Study of Sales Promotions during Dubai Shopping Festival

A Study of Sales Promotions During Dubai Shopping Festival

Sangeeta Peter Doctoral Research Scholar,

Department of Management Studies,

Pondicherry University,

Pondicherry 605014.India .

Email:[email protected],

Victor Anandkumar Associate Professor,

Department of Management Studies,

Pondicherry University,

Pondicherry 605014.India.

Email: [email protected],

ABSTRACT

Purpose – The paper proposes to augment the understanding of the role of retail sales

promotions during a shopping festival based on the study of the Dubai Shopping Festival in the

United Arab Emirates (UAE).

Methodology/approach – The paper is a fact-finding, descriptive study based on secondary data

which provide information about the sales promotions used by individual brands, retailers, malls

and Destination Marketing Organization (DMO).

Findings –Dubai has been hosting events like the Dubai Shopping Festival with the aim of positioning

the emirates as a preferred shopping destination in the Middle East. The finding suggests that each

stakeholder rolls out promotions which not only results in huge savings for the customer but also

increases his chances of winning in various raffles and draws which are conducted during the festival.

Practical implications – The paper will be of interest to DMOs who seek to promote shopping

tourism.

Research limitation- This study is based on secondary data and primary information collected

through personal observation. The non-availability of data in the region adds to the research

limitation.

Originality/value – The paper focuses on retail sales promotions in shopping tourism in the

context of Dubai Shopping Festival.

Paper Classification: Case Study

Keywords: Dubai shopping festival, retail, sales promotion, shopping, tourism

mailto:[email protected]

September, 2013 A Study of Sales Promotions During Dubai Shopping Festival

International Journal of Tourism, Hospitality & Catering

Introduction

Dubai has emerged as a popular shopping destination in the Middle East. Shopping is considered

to be an essential part of a tourists’ activity and the government of Dubai in collaboration with

the retail industry has successfully capitalized on the same and has been promoting Dubai as a

shopping destination by way of events like Dubai Shopping Festival ( DSF), Dubai Summer

Surprise (DSS), and Eid-in-Dubai.

DSF, started in the year 1996, has proved to be a popular shopping event for the emirate

city of Dubai, drawing visitors from other Emirates and tourists from different parts of the globe.

The shopping festival spans over 32 days, has more than 50 shopping malls and 6000 retailers

participating (Khaleej Times, 2012) offering incredible discounts, entertaining events, raffle

draws .

Presently Dubai has more than 2.6 million square meters of retail floor space which

equates to more than 1.6 square meters of retail floor space per resident in the city ranking Dubai

ahead of retail centers of Europe in terms of mall retail space per capita. London and Paris have

0.13 and 0.34 square meters of mall based retail space per person respectively (Robertson, 2012).

During DSF, the aim of every mall and retailer is to gain the tourists’ attention, increase footfalls

and product sales and in this regard sales promotions seems to be an effective technique with

malls and retailers rolling out bargains.

Literature Review

Tourism destinations have been competing to attract international tourists and their resulting

economic impact and tourism development is seen as a way of improving a country’s economic

and social well- being (Eccles,1995). Tourism policy and planning in Dubai follows the hybrid

state-controlled/integrated tourism planning model and is dependent on the political stability and

the vision of the ruler of Dubai (Sharpley, 2008). Balakrishnan (2008) emphasized on the role of

strategic vision in branding a destination and highlighted the importance of the 6P’s namely

purpose, people, performance, products, positioning and process in destination branding.

Henderson (2006) outlined the factors critical to development of tourism in Dubai.

Shopping has been acknowledged to be a common tourist activity and a motivation for

travel, especially in the case of cross-border trips (Timothy and Butler, 1995) and is an important

part of the tourism experience (Josaim et al, 2005). Tourist travelling for pleasure or for visiting

friends and relatives purchase souvenirs to remember their travel experience (Swanson, 2004).

Destinations have developed distinctive shopping areas to capitalize on the importance of



shopping. Getz (1993) discussed the strategies for developing tourist shopping villages as a

tourism attraction. Factors like lower prices, lower taxes, variety of goods, extensive promotion

and media coverage encourage tourist to shop in a different country (Timothy and Butler, 1995).

