Cessna Marketing Success in the Middle East

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Cessna Marketing Success in the Middle East

• Trevor Esling
• Vice President,
• International Sales,
• Cessna Aircraft Co.

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Doing business in the Middle East

• What is the Middle East?
• Try to understand the market for your products in
  the area
• What are the market trends in your business in
  these territories
• Understand how to do business in these countries

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Doing Business in the Middle East

• Where actually is the Middle East how does
  Cessna define it??
• Saudi Arabia is the largest single market in the
  Area, Egypt is second
• The Gulf, or GCC territories cover UAE, Kuwait,
  Bahrain, Qatar, Doha Oman
• Syria, Iran and Iraq are also large but embargoed
  countries
• Jordan Lebanon
• Yemen

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Doing business in the Middle East

• What do we exclude?
• Israel
• Turkey (considered to be European)
• The Maghreb Morocco, Algeria, Tunisia Libya
• Sudan and Ethiopia are considered as African

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Doing business in the Middle East

• After many years of slow growth progressive
  Governments in the GCC, Saudi and Egypt have
  tried to open their economies
• The World Bank recently said KSA Egypt are in
  the 5 most improved countries in the world for
  starting new businesses
• Its quicker to start a business in Egypt than it
  is in Italy
• Do not expect the region to westernize
• Considerable inter-regional investment

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Doing business in the Middle East

• PetroDollars have driven a vibrant economy across
  the Middle East
• SWFs are aggressively investing outside the area
  largely in UK and USA
• Riyadh as a city is 4-5 million people
• Cairo is closer to 20 million
• The most profitable oil Company in the world is
  Saudi Aramco
• One of the most successful mobile comms companies
  in the world is Egyptian (Orascom)
• The worlds largest private real estate company is
  from the UAE EMAAR Group
• Dubai becoming a worldwide vacation, banking and
  trade hub

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Doing business in the Middle East

• What about the market for business jets?
• No longer solely a market for the BBJ or GV
• The area has 295 jets (per Flight) -50 in KSA
• Also many aircraft registered outside the area
• Increasingly business aviation is changing from a
  life style choice to a business necessity
• Many more aircraft now being sold to the private
  sector in the Mid to light categories
• Cessna has seen significant growth in Citation
  sales since 2000
• An increasing recognition of value for money

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Doing business in the Middle East

• So how do you get business in the Middle East?
• Patience, patience more patience
• Relationship selling is key
• A list price mentality does not exist
• Let people see you face and your products on a
  regular basis
• Select a well known and respected local
  representative
• Make sure you understand the law in appointing
  representatives

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Doing business in the Middle East

• Build a rapport with all your representatives
  invest time in that relationship
• Time is valued differently no financial quarter
  mentality
• Establish a local office be visible
• Dont expect a Saudi to react like an Egyptian
  all are different. Appreciate regional
  differences and rivalries
• Dont always believe the hype dig deeper than
  that

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Doing business in the Middle East

• So has Cessna been successful??
• Yes, the market has become a major growth area
• In the segments we sell to our market shares are
  strong
• We selected our representation well
• We have invested a lot of time and effort in the
  area
• We enjoy a strong presence in the Mid size to
  light jet category

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Doing business in the Middle East

• In summary-
• The area is changing rapidly
• Inter regional trade is booming
• PetroDollar surpluses are driving significant
  investments both in and outside the area
• In this environment business aviation is thriving
  and growing
• Cessna is well placed to take advantage of this
  new market
• We have had to invest time and effort to get to
  where we are today more will be needed!

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Doing business in the Middle East