Marketing to Muslims (includes Arabs, Middle-Eastern)

The world is increasingly becoming a complex place. Evershine Group takes a deep, and insightful look at the US/Canadian society fibres and carefully plans a media campaign which delivers. Our research and PR expertise coupled with our strategic data on consumer behavior patterns will ensure that your products and services are targeted to Muslims in US and Canada from all over the globe. Muslims make up a strong and vibrant proportion in the West and have high disposable incomes. Most Mulims immigrate to US and Canada from the Middle-East, Saudi Arabia, United Arab Emirates, Egypt, Jordan, Israel, Palestine, Turkey, Morocco, Lebanon, India, Pakistan, Sri Lanka, Bangladesh, Nepal, Iran, Iraq, Malaysia, Indonesia and other countries bringing with them a high level of wealth which they invest in businesses, homes, real estate, cars, investment products, and other goods and services. With our experience in catering to this market, your business will also reap the benefits of this demographic.

Read the article below for more insight. We invite you to contact us for more information.

Rewriting the Ad Rules for Muslim-Americans (download PDF)April 28, 2007

By LOUISE STORY

For years, few advertisers in the United States have dared to reach out to Muslims.

Either they did not see much potential for sales or they feared a political backlash. And there were practical reasons: American Muslims come from so many ethnic backgrounds that their only common ground is their religion, a subject most marketers avoid.

That is beginning to change. Consumer companies and advertising executives are focusing on ways to use the cultural aspects of the Muslim religion to help sell their products.

Grocers and consumer product companies are considering ways to adapt their goods to Muslim rules, which forbid among other things, gelatin and pig fat, which is often used in cosmetics and cleaning products. Retailers are looking into providing more conservative skirts, even during the summer months, and mainstream advertisers are planning to place some commercials on the satellite channels that Muslims often watch.

Marketing to Muslims carries some risks. But advertising executives, used to dividing American consumers into every sort of category, say that ignoring this group — estimated to be about five million to eight million people, and growing fast — would be like missing the Hispanic market in the 1990s.

“I think Muslims have had to draw into themselves,” said Marian Salzman, executive vice president and chief marketing officer of JWT, a large advertising agency in the WPP Group that plans to encourage clients like Johnson &

Johnson and Unilever to market to American Muslims. “It puts an increased burden on a marketer post-9/11 to say, ‘Look, we understand.’ ”

Companies in the Detroit area, where there is a dense population of Muslims, are leading the change. A McDonald’s there serves halal Chicken McNuggets; Walgreens has Arabic signs in its aisles. And now, Ikea, which recently opened a store in the suburb of Canton, Mich., that has had trouble attracting as many Muslim customers as it had hoped, has been touring local homes and talking to Muslims to figure out their needs.

The store there plans to sell decorations for Ramadan next fall and is adding halal meat to its restaurant menu, or meat that is prepared according to Islamic law. Catalogs in Arabic are being planned, and female Muslim employees are expected to be given an Ikea-branded hijab, to wear over their head if they wish.

Marketing to Muslims is, of course, mostly intended to increase sales, but advertising has also long been a mirror of changes in society.

Ms. Salzman pointed to ads in the 1960s that featured Jewish products like Levy’s rye bread, which, she said, helped bring that group more into mainstream advertising. She also noted that ads from companies like McDonald’s in the early 1990s portrayed busy mothers who admitted that they did not cook every night like their mothers did.

“Marketers have actually helped us to rewrite the rules about what we’re comfortable with,” she said.

Because the Census Bureau does not ask about religion, there is no authoritative count of Muslims in America. Some Muslim organizations provide estimates as high as 10 million. Others say it could be as low as three million.

Whatever the number, many Muslims have clustered in areas that include Orange County, Calif.; Houston; the state of Georgia; northern Virginia; New York City and Long Island; and the Detroit area.

Over the last few months, JWT conducted a large study of Muslims in the United States and Britain to determine whether they would be receptive to specialized advertising. There were 835 people in the United States study. Muslim Americans spend about $170 billion on consumer products, JWT estimates; this figure is expected to grow rapidly as the population expands and younger Muslims build careers.

Ms. Salzman said the study found that Muslims were buying many standard products but that they felt excluded from mainstream advertising. In particular, she said, they wanted companies to recognize their holidays.

Ms. Salzman said JWT had little trouble surveying Muslims in Britain, but found it had to clarify at the start of each phone call in the United States that it was not calling from a government agency.

Over the next few weeks, JWT plans to reach out to the chief executives of all of its major clients, including JetBlue, the Ford Motor Company and HSBC, to encourage them to market to Muslims in the United States and Britain.

“These advertisers have been in the Middle East and in the Far East Muslim countries for decades, so they’re already dealing with the Muslim market,” said Tayyibah Taylor, publisher and editor in chief of Azizah magazine, a Muslim-focused magazine in Atlanta. “They just haven’t been dealing with the Muslim marketer here at home.”

Almas Abbasi, a radiologist in Long Island who was one of the people interviewed by JWT, said she would be grateful for advertising that included Muslims.

“If Ramadan starts, and you see an ad in the newspaper saying, ‘Happy Ramadan, here’s a special in our store,’ everyone will run to that store,” she said.

Her daughter, Shaheen Magsi, a senior at the New York Institute of Technology in Old Westbury, N.Y., said her family turned off their cable television three years ago after seeing too many negative stereotypes about Muslims. She said she quickly grew tired of telling people at school that, no, she did not agree with Osama bin Laden.

“It’d be really good to say, ‘Oh, there’s a Muslim on TV, and they’re portraying something good other than Muslims killing people,’ ” she said.

Just what approach companies should take to reach Muslims is far from clear. The market is diverse, including African-Americans, South Asians, Caucasians and people from the Middle East, as well as people who are more or less conservative in their religious views. American Muslims disagree about whether the Muslim women in ads should wear the hijab, for instance.

Nationwide Financial Services has already been advertising to people from Pakistan and India, who are often Muslim. But it prefers to focus on their country of origin, said Tariq Khan, Nationwide’s vice president of market development and diversity.

Still, religion is culturally relevant at times, he said, and Nationwide may run ads in print publications in June that feature Hindu and Muslim weddings.

Rizwan Jamil, director of beverages at Unilever in Pakistan, said Unilever often ran promotions there for Lipton tea and custard powders during Muslim holidays, using bright and festive packaging, and discounts. These sorts of gestures would appeal to a broad swath of Muslims in the United States, he said, without setting off discussions about religion.

“It’s just like when you’re advertising something for Christmas,” Mr. Jamil said. “You’re not talking about Christians or Christianity. You’re talking about Christmas, the event. I would be careful — to the extent that I used religion. I wouldn’t shout it out. I wouldn’t shout out to the world that ‘I’m talking to Muslims.’ ”

There is a genuine fear about how to market to Muslims — and whether to do so — at many big companies, executives at Muslim-focused media outlets and organizations said.

“United States companies don’t want to risk alienating their domestic consumers,” said Nasser Beydoun, chairman of the American Arab Chamber of Commerce in Dearborn, Mich., which is working with Ikea, Wal-Mart and Comcast to develop strategies to reach Muslim consumers. Other companies like Frito-Lay and Kodak have recently considered marketing to Muslims.

Publishers of Muslim women’s magazines, like Azizah and Muslim Girl Magazine, said they had to dispel advertisers’ concerns that they would feature articles that were radical or political.

Bridges TV, a cable and satellite network, has changed its sales pitch to make advertisers more comfortable. When it was introduced in 2004, Bridges TV presented itself as a Muslim television network, but lately the network has been having better luck labeling itself as “bridging the West and East,” said Mohamed Numan-Ali, the network’s advertising manager. Brands like Ford, Lunesta and Lincoln have signed on as advertisers, he said.

On the other hand, some Muslim-focused media companies that are courting advertisers highlight religion as their strength. Executives at QTV, a new satellite network centered around the Koran, tell advertisers that the focus on religion is what keeps its viewers tuning in, often five times a day for prayer calls.

Companies that advertise on QTV should not worry about backlash, said Mahmood Ahmad, president of Digital Broadcasting Network Inc., which produces QTV, because “Fox News viewers are not watching QTV anyway.” He added, “QTV is the safest place to be because they won’t know.”

Advertising on satellite channels popular with Muslims and in the publications that focus on them would be inexpensive compared with mainstream media and might be highly effective because so few companies reach out to this group.

“People would flock to it,” said Daisy Khan, executive director of the American Society for Muslim Advancement, a nonprofit group based in New York. “They would say ‘I can’t believe I’m being validated by Macy’s. I can’t believe I’m being validated by Whole Foods.’ ”

Even in mainstream advertising, companies may win over customers by including Muslims in some ads, said Razaq Baloch, a partner in Spicy Banana, an ad agency specializing in reaching customers from India and Pakistan.

Alia Fouz, a Palestinian-American who lives near the Ikea in Canton, said she never felt that ads were addressing her as a Muslim when she was growing up in Virginia. Sitting in the Ikea snack bar with her young son, she said ads that included American Muslims would grab her — and her son’s — attention.

