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ISLAMICBRANDING AND

MARKETINGCREATING A GLOBAL

ISLAMIC BUSINESS

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ffirs.indd iiffirs.indd ii 4/8/11 8:05:55 AM4/8/11 8:05:55 AM

ISLAMICBRANDING AND

MARKETINGCREATING A GLOBAL

ISLAMIC BUSINESS

PA U L T E M P O R A L

John Wiley & Sons (Asia) Pte. Ltd.

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Contents

Preface ...................................................................................................xiAcknowledgments.........................................................................xix

1 Introduction .............................................................................................. 1

Islam: The Religion and the Brand .................................................... 1

Is Islamic Branding a Myth or a Reality? ....................................... 2

The Five Pillars of Islam ........................................................................ 4

The Principles of Islamic Trade and Commerce ........................5

The Interface between Islam and Trade ....................................... 9

How Are Islamic Brands Doing? ...................................................... 10

Why the Interest in Islamic Branding and Marketing? ...........11

Could There Be an Islamic Economic Union? ...........................12

2 Why Muslim Nations Need to Develop Strong Brands . 15

Introduction .............................................................................................. 15

Why Do Countries Need Branding? .............................................. 15

Why Do Islamic Countries Need to Undertake and Encourage Branding? .............................................................................16

The Power and Rewards of Country Branding ..........................18

The Connection between National and Corporate Branding ......................................................................................................21

National Brand Structures ................................................................. 23

Sector and Industry Branding .......................................................... 25

Case Study 1: Brunei Halal Brand ....................................................26

Case Study 2: Sarawak ......................................................................... 32

Summary: Branding for Islamic Countries and Industries ..........................................................................................38

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Contentsvi

3 An Overview of Muslim Markets ................................................41

Introduction ..............................................................................................41

The Growing Global Muslim Market ............................................41

The Gallup Coexist Index .................................................................. 52

JWT Muslim Market Segmentation ..............................................58

Ogilvy & Mather Worldwide and Ogilvy Noor ......................65

Retail Muslim Consumer Segmentation ..................................... 73

Summary: What Does All This Mean? ......................................... 76

The Range of Opportunities in Islamic Branding and Marketing .........................................................................................78

4 The Nature and Structure of Islamic Markets ...................81

Introduction ..............................................................................................81

A Typology of Islamic Brands ...........................................................81

5 Building a Brand Strategy................................................................91

Introduction ..............................................................................................91

Brand Strategy ..........................................................................................91

Case Study 3: Hallmark Inc. .............................................................93

The Role of Consumer Insight ........................................................95

Case Study 4: Unilever Malaysia .....................................................96

Creating a Brand Strategy ..................................................................98

Brand Personality, Attitude, and Trust ....................................... 103

Speed, Agility, and Innovation .......................................................109

Brand Positioning .................................................................................. 112

The Need for Positioning Statements .........................................113

How to Write and Use a Positioning Statement ................... 116

Brand Management ............................................................................. 118

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Contents vii

Can Islamic Brands Use Western Techniques to Go Global? .............................................................. 122

Case Study 5: Opus International Group plc ......................... 122

Case Study 6: Petronas ......................................................................133

Summary.................................................................................................. 144

6 Opportunities in Islamic Brand Categories ....................... 145

Introduction .......................................................................................... 145

Islamic Foods and Beverages ......................................................... 145

Case Study 7: Yildiz Holding .......................................................... 146

Islamic Financial Services ................................................................ 149

Islamic Education ................................................................................ 154

Islamic Entertainment and “Edutainment” ..............................155

Case Study 8: Sami Yusuf .................................................................155

Case Study 9: THE 99 ........................................................................ 156

Islamic Travel, Tourism, and Leisure ........................................... 158

Case Study 10: CrescentRating.com ........................................... 159

Islamic Medical, Pharmaceutical, and Beauty Products and Services ....................................................................... 159

Islamic Fashion and Products for Women .............................. 162

Islamic Internet, Media, and Digital Products ....................... 163

Vast Opportunities; No Big Brands ............................................. 164

Summary...................................................................................................174

7 The Future: Opportunities in the Internet, Media, and Digital World ............................................................. 177

Introduction .......................................................................................... 177

The Impact of Internet Developments on Marketing .......180

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Contentsviii

Social Media Branding and the Muslim Lifestyle Consumer ............................................................................ 182

