islamic branding and marketing forum report

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WWW.SBS.OXFORD.EDU

THE INAUGURAL OXFORDGLOBAL ISLAMIC BRANDINGAND MARKETING FORUM2627 July 2010, Oxford, England

EDUCATING LEADERS FOR 800 YEARS

UNIVERSITY OF OXFORD

FORUM REPORT


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THE INAUGURAL OXFORD GLOBAL ISLAMIC BRANDING AND MARKETING FORUM02

ACKNOWLEDGEMENTSI would like to thank you all for making this Inaugural Oxford Global Islamic Branding and Marketing Forum

the success it undoubtedly was. The contributions of the distinguished speakers, moderators and delegates

were first class and ensured that the two days were an enjoyable and memorable learning experience. I hope

that this summary of proceedings will serve as a reminder of many of the key points that were made during this

groundbreaking event, and look forward very much to seeing you at our next Forum.

Paul Temporal, Forum Director

THE INAUGURAL OXFORD

GLOBAL ISLAMIC BRANDINGAND MARKETING FORUM

Report from a Forum held 2627 July 2010Sad Business School, University of Oxford


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03WWW.SBS.OXFORD.EDU/ISLAMICMARKETING

NOTES ABOUT THIS REPORTSince the development of the Islamic marketing and branding industry is at an early stage, there is variation in

opinion on market and revenue sizing, as well as different perspectives on the activities of existing players in these

fields. All information in this report is recorded as delivered by the participants in order to reflect accurately their

delivery, and the variation in opinions that currently exist. This is the reason that figures vary or may even disagree.

Further, the information is preserved as speakers delivered it, and has not been normalised against market data.

Therefore some information may be at odds with more widely available information. If readers wish to verify data,

they are encouraged to contact the Sad Business School and follow up with the conference organisers or the

speakers themselves.


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04 THE INAUGURAL OXFORD GLOBAL ISLAMIC BRANDING AND MARKETING FORUM

FOREWORD

I was delighted that the University of Oxford hosted the Inaugural Oxford Global Islamic Branding and Marketing

Forum.

Oxford scholars have long had a deep interest in Islam, including its culture, learning and civilisation. We areequally interested in the nature of contemporary business and in connections between business and the wider

world.

My predecessor, Dr John Hood, wisely observed that A full and informed understanding of Islam is a major

priority for us in the West. Universities like Oxford have an important role to play in the development of that

understanding.

The Forum was a great success, and I am pleased to introduce this summary of its proceedings.

Professor Andrew Hamilton, FRS

Vice Chancellor

University of Oxford


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ABOUT THE FORUMThe Inaugural Oxford Global Islamic Branding and Marketing Forum brought together business and thought leaders

to discuss and debate the opportunities and challenges of engaging the growing Muslim market. Held at the Sad

Business School, University of Oxford, on 2627 July 2010, it was attended by over 230 delegates from across the

globe.

Although the rise of industries characterised as halal, Islamic and shariah-compliant have increasingly made

headline news, this was the first forum of its kind focusing specifically on the branding and marketing aspects of

addressing Muslim markets and consumers.

The Forum was structured to look at several different perspectives of Islamic branding and marketing. What do

we mean by Muslim markets and brands? What are the challenges, how can they be overcome and how to build

customer loyalty? How are Muslims perceived today when it comes to religion, culture and branding and what are

the challenges of engaging Muslims in a multicultural global world? What can we learn from the development of

the Islamic finance industry, and where next for this sector? What innovation can we hope for in the future and

what trends will shape the Muslim markets of the future?

Keynote addresses were delivered by global leaders such as Rt. Hon. Pehin Sri Haji Abdul Taib Mahmud, Chief

Minister of Sarawak, Malaysia; Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,Malaysia; Miles Young, CEO, Ogilvy & Mather Worldwide; Shri K. Rahman Khan, Deputy Chairman of the Rajya

Sabha and MP Indian National Congress; Tan Sri Dato H. Muhammad-Ali, President and CEO, Johor Corporation;

Roy Michel Haddad, Chairman and CEO, JWT Middle East and North Africa; Shaukat Aziz, Former Prime Minister

of Pakistan and HRH Raja Dr Nazrin Shah, Crown Prince of Perak, Malaysia.

Several key themes emerged, and these are elaborated on in the Executive Summary:

The conference was the first of its kind in bringing together thought leaders, business pioneers and

entrepreneurs to focus entirely on Islamic branding and marketing

Market definition and sizing, as well as consumer data and segmentation show considerable variation due to

the nascent nature of the industry

Muslim consumers, both globally and nationally, are not a homogeneous entity. Their diversity

demographically, ethnographically and by gender must be recognised and understood.

Islamic branding and marketing can be used to tackle wider global issues affecting Muslims at a political and

international level

A positive change of attitude towards innovation, risk-taking and business aspiration is required to inspire and

nurture Muslim entrepreneurs

Strong value propositions will be key to the success of Islamic brands


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TABLE OF CONTENTS

FOREWORD ............................................................................................................................................ 04

EXECUTIVE SUMMARY ............................................................................................................................ 09

FORUM PROGRAMME ............................................................................................................................. 14

SESSION 1: OPENING SESSION .............................................................................................................16

SESSION 2: THE MUSLIM BUSINESS WORLD MARKETS AND BRANDS ............................................... 18

SESSION 3: THE BRUNEI HALAL BRAND: BUILDING ISLAMIC BRANDS FOR NICHE MARKETS .............. 21

SESSION 4: THE HALAL CITY OF THE FUTURE: BUILDING A CITYS ISLAMIC BRANDAND THE MARKETING CHALLENGES FACED........................................................................................... 22

SESSION 5: WINNING AND RETAINING CUSTOMER LOYALTY IN A DIVERSE MARKET ............................ 23

SESSION 6: MARKETING CHALLENGES OF THE GLOBAL HALAL INDUSTRY. WHAT MUST WE DO? ......... 24

SESSION 7: THE MUSLIM WORLD TODAY: PERCEPTIONS AND PERSPECTIVES ...................................... 25

SESSIO 8: DINNER KEYNOTE ADDRESS: MUSLIMS IN TODAYS INDIA ...................................................26

SESSION 9: THE FUTURE OF ISLAMIC FINANCE: TRENDS, GROWTH, INNOVATION ................................ 28

SESSION 10: INNOVATIVE GLOBAL MARKETING DEVELOPMENTS .......................................................... 30

SESSION 11: REACHING THE MUSLIM MARKET: OPPORTUNITIES AND CHALLENGES ........................... 33

SESSION 12: ANTICIPATING THE FUTURE: WHAT ARE THE FUTURE TRENDS IN GLOBAL

MUSLIM MARKETS? HOW SHOULD WE PREPARE FOR THE SHAPE OF THINGS TO COME? ..................... 35

SESSION 13: RELIGION, CULTURE AND BRANDING: THE IMPORTANCE OF UNDERSTANDING

AND THE CHALLENGES OF ENGAGING A GLOBAL MULTICULTURAL WORLD .......................................... 37

SESSION 14: CLOSING REMARKS ..........................................................................................................39

PARTNERS .............................................................................................................................................. 42

CONTACT DETAILS .................................................................................................................. BACK COVER


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EXECUTIVE SUMMARYTHE CONFERENCE WAS THE FIRST OF ITS KIND IN BRINGING TOGETHER THOUGHT LEADERS, BUSINESS

PIONEERS AND ENTREPRENEURS TO FOCUS ENTIRELY ON ISLAMIC BRANDING AND MARKETING

According to the Pew Research Center a comprehensive demographic study of more than 200 countries finds that

there are 1.57 billion Muslims of all ages living in the world today, representing 23% of an estimated 2009 world

population of 6.8 billion. Not only is the Muslim population a significant percentage of the global population, butAT Kearney also point out that the market for shariah-compliant products or services totals USD$2trillion annually

and is growing rapidly. As Muslim countries develop, there is an expressed need to develop and market their own

brands to the rest of the world. Additionally, there is substantial interest amongst non-Muslim companies in how

to enter and penetrate this global market, which spans many industries, including finance, food and beverage,

cosmetics, healthcare, pharmaceuticals, logistics, tourism, fashion, and others.

The Oxford Forum was the first to bring Muslim and non-Muslim leaders and companies from a variety of public

and private sector organisations together to discuss how to develop better trade and business relations and to

learn from each other about the markets involved and the techniques required. Referring to the Islamic Branding

and Marketing Research and Education Project which organised the Forum, its Project Director Dr Paul Temporal

commented that: The Forum is the Projects first significant event at a time of rising interest.