“We should be included,” Ms. Fouz said. “We live

The Inaugural Oxford Global Islamic Branding and Marketing Forum

“The Growth of Global Islamic Business: Muslim Market Opportunities and Challenges”

Saïd Business School hosted its Inaugural Islamic Branding and Marketing Forum on 26-27 July 2010. The Forum brought together over 250 business leaders, branding and marketing experts and thought leaders to discuss the key issues that face this growing market. Download a brochure for full details.

About the Forum

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 but AT Kearney also point out that the market for sharia compliant products or services – that is products and services that confirm to Islamic Law – 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 massive 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.

This Forum is the first to bring Muslim and non-Muslim leaders and companies from a variety of business sectors 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. Islam is one religion, but within the Islamic global population there are many markets that behave differently from cultural and business perspectives and both Muslim and non-Muslim marketers seek to understand these differences effectively to address their needs.

The inaugural Oxford Global Islamic Branding and Marketing Forum is proudly partnered by:

 

Lead Partners: and     

 

Major Partner:    

Associate Partners:                     

                            

 

 

Media Partners:       

                                                   

 

Supporting Organisation:

 

 

Who is the Forum for?

The Forum is for senior executives in the field of branding and marketing from global companies, media agencies and government officials who have an interest in Islamic markets. Over 200 senior delegates from the UK, the US, the Middle East and from South and Southeast Asia are expected to attend.

Companies and executives of companies that want to learn more about Muslim markets and consumer behaviour in them.

Companies and executives of businesses that would like to access and gain more share of Muslim markets.

Marketing and advertising executives of companies interested in addressing Muslim markets.

Muslim entrepreneurs, companies, investors and professionals interested in building brands and marketing these to Muslim majority and minority markets.

Leaders of Islamic countries and leaders of global and international companies spoke at this ground-breaking Forum, and shared their experiences in a sophisticated learning environment at the Saïd Business

Islamic branding: A conceptualization of related terms

Baker Ahmad Alserhan1

Correspondence: Baker Ahmad Alserhan, College of Business and Economics, United Arab Emirates University, Jimi 1, PO Box 17555, Alain, United Arab Emirates. E-mail: baker.alserhan@uaeu.ac.ae

1(PhD, MCIM, MMII) is an active researcher in the field of marketing and strategy and contributed many articles to international journals. His research interests include Islamic Marketing (Islamic Branding, Islamic Services and Islamic Hospitality) and International Marketing. He currently serves as an assistant professor of Marketing at the United Arab Emirates University.

Received 12 May 2010; Revised 12 May 2010.

Top of page Abstract

This article investigates the promising, new subject matter of Islamic branding, which is yet to receive the academic attention it deserves. It provides a better understanding of Islamic branding, through conceptualizing the terms relevant to the brand-Islamization efforts of non-Muslim brands, by identifying the necessary ‘branding to Muslims’ practices. It differentiates between Islamic products and Islamic brands, identifies and explains the various types of Islamic branding and links them to the Islamization of originally non-Muslim brands, that is, international brands, and it discusses various halal-related issues that an Islamizing firm needs to adhere to in order to improve its chances of success in the Islamic market. Existing information sources at both academic and business levels reveal that knowledge remains scarce in this field. Therefore, the identification and conceptualization of the various Islamic branding terms offers ample opportunities for researchers to investigate. Researchers investigating the concept and practice of Islamic branding currently are drawing the inaugural road map for future research, and thus determining its long-term direction.

Keywords:

Islamic branding; Islamic products; Islamic brands; halal; brand Islamization

There is a new big thing in the world of marketing and it is green, not the familiar grass-green of the environment, but a deeper green – the traditional color of Islam. (Young, 2007)

Top of page INTRODUCTION

Religious brands like halal and kosher can capture a craving for purity that goes beyond the religious duty of their faithful adherents. The vast majority of the kosher customers are not of the Jewish faith and, likewise, many Shariah-compliant firms reveal that not all of their customers are Muslims. For example, at the Jawhara Hotels, an alcohol-free Arabian Gulf chain, 60 per cent of the clientele are non-Muslims, drawn by the hotels’ serenity and family-friendly atmosphere. Likewise, a quarter of the Dutch-based company Marhaba customers, which sells cookies and chocolate, are non-Muslims (Power and Abdullah, 2009). Although Muslims consume 16 per cent of kosher products in the United States alone (Kamaruzaman, 2006), demand for halal food products by Jewish and Christian consumers is increasing as those customers become aware of the halal brand. These religious products, unlike ethnic products that base their appeal mainly on being exotic, are associated with the more

profound concepts of cleanliness, purity and kindness, in addition to being different and exotic.

Islamic religious brands, or halal brands, are created according to the Islamic principles that guide what is permitted not just in the food industry but also in cosmetics, pharmaceuticals, logistics, clothing, finance, hospitality and banking (Minkus-McKenna, 2007), thus extending the religious umbrella much more widely than kosher or ethnic products, which are mainly associated with the food industry. Although this extension provides a much greater opportunity for a diverse mass of businesses to engage profitably, the halal market remains unexplored by the majority of non-Muslim multinational corporations until very recently and the relatively small number of MNCs that dared to engage halal at an earlier stage now enjoy the results of their timely intervention; they dominate 90 per cent of the halal food market (Anon, 2009a).

Non-Muslim MNCs like Nestlé, Unilever, L’Oreal, Colgate, Baskin Robbins and Campbell Soup, among others, continue to invest heavily in addressing the Islamic dietary, lifestyle and consumption requirements. For example, at the Nestlé corner at the third annual World Halal Forum exhibition, information on Shariah-compliant Smarties, PowerBars, Maggi Noodles, Ice cream and Koko Krunch breakfast cereal was displayed. Nestlé also invested CHF 85 million in Malaysia in 2009 to meet the increasing demand for halal products of which Nestlé Malaysia is the center of excellence. The investment supports the set-up of new regional plants for Nescafé and non-dairy creamer as well as the expansion of its Maggi facilities (Power, 2008). The efforts of these companies build on and transform the image of their brands from being international to being Islamic, that is, accepted by the Muslim consumer as halal brands. A successful transformation can be immensely beneficial to jump start an MNC's brand in an Islamic market as international corporate brands are only significant if they successfully translate the core value proposition of the corporate offering into the new Islamic market; a difficult task that can only be achieved when the entire firm lives and breathes the brand and every aspect of the firm reflects the brand values and essence (Melewar and Walker, 2003), that is, halal.

This study aims to provide a better understanding of Islamic branding through conceptualizing the terms relevant to the brand-Islamization efforts of non-Muslim MNCs by focusing attention on the ‘branding to Muslims’ practices. Thus, the study gains its significance from several factors: (1) it emphasizes the importance of Muslims as a distinct potential market that remains noticeably under-researched; (2) the novelty of the topic itself is worthy of consideration as research about Islamic branding is non-existent despite the huge potential the Islamic market presents; (3) it defines and differentiates between the concepts of Islamic products and Islamic brands; (4) it conceptualizes the major branding considerations an Islamizing firm needs to consider; and (5) it would provide a valuable source of insights for future research as well as a benchmark for practitioners.

Finally, the contents of this article are discussed under the following major headings: religion as a brand, the halal market, serving the modern Muslim consumer and challenges facing MNCs that Islamize. The sequence of these headings was based on logic rather than on any specific criteria.

Top of page SIGNIFICANCE OF THE STUDY

In order to engage the halal market, firms need to employ brand-Islamization strategies based on information obtained from the Islamic market, including customers, competitors and the business environment. With such information, firms can further develop their organizational values, norms, practices and structure in order to be appreciative of the novelty of the Islamic market.

Firms willing to target Muslim consumers need different marketing strategies as compared to targeting traditional consumers. Their strategies must be aligned with the Islamic values, standards and guidelines, and they must take into consideration the various factors that could impact the success of their operations in an Islamic market. These factors include, among others, promotions, location, quality, certification and cleanliness of operation (Nooh et al , 2007 ). Although Nooh et al sought to produce a comprehensive list of the factors associated with halal branding, their study remains one of a few that attempted to investigate the issue rigorously. Unfortunately, this particular area of scientific inquiry remains largely vacant and research is yet to gain momentum. Moreover, according to Zakaria and Abdul-Talib (forthcoming), related research is characterized as narrow in focus and limited to understanding marketing decisions based on western ideologies and principles. This view is also shared by Paul Temporal, a fellow at the Said Business School at Oxford University and an expert on Islamic branding: ‘To date, there has been little formal research into the branding issues associated with serving these markets – which represent a sizeable commercial opportunity for many brand owners and developers’ (Temporal, 2008).