Implications for Islamic Branding and Marketing ................ 189

Case Study 11: Muxlim Inc.: I ........................................................... 192

Case Study 12: Muxlim Inc.: II ......................................................... 198

Other Internet Brands .......................................................................201

Opportunities in Traditional Media .......................................... 203

Case Study 13: Islam Channel ....................................................... 205

Case Study 14: emel ...........................................................................206

Case Study 15: Aquila .........................................................................210

Summary................................................................................................... 211

8 Challenges Facing Islamic Brands .............................................215

Introduction ...........................................................................................215

Key Challenges for Aspiring Muslim Brands: The Six A’s .................................................................................................215

Summary..................................................................................................223

9 Key Success Factors and Strategies for Aspiring Islamic Brands ...................................................................................225

Introduction ..........................................................................................225

1. Understand the Market Clearly ................................................225

2. Build Your Brand Based on Islamic Values with Universal Emotional Appeal .............................................. 226

Case Study 16: Al Rajhi Bank in Malaysia ..................................227

3. Position Your Company and Brand on Relevance to the Market ....................................................................................... 228

Case Study 17: Chicken Cottage Ltd. ........................................ 229

Contents

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Contents ix

4. Communicate the Brand Appropriately and with Islamic Appeal .......................................................................................231

Case Study 18: Olpers ........................................................................231

Case Study 19: Zain: I .........................................................................232

5. Gain First Mover Advantage in New Industries and Categories ...............................................................................................234

6. Consider Mergers, Acquisitions, and Partnerships .........234

Case Study 20: Godiva Chocolatier ...........................................235

7. Develop New and Ethical Business Models Using Islamic Values and Practices .............................................238

Case Study 21: Zain: II ........................................................................ 241

Case Study 22: Johor Corporation (JCorp) ..............................242

8. Build an International Brand Using Western Techniques and Appeal ................................................................... 248

Case Study 23: Dubai Aluminium (DUBAL) ............................. 248

9. Aim for a Niche Market ...............................................................253

Case Study 24: Ummah Foods ......................................................253

Case Study 25: Bateel ........................................................................254

10. Offer a Close Alternative in a Major Category ............. 256

Case Study 26: Fulla .......................................................................... 256

Case Study 27: Beurger King Muslim (BKM) ............................259

Case Study 28: OnePure Beauty ...................................................259

Summary................................................................................................. 266

10 Challenges and Key Strategies for the Building and Marketing of Non-Muslim Brands to Muslim Markets ................................................................................................ 269

Introduction ......................................................................................... 269

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Contentsx

Gaining Brand Awareness ................................................................ 269

Ensuring Accessibility ........................................................................ 270

Case Study 29: QSR Brands Berhad and Yum! Brands ......... 271

Gaining Acceptability .........................................................................273

Achieving Suitable and Consistent Standards and Quality (Adequacy).....................................................................275

Understanding the Culture ..............................................................276

Gaining Trust (Affi nity) .......................................................................277

Case Study 30: Nike .............................................................................278

Case Study 31: MoneyGram International ...............................280

Attack from Brand Competitors ...................................................283

Case Study 32: The Nestlé Approach ........................................ 284

Summary .................................................................................................. 286

11 Summary of Power Brand Strategy Programs for Muslim Markets ................................................................................ 289

Strategies for Non-Muslim Brands .............................................. 289

Strategies for Muslim Brands ......................................................... 292

The Future of Islamic Branding and Marketing ..................... 296

Appendix 1: The Oxford Research and Education Project on Islamic Branding and Marketing: Brief Project Overview ............................................................................299

Appendix 2: The Inaugural Oxford Global Islamic Branding and Marketing Forum: Summary of Proceedings, July 26–27, 2010, Oxford, England ............. 303

Index ...................................................................................................... 315

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Preface

Very little has been written to date about how Islamic branding and mar-keting, or “marketing to Muslims,” differs from or is similar to traditional branding and marketing, which is based on Western corporate develop-ment. The lack of literature on the topic is surprising, given the extent of the world’s Muslim population and the prominence of Islam. This gap in our knowledge gave rise to The Oxford Research and Education Project on Islamic Branding and Marketing, which is being conducted at Oxford University’s Saïd Business School and which I am directing. A brief descrip-tion of this project is given in Appendix 1. Much of the fi ndings of this research work have been incorporated into this text.