Gay Haskins, Dean of Executive Education, welcomed everyone, and Professor Hamilton, the Vice-Chancellor of

Oxford University, noted that As the global village increasingly takes shape at the start of the 21st century

Oxford University was a natural place to create a full understanding of Islam in the West, and that this innovative

forum was part of a centuries-long quest to deepen relations with the Muslim world.

Javed Husain, co-founder and director of the Media Reach agency felt that it was interesting that the debate about

Islamic branding being hosted by the Forum the first of its kind was being held in the West rather than the

traditional Islamic lands of the East.

Miles Young, CEO of Ogilvy & Mather Worldwide, noted that the appreciation of this growing market is only slowly

beginning to dawn on the commercial world: It was when we sent out a mailer recently, describing Muslim

consumers conservatively as the third one billion that the bells started finally to ring in the global HQs of some ofour clients. Yes, this is a market bigger than India or China is, and yet it receives a tiny fraction of the attention.

MARKET DEFINITION AND SIZING, AS WELL AS CONSUMER DATA AND SEGMENTATION SHOW

CONSIDERABLE VARIATION DUE TO THE NASCENT NATURE OF THE INDUSTRY

Speakers throughout the conference were conscious of the variation in market sizing data that they quoted in their

analysis. The Muslim global population was variously quoted as ranging from between 1.57bn to 1.9bn, the global

halal industry was estimated from USD$150bn to anywhere up to USD $632bn, and the Islamic finance industry

was quoted at between USD$1 trillion and USD$2 trillion. Not only were the numbers themselves different, it was

clear that the definitions of terms like halal, shariah-compliant and Islamic were used with variation.

The analysis of both the size and the breakdown of the Muslim market was of evident concern in sizing the

commercial opportunities available and the best way to tailor products and brands to meet those opportunities. As

Sarah Joseph, Editor of EMEL Magazine, explained: investors should not be fooled into thinking the big numbers

that were being quoted are one market rather they comprise lots of markets with great variation. However, she

noted more optimistically that the unifying factor was that values do travel across sectors whereas cultures do

not.

For the industry to develop it was clear that more work on sizing and analysis would need to be undertaken.

However, there was a challenge to source actual and reliable data. Professor Cedomir Nestorovic of the ESSEC

Business School in Paris gave the example of France: There are no real figures to size the market, and these will

be difficult to obtain since 90% of halal food is sold in small shops.

There was general consensus on the key segments that were ripe for targeting. Dr Temporal explained: The halal

industry focuses on five segments: Islamic lifestyle products, food and beverage, finance, education and internet

and digital brands. Young noted the ranking of the importance of shariah-compliance increases with the body

sensitivity of the product where food, dairy, beverages and oral care score highest, followed by fashion, personal


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care and regular finance and finally airlines, resorts, financial and insurance products. Some products are

considered neutral of the halal/haram criteria such as software.

Two of the worlds leading global marketing and advertising agencies Ogilvy & Mather Worldwide and JWT, the

former using the Forum to highlight the launch of their specialist Islamic Branding agency Ogilvy Noor - presented

their research into the Muslim market, along with their own consumer segmentation.

Research by Ogilvy Noor identified six consumer segments, of which three, when grouped together as Futurists

are of most interest to marketers. They are individualists who choose Islam. Their pride is intense, regardless of

the extent to which they would be categorised as devout. They believe in education and question intention. In

particular they challenge the use of halal to make sure it is not just a logo. Where information on halal status is

not available the companys reputation for shariah-friendliness is key.

JWT commissioned the first commercial research into sizing the Muslim market. The aim was to identify the

common values at the markets core in order to create relevance for the community at large with the ultimate

goal of fine-tuning propositions across regions and countries. Can we segment the Muslim world into groups that

brands can be anchored on? asked Roy Michel Haddad, Chairman and CEO JWT Middle East and North Africa.

THE MUSLIM CONSUMER IS NOT A HOMOGENEOUS ENTITY. THEIR DIVERSITY MUST BE RECOGNISED AND

UNDERSTOOD

Dr Basil Mustafa, Nelson Mandela Fellow and Bursar, Oxford Centre for Islamic Studies, captured the mood of the

Forum with the sentiment of diversity that was repeated by almost every speaker: Muslims are a mosaic of views

on halal, on culture, attitudes, economics, poverty and other demographics. This mosaic includes Muslims who

live in both majority and minority Muslim countries. He warned that the Islamic branding discussion must avoid

lazy stereotypes of monolithic Muslims or Islam vs. West dichotomies. Drilling deeper into the differences that are

worth noting, Dr Temporal mentioned: diverse locations, languages and dialects, cultural and lifestyle differences,

degrees of religiosity, education, affluence and marketing sophistication.

Haddad went further still stating that: There is no single Muslim consumer, only a consumer to whom we have to

respond, who has wants, needs and desires. Ramadan is the only time that the Muslim consumer exists. Instead

we must ask: can these consumers be reached based on their Islamic identity despite cultural and geographic

differences?

Young offered advice to western marketers, who in his view face two big challenges when it comes to addressing

the diversity of Muslim consumers: First, most companies operate on a geographic basis, but the Islamic

conscience is something that is a more centralised concept. The best way to capture this is to move from localised

management, to a centralised product management function to invest the Islamic brand into products from their

very core. Second, Muslim consumers are not a segment that differs by one variable from the norm, such as the

pink dollar. Muslim consumers are an alternative norm where the starting point is Islamic identity, and everything

else fits into it. Muslims own belief in the significance of Islam in their lives is pervasive, and for them, this

sincerity is key in marketing practice.

It was not only Western marketers who needed to be conscious of this diversity, but also Muslims themselves,

according to HE Shri K. Rahman Khan, Deputy Chairman of the Rajya Sabha and MP Indian National Congress.

He spoke of this challenge when it came to the huge Indian Muslim population which is nonetheless classified as

a minority: The world Muslim community has generally ignored Indian Muslims even though they are the second

largest Muslim population in the world. For example, the Organisation of the Islamic Conference and Islamic

Development Bank concentrate their activities on Muslim countries, so a small Muslim nation of two million will

have a say in those forums, but a minority Muslim population like Indias of over two hundred million Muslims will

have no say.

The Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak, Malaysia, had some further words

of advice, cautioning that the international community must be mindful of the diversity and that to takeadvantage of this the commercial world needs to develop regional trade as well as inter-regional trade. It needs to

recognise that the halal market is growing and seek out Muslim consumers, whether the companies are Muslim-run

themselves or not.


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ISLAMIC BRANDING AND MARKETING CAN BE USED TO TACKLE WIDER GLOBAL ISSUES AFFECTING

MUSLIMS AT A POLITICAL AND INTERNATIONAL LEVEL

Sir Iqbal Sacranie argued that the issue of Islamic branding affects both halal products, and Muslims and Muslim

countries. Negative media coverage makes Muslims feel fearful and want to hide. In Sacranies view one of the

responsibilities of the Islamic branding industry is to address the wider issue of negativity.

The Rt Hon Taib Mahmud complimented the Forum on its role which he felt extended beyond just branding andmarketing: When it comes to Muslim nations issues are raised such as poverty, deprivation, terrorism, extremism

and other forms of negative stereotyping, but by focusing on the economic angle, this inaugural Islamic Branding

Forum offers a fresh way to tackle those issues, noting that an Islamic lifestyle does not mean an anti-western or

anti-modernity lifestyle.

As an example of how commerce could work towards addressing political problems, Dr Mustafa described the

rise of coffee as a consumer product as one model for building Islamic brands. In the 17th century it was first

introduced to Europe from the Muslim world. Some Europeans were enamoured of it, others saw it as the sinful

drink of infidels. Today coffee is a highly desirable commodity.

Effective Islamic branding and marketing would be borne by nurturing Islamic entrepreneurship, according to Tan

Sri Dato H Muhammad-Ali, CEO of Johor Corporation. Such entrepreneurship was ethical based, and community-

centric and hence would tackle the lack of even wealth distribution, mass poverty and global conflicts. He went

further to say that Islamic products and brands could be used to tackle general challenges wider than that of just

Muslim consumers, addressing issues such as sustainability, financial crises, the rich/poor divide, and ethics in

business.

HE Shaukat Aziz, former Prime Minister of Pakistan, elaborated on this by saying that: At a global level, Islamic

marketing and branding must be part of the work to tackle terrorism. Deprivation is the most likely root cause

of terrorist acts lack of income, justice, freedom, peace and harmony. Islam encourages peace, harmony and

tolerance. Not terrorism!

HRH Raja Dr Nazrin Shah added optimistically that Growing commercial opportunities can bind Muslims and

non-Muslims in a common humanity even though till now religion has long been considered taboo in mass

marketing. But he warned we should be cautious in how far we pursue segmentation on religious lines, if the

Islamic brand proves a turn-off for non-Muslims. Caution must be exercised of the inherent dangers of widespread

use of faith-based brands which in the worst-case scenario could feed into Huntingtons polarising clash of

civilisations thesis. He explained that political negativity could spill over into commercial negativity towards

Muslims brands, making it difficult for Islamic products to penetrate Western markets. In his view Muslim

businesses already in the West were best-placed to counter such negativity.