Dimanche (2003) suggested that tax free shopping contributes to a tourist’s propensity to buy

goods. Anwar and Sohail (2004) in their study concluded that UAE is perceived to be a shopping

haven and shopping festivals attract the largest number of tourists. Peter and Anandkumar (2012)

focused specifically on Dubai and suggested that factors like strategic location, political stability,

economic and tourism policy, society and culture, tourism infrastructure, promotions and

bargains, attractions and events provided competitive advantage to Dubai as a shopping

destination.

Shopping malls are business centers that attract a large section of urban customers who

experience the pleasure of modern shopping (Rajagopal, 2009) and the shopping centers and

retail industry place a great deal of emphasis on leisure shopping and tourism (LeHew and

Wesley, 2007). Shopping malls face stiff competition, characterized by over capacity, declining

customers (Le hew and Fairhurst, 2000), similar store mix and product offerings (Wakefield and

Baker, 1998). Faced with stiff competition, the malls use promotional activities to differentiate

themselves through image communication, increased footfall, and stimulate merchandise

purchases (Le hew and Fairhurst, 2000).Tourist shoppers are pulled by factors like assortment of

stores, merchandise, quality, variety, pleasant atmosphere, safety to the malls. The mall operators

should treat tourist shoppers as distinct groups ( Josaim et al, 2005), should tailor services and

products to cater to this segment( LeHew and Wesley, 2007).

Sales promotion are an important part of marketing campaign, are a collection of

incentive tools, mostly short term, designed to stimulate quicker or greater purchase of products

or services by consumers (Kotler and Keller, 2005). There are three types of sales promotion

strategies: Push, Pull, or a combination of the two (Dolak, 2010). Beyond monetary savings,

sales promotions provide customers with hedonic benefits such as entertainment, exploration,

self expression and utilitarian benefits such as added value, increased quality, and convenience,

(Chandon, Wansink and Laurent, 2000). While previous studies have focused in depth on sales

promotions in general, this paper seeks to bring to the fore, the retail sales promotions adopted

by the shopping malls, retailers and DMO during DSF.

Methodology

This is a fact-finding descriptive study based on secondary data available in the public domain

and primary information collected through personal observation of DSF 2012. Secondary data

published in local newspapers and promotional brochures available during the months of January



and February 2012 were considered for the study. Being the longest running event in the region,

the festival merits research attention in terms of the promotions offered to the customer.

Findings and analysis

Sales discounts range from 25% to 75 % on a range of products namely – electronics, fashion

apparels, watches, jewellery, cosmetics, automobiles, home furnishings, real estate, sportswear

and equipments.

Different genres of retail promotions are rolled out during DSF ranging from raffle

draws, bundle offers, sales discounts, and discount coupons. Promotions are organized by the

shopping malls, hypermarkets and independent retailers, master franchisers, brands, trade bodies

and groups with the tendency of retail sales getting skewed in favor of the shopping malls.

Table 1: Levels of Promotion in a shopping mall

Level Benefit

Level 1 Drop in Product's Price

Level 2 Store's Discount + Free Product

Level 3 Store's Discount + Free Product + Product Brand's Raffle

Level 4 Store's Discount + Free Product + Product Brand's Raffle + Mall's Raffle

Table 1 lists the different levels of promotions available to a tourist shopper and these

levels were identified during the personal observation of DSF 2012. A product may be sold at a

discounted price (Level 1). On purchasing the product from a particular retail store, the retail

store in addition to level 1 of promotion, may offer a discount coupon and a free product (Level

2).In addition to level 2 of promotion, the tourist shopper will be entitled to participate in the

products brand raffle (Level 3). Furthermore, the tourist shopper can participate in Mall raffle

draw if his purchase meets the predefined purchase threshold (level 4). The retail customer

increases his / her chance to win across the 3-4 levels of promotions for any purchase made in a

shopping mall.

