Introduction to Business-2-Business Marketing & Market from Gulf

I have been working in Marketing for more then six years in the Gulf. Every business whether small or big wants to market their business to get more customers, generate more revenue and grow their business. Marketing in business which sells products to women is different from marketing products which sells to tourism shops. I will share with you some of the features of B2B market and marketing that I saw in gulf.

Generally, we can divide marketing into two types. The major types are B2C which is Business-to-Consumer and Business-to-Business Marketing which is B2B. The following are examples of selling in the B2B market. This week Oman Fisheries Co won a contract from Ministry of Defence to supply Fishes for three years. Another example, Etisalat is providing Broadband Internet service to their business clients in UAE. Marketing in B2C is different from marketing in B2B. In B2C, companies market through leaflet as one method with is popular. Some of them had used new technology like Mass SMS to market their products. In B2B, companies market through press releases such as saying they had signed a contract with a partner which will allow them to sell a new product. This will let other potential customers to be excited buying the product. This kind of business we call it as B2B. Briefly, Business-to-Business Marketing is a type of marketing in a business to other business to sell their products and services.

We can divide B2B market into different segments. The different major segments of Business-to-Business are: Big Companies, Small & Medium companies (SMEs), governments.

Marketing to a business is different from marketing to individuals. The way they make a decision differ too. Some of the products are similar and some of the products are different. Marketing the products in B2B is different then B2C.

One of the important features of Business-to-Business Marketing is relationship. For example, Many Companies in Dubai in B2B release and concentrate a lot in one of the jobs called business development manager. He is responsible of managing relationship with the client. I had found from my experience in the gulf that having a good relationship with the client is very important. Good to build relationship with decision makers in the business you want to make revenue. In B2C business do not spend much time with customers. In B2B, the relationship in many cases is long term not short term. Sometimes business spend with some clients 10 years. Also, the way of making decision. Customers might buy a product within five minutes. But in B2B the seller might spend many minutes, many days and many months before he make a decision to buy a product. In the private & government sector in Muscat the client takes a long time to make a decision. In many scenarios it starts from an employee. The employee talks to the direct manager. The direct manager speaks to the General manager and tell him that this product will save money or generate revenue to the company. The General manager make a decision.

Client do consider when he purchase a product that this product generate revenues or it safe cost for his business. It is not enough to market the product with its features. It is important to market that this product will generate revenue for the business or it will save money for the business. For example, in the Information Technology industry going to a customer and telling him that spending in Internet Marketing will generate more revenue will let him think about it. But the client will not say “Yes” from the first visit. The company needs more then one meeting, more then one call and more then one email. The business need to be patient and never give-up from the first visit. Briefly, it is more complicated process and it takes a long time then B2C. Marketing materials are different too. In the B2C Leaflet is a popular marketing material. Before starting the new semester of the school in Muscat, Many schools were distributing Leaflets after the Friday prayers. In the B2B developing business case studies is very popular. Showing other companies what other had purchased will give confident to the client to buy it. Here in the Gulf when showing business cases that companies in similar industry from USA and Europe are using your product will make the company more willing to purchase it. Another thing that customers in B2B are less in quantity. Some of the B2B companies only have one or two customers. For example, some in the oil industry in Sultanate of Oman have Petroleum development of Oman or more popular as PDO and Occidental Oman as their only clients. Some of them do have more clients. Other in the B2B do have clients more then that. Some do have 100 clients. Some do have 200 clients. Many companies do divide their clients as Accounts and Key Accounts. Key Accounts are the important accounts and which most of the revenue of the company do come from the key accounts. Many companies in IT industry in Oman do consider Information Technology Authority (Popular as ITA) as key Account as it is willing to spend a lot in the IT projects and they do care about ICT a lot in the country. When dealing with clients in the B2B they will be asking lot’s of questions. For example, selling services in Telecommunication industry such as ADSL clients will ask if the company do provide Static IP or Dynamic IP and many other questions. If the seller do not know the difference the client will be unsatisfied because the seller do not know the difference. The seller should have a strong technical knowledge about the product that he is selling. This is a good advantage when selling the product. The seller should learn about the products and from time to time read about the product.

The Internet had changed the method of marketing in B2B. Having a good web site which gives a good impression to the clients is a good method to market products in B2B.

That is my opinion of Business-2-Business Marketing and market from my experience in the Gulf.

Performance of the Three Petrol Companies in Oman During 2Q of 2010

In Oman we do have three companies providing petrol stations services which are: Al Maha Petroleum Products Marketing Co. SAOG, OMAN OIL MARKETING COMPANY SAOG and Shell Oman Marketing Company SAOG. The three companies are listed in Muscat Securities Market. Shell is among the MSM 30 Index companies. The net profit of the three companies had increased in 2010. Al Maha had increased OMR 528,000, Oman Oil had increased OMR 1,135,505 and Shell had increased OMR 769,000. Furthermore, Earnings Per Share of the three companies had increased. Al Maha Earnings Per Share (EPS) had increased mostly by OMR 0.076 and Shell Earnings Per Share (EPS) with the lowest OMR 0.007.

