pl provide full details

implementation Plan (Steps to follow constrained by budget and timeline/Short term and long term plan/Always look for appendices)

5-115-002 Aura: Designing Strategy and Status in Saudi Arabia In late 2014, Noura F. K. Abdullah, CEO of Saudi furniture retailer Aura, reflected on all that had happened in the three years since she had launched the company. She had founded Aura with the intention of targeting the large mid-market of Saudi Arabia, but now her company had gotten a lot of positive press in high-end media outlets and had ended up drawing the comparatively small population of wealthy Saudis into its stores. Aura had experienced some major wins, attracting the attention of media, fashion bloggers, and wedding designers, and had posted several impressive statistics, especially for a young retail organization. In particular, Aura had strong conversion ratesthe percentage of visitors to the store who made a purchaseand social media engagement (more than 61,000 followers on Instagram). But the expanded set of retail statistics was not consistent. For the ups, like conversion rates, there were downsnotably foot traffic. Abdullah wondered if the inconsistency was somehow related. Could the leading, positive statistics explain the trailing ones? Answering this question would have important implications for Aura's growth strategy. Abdullah had earned an MBA with a focus on strategy and management, so she knew to anticipate unintended results. But she also knew that it was imperative to respond to unintended outcomes, either by correcting for them or absorbing them, even if it meant altering course. The Home Furnishing Retail Sector Global Market The global home furnishing retail sector was projected to have a value of US$726.7 billion by 2016, an increase of 31.4 percent from 2011.1 The sector included bedroom, dining room, home office, and living room furniture as well as carpets, rugs, and textiles (such as beddings, cushions, linens, and towels). Europe was the largest geographic segment of the global market, at US$242.5 billion (43.8 percent), compared to the Americas' US$173.5 billion (31.4 percent), Asia-Pacific's US$117.5 billion (21.3 percent), and the rest of the world at US$19.6 billion (3.5 percent).2 Amid a fragmented and highly competitive sector, the largest players were IKEA, Wal-Mart, Bed Bath & Beyond and Macy's. IKEA, the global leader, accounted for 6.5 percent of the sector's value in 2011, and Wal-Mart followed with 3.8 percent share.3 2015 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Ned Smith and Andrea Meyer. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 847.491.5400 or e-mail cases@kellogg.northwestern.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of Kellogg Case Publishing. Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. NED SMITH AND ANDREA MEYER 5-115-002 Middle Eastern Market Middle Eastern markets were some of the fastest-growing retail markets in the world. High disposable incomes, an urban population, and the attitude that malls were entertainment destinations all contributed to the growth. In 2012 Saudi Arabia and the United Arab Emirates (UAE) were identified as the two markets with the most potential in the Middle East. They had been the dominant Middle Eastern markets for over a decade and were forecast to continue to dominate because the majority of the region's retail investment was centered in these two countries.4 Compared to the UAE, the Saudi retail industry was not as developed, but the size of the Saudi population and its young demographic made it favorable.5 (See Exhibit 1 and Exhibit 2.) The United Nations had forecast that the population of Saudi Arabia would rise to 28.6 million by 2015, with 45 percent of the population being of prime purchasing age: between 19 and 45.6 By 2013, Saudi Arabia had already surpassed that forecast, with a population exceeding 29 million, making it the most populous country in the GCC (Gulf Cooperation Council countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE) by far.7 The gross domestic product of Saudi Arabia was US$727 billion in 2013, making it the only Arab country to be recognized as one of the world's leading influential economies.8 Similarly, the 2014 Saudi Arabia Retail Report forecast a rising average net household income from around US$39,494 in 2015 to US$44,421 by 2018.9 Saudi Arabian Market With retail spending on the rise in general in Saudi Arabia, spending on furniture items in particular was expected to grow at a rate of 13.7 percent annually until 2017.10 Furniture imports into the country totaled 2.2 billion Saudi Arabian riyals (US$5.9 million)11 in 2014, prompting some international sales and marketing professionals to call Saudi Arabia \"the most buoyant interiors market in the Middle East.