Table 2: Snapshot of promotions in shopping malls during DSF Shopping

Mall

Minimum

Purchase

Grand

Prize

Weekly

Prizes

Al Ghurair Centre AED 200 12 winners to win thousands worth of

shopping vouchers

Nil

Burjuman Mall

AED 200 BMX X5 4x4 AED 25,000

shopping voucher

Midriff City Centre

AED 300 Weekly draws worth AED 250,000

Nil

Deira City Centre


Nil

Mall of Emirates


Nil



Ibn Battuta Mall

AED 200 1 Winner each to get a holiday package for

China, Egypt, India, Spain

Nil

Arabian Centre

AED 200 One fully-furnished freehold apartment Nil

Dubai Marina Mall

AED 300 Win a trip for 2 to London, New York, Paris

or Milan

Weekly draw to win

National bonds

worth AED 500,000

Dubai Mall

AED 300 Win a first class round trip for 2 to Milan,

Paris, London or New York - 5 nights at 5

Star accommodation

Weekly draw to win

National bonds

worth AED 500,000

Dubai Festival City

AED 250 Luxury travel package to Paris, Sydney, New

York or Singapore

Nil

Lamcy Plaza

AED 200 Chance to win free shopping vouchers worth

AED 200,000

Nil

Mercato Mall

AED 200 Grand Car Draw for 2 Infiniti FX35

Nil

Oasis Centre

AED 200 Draw to win shopping vouchers upto AED

300,000

Step into Crystal Cube & grab cash vouchers

Nil

Reef Mall

AED 100 Chance to win PRADO

Nil

Source : Compiled from Various Newspaper advertisements during DSF 2012

A tourist shopper, on purchasing any product of a minimum value as specified in the

above mentioned table, qualified to participate in the raffle draw, promoted by the respective

mall, which were either weekly prizes or a grand prize at the end of the Festival.

Table 3: Snapshot of retailer / distributor promotions during DSF

Category

Retailer/Distributor Purchase / Spend Offers

Automobiles

Mitsubishi

Al Habtoor Motors Mitsubishi Car /

4X4

AED 3000 Sharaf DG voucher

Automobiles

Nissan

Al Rostamani Motors Nissan Car / 4X4 Guaranteed Shopping Voucher of AED

25,000

Automobiles Renault Arabian Automobiles Renault Car / 4X4

Free Sony Bravia LCD TV

Free Sony PSP

Free Apple iPod Touch

Automobiles

Honda

Al Futtaim Motors Honda 4x4

Free 32' Toshiba LCD TV & 15.6"

Toshiba Laptop

Consumer

Electronics

Emax

for every AED

499

chance to win AED 1,000,000

Consumer

Electronics

Sharaf DG

Shop for AED

500

Get AED 100 vouchers back

Consumer

Electronics

Plug Ins

Spend AED 500

& above

Get seawings voucher worth AED 350

Home Furnishing Marlin

Nil 25% - 75% off



Home Furnishing

Al Huzaifa Furniture Nil Upto 60% off

Home Furnishing

2XL Nil 25-70%

Home Furnishing

Homes r us Nil 25-70%

Home Furnishing

United Furniture Nil upto 70% off

Home Furnishing

Lifestyle

Nil upto 60% off

Home Furnishing

Home Centre

AED 250

AED 50 Gift Voucher

Home Furnishing ID Design

Spend AED 1000

- 10,000

Spend AED

10,000 & above

Get 30% gift voucher

Get 50% gift voucher

Clothing &

Accessories

Bossini

Nil upto 60% off

Clothing, Footwear,

Home Furnishings,

Kids

Centrepoint

(babyshop, Splash,

Lifestyle, Shoe Mart)

AED 250

Grand Prize - AED 1,000,000 worth

National Bonds

Weekly Prize -

AED 100,000 worth National Bonds

Sporting Goods

Studio R / Stadium

Nil 25% - 50% off

Telecom

Axiom Telecom

Buy a mobile Air Tickets for 2 to anywhere in the

world

10 gm gold coins

Luxury phones

du recharge cards


Distributors/retailers offered discounts or prizes ranging from shopping vouchers to free

products, air tickets and national bonds.