A POSITIVE CHANGE OF ATTITUDE TOWARDS INNOVATION, RISK-TAKING AND BUSINESS ASPIRATION IS

REQUIRED TO INSPIRE AND NURTURE MUSLIM ENTREPRENEURS

When it comes to developing world class products, Rafi-uddin Shikoh, CEO of DinarStandard, noted that noneof todays global brands are from a Muslim country. He explained: Innovation is being held back in Muslim

companies by fear of failure, small thinking and a lack of critical thinking. Haddad added a lack of creativity

to this list, which he felt stemmed from a poor understanding of Islamic culture. This lack of creativity was

demonstrated through the stereotypical and shallow symbolism that exploited tired imagery like the crescent and

the arch. It was time to move beyond traditional expressions, he added.

One of the challenges according to Tan Sri Muhammad-Ali, is that in South Asia business is seen by Muslims as

a negative matter, something that is worldly and detracts from the spiritual. He coined the strapline Business

Jihad to encourage Muslims to think of business as a religious duty and so work on changing perceptions. He

emphasised that Muslims are no less entrepreneurial, however their businesses are not organised. For example,

95% of Middle East businesses are family owned. Though highly profitable only 6% lasted to the third generation,

and only 2% beyond that.

He cautioned that for entrepreneurship to be Islamic it cannot just copy conventional models because of the risks

of placing profit over people and being unsustainable. Conventional entrepreneurship was also exclusive to those


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with access to capital and networks and so the challenge for Islamic entrepreneurship is to find ways to encourage

entrepreneurs from people with the lowest levels of capital and networks.

Mohamed El-Fatatry, CEO of Muxlim, said that obtaining funding is challenging as was finding the right talent

that has the passion for what you are doing. Khalid Sharif, CEO of Ummah Foods, noted that part of the attitude

change required was an acknowledgement that whilst trillion dollar estimates were thrown around, there must

be consciousness of the various political and economic problems facing Muslims such as poverty: It is socialimprovement not greed that must be the driver for the development of the industry.

The Forum showcased two examples of innovation that brought community benefit: the Brunei Halal brand and the

Halal City of Tanjung Manis, in Sarawak, Malaysia. Hajah Normah SH Jamil, Director of Agriculture and Agrifood,

Ministry of Industry and Primary Resources in Brunei Darussalam, explained the philosophy of the former: As a

Muslim country, Brunei sees it [delivering halal food] as an obligation to Muslims and its brand will provide a

platform for the development of local products and SMEs and will open global doors for smaller corporations that

may not have the budget or leverage to otherwise gain access to international markets.

The Halal City is a green zone promoting sustainability and community development, two criteria that Datuk

Hajjah Norah, Executive Chairman of Tanjung Manis Food and Industrial Park explained were inherent to the halal

brand. One of the programmes had been to invest in farming tilapia fish. However, to improve sustainability andquality, investment was made in innovative processes so that the fish produced were not low-grade commodities,

but high level luxury products. As far as community upliftment was concerned the halal city was premised on

corporate and aesthetic value because it is crucial in an area like Sarawak that young people feel a strong pull

to remain in their communities and not leave them. By making the halal city attractive and investing these strong

principles into it, there is the hope that they will feel strongly bound to their communities.

STRONG VALUE PROPOSITIONS WILL BE KEY TO THE SUCCESS OF ISLAMIC BRANDS

When it comes to Islamic branding and marketing, there are two challenges, explained Tan Sri Nor Mohamed

Yakcop, Minister in the Prime Ministers Department, Malaysia. First, is the need to develop a comprehensive

range of products that are universally accepted by all Muslims. Second, value propositions are required that

will appeal to non-Muslims which would move the addressable market from 1.6bn Muslims to the full global

population. Islamic branded products offer a better future for all, as they are based in the values of goodness and

justice. But such products needed to be competitive and the substantive benefits had to be obvious. To achieve

scalability, added Tan Sri, first a common halal brand needs to be established, and then local and theological

variation could be easily introduced. To achieve this, global standards would be helpful, and would require a

global consensus in order to build the industry and avoid duplication.

Nestorovic explained that bringing Muslim brands from Muslim countries would be challenging. Muslim brands

need to think carefully about who their propositions are aimed at and whether the context is a majority or minority

Muslim country. Muslim brands must choose whether to target Muslims or non-Muslims. For example, should a

halal certification logo be placed on the product? In the case of France, it already has a volatile environment when

it comes to Islam, and this could exacerbate it. The best first step might be for such brands to be marketed to

Muslims only, he advised.

Local propositions are increasingly popular as long as they deliver quality. John Timothy, International Corporate

Affairs Manager, Tesco, explained that the local approach is key. In Malaysia it will allow Tesco to become part of

Malaysias plan to export their halal products. In Turkey, the local approach is also used. To serve customers better

the company has been broken into regional groups, and stores are localised for local taste.

Young explained that Global brands are liked for their quality, innovation and heritage, but the sincerity of their

halal-friendliness is doubted. Local brands are considered to have more insight and evoke pride, but raise concerns

of quality and helpfulness. Global brands need to communicate their sincerity, local brands need to show quality,

innovation and transparency.

He added that for any kind of Islamic value proposition the qualities it would need to demonstrate would include:honesty, respect, consideration, kindness, peacefulness, authenticity, purity, patience, discipline, transparency,

modesty, community, dignity. The aim of an Islamic value proposition was not to measure devoutness but to

understand how devoutness, regardless of intensity, affects the lives of people as they work, play and consume.


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An ethical approach to proposition development would reap rewards with non-Muslim as well as Muslim

consumers, noted Afaq Khan, CEO Standard Chartered Saadiq. Non-Muslim countries are also interested in

Islamic finance as they want the most efficient use of capital and to facilitate their own growth they need to engage

with the commercial opportunity of Islamic finance in the Muslim world.

Muslim consumers needed education in Islamic value propositions. Khan gave the example that consumers were

not always clear about what benefits Islamic finance brought them. Layla Mandi, CEO of OnePure, noted thatfor a proposition to be Islamic, it did not need to have the word Islamic in its name offering her own example:

OnePure does not advertise that it is halal on the label, but is positioned in a premium space so its halal

message can be explained clearly to consumers.

The challenge is to educate consumers and to avoid the creation of technically halal products that miss the

point, explained Joseph. Much of the groundwork for these values has already been laid by the development of

the ethical industry, the green movement, animal welfare and so on. The halal market is not the big idea. Instead

we need to focus on the big ideal of sustainable industry.


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FORUM PROGRAMME

DAY ONE

Session 1: Opening Session

WELCOME REMARKS, Ms Gay Haskins, Dean, Executive Education, Sad Business School

OPENING REMARKS, Professor Andrew Hamilton, Vice Chancellor, University of Oxford

OPENING SPECIAL ADDRESS: The Role of Muslim Nations in Rebuilding Todays Global Economy

Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak, Malaysia

OPENING SPECIAL ADDRESS: The View from Muslim Southeast Asia

Tan Sri Nor Mohamed Yakcop, Minister In The Prime Ministers Department, Malaysia

Session 2: The Muslim Business World Markets and Brands

FORUM SCENE SETTING, Dr Paul Temporal, Associate Fellow, Sad Business School and Project Director for

Islamic Branding and Marketing

KEYNOTE ADDRESS: Brands and Muslim ConsumersMiles Young, CEO, Ogilvy & Mather Worldwide

PANEL DISCUSSION with Miles Young, CEO, Ogilvy & Mather Worldwide;Professor Cedomir Nestorovic, ESSEC

Business School, Paris;Shaista Gohir MBE, Executive Director, Muslim Womens Network UK;Khalid Sharif,

Managing Director, Ummah Foods and Editor, The Muslim Paper,and moderated by Linda Scott, Professor of

Marketing, Sad Business School, University of Oxford

Session 3: The Brunei Halal Brand: Building Islamic Brands For Niche Markets

KEYNOTE ADDRESS, Hajah Normah SH Jamil, Director of Agriculture and Agrifood, Ministry of Industry and

Primary Resources, Brunei Darussalam

Session 4: The Halal City of the Future: Building a citys Islamic brand and marketing challenges faced

KEYNOTE ADDRESS, Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, Executive Chairman, Tanjung Manis Food

& Industrial Park Sdn Bhd, Malaysia

Session 5: Winning and Retaining Customer Loyalty in a Diverse Market

PRESENTATION, John Timothy, International Corporate Affairs Manager, Tescofollowed by Q&A

Session 6: Marketing Challenges of the Global Halal Industry: What must we do?