\"12 Given that 90 percent of the Saudi population lived in cities, shopping malls typically had a sizeable customer pool nearby.13 The major cities in Saudi Arabia were expected to see a strong increase in retail, with the capital, Riyadh, alone expected to add 600,000 square meters or more of leasable retail area, in addition to its existing 2.3 million.14 The two largest cities, Riyadh and Jeddah, had about sixty malls in total, representing the bulk of Saudi Arabia's retail sector. Despite substantial market growth from 2011 onward, Saudi Arabia trailed behind other markets in the region, indicating an opportunity for future expansion of the retail infrastructure.15 Smaller shopping malls were becoming a trend as early as 2012. These malls featured upand-coming fashion brands, gourmet grocery stores, and specialty home furnishing shops, all surrounded by small, elegant restaurants and cafes.16 COMPETITIVE LANDSCAPE The retail industry in Saudi Arabia was dominated by a few large, family-owned businesses that operated across numerous other sectors, including real estate. These large businesses owned shopping malls and acquired exclusive franchising agreements from international brands to set up retail outlets in those malls.17 In addition to this concentrated power base of ownership, there were a few smaller companies with five to ten international franchises. Finally, small retailers, which 2 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA AURA owned less than five shops each, were an important sector because of their competitive pricing in the medium- to low-price category.18 CULTURAL FACTORS Cultural norms in Saudi Arabia presented some challenges for retailers. For example, Saudi women were not allowed to drive, which limited their access to shopping. In addition, malls had a \"family-only\" policy on weekends, which meant that single men, who otherwise could move about freely, could not access malls without family during those times.19 In Saudi Arabia, \"the act of buying goods was seen as part of a lifestyle and cultural activity, and not only driven by practical or economic factors. Meeting others, being seen and getting to be recognized amongst one's peers in the social ladder was a part of one's identity,\" a local consultancy reported.20 Malls also played an important role as entertainment, given that Saudi culture forbade cinemas and alcohol. The region's hot climate also limited outdoor activities, making airconditioned malls attractive. As a result of these factors, shopping was treated as a leading leisure activity.21 Finally, religious tourism played a key role in Saudi Arabia's retail sector. About 2.5 million Muslims came to Saudi Arabia each year as religious pilgrims performing Hajj (a pilgrimage to Mecca that all adult Muslims must undertake at least once a lifetime), and many more Muslims visited the country to perform Umrah (a pilgrimage to Mecca undertaken at any time) at other times of the year.22 Although most pilgrims went to Mecca and Medina, they traveled via Jeddah, the principal international gateway for the pilgrimages. Many of the pilgrims spent time shopping in Jeddah after their journey, boosting the city's retail sector.23 Despite Saudi Arabia's unique challenges, it remained an enticing retailing opportunity. Said one representative on the Middle East and North Africa (MENA) team of a real estate investment firm, \"Retailers across the spectrum are looking to enter this market to cater to a large and growing domestic demand, driven by its sizeable young population.\"24 Millennial Customers Millennialsthose under age 35, who made up nearly half the Saudi populationdrove Saudi Arabian retail growth. Furniture retailers characterized millennials as \"more style conscious and not looking for the same types of furniture they grew up with.