Al Maha had opened 5 new filling stations during the last year. Shell Aviation Business had won new contracts. Some of the projects are Fly Dubai and Shaheen Air. Oman Oil had signed an agreement with Vale S.A. (VALE) to Invest in Sohar Iron Ore Pelletizing Plant.

Personally, The net profit and Earnings Per Share (EPS) shows that the Omani economy is doing well during 2010 and it is expending comparing to 2009.

From Abu Dhabi, Leading Change in Your Organization

During 2010 I had the opportunity to go to Abu Dhabi and attending a conference called "New Essentials for Leading Change in your Organization". It was nice experience and had learned from Daniel Goleman and John Kotter. Individually, personally, senior manager, entrepreneur, member of an organization and ministry dream of a change. Some leadership do success and some do fail. Steve Jobs CEO of Apple succeed in establishing Apple and launched successful products such as iPad, iPhone and iPod. Bill Gates CEO of Microsoft established the company and launched many successful operating systems and softwares. In the middle east, Sheikh Mohammed bin Rashid made Dubai one of the most popular cities in the world and very successful city in the middle east and world wide.

During our professional life we always see a problem and we want to change it. Sometimes businessman see their business is not working well or does not make revenue and decide to sit with himself or the members and say "Let's Change". Members of the group meet and discuss about changing the group and say "Let's Change". We always want to change to better. I had learned from the conference a very nice way that I really liked it and I do advise companies to implement it.

First Step: is setting direction. It is nice to set a direction and have a clear picture in your mind of what you want to change. It is having a clear vision in your company for what you want to achieve. In other words, is creating a strategy.

Second Step: aligning employees to the direction you had set it up.

A great leadership cannot do the job alone. Good to have employees believe in your vision and let everyone as possible to be part of your strategy. Communicating your vision and strategy to the employees in the company is important issue. One person can not do everything. Teamwork and collaboration with the different employees will make your strategy come true.

Third Step: Motivating employees to do action is very important. From time to time, Create things that will motivate employees. Some employees do get motivated by giving them promotion. Others do get motivated by giving them more challenging jobs. It is like career development. Everyone has different things that motivate them.

Fifth Step: Having creativity and innovation is good. Do not do like all other do. Sheikh Mohammed did not think as all the Arab leaders to make Dubai successful. Bill Gates did not thought like all the CEOs in the Information Technology industry to make Microsoft successful.

Sixth Step: Proper Business Model. In other words, It is planning how you are going to achieve what you want to achieve. Ask your self an important question which is How the customer needs our changes? Creativity and motivation without the customer needs is not good. It is good to think from customer perspective.

Changing is a challenge but everyone can do it. Not all the people who changed are the same. But all have one thing in common. They believe they can do it.

Investing in a Petrol Station in Oman

Cars are increasing in Sultanate of Oman year after year. The demand of oil products is increasing year after year. Citizens and expatriates driving the car in the country are increasing. Many petrol stations are opening outside Muscat and the petrol stations inside Muscat are doing well. The retail sales had grown 19% in Al Maha in 2008 (Source: Financial Report) and it opened 11 petrol stations. Oman Oil had started 8 petrol Stations in 2008 (Source: Financial Report)

Government Rules

Government in the Sultanate of Oman do consider that all the individuals who are interested in opening a petrol stations do have a land which is commercial or Residential & Commercial lands and the size to be not less then 2600 m2. And the distance between each petrol station to be 5 Kilometers. The Five Kilometers rule does not apply in Sohar and Salalah (Source: Employee from Al Maha). Those rules are appliciable to the three companies in Oman managed by Ministry of Oil & Gas in the country.

Brand

In Oman we do have three brands for petrol stations which are: Oman Oil, Al Maha and Shell. Selecting which brand you want to represent is important. The three companies will support you well. Having good relationship with the company is important and showing that you can manage the petrol station is important while you are with them. Thinking about the way the Marketing strategy that the three companies do follow and the Customer Service Support they will provide you is important. According to a research done by an independent company it shows that customers in the country prefer Shell (Source: Shell Oman Marketing Report). When an investor go for Al Maha they do prepare for him a business case and feasibility study (Source: Employee from Al Maha)

Products to Sell

Selecting selling the three major products which are super, regular or diesel is another factor. Being in a location where many tracks do by pass means it is important that you sell diesel.

Location

Location is very important criteria when you want to start a petrol station. Knowing about the new roads where the country is planning to open. Roads which they are many cars do by pass and there is know petrol station. The Volume of cars is important. Surrounding major projects and houses is important factor. This an important factor the three companies do care about.