Islam creates an identifiable culture because it provides a way of life for people both at organizational and personal levels. The challenges in doing business in Islamic countries thus come from the fact that Muslims have a different set of values and beliefs that guide their behavior in both business and non-business situations. The importance of these sets of values in business have only recently come to the attention of world marketers. Recognizing a substantial opportunity in this market, non-Muslim multinationals like Tesco, McDonald's and Nestlé as well as many others have massively expanded their Islamic operations; it is estimated that they control 90 per cent of the global halal market. These and many other mainstream companies are making significant programs specifically designed for the Muslim consumer.

Understanding the Muslim consumer mandates that the strategic market-orientation of these firms be assessed and implemented differently, as related decisions are culturally bound; different consumer segments require different approaches. Achieving marketing mix standardization when implementing a marketing strategy in an international market is difficult (Kustin, 2004), and in fact it has been suggested that standardization is only effective in homogeneous markets (Jain, 1989), whereas adaptation and localization strategies are needed in heterogeneous, that is, Islamic versus western markets (Duncan and Ramaprasad, 1995). Contrary to popular opinion, converging technology and disappearing income differences among countries will not lead to homogeniza-tion of consumer behavior. Instead, it will become more heterogeneous because of cultural differences (De Mooij and Hofstede, 2002). In addition, although the crucial elements of the management process show strong continuity over time, they differ from one country to another, as a function of the local culture (Hofstede, 2007).

Acknowledging these statements is the Swiss multinational Nestlé. Answering a question about its overseas operations, the MNC confirms that it ‘encourages its national operations to adapt products locally, in order to respect the local, regional and national habits and the tastes, cultural and religious backgrounds of consumers as well as their purchasing power. While all products must correspond to our quality requirements, they vary extensively in composition, recipe, packaging and branding’ (Nestlé, 2010).

At present, many marketing and branding decisions affecting the Muslim consumer are usually based on a western style (Zakaria and Abdul-Talib, forthcoming). Studies that look at marketing decision processes from an Islamic perspective are so far negligible despite the obvious fact that halal products, being noticeably different, require Shariah-compliant marketing decisions. The argument made in this article clearly points out that in order to engage the halal market, marketing and branding decisions need to adhere to the Islamic

guidelines and standards as opposed to implementing standards applicable within the non-Islamic market.

Top of page RELIGION AS A BRAND

According to William Drenttel's emotional article in the Design Observer My country is not a brand, ‘Branding has its value in commerce and it leads to better commercial communication, to understanding the needs of an audience, or building long-term relationships with consumers. However, when the vocabulary of a nation's foreign policy is the vocabulary of branding, then it is, in fact, selling Uncle Ben's Rice. This transaction, with the vocabulary of the supermarket counter, is not how I envision my country speaking to the rest of the world. The symbol for a country should not be created by branding experts’ (Drenttel, 2004).

Drenttel's comments might apply even more closely to major world religions such as Islam, Judaism and Christianity that are being vigorously commercialized in a Christmas-like fashion. Nonetheless, regardless of what one might think about commercialization of religions or national symbols, such a trend has become an acknowledged fact in the business world that needs to be contended with.

Having said that, it is worth noting that commercializing Islam is much less likely to occur owing to the nature and teachings of the Islamic faith itself. In Islam there are clear and strict conditions that must be adhered to before a firm can get on the marketing vehicle of religion. In Islam, brands cannot be Shariah-compliant until they fulfill many conditions related to ingredients, logistics, impacts and intentions. Such fulfillment results in what is Islamically called ‘halal’ or wholesome products. In this regard, religion plays an active role in transforming businesses into ethical entities whose goals rise above sales and revenues. Hence, it is my view that firms enduring the agony of changing their production processes and marketing practices to become Shariah-compliant have earned the right to use the words ‘halal and Islamic’ to support their marketing efforts. I do not see much harm in utilizing religion to improve the business environment or make life better in a more general sense. After all, that is supposed to be the essence of religion.

Nonetheless, some manufacturers have gone too far in their commercialization efforts of Islam. Mecca Cola is the perfect example. The company, building on negative Muslim sentiments, claimed to have introduced the Islamic alternative to Coca Cola. As usual, people who bought the drink disposed of the bottles and cans in the garbage while children used the bottles as an object to kick. Muslims did not do anything and continued to purchase the drink. However, if such a product was introduced by a non-Muslim company, the fallout would have been extreme and the company might have been labeled as anti-Islamic for disgracing the name of their most holy place. As such, non-Muslim companies must be extra cautious; their white outfit can easily stain.

Islamic branding definedIslamic branding can be defined in three different ways, in all of which the descriptor ‘Islamic’ is used: Islamic brands by compliance, by origin or by customer.

Islamic brands by compliance (Islamic brands by religion or halal brands)

 

Islamic brands that base their appeal strictly on being Sharia-compliant are particularly and currently concentrated in the finance and food sectors and, to a lesser degree, in the

growing sector of halal logistics. These brands are intended to appeal specifically to the Muslim consumer as they are faith-based (Williams and Sharma, 2005). Increasingly, however, many of these brands are broadening their appeal to attract other customers. For example, more than 60 per cent of the customers of Islamic hotels in Dubai are non-Muslims.

Islamic brands by origin

 

These brands acquire the description ‘Islamic’ mainly because they originate from Islamic countries. Examples include airlines such as Emirates Airlines, telecoms such as the Emirati Etisalat and the Egyptian Orascom, and industry such as the Saudi SABIC. These companies do not promote themselves as Sharia-compliant as some of them are clearly non-compliant; the UAE Emirates and Etihad Airlines both serve alcohol to their customers, which clearly goes against the teachings of Islam. Telecoms also do not promote themselves Islamically as they are not religious in character, but they apply the promotional methods of other multinational telecoms.

The description of brands based on origin is supported by Rafi-uddin Shikoh, cited in Frost (2007), who distinguishes between brands that come from overly Muslim countries and those that specifically address the needs of practicing Muslims. According to Shikoh, there is nothing religious or theological about most of the first-category brands and they can serve any of the regular consumer needs with regular products or services and they have nothing to do with religious affiliation (Frost, 2007).

Islamic brands by customer

 

The third type of Islamic branding is that describing brands that emanate from non-Islamic countries, yet are designed specially to target the Muslim consumer. Although these brands are usually owned by non-Muslims they are described as Islamic based on their target customers, that is, Muslims. They include the halal brands of multinationals such as Nestlé, Unilever, L’Oreal, McDonalds, KFC and many others. These MNCs are investing heavily in cultivating the largely vacant Islamic markets. As a result of their efforts they now dominate 90 per cent of the Islamic food, cosmetics and health market.

This article focuses on the third type of Islamic brands, that is, Islamic by customer. These brands are owned by MNCs that have the skills and the know-how of branding, skills that so far eluded the Islamic companies operating under the lone slogan of ‘we are Islamic’, an approach that has been taken for granted until these companies began facing fierce competition from non-Muslim companies operating under the same slogan but utilizing world-class branding expertise to excel in satisfying the specific needs of the observant Muslim consumer. Both Sharia-compliant brands provided by Muslim companies and Islamized brands provided by MNCs share an important theme; their main attraction is the concept of halal, unlike the second category of brands that are classified as Islamic by origin and appeal to customers using the traditional, not the value-laden Islamic marketing approach.

Islamic brands versus Islamic productsWhile it might be politically or geographically acceptable to describe all products originating from Islamic countries as Islamic, it would be religiously incorrect to do so in cases of

Shariah non-compliant products as a non-compliant product cannot be branded as Islamic. Because brands are closely linked to emotions, even more so when religion is involved, such a distinction becomes necessary for companies planning to approach consumers in Islamic markets under a religious slogan.

In the case of the first two types of branding, Islamic brands by compliance and Islamic brands by country of origin, there is still some confusion as to the difference between Islamic brands and Islamic products as they are used in many cases interchangeably. It is not until the difference between these two is recognized and abridged that Islamic branding can fulfill its potential (Young, 2007). For example, Turkey is a Muslim country, yet its total wine production in 2005 was an enormous 287 000 hl according to the International Organization of Vine and Wine (acronym OIV). Any business person with the slightest knowledge about Islam would know that wine is forbidden and strongly condemned in Islam; there is no such thing as Islamic or halal wine. Even Barbican does not promote its non-alcoholic beer as beer in the Muslim market but rather as a malt drink seen by many in the Muslim world as good for the kidneys. Therefore, laboring to brand Turkish wine as an Islamic product would not make much sense despite the fact that Turkey is 98 per cent Muslim in terms of population and despite its history as home of the Ottoman Caliphate that led the Islamic world for many centuries. Another example would be the 350 000 pigs raised by Egyptian farmers (all pigs in Egypt were slaughtered in 2009 in the wake of the swine flu). Islam takes such a strong stand against the consumption of pig products that these became associated in the Muslim psyche with a multitude of social and physical illnesses including loss of jealousy over female relatives, incurable diseases and body deformations, in addition to committing a major sin. The answer to the joke question of how to slaughter pigs in a halal way to make them Islamic has much wider applications; a product which is haram (non-Shariah compliant) by nature cannot be made Islamic or halal by process. Islam approves only wholesome products that have been raised, prepared and transported wholesomely from ‘farm to table’, and to the Muslim consumer, pigs and alcohol and their by-products are not wholesome, in the first place. MNCs need to learn to distinguish between these two in order to communicate more effectively with their potential Muslim markets. Generally, engaging these markets has two requirements, providing Shariah-compliant products and relocating to Muslim markets. Fulfilling these requirements will not guarantee success but will significantly improve an MNC's chances of it. However, to relocate while not paying attention to the core requirement of being Shariah-compliant will get these companies nowhere in their efforts to brand themselves as Islamic. Although the location will support an MNC's efforts in that regard, it is only secondary to Shariah-compliance.