\"25 Some described millennials as \"not interested in longevity or keeping their sofa for 25 or 30 years. They will have it until they change their minds and want to upgrade to something different, just like they do with their cell phones.\"26 Millennials sought uniqueness, new patterns, and new colors, and reaching them required retailers to be online. \"Research has proven that millennials explore brands and purchases on social networks,\" said the vice president of one furniture maker. \"They want to engage in real conversations with the brand, as well as share images of items. They like to get recommendations from peers.\"27 Companies looked to social media platforms like Facebook, Twitter, and Instagram to reach millennial buyers.28 KELLOGG SCHOOL OF MANAGEMENT 3 Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 5-115-002 Saudi Luxury Retail According to a 2012 survey that covered 326 retailers from 200 cities, Saudi Arabia was the tenth most sought-after destination for international retailers in the world.29 \"Demand for luxury products was rising, and Saudis were known to splurge on luxury items. An increasing number of young and affluent consumers prefer to spend on premium clothing and accessories, have high brand inclination, and aspire to emulate Western lifestyles,\" one report said.30 Two luxury retailer executives described their views of the Saudi luxury retail market: The retail industry in the region has grown at a fast pace and at the same time consumers have become increasingly sophisticated. Today in the luxury retail industry, we see a lot of repetition; almost in each mature market you will find the same brands next to each other, the same merchandise and even the same decoration and window displays. Our GCC consumer is a well-traveled and savvy one, therefore we have to start customizing more products and concepts with him or her in mind. I believe that is where we can have an edge and establish GCC as a premier shopping destination. Ashraf Abu Issa, chairman and CEO, Abu Issa Holding31 In a fiercely competitive environment, we are seeing an increasingly demanding consumerone who is more assertive, digitally savvy and determined in his choice, who is looking for uniqueness and differentiation to affirm his identity. Quality of service, depth of offer and an aggressive events schedule coupled with innovative concepts are more vital than ever to ensure continued consumer interest. Patrick Chalhoub, co-CEO, Chalhoub Group32 Noura Abdullah and Aura Noura Abdullah was born in Saudi Arabia and lived there most of her life, except when she earned a degree in molecular genetics from King's College London in 2001 and an MBA from the University of Chicago Booth School of Business in 2009. Furniture design and interior decorating had always been her passions. Company History While in graduate school, Abdullah developed a new concept: that of a retail store that sold home fashion that appealed to younger, style-conscious Saudi consumers. The style would be Middle Eastern but with a Western influence, giving the brand a distinctive style. The store would sell only exclusive, branded items. Having found a gap in the market for something she was passionate about, Abdullah developed a business plan. Abdullah's value proposition was to offer a full line of home fashiondining, living, bedroom, tableware, home accessories, and lifestyle itemsaiming to be a \"one-stop-shop\" for creating a personal look for young, confident Saudis who had sophisticated tastes but middleincome pocketbooks. Abdullah wanted her business to become the brand of choice for young Middle Eastern consumers hoping to combine the best of East and West in their home dcor, and to eventually become the leading home fashion brand in the region. 4 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA AURA When considering a name for her company, Abdullah initially wanted to brand products with Saudi female names. But market research showed that Saudi consumers associated foreign brands with quality. \"The value of the product was diminished when people attributed a Saudi name [to the brand]. We are a Saudi company catering to Middle Eastern customers, but most people attribute our company, with a name like Aura, as having some foreign affiliation,\" explained Abdullah.33 Speed to marketoffering new products frequentlywas an integral part of the Aura concept. \"Even if the market is saturated, with any fashion-oriented products, if you're not moving at a fast, fashion-forward pacea cycle of a minimum of two new major collection introductions a yearyou'll be left behind,\" Abdullah said. \"Aura has two major and two minor cycles. We're trying to do for furniture what Zara does for clothing.