Table 4: Snapshot of brand promotions during DSF

Category Brand Purchase / Spend Offers

Consumer

Electronics

LG 3D Smart

Surprises

AED 250 & above

Grand Prize - LG 72" Cinema 3D Smart TV &

3D Blu-Ray Home Theatre

Weekly Prize - Dubai Duty Free Gift Vouchers

worth AED 5000

Others - Buy LG product worth AED 399 &

above, get AED 150 LG Smart TV upgrade

voucher

Consumer

Electronics

Samsung Flat TV

Buy any Samsung

Flat TV

10% to 40% free shopping value instantly



Consumer

Electronics

Canon

Buy any Canon

product worth AED

400

2 Emirates Holidays package worth AED 4000

Consumer

Electronics

Hitachi

Spend AED 200 5 free trips for 2 to Japan

Consumer

Electronics

SanDisk

Buy any SanDisk

product

Grand Prize - Luxury holiday for 2 valued at

AED 15,000

Weekly Prize - 5X5000 shopping vouchers

Consumer

Electronics

Samsung

Buy any Samsung

product

4 Grand prizes - Each grand prize includes 13

Samsung products

Consumer

Electronics

Panasonic

Buy any Panasonic

Product

Grand Prize - 4 London 2012 Olympic all

expenses paid trip

Weekly Prize - 5 smart Home Makeover

packages

Notebooks HP

Buy Notebook or

Desktop

Scratch card to win up to AED 10,000 instantly

Notebooks

Sony Vaio

Buy Sony Vaio with

2nd Gen Intel Core

processors

Win Damas gift vouchers worth AED 10,000 or

Sony Micro vault

Homeware /

Tableware

Silica

Nil 25% - 70%

Credit Card Visa Card

Pay with Visa Card

Win a trip to London 2012 Olympic Games

Real Estate

Damac

Buy select

residential, office or

retail space in Dubai

Get a Lamborghini, BMW 7 Series, BMW 5

Series, BMW X1 and Mini Cooper

Telecom Motorola Buy any Motorola

mobile

Get a Gift Voucher

Leather Goods Kipling Nil 60%


Brands like Samsung, Panasonic, Motorola, LG, Canon, Hitachi, and Sony gave away

Grand prizes like luxury holidays, smart TV, weekly prizes of gift vouchers, whereas brands like

Kipling and Silica gave discounts on product purchase. Real estate giant, Damac, gave away

Lamborghini, BMW or MINI for every purchase of property (Zawaya, 2012).

Table 5: Snapshot of trade group promotions during DSF

Category Trade Group Purchase / Spend Offers

Gold & Jewellery Dubai Gold & Jewellery

Group,Damas, Joyallukas,

Malabar Gold, Meena

Jewellers, Sky Jewellery,

Atlas, Chitillapilly

Buy gold jewellery

worth AED 1000

Buy AED 1000

worth

Daily Draw - Win 1/2 kilo

gold every day

Grand Draw - Win 3 kilo gold

in final raffle draw

Win up to 2 million AED



diamond,pearls,watch instantly in scratch n win

coupons


Dubai Gold & Jewellery Group’s gave away half-kilo gold in draws everyday totaling 19

kilos during the entire month and a bumper draw of 3 kg on the final day, which enticed

shoppers to buy gold during DSF. Added to this gold draw, the shoppers were eligible for a

‘Scratch & Win’ promotion in which a total of AED 2 million worth of instant cash prizes were

offered on purchase of diamonds, pearls and watches (Dubai Events and Promotions

Establishment, 2012).

Table 6: Snapshot of hypermarket promotions during DSF

Hypermarket

Category Purchase / Spend Offers

Carrefour

Telecom

AED 200 & above

Scratch & Win voucher upto

AED 1000 Carrefour

Vouchers

KMT Trading

Clothing

Buy 2, Get 1

Men's Shirts, T-shirts,

Trousers

Source : Compiled from Various Newspaper advertisements /Promotional Catalogs during DSF 2012

DSF is popular for a daily raffle draw of Infiniti 4X4 drives along with a cash prize of

AED 100,000, followed by a bumper raffle draw on the last day of DSF, for which a shopper

needs to buy a raffle coupon of AED 200. This has been the main draw since the shopping

festival started way back in 1996.A Nissan grand raffle offered different models of a Nissan car

everyday on purchase of fuel and 20 AED raffle coupon at ENOC and EPPCO fuel stations

(Dubai Events and Promotions Establishment, 2011). Dubai-based retailers and wholesalers saw

their sales triple in the last few days of the festival as the customers wanted to partake in the

grand raffle prize on the last day of the festival. An Indian tourist won the grand prize of 3 kg

gold in the grand raffle of 2012 (Sathish, 2012). Arabian Automobiles the sole distributor of

Renault, in UAE saw their combined sales of all models increase by 10% in 2012 (MENAFN,

2012).