Relocating to Muslim markets could be a significant differentiating factor as it provides assurance to the Muslim consumer in several ways. First, MNCs having national subsidiaries tend to employ mostly nationals. In the case of MNCs operating in Muslim countries, it is safe to say that most of their employees in these subsidiaries will be Muslims, which clearly sends the message that these products are produced by Muslims for Muslims and those would not be producing non-Shariah-compliant products. Another advantage is one related to the product logistics being perceived as halal, that is, were not contaminated during storage, shipping and, in some cases, were not shipped through or by nations or companies that are being perceived negatively by the Muslim consumer. A third advantage would be an improved image if these MNCs source ingredients locally. Local suppliers who profit from their business relationships with the MNC will work as dedicated representatives within their Muslim communities. Sourcing input locally further strengthens the company's image as Shariah-compliant as it is taken for granted that all food stuffs produced in Muslim countries are halal.

Adversely, relocating to Islamic markets might negatively affect how consumers in these markets perceive the quality of locally produced items. Consumers make stereotypical

associations between products and countries based on their perceptions of a country's know-how and reputation relative to the design, manufacturing or branding of particular generic goods (Usunier and Cestre, 2007). For a relocating company, some time must lapse before its local subsidiary or branch can establish it self as a quality producer that stands on equal footings with its mother company, that its local staff are competent, and its locally sourced material are of comparable quality to material sourced internationally. The Muslim markets in this article are defined as those comprised of people adhering to the Islamic faith. To them the word Islamic also has geo-political connotations but when it comes to consumption, halal becomes a basic qualifying condition and only then all other supplementations and enhancements become differentiating factors. A product that is not halal yet intended for Islamic markets will most likely fail regardless of how it is packaged or offered. The elegant design and packaging of a bottle of champagne will not lure Muslim consumers into buying it; the rule is halal first then enhancements.

Top of page THE HALAL MARKET

‘We are now at the point where halal is more than a religious duty. Halal is big business: counting Islamic finance, as well as drugs and foodstuffs, and is dovetailing with contemporary consumer concerns from animal welfare to GM crops and fair trade’ (Power, 2008). An MNC tapping into the vast halal market makes it more global in terms of attending to the needs of Muslims as a new segment of customers; companies are not going to be truly global unless they serve this market (Power and Gatsiounis 2007). For example, Nestlé engaged the halal industry very early in comparison to other manufacturers. In fact, halal implementation – covering the aspects of control, assurance and management in ensuring that the products achieved halal status and being sustained through out – began in Nestlé Malaysia in the 1970s, followed by the formation in the 1980s of a halal committee to oversee halal standards from farm to fork for the company's worldwide operations.

This section introduces the major branding considerations that a firm needs to understand as a prerequisite to entering the Islamic market. They include: defining who the halal customers are, differentiating between the different categories of halal, explaining the importance of innovation in halal, explaining difficulties in halal certification, explaining the growing importance of halal logistics and differentiating between halal and kosher as religious products.

Customers of halalHalal is an Arabic word that is equivalent to the English word lawful and wholesome. It is an all-encompassing concept that encourages a Muslim to adopt products that promote goodness in all aspects of life, safe for consumption and produced in a clean and healthy environment.

It is predicted that the market for halal products will continue to grow substantially. As it grows, it is envisioned that aisles in supermarkets all over the world will be dedicated to these products, in much the same way as kosher and other ethnic products do today (Minkus-McKenna, 2007). Like kosher and organic industries, halal products are moving into the mainstream and appealing to consumers looking for high-quality, ethical products. Some Shariah-compliant firms reveal that not all of their customers are Muslim. For example, at the Jawhara Hotels, an alcohol-free Arabian Gulf chain, 60 per cent of the clientele are non-Muslims, drawn by the hotels’ serenity and family-friendly atmosphere. A quarter of the customers of the Dutch-based company Marhaba, which sells cookies and chocolate, are non-Muslims (Power and Abdullah, 2009).

Grocers that learn the rules guiding Muslim diets will win a loyal following. Supermarkets are selling a lot more Middle Eastern foods such as hummus and couscous these days, as more

American consumers develop a taste for them. But this is just the leading edge of a trend that could result in broader and more lucrative sales for stores that get to know and serve the US Muslim market. For example, recent research done by the advertising agency JWT on Muslim consumers in the United States highlighted their importance as a market segment. The report describes the Muslim market as being young, big and getting bigger (JWT, 2007). In the United States, Muslims are already being described as the ‘new Hispanics’. Although recognition of this new target for primarily western marketers is timely, the issue is far deeper and more complex (Minkus-McKenna, 2007); it requires a different understanding of the needs of this segment and the motives underlying its decisions.

Food plays an important role in Islam, and Muslims tend to have large families, therefore their expenditures on groceries are high. They also buy big cars and spend more on home decoration and vacations.

As Muslim populations grow in most countries in the world, it is worthwhile for grocers in appropriate markets to adjust assortments and marketing approaches. Worldwide estimates are that 70 per cent of Muslims follow halal standards. But before they can meet the needs of devout Muslims, grocers have to understand the dietary restrictions that dictate their purchases, and that might prove harder than it sounds. Although there are some clear guidelines regarding the Muslim diet, there is no worldwide authority on halal. Presently, there are more than 15 halal logos in the market (Minkus-McKenna, 2007).

Halal categoriesThe halal industry is growing in sophistication as well as size. It is no longer about just meat; it is embracing products from lipstick to vaccines to savings accounts. To illustrate, in 1990 the Islamic Food & Nutrition Council of America had only 23 clients paying for its halal certification services. Last year it certified products for 2000 companies worldwide (Power and Gatsiounis, 2007).

In general, the halal market can be divided into three interlinked categories; food, lifestyles and services.

First, the food category is currently dominated by non-Muslim multinationals such as KFC and Nestlé, although Muslim-owned manufacturers such as Al Islami brand in the United Arab Emirates and Almarai in Saudia Arabia as well as a myriad of small local manufacturers are growing rapidly. The lack of Arab halal brands in the international marketplace is due to the fact that the concept of halal food was never an issue at the Arab countries level because it was taken for granted that all food sold in these markets is halal. The recognition of the significance of being halal did not evolve until the Arab markets became more open to global trade and were flooded with food products coming from non-Muslim countries that do not have a clear understanding of the importance of the halal concept to their Muslim markets.

Second, in the lifestyle category which is also dominated by non-Muslim multinationals, Islamic producers of halal cosmetics, that is, without alcohol or animal fats, are slowly establishing their brands in the Muslim marketplace. The slow development of the halal lifestyle category, in comparison to the food category, can be attributed to two factors. First, albeit important, it did not have the same urgency as food. Second, both Muslims and multinationals learned late that as halal actually extends beyond food, normal day activities can also be Islamized and classified as halal, and thus special Islamic-compliant lifestyle-related products began to be developed to meet the needs of this market and to, at the same time, capitalize on the opportunity it provides.

Third, the services category includes finance, hospitality and logistics, among others. Of these, the halal financial services are the most developed with Islamic banks controlling

huge amounts of money and growing at an annual rate of nearly 15 per cent. Banks that operate according to Sharia law are doing well during the global downturn because they tend to be more conservative. In hospitality, hotels are increasingly running Islamic lines, such as Dubai's Villa Rotana, which offers quieter and more family-friendly places to stay (Anon, 2009a, 2009b).

Halal innovationTo keep growing, halal firms know they cannot simply rely on religion as the driving force behind their marketing campaigns. At the end of the day, people will not buy halal simply because it is halal. They are going to buy quality products. Ideology does not make a better-tasting burger, a better car or a better computer, but it makes a powerful marketing pitch (Power and Abdullah, 2009). Halal brands cannot stand still. In the medium term, it is possible for competitors to copy those aspects that have given them the advantage. It is therefore imperative for them to innovate continuously (Melewar and Walker, 2003).

New halal products and services include food and non-food items and they originate in the Middle East, Europe and Southeast Asia. The Swiss food giant Nestlé is a pioneer in the field. It has had a halal committee since the 1980s, and it has long had separate facilities for its halal products. As a result, the company's turnover in halal products was US$3.6 billion in 2008 with 75 of its 456 factories equipped for halal production. For non-food items, companies like South Korea's LG and Finnish cell-phone giant Nokia also target Muslim consumers. LG provides an application that helps direct users to Mecca, while Nokia provides downloadable recitations from the Quran as well as maps of locations of major mosques in the Middle East.