\"34 Abdullah developed her business plan based on these concepts and, after participating in a new venture competition at school, refined the business plan and pitched it to investors. She succeeded in securing funding. Abdullah opened the first Aura store in April 2010 in Riyadh. She chose to open in the city's newest shopping center, the Panorama Mall. Style and Store Design Abdullah positioned the company as an affordable, tasteful alternative to Middle Eastern luxury brands as well as a contrast to the \"boring beige\" Western-style furniture that IKEA and Pottery Barn were selling in Saudi Arabia. In 2014 Aura was shortlisted by Harper's Bazaar Middle East as the best furniture brand. The store design created a theatrical feel, using strong accent lighting that showcased products like jewels and keeping price tags discreet so as not to interrupt the visual aesthetic of the store. Reflecting Aura's East/West blend, the company's logo and all in-store communications were designed in both Arabic and English (see Exhibit 3). At the center of the store, a white framed structure paneled in glass35 featured the Iconic collection, Aura's specially commissioned products that blended Middle Eastern heritage with a modern twist (see Exhibit 4). For example, Aura's dallahstraditional pots used for brewing Arabic coffeewere decorated with creative patterns and colors to put a twist on the pots' traditional form.36 In addition to its Iconic collection, Aura had three other style categories (Modern Classic, Trend, and Contemporary), each with their own colors and themes that were displayed in room sets around the store and updated seasonally. Marketing Efforts At its founding Aura did very little marketing \"because it is very expensive to put ads in newspapers and magazines,\" explained Abdullah. \"[Instead] we put time and energy, rather than money, into approaching media outlets. We also made sure our products were beautifully photographed.\"37 To that end, Aura set up an account on Facebook in 2011 and on Twitter in 2012. However, Aura's major win came with the arrival of Instagram, which Aura joined in October 2012. \"In Saudi Arabia, Instagram is the most prominent for social media,\" Abdullah said.38 KELLOGG SCHOOL OF MANAGEMENT 5 Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 5-115-002 Another marketing tactic involved sponsoring a design competition in partnership with Saudi Design Week, a weeklong celebration of local and international design in Saudi Arabia. The competition asked participants to design a mid-priced upholstered chair suitable for use in a living room or bedroom, incorporating Aura's signature blend of international design with Arabian trends. \"Our creative director is actually Saudi, so promoting local talent is close to our hearts. With this competition, we are keen to showcase as many of the designs as we receive and hope the young artists that partake in it can become globally recognized in the future,\" explained an Aura spokesperson.39 The competition's winner created a modern take on traditional Khaleeji floor seating for the next generation of Arabs.40 Aura also pursued business-to-business (B2B) opportunities. Abdullah knew that Aura needed to generate extra cash from B2B, but when Aura first launched, it lacked the resources to go after the big residential projects or hotels. Instead, the Aura team decided to actively target an area of smaller scalewedding planners. The team contacted well-known wedding planners in the region and found them to be receptive. \"We had business-to-business relationships with the five main wedding planners for lavish Middle Eastern weddingsthese are the kinds of events with 2,500 to 3,000 guests,\" Abdullah said.41 \"We provide quality products at value prices, and they continued coming back to us.