Value Added Services

Another very important factor is Value Added Services are services beside the major petrol station is important. Opening a shop with the petrol station is important. This will generate direct sales from the shop. Also, it will increase the revenue of the petrol station as people will stop their car to fillup their car and then stop shopping in the shop. Providing a Car wash. Furthermore, starting a restaurant where people can eat will let more people come to the petrol station.

Investing opening a petrol station is a Long Term Investment where you can make good Return on Investment for the Long Run. The three companies in the country will support you and Ministry of Oil and Gas in the country will provide you a great assistance.

Selecting Location for Petrol Station in Oman

One important criteria when investing in Starting or buying a Petrol Station is the location of the Petrol Station. How do I know the location of the Petrol Station I want to build or buy is good? They are some few questions you need to answer and gather the data to know if the location you are selecting is good. First of all, is the traffic in the location you would like to start building the petrol station. Are they many traffic in the road where you want to build the petrol station? Remember that the traffic in weekdays might be very different from weekends. Type of traffic is another important factor. Do most of the traffic are cars or trucks? And are the traffic willing to fill a lot while stopping in the location? Also, ask if the road is accessible by many cars from different locations. It is very important selecting a location where car drivers can access the petrol station very easily. In addition, accessing the petrol station from different roads to the petrol station. Being able to access the petrol station from more then one road is important factor to consider when selecting a petrol station location. It is very important selecting a location where car drivers can access the petrol station very easily. Furthermore, are they any other petrol stations around you or near by the location you are thinking of? Selecting a location where nearby they are no Petrol Stations will let car drivers come more to your petrol station. The future growth and the future projects in a certain location is important factor to consider when selecting a location. Gathering data that a certain area will be having many future project is important factor for the location.

Wish you all the best selecting location of your Petrol Station in the new year of 2010!

Difference between Super and Regular Fuel in Oman

In Oman when going to Al Maha, Shell, Oman Oil Petrol Station we do find two types of Fuel which are Super and Regular. Many people do not know the difference between super and regular. I had asked my self what is the difference between Super and Regular? The first difference between Super and Regular is the price. During writing the article the price of Super is 120 Baiza Per Litter and the Regular is 114 Baiza Per Litter. The difference between the two is 6 Baizaes.

New cars do use Super and very old cars do use Regular. Super is smoother for the car engine. Regular is harder for the car engine. One of the companies in our country which is Shell do promote their super product by, "Designed for extra kilometers at no extra cost". Usually the usage in Super is higher then Regular.

Technically, Super in Oman is 95 octane and Regular is 90 octane. Briefly octane means ability to resist knocking. The Government of Oman do set this value for the octane. octane requirement in hot countries like Oman, UAE and Qatar is higher then cold countries like France and UK. Sports cars and luxury cars usually do need higher octane.

WiMax from Product Manager from Gulf

Mena Telecom in Bahrain launched WiMax. Mobily launched a new WiFi-enabled WiMax. Algeria was the first Arab country to deploy WiMax. Five other arab countries followed Algeria and among the five three gulf countries which are Saudi Arabia, Kuwait and Bahrain. As I am a Product Manager in the Gulf I hear a lot about WiMax release, business case, feasibility study and Market Research and many do not know what is WiMax.

What is WiMax? WiMax stands for Worldwide Interoperability for Microwave Access. It is a technology that provides operators worldwide to provide Broadband Wireless solution. It can cover an area for up to 50 KM providing Internet and the speed is upto 72 Mbps. Comparing to other technologies it can cover a bigger area and provide a faster speed. Comparing to WiFi it can cover a bigger area. Comparing to ADSL it can provide similar speed or a faster speed. WiMax can be a competitive of ADSL. Moreover, WiMax can provide more then ADSL as it can provide Mobile Broadband to operators.

Some operatoars do use WiMax to cover Rural Coverage like in Algeria. Some of them use it as a Fixed Broadband and compete with ADSL. New Entrants to a market find using WiMax easier and more cost-effective then Fiber or cable like in Oman.

Nokia Siemens, Alcatel-Lucent, Nortel Networks, Huawei Technologies and many Telecommunication Global enterprises put many Human Resources, Technology, Market Research and many stuff into WiMax. WiMax is Growing and many opportunities are ahead in the gulf region and world wide.

WiMax face challenges from ADSL Broadband Internet and to win it it should be more faster and easy to use. It also do face a challenge from Mobile Broadband technology as 3G or 3.5G it should provide more mobile solution, higher speed, cheaper equipments and easier to use. Also, HSDPA do challenge WiMax. HSDPA is more mobile. But WiMax is faster then WiMax.

I do believe Operators in Middle East and business and residential customers can benefit from WiMax technology.