Such offerings increase brand loyalty. Mainstream brands can actually appeal to Muslims without making changes to their core products; these companies can alter their marketing communications to show Muslims that their brands care about them as consumers (Power and Abdullah, 2009).

Halal certificationCompanies use halal certification and logo as a way to inform and assure their target Muslim consumers that their products are Shariah-compliant (Shahidan and Othman, 2006); that is, it confirms that the products are permissible under Islamic Law. For a product to be certified it must pass inspection by an Islamic certifying agency.

Although obtaining halal certification will result in changes in the production process, it can be very rewarding as Muslims comprise the largest consumer segments in the world today with one-fourth to one-fifth of the world being Muslim and a halal market that is expected to reach $2.1 trillion by 2015, not to mention the growth in the demand for halal products that is spilling over to non-Muslim consumers.

The halal food market has exploded in the past decade and is now worth about 16 per cent of the entire global food industry, which corresponds to $632 billion annually. If the fast-growing Islamic finance sector and the many other Islamic products and services of cosmetics, real estate, hotels, fashion and insurance are counted, the sector is worth nearly $1.5 trillion a year. The Islamic finance industry's value is growing at around 15 per cent a year, and could reach $4 trillion in 5 years, up from $500 billion today, according to a 2008 report from Moody's Investors Service (Power and Abdullah, 2009).

Halal logisticsMany countries in the world, both Muslim and non-Muslim, are making substantial investments to become regional halal hubs that provide special manufacturing centers as well as halal logistics-systems to maintain product purity during shipping and storage. The halal market supply chains are changing manufacturing and not only in Islamic countries.

For example, Brazilian suppliers have built elaborate halal chicken slaughtering facilities to export to Islamic countries. New Zealand, the world's biggest exporter of halal lamb, continues to host delegations from Muslim countries. And the Netherlands has built halal warehouses, so that imported halal goods are stored away from haram products such as pork or alcohol. By doing this, the country is planning to maximize Rotterdam's role as Europe's biggest port. Domino's Pizza now sources halal pepperoni from Malaysia for its halal pizzas.

A hypermarket run by the French Carrefour at the Mid Valley Megamall in Kuala Lumpur implements a very elaborate halal process to keep halal foods separate. Goods that divide Islamic scholars on whether they are halal or haram are coded with little green stickers to alert customers. Clearly, haram goods such as those containing alcohol, pork or tobacco are confined to a glass room at the back of the store. Further, these haram products are handled by staff wearing special blue gloves and sealed in airtight pink plastic wrapping after purchase, in order not to contaminate the main store (Power and Abdullah, 2009).

The halal industry no longer stops at production. Shipping and storage companies from Dubai to Rotterdam are positioning themselves as champions in halal logistics, which is becoming increasingly fashionable nowadays. For example, Malaysia's national shipping company (MISC) weekly Halal Express Service is a liner launched to carry Australian and New Zealand halal beef to the Middle East and beyond. The company also operates a halal logistics hub west of Kuala Lumpur, which have cold-storage facilities, sterilization units and a lab to test products to ensure they are halal (Power and Gatsiounis, 2007).

Kosher and halalMuslims and Jews, although separated by a bloody past, a grim present and an uncertain future, are united in at least one thing, their dietary restrictions. Halal (Muslim) and kosher (Jew) have significant similarities that make them interchangeable in many cases; Muslims and Jews can consume each others foods.

Kosher and halal describe an assortment of foods and beverages that are acceptable to eat by Muslims and Jews. However, unlike kosher which applies only to food, halal is a term encompassing not only foods and drinks, but all other matters of daily life; it includes everything a Muslim does: trade, finance, entertainment, work, education, consumption and so on. Nonetheless, both of these food laws have their roots in scripture, the Bible and Torah for kosher and the Quran for halal.

To be more specific, while Islam prohibits all intoxicating alcohols, liquors and wines, these are considered kosher. Thus, foods and drinks showing the kosher symbol while containing alcohol are not halal. Gelatine is considered kosher by many Jews regardless of its source of origin. For Muslims, if the gelatine is prepared from non-Shariah compliant source, it becomes haram (prohibited). Enzymes in cheese making are considered mere secretion according to some kashrut organizations, which makes all cheese kosher. Muslims, on the other hand, look for the source of the enzyme. If it is coming from the swine, it is considered haram. Hence cheeses showing kosher symbols may not be halal (Hussaini, 1993).

Moreover, both halal and kosher share a strict emphasis on cleanliness that is considered even by the non-observant as synonymous with good food, which potentially broadens the appeal of halal and kosher beyond their traditional niches.

In the United States, the kosher food industry is valued at $100 billion and 90 000 kosher products, compared to about 1000 halal-certified products. Muslims’ purchases account for 16 per cent of the entire US kosher food industry. On the other hand, although halal products attract some Jewish consumers, the Jewish purchases of halal are very small by comparison (Minkus-McKenna, 2007).

Top of page SERVING THE MODERN MUSLIM CONSUMER

Businesses, allured by the grand potential of the Islamic market, are studying how to serve the modern Muslim consumer who is attracted to the glamorous western lifestyles, yet observes the teachings of his/her religion. These consumers are looking for companies that will provide products and services that could help them lead their own glamorous Shariah-compliant lifestyle. Muslim consumers want brands that speak to them (Power and Abdullah, 2009).

Muslim consumers in general are following suit to their western counterparts. Those consumers are well aware of this fact; it is deeply rooted in their psyche since the Prophet of Islam told them, ‘You shall follow the paths of those who came before you, even if they entered a ruined hole of a desert monitor (Agama) you shall enter it behind them. The companions of the Prophet asked: [you mean] the Jews and the Christian? He said: who else?’. Admiring the western lifestyle is seen by Muslims as a prophetic prophecy. Such a prophecy is being translated into business opportunities by leading multinationals that seek to provide Islamic versions of mainstream western products and services such as fast food, gyms and luxury hotels, to mention only a few. These businesses are allowing Muslims to express their religious principles through helping them buying Islamic, connecting to their Islamic roots by what they eat, wear and play. For example, traditional foods consumed by Muslims are now competing with pizzas, burgers and donuts in addition to an array of foods that have only recently entered the Muslim menu. KFC, Pizza hut, Dominos, Dunkin donuts and Subway chains have hundreds of halal franchises across most Muslim countries. Moreover, Muslim travelers want luxurious hotels with clients behaving and dressing less provocatively, places where they can go to with their families (Power and Abdullah, 2009). These and other demands of the Muslim consumers are a sign of the new Islamic consumption identity, a market based on religious-compliant personal lifestyles.

New versus existing brandsA major issue facing MNCs contemplating an entry into Islamic markets is whether to use the same brands to enter or to introduce new brands designed specifically for these markets. For example, should Nestlé introduce the same successful brands it sells outside of the Muslim world unchanged, or should it brand them differently. What would make better business sense: to sell Smarties as is to Muslims or to develop a new brand of them specifically for Muslims. Should McDonalds sell Big Macs and the rest of its product range in the Arab Muslim market or should it sell MacArabia and similar Arabized brands?

The answer to this question is not straightforward. Managing and developing a single corporate brand is far simpler and cost-effective than managing a portfolio of country or region-specific brands. Such an international expansion of a corporate brand is bound to create economies of scale in its own right. However, there are also disadvantages in using the existing corporate brands unchanged. A company entering the Islamic market may be able to spread its risk by using a tester brand that, in essence, can afford to fail because the company could, in theory, reintroduce itself to the market with a different offering in the future. If an existing brand was used to enter that market and it failed to be accepted as Islamic, failure would damage the company's future efforts to engage that market (Melewar and Walker, 2003).

Country of originThe country of origin of the MNC is of special importance for companies wishing to enter the Islamic market. The Muslim consumer is very sensitive emotionally because of several factors, including the unification between religion and life in Islam, unlike western consumers whose behaviors have largely evolved independent of the influence of religion owing to the historical separation between state and faith in western societies. This

inseparability affects Muslims’ attitudes and behaviors toward products they buy and companies they deal with. For instance, all Danish companies are still stumbling from the cartoons published in a Danish newspaper several years ago because they were seen by the Muslim population as derogatory to an Islamic subject. In fact, these companies faced massive consumer boycott that resulted in serious losses for many of them. The effect of these cartoons will prevent any Danish company in the near future form establishing itself in the Islamic market, especially with the existence of viable alternatives to the Danish brands. Even the more established and rooted American brands face difficulties in the Muslim market during tensions between Muslim states or individuals and the United States. Melewar, an international authority on branding and brand management warns of the importance: ‘different nations have differing degrees of national identities. Not only does this take the form of patriotism, but it can also determine how likely a nation is to endorse the brand of a particular country. In order to understand this opportunity, the corporate brand must first understand the perception it has in terms of nationality, and more importantly, does that perception of nationality help or hinder it’ (Melewar and Walker, 2003).