\"42 Aura's Competition Whereas large players such as IKEA and Wal-Mart focused on economies of scale for low prices as their edge, boutique players such as Aura focused on innovative, fashion-forward designs. Conceivably, many types of retail stores, including furniture stores, specialty stores, discounters, and e-commerce homewares retailers, could be competition for Aura. Within the boutique sector, Aura faced competition from Zara, which had launched Zara Home to sell home textiles and had 408 stores in forty-four countries, including Saudi Arabia, by 2014.43 Akin to Aura's four collectionsModern Classic, Contemporary, Trend, and Iconic Zara Home had Contemporary, Classic, Ethnic, and White, which were available globally.44 U.S. retailer Pottery Barn entered Saudi Arabia in 2011, bolstered by its success in Kuwait and Dubai.45 Pottery Barn did not alter its retail store format for the Saudi market, preferring to provide Saudi customers with the same retail shopping experience that its customers had in other markets. Each store was organized into living rooms, outdoor spaces, dining rooms, media, seasonal items, and bedrooms and bathrooms. \"It's important for customers to know that they can always look to Pottery Barn for casual, comfortable designs at a great value,\" said Laura Alber, president and CEO of Pottery Barn's parent company, Williams-Sonoma.46 Pottery Barn opened its first Saudi store in Riyadh on the ground floor of the Red Sea Mall; a second store in Jeddah's Mall of Arabia in 2011;47 and a third store in Mall of Dhahran in 2012.48 The company had no social media presence on Twitter, Facebook, or Instagram for its Saudi Arabian stores. Ethan Allen Interiors, a U.S. home furnishings retailer founded in 1932 and named after a U.S. Revolutionary War hero to emphasize its early-American furniture style, entered the Saudi Arabian market in 2013 with a store in Jeddah. During its launch, Ethan Allen partnered with Saudi Prince Mansour Bin Muqrin Bin Abdulaziz, who described the Ethan Allen Design Center as \"Jeddah's new, exclusive home fashion destination.\"49 The company showcased a different look in Saudi Arabia (as evidenced by the photos on its main Facebook page compared to its Saudi one; see Exhibit 5) and was considered a high-end player in the Saudi Arabian market. 6 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA AURA Known for its classic style, Ethan Allen focused on creating \"new classics\" to appeal to millennials. \"We are in [the] process of implementing a major change in our offerings,\" said Farooq Kathwari, Ethan Allen's chairman, president, and CEO. \"We focus on classics, and our campaign is developing the next classics. During the next two or three months, over 600 new products are being introduced in our network. For example, the Shelton and Pierce [collections] focus on good quality, fine details, value and [are] relaxed for today's lifestyles.\"50 As of November 3, 2014, Ethan Allen had 10,377 likes on Facebook for its Ethan Allen KSA (Kingdom of Saudi Arabia) site51 and 5,404 followers on Twitter52 for its corporate brand but no separate feed for its Saudi Arabian stores. Becara, a Spanish furniture and home accessories company, strengthened its presence in the Saudi Arabian market by distributing its products through Alshaya Home stores, a branch of the A.M.H. Alshaya Company, one of the largest retail companies in the Middle East.53 The Alshaya Group identified Saudi Arabia as its most important market in the Gulf area. Opening its showroom in Jeddah in 2011, the group added two more showrooms in Riyadh and Alkhobar the following year.54 Alshaya was also the franchise operator for Pottery Barn and for its parent company, Williams-Sonoma, which had entered Middle Eastern markets in 2010. In terms of price points in relation to its competitors, Aura's entry price points were the top 10 percent of IKEA's prices. Both Ethan Allen and Becara were more expensive than Aura, while Zara Home was within the same price range as Aura. Reception of Aura Through its social media, B2B, and PR efforts, Aura drew the attention of several notable design magazines, such as Harper's Bazaar Interiors, Elle Decor, and Martha Stewart Weddings, as well as Middle East Interiors, Emirates Bride, Ahlan! Gourmet, Flair, Oasis, and Emirates Woman. (See Exhibit 6.) By October 2014, the company had 56,337 followers on Instagram,55 513 followers on Twitter,56 and 2,237 \"likes\" on its Facebook page.57 Aura's press releases continued to emphasize the brand's middle-income affordability, but the company's ties to high-end wedding planners brought it unexpected coverage. \"Because of our success furnishing these weddings and the attractive look and feel of our products, we got coverage in a string of publications,\" Abdullah said.58 \"It was a pleasant surprise.