Cessna Marketing Success in the Middle East Trevor

Cessna Marketing Success in the Middle East Trevor Esling Vice President, International Sales, Cessna Aircraft Co.

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;

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

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

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; • It’s quicker to start a business in Egypt than it is in Italy; • Do not expect the region to “westernize”; • Considerable inter-regional investment

Doing business in the Middle East • Petro. Dollars have driven a vibrant economy across the Middle East • SWF’s 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;

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

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;

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 • Don’t expect a Saudi to react like an Egyptian –all are different. Appreciate regional differences and rivalries; • Don’t always believe the hype –dig deeper than that;

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

Doing business in the Middle East • • In summary: The area is changing rapidly; Inter –regional trade is booming; Petro. Dollar 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!

Doing business in the Middle East