Marketing to the Islamic World Mustafa M. Farouk Federation of Islamic Associations of New Zealand P

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Marketing to the Islamic WorldMustafa M.
FaroukFederation of Islamic Associations of New
ZealandPresentation to the International
Marketing Class MARK 302 School of Marketing
International Business, Victoria University of
Wellington, August 15, 2007
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Contents

• The Islamic world
• New Zealand trade with the Islamic world
• The Muslim consumer
• Belief its implications to marketing
• Practice its implications to marketing
• Sources of law its implications to marketing
• The Muslim consumption pattern
• The Muslim dressing pattern
• Gender separation and its implications
• Islamic marketing/business ideals
• Advertisements and promotions to Muslims
• Current trends in Islamic markets
• Commercialising Islam
• Global events and the Muslim consumer

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The Islamic world

• Estimated population 1.3-1.7 billion
• 40,000 live in NZ
• Fastest growing religion in the world
• Muslims are widely distributed around the world
• Diverse colours, ethnic groups, languages,
  cultures
• United in faith

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NZ trade with the Islamic world

• New Zealands annual exports to ICCI countries
  totalled over 2.2 billion in June 2005
• NZ export to GCC alone is worth 720 million in
  2005
• NZ negotiating a FTA with GCC countries
• New Zealand exports to Malaysia were worth 546
  million about half of this was in dairy and meat
  products.

Bulk Halal certified
Bulk Halal certified
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The Muslim consumer Beliefs

• Islam Means peace but from the spiritual point
  it means peace and complete submission to the
  will of God. When we submit to the will of God
  then we will have true peace
• Oneness of God (Allah)
• His angels
• His messengers (Abraham, Moses, Jesus, Mohammad
  E.T.C. Peace be upon them all)
• His books
• The day of Judgement
• Divine destiny good or bad.

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The Muslim consumer Practice

• Prayers
• Charity (Zakat)
• Fasting (Ramadan)
• Pilgrimage (Hajj)
• Others (e.g. being a good neighbour)

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The Muslim consumer Sources of law

• The Quran (Muslim Holy book)
• The traditions of the Prophet
• The consensus of learned Muslims on emerging
  issues derived from the Quran and the traditions
  of the Prophet (PBUH)
• The laws of the land as long as they do not
  contradict God laws

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Islam is a complete way of life

• Everything a Muslim does from entering the
  toilet, eating, doing business, national and
  international marketing to politics can be an act
  of worship
• Saying of the Prophet (SAW)
• One should not please a creation at the expense
  of the creator (God)

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Food, fashion and faith

• According to JWT food, finance and packaged
  goods are the three consumer markets most
  affected by Islamic law.
• Economist 8/4/2007, Vol. 384 Issue 8540, p56-56

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The Muslim consumption pattern

• Islamic dietary terms
• Halal- lawful
• Haram- unlawful
• Makrooh- discouraged
• Mashbooh- suspect

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The Muslim consumption pattern

• Allowed (Halal)
• Properly slaughtered cattle, sheep, goats, deer,
  camel, chicken etc.
• All sea foods without the need for slaughter
• All non-poisonous vegetables and fruits
• This list is not exhaustive

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The Muslim consumption pattern

• Prohibited (Haram)
• Dead meat or carrion
• Swine and all products and ingredients derived
  from swine
• Flowing or congealed blood
• Foods dedicated to idols
• Intoxicants of all types
• Carnivorous animals with fangs and birds of prey
  with sharp claws

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Halal world expo will globalise quality middle
east halal products

• With the global Halal food market now worth an
  estimated US2.1 trillion a year . Halal World
  Expo, . is aiming to bring global industry
  giants together in the first comprehensive
  exhibition in the region that covers all sectors
  and focus areas of the Halal market.

Al Bawaba.  LondonJun 11, 2007
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Multiples size up halal market in UK

• Pak is not the only one taking advantage of the
  growing appetite for halal food. In September,
  Tesco, which sells halal in 60 stores, announced
  plans to bring 148m pounds sterling of
  Malaysian halal products to the UK over the next
  five years. Asda already sells halal sweets,
  fresh meat, stock cubes and ready meals, while
  Sainsbury's is actively-growing its range and
  believes there are still major opportunities.
• Grocer (The), 230(7807) 35, June 02, 2007

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Meeting the Halal Test

• Nestlé mastered elaborate religious rules to
  sell its products in the Islamic world. It's paid
  off with 3 billion in annual sales.
• Like the rest of Nestlé's hundred halal lines,
  the noodles have been subjected to an intensive
  screening process, starting with the RD. A halal
  checklist runs around 30 pages for each product
  and includes such questions as "Does product
  contain pork or parts thereof, e.g. enzymes,
  bacon ?" Then the Muslim scholars at Jakim,
  Malaysia's Department of Islamic Development,
  must approve the checklist. And to help avoid
  hitches with its suppliers, Nestlé Malaysia
  established a halal training program for small
  businesses, with employees at 1,200 of them
  trained.
• Forbes 16/04/2007, Vol. 179 Issue 8, p82-85

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Pigs Get the Ax In China TV Ads, In Nod to
Muslims

• Next month, China will ring in the Year of the
  Pig. Nestle SA planned to celebrate with TV ads
  featuring a smiling cartoon pig. "Happy new pig
  year," the ads said.
• This week, China Central Television, the national
  state-run TV network, banned Nestle's ad -- and
  all images and spoken references to the animal in
  commercials, including those tied to the Lunar
  New Year, China's biggest holiday.
• The intent to avoid offending Muslims, who
  consider pigs unclean. "China is a multiethnic
  country," the network's ad department said in a
  notice sent to ad agencies late Tuesday. "To show
  respect to Islam, and upon guidance from higher
  levels of the government, CCTV will keep any
  'pig' images off the TV screen.
• Wall Street Journal.  (Eastern Edition). New
  York, N.Y.Jan 25, 2007