\"59 Abdullah saw reasons why Aura was attracting high-end customers: \"First, they view our products as frequently updatable fashion goods. Rather than buying something expensive, they'd rather buy Aura for fun and as an accessory. Second, our products are a different mix to what is available in the market and very fashion-forward. Finally, Aura being featured by different bloggers and wedding planners has contributed to [our] image.\"60 Like any retailer, Aura tracked three main metrics: footfall (how many people walk into the store), conversion rate (how many of those people make a purchase), and ticket price (how much each customer spends in the store).61 \"Our conversion rate is very high among retailers, particularly furniture retailers,\" Abdullah said.62 \"When customers walk into our store, there is a high probability they will make a purchase. We have also found that customers are consistently (and pleasantly) surprised by our price point. They read about us in outlets like Elleand may even be exposed to some of our KELLOGG SCHOOL OF MANAGEMENT 7 Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 5-115-002 furniture and other products at weddings and other functionsand come into the store expecting our prices to be much higher than they are. When they find the price tag [. . .] they are sometimes actually quite shocked.\" Abdullah believed that Aura's low price point was a major driver of the store's high conversion rate, but she also noted that the customers coming through the door were typically those who could afford to pay more. \"We seem to be drawing a segment of customers that is above our target segment,\" she said.63 Abdullah had seen that once mid-market customers came into the store and saw Aura's attractive price point, they invariably made a purchase. The question was how to get more of them into the store. Expansion From the start, Abdullah envisioned expanding Aura beyond its first store. Indeed, she saw the Riyadh store as setting the standard for a phased opening of six stores within five years in Saudi Arabia, with eventual expansion to the rest of the MENA region.64 Abdullah opened Aura's second store in August 2013 in a prime location in the Mall of Dhahran in the Eastern Province of Saudi Arabia. In addition to increasing the number of stores, Abdullah pushed Aura's B2B activity beyond selling to wedding planners, now that Aura had more resources to expand. She targeted selling to hotels, complexes, and other event-driven businesses. The decision to expand the B2B side was supported by the construction boom that Saudi Arabia was experiencing in 2014. Saudi Arabia had US$784 billion worth of construction projects underway, creating an area of opportunity for international interior and design companies. Aura continued its cool-factor social media strategy and hosted its first blogger dinner in conjunction with the launch of its Jeddah store. \"We spent about 5,000 riyals [US$1,500], and we increased our followers on Instagram from 41,000 to 49,000 within the span of two days,\" Abdullah said.65 For the launch, Aura partnered with Lace Events and Design magazine. All furnishings and tableware used at the dinner were Aura-branded products. Aura approached two of the leading Instagrammers in the region to attend the dinner, which was hosted at the Park Hyatt Hotel. Other guests were suggested by Aura's event partners and approved by Aura based on their number of social media followers and their fit with the brand. Guests were encouraged to take photos and post about the dinner as it was happening. They were also given vouchers for store purchases and were asked to post photos of the items they bought the day of the launch. Aura partnered with Uber for transportation to and from the event. The partners and guests of the event had a total of 1.25 million people following them, giving the brand significant