A second reason for writing this book is that many of my clients, as well as professional people whom I have met in Islamic countries, have com-mented to me on the need for a body of thought on this subject area. The extent of this interest, and the impact of the extremely rapid development of Islamic countries on the aspirations of Muslims in a branded world, leave me in no doubt that the next wave of global branding will come from Islamic economies and companies.

A third reason is that global brands from Western countries are becom-ing very interested in Muslim markets. Some have already started to build their brands across the Islamic world and are seeking to achieve a complete global presence by entering the last remaining and biggest signifi cant seg-ment of the world’s population.

Around 23 percent of the world’s population is Islamic, with varying degrees of affi liation and implementation of that religion. While some busi-nesses, academics, and people living in the West often think of the Islamic population as being concentrated in a handful of nations, especially in the Middle East and Southeast Asia, the truth is that there are signifi cant Muslim-minority populations around the world—from India to China, and from France to Japan.

In Islamic-majority and minority countries throughout the Middle East, Asia, Africa, and Europe, there is a massive amount of business activity, with

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Prefacexii

Islamic trade currently assessed as being worth trillions of dollars. In terms of global economic power and commercial success, it is becoming clear that Islamic countries are gaining ground on their Western counterparts.

The rising prosperity and spreading population of Islam is, however, only part of the story. Muslim consumers are no different to non-Muslims in their love of brands. From a marketing perspective, just as the Western world has done, the Muslim world would dearly like to develop an array of leading global brands of its own.

Muslim countries would also like to see their local brands going global, because they have seen how powerful brands can be in making an eco-nomic contribution and shaping a country’s national image. In particular, they have noticed that the cultivation of intangible assets such as strong brands is seen as an essential feature of a mature, stable national economy. Finally, many Muslim countries want to diversify their business interests in order to achieve greater economic well-being and to rely less on narrow resource-based industries such as energy.

Since the late 1980s, there has been a substantial increase in the number and success of Western-held brands. During the 1990s, we saw a com-petitive response beginning in Asia, with brands from countries such as Singapore, South Korea, India, and China making considerable progress in regional and global markets.

It is perhaps not surprising, therefore, that early signs of branding success from Islamic countries, such as those in the Middle East and Asia, are emerging. At the same time, the vast potential represented by large Muslim populations everywhere has caught the eye of the Western multinationals.

However, it is only recently that the potential of the global Islamic market has been fully understood. Principally, the impetus for doing more business in Islamic-majority and minority markets has come from three sources:

the rapid expansion of Western brands to penetrate these markets in order to gain a global presence;the response from Islamic companies, and the need to rely less on fi nite resources such as oil production; andthe rise of industries that conform to Islamic practice, such as Islamic fi nancial services.

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Preface xiii

By way of response, Islamic audiences love Western brands, but there are three main reasons why they wish to have their own.

1. Western brands are often not compliant with Islamic values (or their ethical base)—for instance, in hospitality, food and beverage, phar-maceutical and medical products, and services markets.

2. Islamic countries want to create their own global brands, which they see as strategic business assets and national brand ambassadors.

3. The growth of the educated middle class in Muslim-minority and majority cultures and countries has created an impetus for develop-ing businesses, products, and services that are competitive with the long-established and accepted brands.

As a consequence of the above, there is now a considerable surge in demand within Islamic countries and companies to master the branding and marketing techniques and skills so ably demonstrated by the West in order to address international perceptions not just of Islamic products, serv-ices, and businesses, but also of the countries and cultures of their origin.

What Is “Islamic Branding and Marketing”?When I use the phrase “Islamic branding and marketing,” I am not refer-ring just to brands that originate from Islamic countries, although they would of course come under such a defi nition. Rather, I am referring to any brands that seek to address the needs of Muslim markets. I include in this defi nition any activity related to the branding and marketing of countries, products, and services to Islamic audiences, regardless of whether or not they derive from a Muslim-majority or Muslim-minority country or have Muslim ownership. This rather broad defi nition thus encompasses not just Islamic branding and marketing to Muslim-owned businesses, but also companies that don’t have Islamic owners but which are reaching out to Muslim consumers. Thus, non-Muslim brands would also come under this heading if they were looking to build their brands and market share in any

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