OPEN FORUM DISCUSSION with Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,

Malaysia;Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, Executive Chairman, Tanjung Manis Food & Industrial

Park Sdn Bhd, Malaysia;Hajah Normah SH Jamil, Director of Agriculture and Agrifood, Ministry of Industry and

Primary Resources, Brunei Darussalamand moderated by: Dr Jonathan Reynolds, Academic Director of the Oxford

Institute of Retail Management, Sad Business School, University of Oxford

Session 7: The Muslim World Today: Perceptions and perspectives

PANEL DISCUSSION with Sir Iqbal Sacranie, founding Secretary General, Muslim Council of Britain;Dr Basil

A J Mustafa, Nelson Mandela Fellow and Bursar, Oxford Centre for Islamic Studies;Dr Walter Armbrust, Albert

Hourani Fellow, Middle East Centre, St Antonys College, University of Oxfordand moderated by Mishal Husain,

International Broadcast Presenter

Session 8:

DINNER KEYNOTE ADDRESS: Muslims in Todays India

Shri K Rahman Khan, Deputy Chairman of the Rajya Sabhaand MP Indian National Congressfollowed by Q&Aand moderated by Mishal Husain


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DAY TWO

Session 9: The Future of Islamic Finance: Trends, growth, innovation

WELCOME REMARKS, Richard Briant, International Director, Sad Business School and Chair of Day Two of theOxford Global Islamic Branding and Marketing Forum 2010

KEYNOTE ADDRESS, Afaq Khan, CEO Standard Chartered Saadiq

OPEN FORUM DISCUSSION with Afaq Khan, CEO Standard Chartered Saadiq; Usman Hayat, Director Islamic

Finance and ESG Investing, CFA Institute;Walid Sarieddine, Head of Islamic Finance, Sumitomo Mitsui Banking

Corporation; M Iqbal Asaria, Associate, Afkar Consulting Ltdand moderated by Paul McNamara, CEO and Editorial

Director, Yasaar Media

Session 10: Innovative Global Marketing Developments

KEYNOTE ADDRESS: Islamic Entrepreneurship

Tan Sri Dato H Muhammad-Ali, President & CEO, Johor Corporation

OPEN FORUM DISCUSSION with: Tan Sri Dato H Muhammad-Ali, President & CEO, Johor Corporation;Mohamed

El-Fatatry, Founder & CEO, MUXLIM; Rafi-uddin Shikoh, CEO, The Dinar Standard;Layla Mandi, CEO and

Founder, OnePure Halal Beautyand moderated by Dr Pegram Harrison, Fellow in Entrepreneurship, Sad Business

School, University of Oxford

Session 11: Reaching the Muslim Market: Opportunities and challenges

KEYNOTE ADDRESS, Roy Haddad, CEO, JWT MENA

OPEN FORUM DISCUSSION with Roy Haddad, Chairman & CEO, JWT Middle East & North Africa;

Sarah Joseph OBE, CEO and Editor-In-Chief, Emel;Javed Hussain, Director, Media Reachand moderated by

Linda Scott, Professor of Marketing, Sad Business School, University of Oxford

Session 12: Anticipating the Future: What are the future trends in global Muslim markets? How should we

prepare for the shape of things to come?

KEYNOTE ADDRESS, HE Shaukat Aziz, Former Prime Minister of Pakistan

OPEN FORUM DISCUSSION with HE Shaukat Aziz, Former Prime Minister of Pakistan;Arif Zaman, Advisor,

Corporate Governance, Commonwealth Business Council;Shah Hakim Zain, Group CEO, Scomi Group Bhdand

moderated by Andrew Critchlow, Middle East Managing Editor, Dow Jones Newswires

Session 13: Religion, Culture and Branding: The importance of understanding and the challenges of engaging a

global multicultural world

KEYNOTE ADDRESS, HRH Raja Dr Nazrin Shah, Crown Prince of Perak, Malaysia,

introduced by Dr AfifiAl-Akiti, KFASFellow, Oxford Centre for Islamic Studies and Lecturer in Islamic Studies,Faculty of Theology, University of Oxford

Closing Session

CLOSING REMARKS AND FORUM REPORT, Dr Paul Temporal, Associate Fellow, Sad Business School and

Project Director on Islamic Branding and Marketing


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SESSION 1: OPENING SESSION

WELCOME REMARKS,Ms Gay Haskins, Dean, Executive Education, Sad Business School and

Chair of the Oxford Islamic Branding and Marketing Forum 2010

OPENING REMARKS, Professor Andrew Hamilton, Vice Chancellor of the University of Oxford

OPENING SPECIAL ADDRESS, The Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak,

Malaysia

OPENING SPECIAL ADDRESS, Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,

Malaysia

WELCOME

Ms Haskins welcomed the Forum by noting the groundbreaking and global nature of the participants on stage and

in the audience, bringing together business leaders, branding and marketing experts and thought leaders.

OPENING

Professor Andrew Hamilton

Professor Hamilton opened the Forum by outlining that Oxford has a long and deep

relationship with the Islamic world, taking its first international student in 1190, and

continuing this interaction with many and diverse faiths throughout its history. Universities

like Oxford have an important role in deepening the understanding of Islam, and Oxford

does this through institutions such as the Oriental Studies Faculty, the Middle East centre

which will soon celebrate its 50th anniversary and the Oxford Centre for Islamic Studies. It

is therefore timely and appropriate for Sad Business School to be holding this forum.

THE ROLE OF MUSLIM NATIONS IN REBUILDING TODAYS GLOBAL ECONOMY

The Rt Hon Pehin Sri Haji Abdul Taib Mahmud

Muslim nations have shown resilience in the face of both the Asian and the current

financial crisis, becoming more integrated into the global economy. The combined GDP of

the OIC nations is USD $5 trillion. When it comes to Muslim nations issues are raised such

as poverty, deprivation, terrorism, extremism and other forms of negative stereotyping, but

by focusing on the economic angle, this inaugural Islamic Branding forum offers a fresh

way to tackle those issues.

It is important to note that an Islamic lifestyle does not mean an anti-western or anti-modernity lifestyle. Muslims

are becoming active consumers and active in the economy as bankers and investors. Both these hark back to the

golden era when Muslims dominated global trade by virtue of their geographic position. Whilst geography is nolonger as significant today, the cultural, historic and religious connections that Muslims share across the globe are

an important asset for commercial markets.

The Islamic lifestyle means many different things across the diversity of Muslim countries and cultures and the

international community must be mindful of this. This means that there is no single halal hub. To take advantage

of this the commercial world needs to develop regional trade as well as inter-regional trade. It needs to recognise

that the halal market is growing and seek out Muslim consumers, whether the companies are Muslim-run

themselves or not. One example is Nestle which has delivered halal certification across 75 factories.

There are three industries where Muslims seek out special products: food, finance and fashion, and this halal

market is estimated at USD$12 trillion. When it comes to Islamic finance, it will grow from USD$1 trillion

in 2010 to USD$1.3 trillion by 2012. Islamic mutual funds are growing at 23%pa and the Takaful industry isgrowing at 13%pa. Centres like London, Hong Kong and Tokyo are already positioning themselves in Islamic

finance markets, and such non-traditional players can bring fresh skills to the industry. In addition, there is a

need to mobilise enough capital through Islamic routes and this means that a new co-operation between Muslim


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nations and global players is necessary. Islamic finance also faces challenges. Scholars need to rethink traditional

structures. There will be higher demand for products, which will require scalability. And there will be higher

demand for products that can be sold across Muslim and non-Muslim markets.

Muslim consumers must be targeted through a core product brand that stands up across a variety of markets,

both Muslim and non-Muslim. Also, there must be a clear understanding of the position of the corporation in

the Muslim consumers mind. The corporation can be easily affected by social movements such as boycottingcompanies for their social actions. Political situations can also affect them, such as the rise of Islamic colas.

Finally, these can all lead to a financial risk. For example, Nike had to recall 38,000 pairs of shoes when the logo

was declared by the Council of American Islamic Relations to be offensive to Muslims as it resembled the word

Allah. In summary, courting the Muslim market is no different to other markets.

THE VIEW FROM MUSLIM SOUTHEAST ASIA

Tan Sri Nor Mohamed Yakcop

Islam embraces multiculturalism, since it is a Quranic principle. The view from South

East Asia is to manage plurality as a positive thing. In Malaysia, the population is majority

Muslim, but the constitution safeguards non-Muslims the right to practice freely. Indonesia

is a Muslim country. The Philippines is Catholic and Thailand, Buddhist.