exposure. Whom to Target? While Abdullah wondered how to effectively attract the mid-market, she worried whether doing so would alienate her new high-end customers. Would it be possible to target two market segments at once? On some level, Abdullah felt that Aura could attract both high-end and middlemarket customers.66 But as a small company, Aura was resource-constrained. \"For the future, we need scale: to cover head office costs to get the benefits of discounts, logistics, and supply chain,\" she said.67 8 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA AURA The company's \"good problem\" of high-end clientele nagged at Abdullah. On the one hand, the high-status perception could be scaring away Aura's intended customers. On the other hand, by abandoning the higher-end customer, Aura would lose sales. Pursuing both markets would take significant resources and might cause confusion in the market. Trying to go mid-market could lose Aura its high-end allure and media appeal. But if the company stayed high-end, would it be able to expand? What about expansion outside Saudi Arabia? KELLOGG SCHOOL OF MANAGEMENT 9 Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 5-115-002 Age Exhibit 1: Saudi Arabia's Young Population Profile Population (in millions) Source: Al Rajhi Capital, \"Saudi Retail Sector,\" January 5, 2013, p. 3, http://content.argaam.com/2a7e6433-a546-4a88-9c74930ed924b84c.pdf. Exhibit 2: Rising Disposable Incomes in Saudi Arabia Lead to Higher Consumption Source: Al Rajhi Capital, \"Saudi Retail Sector,\" January 5, 2013, p. 3, http://content.argaam.com/2a7e6433-a546-4a88-9c74930ed924b84c.pdf. 10 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA Exhibit 3: Aura's Storefront and Price Tags with Both English and Arabic Lettering Source: Aura. KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 AURA 11 Exhibit 4: Aura's Iconic Designs Featured in Flair, June 2013 Source: Aura Complete Press Book, February 2012-August 2014. 12 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA 5-115-002 5-115-002 AURA Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. Exhibit 5: Ethan Allen's Facebook Pages for the Corporate Brand (top) and for the Saudi Arabian Market (bottom) Source: Ethan Allen's Facebook page, https://www.facebook.com/ethanallendesign (accessed November 3, 2014). Source: Ethan Allen Saudi Arabia's Facebook page, https://www.facebook.com/EthanAllenKSA (accessed November 3, 2014). KELLOGG SCHOOL OF MANAGEMENT 13 Exhibit 6: Harper's Bazaar Interiors Features Aura in July 2012 and July 2014 Source: Aura Complete Press Book, February 2012-August 2014. 14 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA 5-115-002 AURA Endnotes 1 \"GlobalHome Furnishing Retail,\" MarketLine, May 3, 2012, http://store.marketline.com/Product/global_home_furnishing_retail? productid=MLIP0482-0001. 2 Ibid. 3 Ibid. 4 \"Saudi Arabia Retail Prospects and Outlook for 2012,\" Sacha Orloff Group, January 2012, p. 3. 5 \"Saudi Arabia: 2014/2015 Discovering Business,\" UK Trade & Investment, Committee for International Trade, and Allurentis Ltd., 2014, p. 11, http://the-mea.co.uk/sites/default/files/Saudi%20Arabia%20Discovering%20Business%202014-15.pdf. 6 \"Saudi Arabia Retail Prospects and Outlook for 2012,\" p. 2. 7 \"Saudi Arabia: 2014/2015 Discovering Business,\" p. 11. 8 Ibid., p. 11. 9 \"Saudi Arabia Retail Report,\" Business Monitor International, September 3, 2014, http://store.businessmonitor.com/saudi-arabiaretail-report.html#sthash.S2gexanA.dpuf. 10 \"Saudi Arabia Furniture Market Forecast to 2017,\" RNCOS Business Consultancy Services, July 2013, http://www.rncos.com/Market-Analysis-Reports/Saudi-Arabia-Furniture-Market-Forecast-to-2017-IM610.htm. 11 U.S. dollar to Saudi Arabian riyal, http://coinmill.com/SAR_USD.html#SAR=500. 12 \"Booming Construction Activities in Saudi Arabia Fuel Demand for Furniture Imports,\" DecoFair 2014, press release, May 26, 2014, http://decofair.com/en/press-releases. 13 Sumita Katira, \"Saudi on a Retail High,\" Arabian Gazette, July 30, 2011, http://www.arabiangazette.com/saudi-retail-high. 14 Ibid. 15 \"GCC Retail Sector,\" Alpen Capital, December 9, 2012, p. 43. 16 \"Saudi Arabia Retail Prospects and Outlook for 2012,\" p. 8. 17 \"GCC Retail Sector,\" p. 11. 18 \"Saudi Arabia Retail Prospects and Outlook for 2012,\" p. 8. 