COMPANY Case;customer base. The launching of the brands that Alshaya retails isAlShaya: The HOUSE Of B la lids fast paced and vibrant.
In 2008, Alshaya opened the first H&M store in the Arab
Alshaya was founded in 1890 as a trading company between world in Oman. The H&M stores have quickly swept the Middle
India and the GCC countries. The scale and variety of products East and North Africa making them one of the group’s biggest
were not very wide, but very suitable for the market. Four genera- hits. That was based on capitalizing on the brand equity and the
tions later, in just less than 100 years, particularly in 1983, Alshaya value for money that H&M offers in its products.
realized the growth potential in the market. People all around the In January 2009, Alshaya signed an “gre’en‘e t with Office
Arab world were traveling to shop for its fashion products in the Depot, where it will be granted the franchise riglfi: for all chan-
0.5. and Europe. The trend became very wide, and people started nels in the Kingdom of Saudi Arabia, the United Arab Emirates,
searching for their preferred brands in their local market. Kuwait, the Kingdom of Bahrain, Qatar, and Oman. “We are very
Accordingly, Alshaya acquired its first internationai franchise, pleased to have Office Depot as our partner,” said Mohammed
Mothercare. Mothercare is a British retailer, specializing in prod- Alshaya, executive chairman of M.H. Alshaya Co. “We believe
ucts for expectant mothers and young children. The first opera- there is a significant market for these products and services
tion of Mothercare started in Kuwait, the home town of Alshaya throughout the Middle East. We look forward to using our experi-
group. The brand was a huge success; it invited the minds behind ence and regional knowledge to firmly establish Office Depot as
the business to seek more of that success. the natural choice for businesses and individuals for all of their 7
Realizing that people seek more than fashion items, Alshaya office supply needs.
expanded its portfolio quickly to 55 retail brands, including many “Office Depot understands the importance of developing a
of the world’s most recognized names in fashion and footwear, retail business in the Middle East and is partnering with a very
food service, health and beauty, pharmacy, optics, home furnish- experienced company such as Alshaya,” said Ernst Wesse], vice
ings, and office supplies brands. Today, Alshaya operates in more president international franchise development.
than 2,000 stores in 15 countries. Alshaya positions its basket of Alshaya first launched Payless into the Arab world market in
brands as “carefully chosen to bring the highest quality products March 2009 and operates 22 stores in four markets; Kuwait, the
1 to the region’s premier retail locations.” Kingdom of Saudi Arabia, Bahrain, and the UAE. In 2010, Alshaya
Looking at Alshaya’s portfolio, one can see that the organi- expanded its PayieSS operation to reach as far as Russia. Like
g zation has grown to become a tycoon in retailing international Alshaya, Payless stores delivera ‘House of Brands’ strategy offering
brands in the Arab world and beyond. Alshaya operations span well-recognized brands, and featuring the latest on-trend styles
the Kingdom of Saudi Arabia, Kuwait, United Arab Emirates, at a great price. Through licensing arrangements or acquisitions,
Bahrain, Qatar, Oman, Lebanon, Turkey, Jordan, and Egypt. It has the brand portfolio offered in Payless stores includes Airwalk®,
recently expanded its operations to Russia, Cyprus, Poland, the Dexter®, Predictions, Smartfit, Disney characters, Marvel charac-
Czech Republic, and Slovakia. ters (Iron Man, Star Wars), SpongeBob, and Hannah Montana.
1 Apart from its other business portfolio, which serves hotels, In March 2010, M.H. Alshaya Co. officially opened the
3 real-estate, and automotive sectors, Alshaya focuses on brands that first Pottery Barn Kids retail store in Dubai. Also in March 2010, I
I: sell convenience products, shopping products, and specialty prod~ American Eagle Outfitters Inc., a leading lifestyle apparel brand,
3 ucts to assure that they have the best coverage of the shopping opened its first flagship store outside of North America and its first
7- Write a positioning statement for alshaya to communicate with customers.
8- Into which consumer product classification does the Alshaya fall? What are the implications of this classification for Allergan’s marketing strategy?
9- What new product pricing strategy do you think Allergan used when it introduced the Alshaya?
10- Based on the desirable qualities that a good brand name should possess; what is your opinion of Alshaya (which is a preparation of botulinum toxin used to treat muscle spasm and to remove wrinkles) as a brand name? Why?
11- Explain the distribution strategy used by Allergan to distribute Alshaya?
12- Draw the various flows in marketing channel of Alshaya and the direction of these flows.
13- If you are asked to develop an effective communication campaign to promote Alshaya in the Middle East, explain briefly the steps of developing this campaign.
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