and splurge large sums of money on designer wear is not entirely correct, because if they have to choose between that and say a car, they would choose the car over designer clothes. However, she does recognise that there is huge untapped potential for the fashion industry among women in Oman. Two major ways, according to her, to make good on the opportunities are setting up of fashion training institutes and removing any social stigma associated with fashion in the Arab world. “I think Oman needs to have training centres to train young, talented designers. Often, I find a lot of young people with the passion for design and fashion but one must recognise that fashion after all is a profession and a business, and like any other business, it needs skilled expertise to grow and succeed. Another issue is the cultural hurdle; our society does not accept women in the fashion business. Even in Dubai, which is often considered the fashion capital of the Arab world, women in the business are up against many social barriers. So, I think for the industry to fully exploit and capitalise on the potential of women’s growing consumer power, there has to be a change in the way we think.”

Eve-olutionising strategy – ‘Let’s give ‘em something to talk about’
“Knowing and understanding what drives women consumers has profound implications on marketing strategies,” said Adelina during her presentation at the recently concluded Women in Business conference. The conference demonstrated how when it comes to women, ‘it’s all about how products ‘feel’ in social settings’ rather than grand promises made by million dollar ad campaigns. “Today’s consumer is much more inclined to seek out information from sources they trust,” pointed out Dr Traek Mady, Chair, Department of Marketing and Marketing Communications, The American University in Dubai, at the conference. Traditional marketing then is just not cutting it any more as non-marketer dominated sources such news, critiques, club/organisations, family, friends, neighbours and casual acquaintances are increasingly preferred as product/brand reference points. This makes word of mouth the number 1 source influencing food and household product purchases.

What then are the implications for marketing to women? According to Dr Mady, “Women make decisions by consensus not because they are wishy-washy or affective by nature, but because they are critical thinkers who want to consider a range of options.
 Understanding the nuances of word of mouth among women and embracing the unique way women share information is an extremely effective strategy for marketing to women.”

According to Ganti of Samsung, marketers need to revisit strategy to ensure it embodies a more ‘holistic approach’ that connects with the EQ or emotional quotient of the fairer sex. “Any strategy which is set against the backdrop of a relationship with the product’s or brand’s significance in the foreground will have a more far reaching impact. Women would then be able to relate to the product/brand and understand its advantages at the same time.”

Adds Diane, “Is there enough marketing done to business women? I would say in a lot of places yes, but there’s still some shifting that needs to take place, change in mindset and I think women need to be consulted a lot more in their environment. They can’t readily adapt strategies that have been used for men in the past, it’s just a totally different way that women think and network. Women are more word of mouth and referrals.”

Good word of mouth strategies, says Dr Mady, must encourage communication, one should invest in listening, give women incentives to be the product’s/brand’s marketer, and should entail strategies that engage in transparent conversations and information sharing. In short, these strategies should give women something to talk about.

And companies everywhere are certainly giving the ladies a lot to talk about. The world over, banks, financial institutions, FMCG distributors and manufacturers are waking up to the women’s wealth. In the Gulf too, the phenomenon is catching on. With women accounting for a significant and growing proportion of the Gulf’s capital, both financial and human resource, banks and investment funds are alerting themselves to the opportunities for providing services and products to women and women-run companies.

 According to Bramdean, a London-based fund management firm, women account for some $240 billion of personal wealth and 60 per cent of that is held in cash. In Saudi Arabia, women hold roughly one-third of the bank accounts, with deposits of over $7 billion.

In her presentation at the Women in Business conference, Jane Kinninmont, Editor, The Economist, Economist Intelligence Unit, UK, pointed out that some estimates show 40 per cent of Saudi real estate is held by women, though they own only 20 per cent of investments in mutual funds.

But there are challenges as marketers endeavour to capitalise on women’s wealth. Says Ganti, “The biggest challenge is to build up trust with a brand or product. Women don’t trust that easily and once they do, they expect a lot in return. Also, marketers have to be quite vigilant, innovative and alert with new ideas and strive for constant change in their presentation, with new additions to products/services, which are all imperative to keep the freshness of the idea intact.”

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