19 \"Saudi Arabia: 2014/2015 Discovering Business,\" p. 86. 20 \"Saudi Arabia Retail Prospects and Outlook for 2012,\" p. 6. 21 \"Saudi Arabia Retail Report.\" 22 \"Saudi Arabia: 2014/2015 Discovering Business,\" p. 86. 23 Ibid., p. 86. 24 Ibid., p. 83. 25 Cindy W. Hodnett, \"Sofas' Appeal Cuts Across Demographics,\" Furniture Today, September 21, 2013, http://www.furnituretoday.com/article/349332-sofas-appeal-cuts-across-demographics. 26 Ibid. 27 Ibid. 28 Ibid. 29 \"GCC Retail Sector,\" p. 19. 30 Ibid., p. 19. 31 Ibid., p. 4. 32 Ibid., p. 4. 33 Noura Abdullah, in interview with the authors, September 5, 2014. 34 Ibid. 35 Mark Faithfull, \"A Room with a Hue,\" design:retail, October 14, 2011, http://www.designretailonline.com/displayanddesignideas/ magazine/A-room-with-a-hue-5351.shtml. 36 \"Aura Celebrates Janadriyah at Panorama Mall,\" Arab News, February 15, 2012, http://www.arabnews.comode/406570. 37 Fred Schmalz, \"Too Much Good Press?\" Kellogg Insight, September 2, 2014, http://insight.kellogg.northwestern.edu/article/toomuch-good-press. 38 Noura Abdullah, in interview with the authors, September 5, 2014. 39 Mariam Nihal, \"Aura Launches Nationwide Design Competition,\" Saudi Gazette, May 12, 2014, http://www.saudigazette.com.sa/ index.cfm?method=home.regcon&contentid=20140512204804. 40 \"Aura Announces the Winner of the 2014 Design Competition in Partnership with Saudi Design Week,\" press release, August 12, 2014. 41 Schmalz, \"Too Much Good Press?\" 42 Noura Abdullah, in communication with the authors, December 24, 2014. KELLOGG SCHOOL OF MANAGEMENT 15 Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. 5-115-002 5-115-002 43 \"Inditex: Global Growth Opportunities,\" http://www.inditex.com/documents/10279/144578/Group+Profile+October+2014.pdf/ 42f158f8-a236-49f4-8da4-1eafc4fd513f (accessed October 14, 2014). 44 Zara Home, http://www.fawazalhokairfashion.com/portfolio/zara-home (accessed October 13, 2014). 45 \"Pottery Barn Arrives in the Kingdom of Saudi Arabia,\" April 30, 2011, http://ameinfo.com/blog/company-news/a/alshayagroup/pottery-barn-arrives-in-the-kingdom-of-saudi-arabia. 46 Ibid. 47 Pottery Barn . . . Now in Jeddah,\" Destination Jeddah, December 4, 2011, http://www.destinationjeddah.com/portal/index.php? option=com_content&view=article&id=1443:pottery-barn-now-in-jeddah&Itemid=496. 48 \"Pottery Barn, Pottery Barn Kids Stores Open Across the Kingdom,\" Arab News, July 4, 2012, http://www.arabnews.com/potterybarn-pottery-barn-kids-stores-open-across-kingdom. 49 \"American Born, Globally Bound: Ethan Allen Opens in Saudi Arabia and Romania,\" press release, December 17, 2013, http://www.marketwatch.com/story/american-born-globally-boundethan-allen-opens-in-saudi-arabia-and-romania-2013-12-17. 50 Farooq Kathwari, presentation at TAG 5th Annual Fall Consumer Conference, September 30, 2014. 51 Ethan Allen Saudi Arabia's Facebook page, https://www.facebook.com/EthanAllenKSA (accessed November 3, 2014). 52 Ethan Allen's Twitter feed, https://twitter.com/Ethan_Allen (accessed November 3, 2014). 53 \"Becara at Alshaya Home in Riyadh and Alkhobar, Saudi Arabia,\" Mueble de Espaa, July 17, 2012, http://www.muebledeespana.com/becara-at-alshaya-home-in-riyadh-and-alkhobar-saudi-arabia. 54 Ibid. 55 Aura's Instagram page, http://instagram.com/auraliving (accessed October 14, 2014). 56 Aura's Twitter feed, https://twitter.com/auralivingksa (accessed October 14, 2014). 57 Aura's Facebook page, https://www.facebook.com/auraliving (accessed October 14, 2014). 58 Schmalz, \"Too Much Good Press?\" 59 Noura Abdullah, in interview with the authors, September 5, 2014. 60 Ibid. 61 Schmalz, \"Too Much Good Press?\" 62 Ibid. 63 Ibid. 64 \"Aura: A Modern Home Fashion Brand Opens in Riyadh, KSA,\" Weddings, http://weddingsmagazine.info/index.php?option= com_content&view=article&id=156:aura-a-modern-home-fashion-brand-opens-in-riyadh-ksa&catid=48:bed-a-linens&Itemid=64 (accessed February 4, 2015). 65 Noura Abdullah, in interview with the authors, September 5, 2014. 66 Schmalz, \"Too Much Good Press?\" 67 Ibid. 16 KELLOGG SCHOOL OF MANAGEMENT Authorized for use only in the course Department of Business Administration at Jubail University College taught by Yasmeen Aldhafiri from May 31, 2016 to May 31, 2017. Use outside these parameters is a copyright violation. AURA