Discussion on findings

Sales promotion as a tool, does generate short term increase in sales of products, increases

footfalls in the malls, encourages repurchase, draws new customers, and encourages brand

switching. The pattern of retail sales promotions point towards a concerted effort of various

stakeholders. The Government of Dubai with various mandates ensures that the retail promotions

are fair and authentic (Department of Economic Development, 2012). For a destination seeking to

promote shopping tourism, an impression of genuineness and authenticity is important to draw

shoppers and various statutory requirements put in place ensure that the sales promotions rolled

out by the stakeholders are genuine and authentic. This would help in strengthening Dubai as a

shopping destination and also differentiate it from other shopping destinations.

Also noted in the findings was the fact that each stakeholder had their own sales

promotions which summed up to huge savings for the shopper. For retailers and shopping malls,

being associated with a premier event like the Dubai shopping festival, run by the Government of

Dubai results in increased sales, greater footfalls, brand reinforcement and higher brand equity.

A shopper can dream of owning an Infiniti 4x4 car by participating in the mega raffle by paying

only 200 AED, or a Nissan car by filling petrol and paying 20 AED. The probability of winning

half a kilo of gold everyday or three kilos of gold on the last day of the festival, acts as a stimulus

to purchase gold. The winners turn into brand ambassadors overnight for the product, and the

destination. The duration of the shopping festival may also have a role to play in increasing the

retail sales. To shoppers who do not have any intention to shop, the raffles and promotions act as

a stimulus to purchase products. Thus, Dubai, as a shopping destination wins goodwill, reaps the

benefits of being seen as an ideal shopping destination, thereby attracting tourists, which has a

multiplier effect on all sectors of the economy. Sales promotions thus result in a win-win

situation for all stakeholders as is evident in the resounding success of Dubai shopping festival

over the past 17 years. This integrated model of sales promotions thus can be applied to

destinations seeking to promote shopping festivals.

Conclusion

During DSF, retailers run similar sales promotion in neighboring emirates also. The sales

discounts on the products are similar to those during DSF. Brand raffles like the Grand Prize of

Samsung and Panasonic are valid on purchase of products in other Emirates – Abu Dhabi, Al

Ain, Sharjah, Ajman, Umm-Al-Quwwain, Ras-Al-Khaima, and Fujairah. Malls in other emirates

like Sharjah also organize raffle draws. The retailers, brands and malls take necessary

permissions, similar to the permissions required in the emirate of Dubai to run the sales

promotions from the Municipal / Economic Department in different emirates. However, all such



draws are conducted in the emirate of Dubai. The only differentiating Sales Promotion during

DSF is the Gold Draw and the Grand raffle draws which is limited to DSF.

DSF has been marketed as a retail event and the availability of similar promotions in

other emirates may reduce its unique selling proposition. It also raises the question of

sustainability of the shopping festival. The neighboring emirate of Sharjah, which is a mere half

hour drive from Dubai, also organizes a shopping festival named Sharjah Spring Promotions

which coincides with DSF. Inspite of the availability of similar assortment of products and sales

promotions, shoppers from other emirates visit Dubai during DSF to shop. One possible reason

could be the lack of knowledge regarding the sales promotion on the products in other emirates.

The promotion policy followed by the Department of Economic Development ensures

fairness and transparency in the retail promotions. But does the tourist feel that the raffle draws

are fair and transparent and is he aware of the promotion rules? A tourist’ stay is generally short

and hence he faces paucity of time and may also lack knowledge about the various sales

promotions run by different retailers and different malls. Does he perceive any difference in the

various sales promotions? There is a need for further research to understand the tourists’

perception and satisfaction about the sales promotions organized during the shopping festival.

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Study of Sales Promotions during Dubai Shopping Festival

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