When it comes to Islamic branding and marketing, there are two challenges. First, is the

need to develop a comprehensive range of products that are universally accepted by all

Muslims. Second, value propositions are required that will appeal to non-Muslims also.

When it comes to developing a comprehensive range of products, the Islamic finance industry is an excellent

example to consider. At the moment there are more than 400 Islamic banks in over 50 countries. More Muslim

consumers are demanding shariah-compliant products, and so banks have to step up to serve all consumer

segments, not just one or some of them. Thus comprehensiveness is key to the Islamic finance proposition. In

developing Islamic industries, such as finance, it is important to note that desire to ensure compliance with faith

should not impose a prohibitive cost on developing products or on consumers purchasing products. In the Islamic

finance industry, economies of scale are required to ensure products are competitive, and this means that globalinstitutions are required. Although each market may have different financial regulations, there are universal values

that apply to Islamic finance across markets, which would then allow for local customisation.

This universality of Islamic finance can also appeal to non-Muslims, because its core values just equitable

sharing of risk, and discouragement of excess leverage are very appealing to consumers who are disillusioned

and disadvantaged by the profit at all costs mindset that has triggered the latest financial crisis. Thus shariah-

compliancy can be branded as ethical investment and appeal to Muslims and non-Muslim consumers. The key to

such products is that they must be competitive in order to appeal to consumers, and that they must have a strong

value proposition so that the substantive benefit is obvious. The product must not appear to be a mainstream

product with some tweaking.

Muslim consumers want Islamic products across the whole spectrum. When it comes to food, how should they be

convinced by the halal certification process? In a Muslim country this might be done by a national board, but what

about products from non-Muslim countries? To this end, global standards would be helpful, and this will require a

global consensus in order to build the industry and avoid duplication. However, halal certification is not just about

the slaughter process, but needs examination of the whole food process from farm to table. This means tackling

issues such as food safety, chemicals used and environmentally sustainable farming methods. Again, including this

is not only of interest to Muslims, but also meets other non-Muslim consumer concerns too. Other companies may

take up halal products as a competitive advantage due to these other ethical and value proposition elements.

Broadening the comprehensiveness of the halal product range will help Muslims to practice their religion more

freely. If emerging Muslim countries embrace the opportunity to create halal products this is a big commercial

opportunity. In fact, Islamic branded products offer a better future for all, as they are based on the values of

goodness and justice.


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SESSION 2: THE MUSLIM BUSINESS WORLD

MARKETS AND BRANDS

INTRODUCED BY: Dr Paul Temporal, Associate Fellow, Sad Business School and Project Director on Islamic

Branding and Marketing

KEYNOTE ADDRESS: Brands and Muslim Consumers

Miles Young, CEO, Ogilvy & Mather Worldwide

PANELLISTS:

Miles Young, CEO, Ogilvy & Mather Worldwide

Professor Cedomir Nestorovic, ESSEC Business School, Paris

Shaista Gohir, Executive Director, Muslim Womens Network, UK

Khalid Sharif, Managing Director, Ummah Foods and Editor, The Muslim Paper

MODERATOR: Linda Scott, Professor of Marketing, Sad Business School, University of Oxford

SCENE-SETTING

Dr Paul Temporal

The Islamic branding and marketing programme began in 2008 and is designed to be

of practical use to both policymakers and practitioners, and to act as a focal point for

companies to share their expertise. It was a response to demand for more knowledge about

Islamic markets from non-Muslim organisations, and an expressed need from Muslim

countries and companies to acquire the skills to build their own brands and diversify. The

Forum is the programmes first significant event at a time of rising interest. It aims to build

links with other educational institutions, to give partners access to research to improve

effectiveness and to offer education for companies and executives.

In 2009 the Pew Centre provided the first accurate figures for the Muslim population, but the picture is complex.

The global Muslim population is 1.57 billion (23%) spread across 200 countries, of which 300 million (20%)

are in Muslim minority countries. Of these, the Indian Muslim population is the largest comprising 161 million.

62% are in Asia, 20% in MENA, approximately 15% in Sub-Saharan Africa and only 2.7% in Europe and North

America, with small numbers in South America and Australia. There is a clear divide between rich and poor, most

of these populations being relatively poor. The Muslim populations across markets show a number of similarities:

common faith, values and identity as Muslims; similar lifestyle as well as halal dietary requirements, and a strong

sense of community and welfare. However, the differences are worth noting of diverse locations, languages and

dialects, cultural and lifestyle differences, degrees of religiosity, education, affluence and marketing sophistication.

The halal industry focuses on five segments: Islamic lifestyle products, food and beverage, finance, education

and internet and digital brands. Strategic brand and marketing opportunities lie at country level, industry level,corporate level including mergers and acquisitions, product and service levels.

BRANDS AND MUSLIM CONSUMERS

Miles Young

Muslim consumers known as the third billion are starting to resonate with our clients

at their global HQs. Bigger than India or China they receive a tiny fraction of the attention.

The GDP of the five large Middle Eastern countries is the same size as India, but with

one third of its population. Most global enterprises, whether from the West or the East,

have a BRIC strategy, and many are starting to look at N-11 in the same way. 53% of the

population of the N-11 are Muslim. Muslim countries are some of the youngest in the world

with more than 750 million Muslims under the age of 25, representing 43% of the globalMuslim population, and 11% of the worlds. This population and economic growth has

been accompanied by an Islamic renaissance.


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Western marketers face two big challenges when it comes to addressing Muslim consumers. First, most companies

operate on a geographic basis, but the Islamic conscience is something that is a more centralised concept. The

best way to capture this is to move from localised management, to a centralised product management function

to invest the Islamic brand into products from their very core. Second, Muslim consumers are not a segment that

differs by one variable from the norm, such as the pink dollar. Muslim consumers are an alternative norm where

the starting point is Islamic identity, and everything else fits into it. Muslims own belief in the significance of

Islam in their lives is pervasive, and for them, this sincerity is key in marketing practice.

There is no such thing as a Muslim brand, and brands do not have religious beliefs. One demonstration of this is

the failure of Islamic colas, which did not exhibit sincerity. As Shelina Janmohamed remarked, What was Islamic

about them except their name? They cashed in on a moment of political history. They misunderstood what it was to

be a brand: what brand equity is, and what is the relationship between it, the category benefits and the consumer

needs are.

Ogilvy Noor defines Islamic branding as branding thats empathetic to shariah values, in order to appeal to the

Muslim consumer, ranging from basic shariah-friendliness to full shariah-compliance in all aspects of a brands

identity, behaviour and communications. Shariah is not limited to fiqh (law) but includes values such as:

honesty, respect, consideration, kindness, peacefulness, authenticity, purity, patience, discipline, transparency,

modesty, community, dignity. Its aim is not to measure devoutness but to understand how devoutness, regardlessof intensity, affects the lives of people as they work, play and consume. Ogilvy Noor commissioned research in

four key Muslim markets Saudi Arabia, Egypt, Pakistan and Malaysia and then qualified and sense checked the

results in other both majority and minority markets. The report is entitled: Brands, Islam and the New Muslim

Consumer. Six segments were identified looking through the lens of the role that religion plays.

The Connected (27%) see themselves as part of the web-like network of the Ummah, saying religion connects

me. Technology is positive, and compassion ranks highly. The Grounded (23%) say religion centres me. Islam

is their anchor, religion and culture are inseparable. They seek peace and closeness to Allah. The Immaculates

(11%) say religion purifies me are younger, seek discipline and perfection, and may incline towards rejecting the

impure. These three segments have a more Traditionalist mindset; a desire for harmony and belonging; quietly

proud of their faith; aligning with values of tolerance and compassion.

But marketers should focus themselves on the other three segments, which are identified by the Futurist mindset

who see themselves as steadfast followers of Islam in a modern world. They are individualists who choose Islam.

Their pride is intense, regardless of the extent to which they would be categorised as devout. They believe in

education and question intention. In particular they challenge the use of halal to make sure it is not just a

logo. Where information on halal status is not available the companys reputation for shariah-friendliness is key.

Identifiers (27%) wear Islam with pride: religion identifies me and want it strengthened and defended. The

Movers (6%) say religion enables me. They are internet savvy and act as change agents. The Synthesizers (6%)

are pragmatic, and adapt religious practice to their needs saying religion individuates me. Futurists want the

brand to be their friend, not see them as a market opportunity.

The importance of shariah-compliance increases with the body sensitivity of the product where food, dairy,

beverages and oral care score highest, followed by fashion, personal care and regular finance and finally airlines,

resorts, financial and insurance products. Some products are considered neutral of the halal/haram criteria such as

software.

Global brands are liked for their quality, innovation and heritage, but the sincerity of their halal-friendliness is

doubted. Local brands are considered to have more insight and evoke pride, but raise concerns of quality and

helpfulness. Global brands need to communicate their sincerity, local brands need to show quality, innovation and

transparency.