On the other hand, some countries are perceived positively by the Muslim consumer. For example, before the majority vote by the people to ban building Minarets in the country, Switzerland had no known historical conflicts with Muslims and it was the chosen place where many Muslims keep their money and spend their vacations. In comparison to being from a country that is perceived to be hostile to Muslims in general or disrespectful of the Islamic faith, which hinders entry into the Islamic market, being associated with a positively perceived country facilitates a company's such entry.

Global halal standardsHalal standards help companies and customers distinguish what is accepted from a Shariah perspective. A product can either be halal or haram depending on its ingredients and all the activities associated with it from the point of origin to the point of consumption and going through the entire value chain that created it. As illustrated in the case of the Australian Muslim scholars and the Australian beef industry, many of these standards remain either underdeveloped or lacking consensus. This is so owing to the novelty of halal and haram as commercial terms and the globalization of markets, which brought Muslim consumers face to face with products from non-Muslim nations that they have historically seen as adversaries. Before globalization there was no mentioning of the word ‘halal’ among Muslim consumers, aside from those traveling to non-Muslim countries, as products in the Muslim markets were produced locally or by neighboring Muslim countries, where halal was taken for granted.

The exposure to an array of foreign products resulted in a need to standardize halal for the benefit of both businesses and consumers. As experience has shown, setting global halal standards that firms can follow when developing products for their Islamic prospects proved to be a daunting task. The difficulty arises from the fact that the process requires that many parties must be involved, including Islamic scholars, trade experts and food scientists. These parties also do not make the job of an Islamizing firm easy with their long lists of terms and conditions, thus making the goal of becoming halal-certified hard to attain. In doing so, they might be forgetting that one of the most basic teachings of the religion of Islam is that everything that Allah created is halal, with minor exceptions (Power and Gatsiounis, 2007). Those experts unfortunately seem to view the process the other way around; haram is the rule and halal is the exception.

Moreover, too many halal certification agencies are being set up all over the world, with some of them definitely not up to the task either because they lack the expertise or because they are not following mainstream Islam. Although the proliferation of these agencies might seem confusing to the novice Muslim market entrant, it is worth noting that there are some

agencies that have the expertise, skills and regulations that qualify them as halal certifiers. Basically, all government-backed agencies and large Muslim groups’ institutions are considered trustworthy sources by consumers and, thus, firms should strive to get their halal logo certified by at least one of them, instead of getting the more risky, independent certifiers who might have jumped on the halal bandwagon for profiteering. Specifically, Saudi, Emirati, Sudanese and Malaysian approvals are highly regarded across the Muslim world.

Creating shared valueAs the relationship between business and society continuous to evolve new ways of looking at the corporation and its role in society are emerging. Corporations have already begun to take a more holistic perspective on different purposes and roles of the corporation including the need to encompass not just shareholder needs, but also societal, stakeholder and ecological needs and interests (Waddock and McIntosh, 2009). Such an approach can be illustrated in the following excerpt from Nestlé's website that shows the extent of the company's involvement with the communities in which it operates and its dedication to providing value to these communities. ‘Nestlé, through its activities wherever it operates, has to bring meaningful value to society at large by creating both direct and indirect jobs, working with farming communities, training and developing people, as well as bringing products to the market adapted to the taste and nutritional needs of local consumers. This is part of Nestlé's DNA and the long-term approach we take to everything we do’. This is very much in line with the increased involvement of multinationals in the promotion of social welfare, in developing countries in particular, through the facilitation of partnerships and cooperation with the public and non-profit sectors of the state in which they operate (Parkan, 2009). Creating value for its customers necessitates that the MNC is able to appropriate a value-creating process in its international operations (Mir and Mir, 2009).

However, it is important to note that in the wider market context, that is, not considering the Islamic market, there might not always be a business case for CSR in developing countries and therefore MNCs see a need to identify and understand other possible CSR drivers (Idemudia, 2008). Moreover, the term social responsibility might not always mean the same thing to everybody. It can mean legal responsibility or liability, socially responsible behavior in an ethical sense, charitable contributions, being socially conscious or aware, a synonym for legitimacy in the context of belonging or being proper or valid, or a sort of fiduciary duty imposing higher standards of behavior on businessmen than on citizens at large (Idemudia, 2008). The difficulty in conceptualizing and determining what non-direct profit activities the firm should undertake to enhance its image is an added burden that businesses internationalizing, or in this case Islamizing, have to deal with.

Being engaged at the community level is an important factor that humanizes a firm, as opposed to seeing that firm as a purely commercial entity with selfish bottom line interests; it is kind of giving an MNC a local passport and accepting it as a member of the community instead of stamping it as a villain (Guillen, 2000). Engaging local communities can help MNCs blend in and be perceived as partners or collaborators, as well as significantly eroding hostilities stemming from the perception of these companies as exploiting the working class (Adelman, 1994), helping authoritarian regimes appear more legitimate, depleting the environment and putting the country's sovereignty at risk (Amsden, 1989).

Top of page CONCLUSION

In order to maximize their chances of success in Islamic markets, MNCs need to build branding localization competencies. As far as branding is concerned, and in comparison to their local Muslim counterparts, multinationals generally commence with the key advantage of a higher level of managerial competence in marketing and brand building. These MNCs

are equipped with sophisticated marketing and brand-building skills that are far ahead of most of their local counterparts – many of which are still struggling to master elementary distinctions such as the difference between marketing and sales (Williamson and Zeng, 2004).

MNCs should carefully weigh their cultural understanding when entering Islamic markets. Relying on their aforementioned branding expertise while overlooking or underestimating the importance of having cultural knowledge and sensitivity could greatly hamper their efforts. A hasty entry without thorough appreciation of the religious and cultural motivations and reasons underlying the Muslim consumer behavior could hinder or even completely hold a brand's penetration. There are numerous examples of well-established MNCs making simple mistakes that had tragic consequences on their international operations. The lessons that companies keep learning over and over again from these examples is that they can never be careful enough when operating in different cultural settings or when they are targeting culturally different customers. Within the Islamic context, international knowledge can by no means substitute Islamic knowledge simply because the Islamic market is fundamentally different in terms of motivations, structure and behavior. Religion plays a central role in the decision-making process of Muslim consumers and efforts to neutralize its effects on customers’ decisions will backfire. Although acquiring such knowledge might seem lengthy and expensive, it is the only path to success with the increasingly observant Muslim consumers.

Finally, MNCs intending to enter the Islamic market should also carefully weigh the various brand entry modes available to them, namely, creating new brands, using existing brands, using tester brands, or using a mix of all or some of these. The choice must be linked to the firm's corporate strategy and at the same time based on thorough understanding of the Muslim consumer, the Shariah principles, and the implications of the concept of halal on the various organizational marketing aspects. Firms need to recognize that halal status must be achieved throughout a firm's supply chain. Implementing halal in some stages and excluding it in other stages will render the brand un-Islamic, not exactly the desirable outcome firms hoping to capitalize on the opportunities provided by this huge market would want to see.

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Young, connected and Muslim

24 June 2010 | By Jo Roberts

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Muslim consumers are a growing, influential and extremely loyal group, making them a desirable market for mainstream brands. But reaching them requires more than launching Sharia-compliant products. Making inroads to this sector takes deep understanding of the values of this community and building the brand from there.

 

For more expert opinions on marketing to Muslims from leading Muslim business people click here

To read HSBC Amanah’s head of global marketing Mohammed Ismaeel’s viewpoint click here To explore the halal brand, Chicken Cottage’s case study click here For Muslim consumer facts click here

They’re young, ambitious and worth at least $2 trillion globally. A new Muslim consumer called “the futurist” is set to change the face of business.

The futurists are crucial to marketers because they are so influential, have considerable spending power and are more “connected” than their older more traditional counterparts. They are also willing to speak loudly and proudly about their identity. They simply cannot be ignored by brands any more, according to Ogilvy Noor, a new Islamic branding practice.

Mohamed El-Fatatry, founder of integrated marketing agency Muxlim, says the Muslim consumer is predicted to account for 30% of the world’s population by 2025. As such, ensuring these consumers are spending could help nations repair some of the damage of the recent recession.

“The financial crisis has accelerated the need for finding new markets,” says El-Fatatry.

But brands can’t simply chase the Islamic pound without genuinely understanding what Muslim consumers want, he says, adding: “You have to go after people in their own language and think about that consumer’s needs.”

Nestlé is an example of a global brand that has already identified the potential of the Islamic consumer. It generates a SFr 5.3bn (£3.2bn) turnover in halal products – acceptable according to Islamic law – globally. It sees Europe as a target market to expand its halal range further.

But Nestlé appears to be a rare example of a global brand getting it right for this market. Ogilvy & Mather says it launched its specialist branding practice focusing on Muslim consumers because so many international brands need guidance in how to attract this market.