One of the other outputs of the research is the Noor Index a quantified ranking of brands perceived shariah-

friendliness. For companies entering this market, while rules matter, they are not the whole picture. Intention

matters more. Second, the branding must be world-class Futurists will not tolerate second-rate standards.


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PANEL DISCUSSION

Nestorovic offered France as an interesting case study into Muslim

consumers. It has the largest Muslim population in Europe, but

has some quirks. It offers three university level degrees in Islamic

finance, but does not have an Islamic bank he noted. It is home to

the luxury industry estimated at USD$145bn, and the automotive

industry brings in USD$900bn. Yet the halal industry is worth USD$800bn and there are no real brands in France to deal with this

industry.

He noted three challenges. There are no real figures to size the market, and these will be difficult to obtain since

90% of halal food is sold in small shops. Some halal certification is also considered dubious. Second, whilst the

Islamic finance industry has been training individuals to enter the industry, there are no such training institutions

for the halal industry, so no labour is ready. Finally the halal industry is fragmented compared to the Islamic

finance industry and consolidation is required.

He added that bringing Muslim brands from Muslim countries would be challenging. Whilst there was a golden

age where Islamic products were accepted, this was no longer the case. Muslim brands must choose whether to

target Muslims or non-Muslims. For example, should a halal certification logo be placed on the product? Francealready has a volatile environment when it comes to Islam, and this could exacerbate it. The best first step might

be for such brands to be marketed to Muslims only.

Young explained that the research commissioned by Ogilvy Noor was to offer some intelligent analysis of the

Muslim consumer market and how to maximise opportunities. Whilst earlier research by JWT had looked at sizing

the market, this was one step further in analysing and segmenting consumers. The aim of the research is to

help clients better talk to their consumers both locally and globally. Since the whole Ogilvy Noor programme was

initiated and driven by Muslims from within the organisation, Young emphasised that it was aimed at better serving

the Muslim community and not exploitation.

Sharif attempted to add some nuance from his own personal transition from Muslim consumer to Muslim producer,

explaining Todays Muslim renaissance is happening because Muslims are trying to overcome problems. Thisneeded investment in smaller upcoming companies, not just big global corporations. Other problems include the

poverty which affects a huge number of Muslims, and this fact must be front of mind as trillion dollar market

estimates of Muslim commercial opportunities are quoted. It is social improvement not greed that must be the

driver for the development of the industry.

He also disagreed with earlier statements that boycott brands do not work, and are not Islamic. He responded to

Young by stating that failure of products like Islamic colas was not due to brand issues but rather having the wrong

business model. Boycott products were born out of Muslim memories of being treated badly, and even a small error

on the part of a company could trigger a boycott. Sharif went as far as to say that the Noor Index as developed by

Ogilvy Noor should not include any companies at all that showed hostility to Muslims or Muslim causes, even if

other parts were halal compliant.

Gohir flew the flag for Muslim women. Where is the Muslim consumers purchasing power? she asked. With

women! Two values that were not mentioned by Young in his keynote address which she felt would speak directly

to Muslim women as consumers: equality and empowerment. Young responded that their research and work in

other countries had shown that those two qualities were indeed important and were in fact being used in the

relationship with Muslim women consumers.

Gohir then turned to challenge the experts from within the Islamic finance industry and asked where the

acknowledgement of women in Islamic finance consumption was. She also counselled organisations wishing to

target Muslim women to consider doing so through their corporate social responsibility programmes. Investing

in Muslim women through such avenues would ultimately bring benefit to the brands when it comes to product

purchase.


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SESSION 3: THE BRUNEI HALAL BRAND:

BUILDING ISLAMIC BRANDS FOR NICHE MARKETS

KEYNOTE ADDRESS

Hajah Normah SH Jamil,

Director of Agriculture and Agrifood,

Ministry of Industry and Primary Resources in Brunei Darussalam

THE MUSLIM POPULATION AND THE HALAL MARKET

The world Muslim population is approximately 1.9 billion, with an estimated growth of

2.5% pa. The halal industry is worth USD $560 billion and the halal food industry is worth

specifically USD $150 billion, with a predicted growth of 2% pa.

ISSUES IN THE HALAL CERTIFICATION PROCESS

There are many halal labels across the world. The label indicates who has certified the product to be halal. For

example in Brunei the label is purple with a blue background. In countries like Brunei and Malaysia it is the

government that certifies the halal status, but in non-Muslim countries it may be a local mosque or organisation.

There are a number of challenges for the halal certification and labelling process. First, how is the credibility of

such agencies established? How are the halal processes used to produce the products properly audited? How is the

logo protected? And what mechanisms are in place to prosecute any infringement?

BRUNEI HALAL BRAND AND ITS CREDIBILITY

The Brunei Halal brand was launched last year to address these issues. In the past there was only real consumer

concern about meat being halal. However, consumers have an increasing awareness of all ingredients and show

concern over whether they are halal or not. Since often detailed lists are issued by scholars, checking every product

for its halal status can be a challenging process for the average consumer. The Brunei Halal brand is given to

products considered to be of high quality and halal. This makes it easier for Muslim women and wives to select

suitable products. It is its own private brand which comes with a halal certification label. This is important because

consumers need to know who it is that has certified the product as halal, and the Brunei Halal brand clearly does

that.

WHY BRUNEI HALAL BRAND?

Brunei Darussalam is a Muslim country with a population of 381,000. The first Muslim arrived in 907 and in

1368 the first Muslim ruler, Sultan Muhammad, embraced Islam.

As a Muslim country, Brunei sees it as a fardu kifayah an obligation to Muslims to make safe, high quality

halal food readily available.

The development of this brand also gives Brunei the opportunity to diversify its economy away from its core

products of oil and gas. Also it will provide a platform for the development of local products and SMEs.

The target market for the brand includes the regional market, the GCC and European and American markets.

THE CERTIFICATION PROCESS

This is an 8-step process. Companies must begin by submitting an application which is processed by the Halal

Food control division. A desk audit is then followed by an on-site inspection. A report is submitted to the religious

council who will issue their decision based on the findings. If everything is in order, the applicant is issued the

certificate and halal permit upon payment.

BUSINESS OPPORTUNITIES

Companies that have been certified can avail themselves of the international profile of the Brunei Halal brand.

This is particularly valuable for smaller corporations that may not have the budget or leverage to otherwise gain

access to international markets. Or, if they dont wish to use the Brunei Halal brand they will benefit from the halal

certification.

Brunei is now constructing the Brunei Agrotechnology park, where facilities for R&D and production will beavailable to all companies, not just those from Brunei. The hope is that this will bring investment to Brunei.

If a halal product is good quality and those are the values that Brunei Halal brand is built on then it is suitable

for Muslims as well as non-Muslims.


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SESSION 4: THE HALAL CITY OF THE FUTURE:

BUILDING A CITYS ISLAMIC BRAND AND THE

MARKETING CHALLENGES FACED

KEYNOTE ADDRESSDatuk Hajjah Norah Bte Tun Abd-Rahman Yakub,

Executive Chairman of Tanjung Manis Food and Industrial Park Sdn Bhd, Malaysia

Tanjung Manis is in Sarawak, and is approximately the size of Taiwan. Proposals for 16,000

hectares of the area to be turned into a Green Special Economy Zone are being submitted,

and this is being combined with the idea of halal.

Traceability and biosecurity are two of the key factors underpinning the development of the area. One of the

goals of the project is to ensure water quality is maintained along with the quality of production. This is part of

the overall ethos of having a local responsibility to community development, and this is born out of the concept

of halal. As a result of the goals of biosecurity and, community development Sarawak continues its policy ofmaintaining the rainforest which has been in place since the 1950s.

This policy of sustainability will be extended throughout the Green Zone with methods such as organic farming,

green feed, green roadworks, green buildings. For example, any roadworks that are undertaken must have a life

span of 30 years. The airport will be relocated out of the Green Zone. That is to say that all activities must conform

to the highest environmental standards. For example, water management must meet world class levels. However, to

deliver against all these policies can be expensive.

Companies are invited to set up in the Green Zone, however, if they are unable to meet the policies outlined above

they are turned down, and this has already happened. For example, ship building was declined as an industry for

the area.

One project which has shown great success in integrating these criteria and the ethos of the Zone described earlier

is the Tilapia fish project. As mentioned, the area needs food security but also cost effective food production. This

project was able to deliver to those goals. This was done by partnering with a sea technology company from Taiwan,

which as it happens is not Muslim. This is worth noting. The project had the support of the Vice President of

Taiwan. The company was selected because of their zero-waste policy everything would be used. In establishing

the project, the company spent a year with local villagers and got involved with the community in order to better

understand the environment and their needs and to secure mutual support.

Tilapia is normally considered a low end, low value product. However, in this project, high quality methods were

used in order to reposition the fish from a low end cheap commodity to something of sufficient quality to be used

for high end products like sushi. This new process was developed in conjunction with the company and the IP

was shared with them. The process involved introducing corella algae which is expensive but reduces white spot

disease, cholesterol and improves the quality. It is expensive, but the whole process injects value into the product.

Part of the issue of food security is that food should be affordable, and this is a principle of halal, and food

security and affordability are also part of the development of the Green Zone. These are subjects at the heart of the

Halal City along with the green and organic initiatives outlined earlier. The Halal City will focus on sports tourism,

food production and lifestyle companies. It will be marked at its entrance by a green gate after which point no

fossil fuel cars will be permitted in the Zone. Only transportation like solar, battery or even horse and cart! will

be admitted.

Side by side with this, the Halal City must have both corporate and aesthetic value because it is crucial in an area

like Sarawak that young people feel a strong pull to remain in their communities and not leave them. By making

the Halal Ccity attractive and investing these strong principles into it, there is the hope that they will feel strongly

bound to their communities.


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SESSION 5: WINNING AND RETAINING CUSTOMER

LOYALTY IN A DIVERSE MARKET

KEYNOTE ADDRESS

John Timothy, International Corporate Affairs Manager, Tesco

Muslim consumers are becoming an increasingly important demographic. Increasing awareness of religious

obligations is creating greater demand for halal food and other consumer goods. The needs of Muslim consumers

are not the same the world over. The key for a corporation like Tesco is to understand consumers and respond to

their needs in order to earn and retain loyalty.

Tesco is present in 14 markets. In the UK, Tesco is the leader in the UK grocery market with 2,482 stores.

Approximately 10% of the UK population is from ethnic backgrounds including European migrants, and these

groups also have higher birth rates.

Due to the diversity of Tescos UK customer base, the World Foods line was developed which carries 1,800

products and is accessed by 5 million customers weekly. In localities with higher ethnic demographics, the World

Foods team is also involved in store design. There are trends such as price still being key, some independent

retailers purchase their stocks from Tesco, and World Foods buyers prefer packaged to fresh goods so that they can

be stored for long term use.

One third of the UK Muslim population is under 18 and two thirds under 30. Research shows that younger

shoppers prefer supermarkets. The average Muslim household is 4.2 people versus 2.2. In areas of high Muslim

demographics stores will have a halal counter, and will feature a Ramadan aisle, which is the largest event in the

World Foods calendar. This year the Ramadan product line will grow from 50 to 85, and year on year spend will be

doubled.

Malaysia was the first Muslim country to be addressed and the market entry strategy was a joint venture in 2004.

Today 4 million customers are served weekly. A wide range of halal certified food is key, and to do this local

suppliers such as halal poultry suppliers have been sourced, and a Halal Advisory Board has been set up to steer

the company. Since Malaysia is only 60% Muslim, non-halal aisles selling products such as alcohol are segregated,

and those products are only advertised in English and Chinese.

This local approach is key. In Malaysia it will allow Tesco to become part of Malaysias plan to export their halal

products. In Turkey, the local approach is also used. To serve customers better the company has been broken into

regional groups, and stores are localised for local taste.

The global halal industry is worth USD $632bn versus the US Kosher market of USD $100bn. Currently there are

86 kosher products for every 1 halal product.

Q&AWhen asked if negative PR affects Tesco in countries like the UK and USA as a result of its operations in Muslim

countries, Timothy responded that Tesco always retains a local feeling and is run by local staff. As a result, the

local aspect overshadows the international corporate nature of the business, and as such there have been no

negative repercussions.

A number of issues around establishing and diversifying the halal product line were asked: how does Tesco decide

what is halal? Why did it take so long to establish a halal line, will there be crossover products between halal and

organic and will other lines such as fashion and gifts be added to the halal portfolio which currently focuses on

food? Timothy clarified that Tesco does not take theological decisions in determining what is halal, but is guided by

experts such as the steering group in Malaysia. Although he felt unable to answer the point of why it took so long

to develop halal products for the UK he commented that consumers should exercise their power to ask for products

they want. However, new developments can take time. For example, halal organic products would need to bedeveloped and sourced from new suppliers. Other options for diversification would also be on the table, but these

would be determined as commercial decisions on a store by store basis as dictated by customer demand.


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SESSION 6: MARKETING CHALLENGES OF THE GLOBAL

HALAL INDUSTRY. WHAT MUST WE DO?

PANELLISTS:

Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers

Department, Malaysia

Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, the Executive

Chairman of Tanjung Manis Food and Industrial Park Sdn Bhd,

Malaysia

Hajah Normah SH Jamil, Director of Agriculture and Agrifood,

Ministry of Industry and Primary Resources in Brunei Darussalam

MODERATOR: Dr Jonathan Reynolds, Academic Director of the

Oxford Institute of Retail Management, Sad Business School, University of Oxford

LOCAL AND THEOLOGICAL VARIATION VS ONE HARMONISED GLOBAL HALAL STANDARD

Tan Sri Nor Mohamed Yakcop was of the view that once a common halal brand is established and this needs

to include the criteria of shariah compliance but also encompass other points such as product quality then local

and theological variation can be easily introduced.

He dispelled ideas that Islamic finance products were particularly contentious: 98% of all Islamic finance

products are acceptable across the world. It was only the perception of variation that had to be challenged and

that this range of products and authorising bodies were just symptoms of an emerging industry, and that over time

this would become streamlined. Datuk Hajjah Norah commented that The Pope even says that Islamic banking

is the way forward because it is real, adding that global standards and authority for the halal brand could meet

growing Muslim lifestyle needs and would also dispel irrational fears held by non-Muslims that halal is connected

to terrorism.

Hajah Normah preferred to emphasise that the first duty upon Muslims is to help other Muslims to fulfill their

religious obligations to observing halal standards, and that this was the approach that the Brunei Halal brand was

adopting. Their services and facilities would be open to anyone to use in order to acquire halal certification. But

the aspiration was that this would be a particular stimulus for the development of local Brunei SMEs onto a world

stage.

ENCOURAGING CREATIVITY AND INNOVATION

All panellists agreed that there was a blossoming of creativity and innovation in the halal marketplace and that

the geographic origin was not necessarily relevant. We dont know where creativity will come from, and it doesnt

matter, commented Tan Sri Nor Mohamed. He demanded greater creativity for a bigger audience: We need to

move to a value proposition that appealed not only to 1.6bn Muslims, but to the world population of 6.8bn.

One of the challenges of the explosion of innovation, in Datuk Hajjah Norahs view, was that there were no hubs ofindustry, and that there was still a huge range of bodies simply discussing what halal actually means. Her counsel

was that emerging companies should group together to build momentum.

BUILDING THE HALAL BRAND

Tan Sri Nor Mohameds view was that Muslim countries need to come together to discuss what halal really means

and to establish some kind of consensus on how to manage its perception. Hajah Normah felt that the Brunei

Halal brand was already helping individual businesses to build their commercial success by promoting a consistent

message about the halal brand to international markets. This consistency was backed up by using the same

messages about halal to local communities and mosques.

Can the halal brand be co-marketed with other brands, like kosher? asked Dr Reynolds. Datuk Hajjah Norah was

emphatic: As people of the book we should allow the kosher brand to sit next to the halal brand.

A final note was made by the audience that perhaps overall campaigns to promote the halal brand per se

were necessary, in much the same way as other industries band together to promote all suppliers, such as the

campaigns to promote milk.


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SESSION 7: THE MUSLIM WORLD TODAY: PERCEPTIONS

AND PERSPECTIVES

PANELLISTS:

Sir Iqbal Sacranie, Founding Secretary General, Muslim Council of

Britain

Dr Basil A J Mustafa, Nelson Mandela Fellow and Bursar, Oxford

Centre for Islamic Studies

Dr Walter Armbrust,Albert Hourani Fellow, Middle East Centre, St

Anthonys College, University of Oxford

MODERATOR: Mishal Husain, International Broadcast Presenter

ISLAMIC BRANDING AFFECTS MUSLIMS AS MUCH AS IT AFFECTS ISLAMIC PRODUCTS

Sir Iqbal Sacranie argued that the issue of Islamic branding affects both halal products, and Muslims and Muslim

countries. Negative media coverage makes Muslims feel fearful and want to hide. In Sacranies view one of the

responsibilities of the Islamic branding industry is to address the wider issue of negativity. How do we go about

changing the brand that people perceive about Islam? he asked.