Many businesses now realise the potential in this area. Ogilvy & Mather Global director of cultural strategy Nazia Hussain says: “Muslim communities tend to score highly on Hofstede’s collectivism score, which means they are societies in which word-of-mouth and in-group recommendation and recognition are of enormous importance.

We tell marketers not to use overtly religious messages. Most Muslim consumers are very mainstream. If you target the religious minority, then you will be targeting a niche within a niche

Mohamed El-Fatatry, Muxlim

“These consumers can be among the most loyal in the world. When they discover something that’s right for them, they feel it’s their duty to pass on the word – for young connected Muslims today, this is done at the click of a mouse.”

Khalid Sharif, founder of halal food company Ummah Foods and The Muslim Paper, agrees. He believes that British marketers should pay special heed, because if you target the community correctly in Britain, it could propel your brand to a global status. “The UK community is so well connected to the rest of the Muslim world,” he notes.

But the Muslim consumer is a complex one. Many choose to eat halal food and follow the principles of Sharia law, which is laid out in the Koran and governs how people should live, covering topics from diet to economics.

Many financial services companies have adapted their offerings to suit Sharia law. Mainstream banks now regularly provide specialist products for Islamic customers.

HSBC Amanah is a division of the international bank HSBC and its head of global marketing, Mohammed Ismaeel, says he sees young Muslims as a very attractive target market for the institution.

Muslim consumers are much less convinced by an Islamic banking ’window’ from a global bank that is known to operate on non-Islamic lines everywhere else

Nazia Hussain, Ogilvy & Mather

Ismaeel says HSBC Amanah attempts to use aspirational advertising in an attempt to be reflective of its target audience. “The Muslim population is a younger, more progressive segment of the population. Clearly, our goal as a bank is to help this segment achieve their aspirations.” (See viewpoint, below.)

Ogilvy’s Hussain warns, however, that Muslim customers are becoming critical of banks with separate divisions that are Sharia law-compliant. Citibank, Standard Chartered, HSBC and RBS all underperformed in the agency’s Global Branding Index – a list of brands that have been rated for their Shariah compliance by Muslims living in Muslim-majority countries.

Hussain argues that the futurists are demanding more from businesses, noting that Muslim consumers are now questioning how ethical an entire banking brand is, not just its Islamic arm. This reflects the demands made by a wide range of consumers of mainstream brands who want to know that a company is being run ethically and sustainably.

“Muslim consumers today are much savvier and ask more questions than before. They are much less convinced by an Islamic banking ‘window’ from a global bank that is known to operate on non-Islamic lines everywhere else in the world,” she says.

Understanding Islamic values at a non-superficial level is vital for any brand that is thinking of targeting Muslim consumers. Dr Paul Temporal, associate fellow at Said Business School, which is running a forum on Islamic branding and marketing in July, says this is where Nestlé is succeeding. He thinks the brand shows it “understands Islamic values and is not just pushing its own values onto Muslim markets”.

The futurists: By 2025, 30% of the world’s population will be Muslim, making this a valuable market

He continues: “If you look at some of the values that stem from the Koran, you’ll find a list of very emotionally appealing values, such as pure, honourable, honest, consistent, kind, true, trusted, responsible, wise, respectful and intelligent.”

It’s about reflecting these positive attributes throughout the business model and also through marketing, branding and communication, Temporal adds.

Mainstream products being inclusive of Muslim consumers in their marketing is another good way to gain support from Islamic consumers without having to change very much about a brand, says Muxlim’s El Fatatry. Rather than launching an Islamic iPhone, for example, Apple could just highlight an iPhone featuring an Islamic application in its campaigns.

The challenge, he argues, is not to revert to stereotyping and rely on religious messaging. “We tell marketers not to use overtly religious messages to market your products. Most Muslim consumers are very mainstream and if you target the religious minority, then you will be targeting a niche within a niche.”

Electronics chain BestBuy launched a “Happy Eid” campaign in the US last year, but he says this drew mixed reactions from its customer base. “Sales went up that month, but it also received criticism from other customers who said it doesn’t run ‘Happy Chanukah’ or ‘Happy Christmas’ campaigns,” explains El Fatatry.

While some mainstream brands have been adjusting their offers and marketing to reflect the needs of the Muslim community, Islamic brands, conversely, have ambitions to become mainstream.

Chicken Cottage is a takeaway franchise founded in the UK that uses halal ingredients, and is expanding overseas. Its philosophy from the opening of its first restaurant in Wembley, North London, was to create an “inclusive brand” that appeals to both Muslim and non-Muslim customers (see case study, below).

El Fatatry argues that Islamic and mainstream brands need to go in both directions. “Mainstream is going halal but I also feel that halal needs to go mainstream,” he says.

Halal food brands need to learn from Islamic banks, says El Fatatry. “These banks are taking halal mainstream by highlighting that Islamic banking is no different from mainstream banking, apart from having new ethical values.”

Other brands can also emphasise the attributes of Muslim-focused goods that appeal to the mainstream. Some US brands already choose to do this by promoting halal as high quality and healthy to attract body-conscious consumers of every background.

Even when brands are sure they understand Muslim consumers, targeting them in the right environment proves a challenge for many.

Ummah Foods’ Sharif says he founded his publication The Muslim Paper after feeling frustrated that he had nowhere to promote his halal chocolate bar range, which launched in 2004.

“I was an upset customer who couldn’t find an effective way to advertise my chocolate bars to the community, so I set up my own paper. The existing publications are a little serious and based on race rather than faith,” he says.

On El Fatatry’s Muxlim social network – an offshoot of the agency – popular topics include Muslim players in the NBA and the Muslim Miss USA Rima Fakih. Young Muslims are very familiar with social networking, says El Fatatry, and using a lifestyle approach on platforms like this appeals to mainstream brands keen to attract this audience.

Sharif says there is also room for brands to approach Muslims in the right environment by “considering investing in the Muslim community rather than simply talking at them.”

He himself takes this ethos into his own business operations. Young Muslims with aspirations to become full-time journalists can write for The Muslim Paper; while the Ummah chocolate brand gets involved in the local community, for example through youth projects.

Sharif believes that strong Islamic brands shouldn’t need to compromise on their integral values to get noticed. “One of the aims of the chocolate brand and the newspaper is to show the

world you can have strong Muslim products that are going to become global brands. You don’t need to sell out and make it mainstream.”

The potential of the Muslim consumer market means it can no longer be ignored by marketers. But whether brands are pushing an Islamic offering themselves or hoping to make a product appeal to someone with Muslim values, it is clear this group needs careful consideration and research.

Ogilvy’s Hussain says learning to attract Muslims will not be an easy process for many businesses. She warns: “Brands will find themselves being asked many searching questions, sometimes even uncomfortable ones.” But with an audience worth trillions of pounds at stake, it seems well worth companies searching for the answers.

Viewpoint: Rebranding to differentiate a brand

Mohammed Ismaeel, head of global marketing, HSBC Amanah

The Muslim population is a younger, more progressive segment of the UK population. Clearly our goal as a bank is to help this segment achieve its aspirations.

Amanah is the vehicle used by HSBC to make the bank relevant to young Muslims. It is the ultimate expression of what we mean by the brand philosophy of “the world’s local bank”.

It’s taking everything that is positive about HSBC and making it relevant at a local level for a Muslim consumer. When you look at the brand attributes of HSBC, we think it’s a brand that values different cultures and backgrounds.

In Malaysia, for example, a large portion of our customers are Chinese. So those particular consumers are attracted less to the products for their Sharia law aspects but more so for the financial structure of the products.

Young at heart: HSBC Amanah has built its financial offering around feedback from younger customers

 To explain, our products are structured differently to conventional ones because of the co-operative nature of Islamic banking. While the commercial bank offers interest, we offer profit sharing. We’re governed by what is acceptable by Sharia law.

As our business is dictated by Sharia law, so is our marketing, advertising and communications. From a dress perspective, for example, a more conservative route is taken. This can also be seen in our advertising and communications. We may find that advertising for HSBC’s Premier product is set on a beach or a lounge bar. But these are obviously not reflective of Amanah’s target audience, so we will adjust our communications to reflect our Muslim consumers.   

But you can’t treat Muslims as one group. The banking industry as a whole has been driving Sharia aggressively for the past few years. However, our customers were coming back to us in research saying: “We’re not one big homogenous group called Muslims”. They said: “We have aspirations and ambitions like anyone else.”

So we stepped back and looked at the younger generation, who clearly told us they won’t be taken for a ride just because they are Muslims. They want something from their financial products that makes sense to them.

That means we will never offer a Sharia product unless it’s like-for-like with a conventional banking product. When people are banking with Amanah, they are getting HSBC. It’s just that they are getting HSBC in the manner that is relevant to their Islamic needs.

Case study: Chicken Cottage: the mainstream Muslim brand

Halal fast-food brand Chicken Cottage aims to be inclusive of its customers, whether Muslim or not. The East-meets-West chain has been so successful in attracting a wide base of customers that it now exists in many areas that do not have a large Muslim population.