MODELS FOR DEVELOPING THE ISLAMIC BRANDING INDUSTRY, BASED ON THEIR DIVERSITY, VALUES AND

GLOBAL PRESENCE

According to Dr Mustafa, the Islamic branding discussion must avoid lazy stereotypes of monolithic Muslims or

Islam vs. West dichotomies: Muslims are a mosaic of views on halal, on culture, attitudes, economics, poverty

and other demographics. This mosaic includes Muslims who live in both majority and minority Muslim countries.

He described the rise of coffee as a consumer product as one model for building Islamic brands. In the 17th

century it was first introduced to Europe from the Muslim world. Some Europeans were enamoured of it, others saw

it as the sinful drink of infidels. Today coffee is a highly desirable commodity. He extended the coffee analogy to

Islamic finance products: If managed properly [they] can show the same success.

ISLAMIC BRAND VALUES MUST EXTEND BEYOND THE PRODUCT AND BE PERVASIVE IN THE VALUE CHAIN

Sir Iqbal Sacranie noted that the brand of Islam must be practiced as real if Islamic products are to carry

legitimate weight. The discussion is not about creating a separate commercial ghetto for Muslims, nor is it about

polarising Islam vs. the West. This issue of social purpose for Islamic brands was echoed by Dr Mustafa who added

that there was a need for quality and social responsibility not just economic benefit, and that this focus applies

to all parts of the supply chain including elements such as advertising. For example, the marketing campaign for

a truly Islamic product would not appeal to vanity or sexual attraction. Instead it would project the goodness of

values such as moderation and balance. Such a market entry strategy must avoid producing sub-standard products,

and must be accompanied by long-term investment.

A GROWING CONSCIOUSNESS OF ISLAMIC PRODUCTS IN HIGHLY SECULARISED STATES

Dr Armbrust described perceptions in Egypt that the cities which are growing are seen as no Islam areas anddo not represent living the Islamic good life. In fact the main media channels propagate the view that Egypt is

a secular state. However, the Islamic product perspective is widely seen in print, and with the increase in the

number of satellite channels, the Islamic message is getting through on TV as well. There has also been growth in

Islamiyyat books, and on the internet where there are no gatekeepers as there are in the broadcast media.

HALAL IS THE DEFAULT SETTING FOR PRODUCTS IN ISLAMIC COUNTRIES

There is a distinction to be drawn between Islamic products and halal products when it comes to Muslim

majority countries, in Dr Armbrusts view. Halal is the default expectation of consumers when it comes to food,

and halal is assumed, whereas in Muslim minority countries Muslims would expect halal food to be appropriately

marked. It is probable that food imported to Egypt is not halal, but consumers operate under this assumption that

all food in Egypt is in fact halal.

Yet some companies have distinguished themselves as promoting Islamic values, without using the word Islam.

An example is Al-Tauhid wa al-Nur (The Oneness and Light of God) which has built its brand as an ethical

company that you can trust. Although it does not use the word Islamic in its title, it is widely known that it is an

Islamic brand, having started up as an outlet for womens modest clothing.


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SESSION 8: DINNER KEYNOTE ADDRESS: MUSLIMS IN

TODAYS INDIA

KEYNOTE ADDRESS

HE Shri K Rahman Khan,Deputy Chairman of the Rajya Sabha and MP Indian National

Congress

MODERATOR: Mishal Husain, International Broadcast Presenter

Shariah is a set of rules and directions to be adopted in daily life for the overall benefit

of human society. The financial world was initially sceptical of Islamic finance but now

sees it as a viable alternative. Halal products and Islamic branding will follow suit in the future, appealing to both

Muslims and non-Muslims, if we can build on the strength of the product rather than on emotion and religious

duty.

The world Muslim community has generally ignored Indian Muslims even though they are the second largest

Muslim population in the world. For example, the OIC and IDB concentrate their activities on Muslim countries, so

a small Muslim nation of two million will have a say in those forums, but a minority Muslim population like Indias

of over 200 million Muslims will have no say. Muslims in non-Muslim countries make up 20% of the world Muslim

population and so it should be noted that they will play an important role in promoting Islamic finance and other

Islamic and halal products. Further, if the Islamic world invests in resource development of Muslims in non-Islamic

countries then those Muslims will provide resources to the entire Islamic world.

Islam came to India during the time of the Prophet Muhammad and has spread across the full geographic, ethnic

and linguistic breadth of the country. Muslims are the countrys second largest religious community and are

an integral part of Indias heritage, culture and civilisation. Kashmir is the only majority Muslim state. Muslim

minorities in other states vary from 5% to 35%, and the states of Uttar Pradesh, West Bengal and Bihar constitute

nearly 74% of Indias Muslim population.

A number of historic factors such as partition, successive governmental neglect and lack of the communitys own

initiative have led to Muslims poor economic and political representation. The current government is taking steps

to change this in line with the growing recent economic activity in the country. A large Muslim middle and upper

class is emerging as a powerful economic and political entity, making up 15% of this segment of nearly 500

million. They spend their income on consumer goods, food items, domestic appliances, housing, jewellery, apparel

and healthcare products offering a big market for halal products.

India has a thriving import-export market, and apart from China is the only market to avoid the recent global

economic meltdown, keeping a GDP growth rate of 7 8%, expected soon to reach double digits.

Indias constitution provides wide freedom to religious minorities. It has the largest number of madrasas andmosques in the world, and the government allocates Rs. 200 billion annually to 150,000 hajj pilgrims, along with

educational scholarships to Muslim minority students. India has three Muslim presidents, several chief ministers

and cabinet ministers at central and state level and a Muslim Chairman and Deputy Chairman of the Upper House.

Riots, discrimination and harassment do occur but these are inevitable in any multicultural society, and are not

confined to Muslims.

The Muslim market must be targeted through identifying niche markets with potential areas for success in

marketing, modernisation, training and welfare. Examples are brass, copper and glass-work, silk, wood and carpets,

tourism, fisheries and rubber as well as halal meat and chicken.

Along with opportunities in traditional industries, there are newer arenas such as IT, and ITES (IT Enabling

Services). Azim Premji is a leading entrepreneur having created the global IT company Wipro. Other areas for profitand community upliftment include educational infrastructure, setting up of innovative Universities of Science

and Technology, distance education based on modern IT and communication methods and development of mass

media, particularly FM and TV stations oriented to the Muslim population such as Urdu E.TV.


27/44


WAKF Property development, on the principles of Build, Operate and Transfer are also open to investment with

100,000 commercially viable properties waiting for development. The land is available free to construct on, and

the investment required for building is only 30%, offering high returns and also long term community benefits.

Muslim entrepreneurs, industrialists and real-estate investors are also being encouraged to turn their businesses

into corporations to better access national and global markets, and to this end, efforts are being made to establish

a Muslim Chamber of Commerce and Industry. These initiatives stand side by side with efforts for a master planfor the socio-economic and educational upliftment of the Indian Muslim community in sync with the National

Five Year Plans of the central government. If the global Muslim community gets involved in this, it will make a

tremendous impact on one of the worlds largest Muslim populations.


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SESSION 9: THE FUTURE OF ISLAMIC FINANCE:

TRENDS, GROWTH, INNOVATION

KEYNOTE ADDRESS

Afaq Khan,CEO Standard Chartered Saadiq

PANELLISTS:

Afaq Khan, CEO Standard Chartered Saadiq

Usman Hayat, Director Islamic Finance and ESG Investing,

CFA Institute

Walid Sarieddine, Head of Islamic Finance, Sumitomo Mitsui

Banking Corporation

M Iqbal Asaria, Associate, Afkar Consulting Ltd

MODERATOR: Paul McNamara, CEO and Editorial Director,

Yasaar Media

THE FUTURE OF ISLAMIC FINANCE

Afaq Khan

There are more than 1000 Islamic financial institutions over five continents, but only 8% of the global Muslim

population of 1.4bn is being served by Islamic finance products. Shariah compliant assets are estimated at

USD$1trillion with asset and revenue growth rates of 32% and 44% respectively since 2003, encouraged by

support from regulators. The industry is expected to double in five to seven years and reach USD $2 trillion.

Further growth will be fuelled by product innovation. 80% of global Islamic finance assets are in the GCC and Iran

which comprise 6% of the Muslim population. (Sources: Bankscope and Oliver Wyman analysis, Thomson Reuters

Lipper.) In 2008, the estimated size of Islamic banking assets were: Saudi Arabia 60%, Kuwait 35%, Qatar 26%,

UAE 15%, Bahrain 10%, Malaysia 20%, Pakistan 4%, Indonesia 2%. (Sources: Islamic Finance Outlook 2010 by

Standard & Poors; Saudi Arabia percentage is based on Standard Chartered estimation; State Bank of Pakistan).

The UK is seen as the European hub for Islamic finance, w

islamic branding and marketing forum report

Documents