The first Chicken Cottage store opened in 1994 in Wembley, North London. There are now about 140 restaurants, with plans for 300 by 2015.

So why has this halal brand managed to break into the mainstream? According to Chicken Cottage franchise co-ordinator Sadaf Kazi, this is because the brand has always aimed for both Muslim and non-Muslim customers.

She says: “What we mean by an inclusive brand is that because of the halal perception, lots of consumers might think we’re catering to the Muslim community only. But, in fact, we are catering for everyone.”

Dr Paul Temporal, associate fellow at Said Business School and project director on Islamic branding and marketing, says the takeaway chain is rare among its halal peers for its mainstream appeal across UK consumers.

He adds: “Islamic brands are mostly going to be niche players in Britain. Chicken Cottage is a halal food brand but it has made itself appear very local.”

The challenge with many Islamic food brands is that non-Muslim consumers believe that halal is simply not relevant to them. The concept of halal preparation is not well understood among a non-Muslim audience, so Chicken Cottage has chosen not to highlight it as part of its in-store marketing. Instead, the word “halal” is incorporated into the store’s logo.

That way, both Muslims and non-Muslims are attracted to the restaurants, argues Kazi. “A lot of our competitors promote halal everywhere, but we don’t do that. It’s incorporated into the logo and that is it, and we don’t see the need to double advertise it. Everyone who comes into Chicken Cottage already knows that we are halal.”

While other halal takeaway brands choose to promote this aspect of their business, Chicken Cottage focuses on the food. This investment in product development allows the chain to keep ahead of the competition, argues Kazi. New products are introduced on a regular basis.

This strategy has allowed the franchise business to move beyond the UK. It now has outlets scattered around the globe including Pakistan, Canada, Saudi Arabia and Slovakia.

Any chains that do open in non-Muslim areas have to compete with other food brands on price and product, argues Kazi. Because of this, the brand is not trapped by being seen as a niche player because it plays a role in the highly competitive takeaway sector.

The success of Chicken Cottage has not gone unnoticed. Mainstream global brands such as KFC and McDonald’s have themselves introduced a halal offering in highly populated Muslim areas.

This is an area ripe for expansion, thinks founder of integrated media agency Muxlim, Mohamed El-Fatatry, who says that food brands need to do more to appeal to a wide audience.

“We need to work in both directions. Mainstream is going halal but I also feel that halal needs to go mainstream.” It seems Chicken Cottage, the Islamic high street takeaway, is already ahead of the curve.

Marketing to Muslims

Our experts offer their branding and communication advice on how to reach this often underserved audience

Mohammed Ismaeel, head of global marketing, HSBC Amanah:

“There is this term that our Shariah scholar, Sheikh Nizam Yaquby coined – ‘COBM’ – which means ‘cost of being a Muslim’. Muslims are telling us that they should not be penalised for being a Muslim. More importantly, they should have a choice on who they can bank with; and they want the same pricing, quality of service and treatment that they could get from conventional banks.”

Mohamed El-Fatatry, founder and CEO, Muxlim:

“We tell marketers not to use overtly religious messages to market their products. You don’t need to do that. Many mainstream brands don’t want to associate themselves with religion or a religious celebration.”

Nazia Hussain, director of cultural strategy, Ogilvy & Mather Global:

“There is no such thing as a Muslim brand because brands can’t have a religion but they can align themselves with the values of that religion. Don’t divide people along simplistic lines

of religious devoutness. Muslims today are deeply proud of their faith and see these distinctions of devoutness as superficial. Start with their values – core Islamic values – first. And then build brands around them to appeal to them. Not the other way around.”

Khalid Sharif, founder of The Muslim Paper and Ummah Foods:

“Rather than just talking at the Muslim community, businesses need to consider investing in the Muslim community.”

Dr Paul Temporal, associate fellow at Said Business School, and

project director on Islamic branding and marketing:

“One of the opportunities for building Islamic brands in Britain is to cater for these niche target audiences. If [Muslim brands] do not do that, then the big brands like the Tescos of this world will do so.”

 

Muslim consumers: the facts

Most Muslims feel ignored by mainstream brands, according to research carried out by agency JWT.

Halal is worth $634bn (£432bn) which is 16% of the global food market, according to Nestlé. There are 1.57 billion Muslims living in the world today, according to the US’ Pew Business

Center. There are about 1.8 million Muslims living in the UK. Islamic products and services that conform to Islamic Law are worth $2 trillion (£1.3 trillion)

annually. 74% of Muslims aged between 16 and 24 define themselves by faith and not race, according to

Home Office research carried out in 2004. Nestlé has a SFr 5.3bn (£3.2bn) turnover in Halal products globally. In Europe, Nestlé’s sales of Halal food reached SFr 55m (£33.3m) in 2008. l Muslims are predicated to account for 30% of the world’s population by 2025.

Marketing for Muslims

by Kashif on July 6, 2010 in Culture & Heritage, India | 0 Comments

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Marketing is a big term of our age- art of selling glasses to blinds and combs to balds. There are some effort by Muslims to show that Muslims are a huge market and project themselves a an attractive community to companies for selling their products.

Of course, companies love it, they don’t want to discriminate when it comes to making money. So now there are big ticket events inviting companies to understand the Muslim mindset (read market). Consultants have set up shop advising advertisers and brands on how to market to Muslims.

India, home to more than 150 million Muslims, is the next stop in the Muslim marketing campaign. Advertising & marketing firm “Ogilvy & Mather” announced that it has launched a new service called “Ogilvy Noor” to market brands to Muslim consumers of India.

But how much they really understand Muslims and what are they planning to sell?

“It’s not a strategy, but a dive into a particular community’s values and thoughts,†says John Goodman, regional president, south and southeast Asia, at Ogilvy �& Mather (O&M).

“We hope that Noor can help marketers everywhere to understand more about how this huge minority thinks about brands,†he adds. �It will be a one-way street, brands will be advised how best to sell it to Muslims. No attempt will be made to

“Noor means ‘light’ in Arabic  and perfectly encapsulates our aim to �illuminate and bring to life the world of the Muslim consumer today,†says the report �prepared after substantial research early this year.

Ogilvy Noor is led by a team of experts in key Muslim markets of Asia, the Middle East, Europe and North Africa. “It is an idea whose time has come,†says ad veteran �Mohammed Khan, founder of Enterprise Nexus and ex-chairman of Bates Enterprise.

There are more than 150 million Muslims  more than many countries’ �population  in India and they have a huge amount of purchasing power, he says. �This is it – 150 million consumers. That should make many companies salivating like a hungry dog.

There are three big Id festivals in a year, offering immense scope for marketers of footwear, clothes, food and FMCG products, says Mr Khan.

Piyush Pandey, executive chairman and creative director for O&M India and South Asia, says Ogilvy Noor is a way of packaging messages to suit the Muslim community’s needs and a whole new way of extending cultural requirements through relevant brands.

“This is about fine-tuning communication to reach out to people who have lifestyles and rituals that are unique to them,†he says. �wait, what? three Eid festivals? I thought it was only Eid-ul-fitr and Eid-ul-azha? I guess marketing team needs to invent few new festivals to market and sell their products. I am sure they are also thinking of Islamic Fathers’ day (Abba Day), Islamic Mothers’ Day (Ammi Day), and Muslim Valentine Day.

Notice “packaging” and “fine-tuning” terms above, it is not about creating new products targeting Muslims but may involve selling existing products to Muslims even if they are not completely halaal.

Ameen Ul Haque, vice-president, planning, at O&M, says the Muslim market in India cannot be ignored because of its size and the challenges in India here are different from other places.

“There are unique challenges in India  one of inclusion rather than exclusion,Ã�¢â‚¬Â he says.�The idea is to communicate about brands that are coherent with Islamic values, which will help members of the community to be included in the larger mainstream.

“For instance, being a Muslim does not mean one should get isolated in a beer-drinking crowd as non-alcoholic beer brands too are available,†he says. Ã�¢â‚¬Å“Then, there is no need to order a fresh lime soda.†�No, I am not making this up. This is an actual quote as reported in The Economic Times. So, this is actually what it means when they say targeting Muslim consumers- Selling non-alcoholic drinks to Muslims in a beer-drinking crowd.

While many advertising agencies may view this development with skepticism, India is a homogenous market with a certain degree of heterogeneity.

“The Indian advertising community may be waiting and watching but then the herd mentality is bound to happen. After all, it is the moolah that talks,†Mr Bijoor says. �

All abut moolah.

But it does not have to be this way. Yes, Muslims are also consumers- they have many needs that are same as others in this world but there are some specific requirements and needs being Muslims. Marketing firms can help the companies and Muslims but that requires looking at Muslims as Muslims not as consumers. They need to understand Islamic values, that requires that there is no wastage and mandates moderate consumption.

Reading “Ogilvy Noor” news gives me no confident that they understand Muslims or have their focus in the right place.