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The Muslim dressing pattern and its Marketing
Implication

• And say to the believing women that they should
  lower their gaze and guard their modesty that
  they should not display their beauty and
  ornaments except what (must ordinarily) appear
  thereof that they should draw their veils over
  their bosoms and not display their beauty except
  to their husbands, their fathers, their husband's
  fathers, their sons, their husbands' sons, their
  brothers or their brothers' sons, or their
  sisters' sons, or their women, or the slaves whom
  their right hands possess, or male servants free
  of physical needs, or small children who have no
  sense of the shame of sex and that they should
  not strike their feet in order to draw attention
  to their hidden ornaments. And O ye Believers!
  turn ye all together towards Allah, that ye may
  attain Bliss (2431).
• Every part that is permissible to touch may be
  looked at, and every part that is forbidden to be
  looked at may not be touched Bakhtiar, L.
  (1996). Encyclopedia of Islamic Law. P.74.

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The Muslim dressing pattern and its Marketing
Implication

• Men are prohibited from wearing gold or silk
• Women are allowed to wear gold or silk
• Gender cross dressing is not allowed

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BURQINI Slim Fit Swimsuits
Our garments are designed with the respect of
Islamic values and aimed to enhance the lifestyle
of the active Muslim female. Aheda Zanetti,
Ahiida founder
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Gender Separation and its Marketing Implication
At least three major U.S. companies including
McDonald's, Pizza Hut and Starbucks have
made a number of changes to their business
practices in "deference" to Saudi customs,
including maintaining segregated seating in their
restaurants and having separate entrances for
women and men.

• There are no bored-looking husbands or
  boyfriends waiting around. In fact, there's not a
  single man in sight. Welcome to Israel's first
  women-only shopping experience.
  http//news.bbc.co.uk/2/hi/middle_east/4923618.stm

AT THE time, most people agreed it seemed a good
idea carriages on Japanese commuter trains set
aside specifically for females would dramatically
reduce the number of women being molested by the
chikan who get their kicks by having a sly fondle
among the tightly packed bodies. And it worked.
http//news.scotsman.com/international.cfm?id1047
972006
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Islamic marketing/business ideals

• Only lawful activities are permitted (Halal)
• 2168 O MANKIND! Partake of what is lawful and
  good on earth, and follow not Satan's footsteps
  for, verily, he is your open foe.
• All transactions involving usury/interest are
  prohibited (Haram)
• 2275 THOSE who gorge themselves on usury behave
  but as he might behave whom Satan has confounded
  with his touch for they say, "Buying and selling
  is but a kind of usury" - the while God has made
  buying and selling lawful and usury unlawful.
  Hence, whoever becomes aware of his Sustainer's
  admonition, and thereupon desists from usury,
  may keep his past gains, and it will be for God
  to judge him but as for those who return to it
  -they are destined for the fire, therein to abide!

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Islamic marketing/business ideals

• Use of Images are discouraged
• Narrated 'Aisha I purchased a cushion with
  pictures on it. The Prophet (came and) stood at
  the door but did not enter. I said (to him), "I
  repent to Allah for what (the guilt) I have
  done." He said, "What is this cushion?" I said,
  "It is for you to sit on and recline on." He
  said, "The makers of these pictures will be
  punished on the Day of Resurrection and it will
  be said to them, 'Make alive what you have
  created.' Moreover, the angels do not enter a
  house where there are pictures.'
• Dealing in intoxicants, gambling and games of
  chance is prohibited
• 590 O YOU who have attained to faith!
  intoxicants, and games of chance, and idolatrous
  practices, and the divining of the future are but
  a loathsome evil of Satan's doing' shun it,
  then, so that you might attain to a happy state!

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Islamic marketing/business ideals

• Promise must be kept and truth must be told
• 613 Most loathsome is it in the sight of God
  that you say what you do not do!
• Narrated 'Abdullah bin Abu Aufa A man displayed
  some goods in the market and took a false oath
  that he had been offered so much for them though
  he was not offered that amount Then the following
  Divine Verse was revealed-- "Verily! Those who
  purchase a little gain at the cost of Allah's
  covenant and their oaths . . . Will get painful
  punishment." (3.77) Ibn Abu Aufa added, "Such
  person as described above is a treacherous
  Riba-eater (i.e. eater of usury).
• Undercutting another in business prohibited
• Narrated 'Abdullah bin Umar Allah's Apostle
  said, "You should not try to cancel the purchases
  of one another (to get a benefit thereof), and do
  not go ahead to meet the caravan (for buying the
  goods) (but wait) till it reaches the market.
• Brokering is prohibited
• Narrated Tawus Ibn 'Abbas said, "Allah's Apostle
  forbade the selling of foodstuff before its
  measuring and transferring into one's
  possession." I asked Ibn 'Abbas, "How is that?"
  Ibn 'Abbas replied, "It will be just like selling
  money for money, as the foodstuff has not been
  handed over to the first purchaser who is the
  present seller."

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Advertisement and promotions

• Interest free deals can be attractive to Muslims
• Buy one get one free has no issues and is
  attractive
• Cash deals are better than offering a chance to
  win. The latter may be seen as gambling which is
  prohibited
• Auction selling may be seen as undercutting one
  another in business, which is prohibited

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Nandos advertisement Waiting to break the fast
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(No Transcript)
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'Fatwa' helps Proctor Gamble in
Anti-Counterfeiting Campaign

• "In the course of our research we came to learn
  that many of the traders in Saudi Arabia
  trafficking in counterfeit goods were actually
  pious Muslims and that there was a fundamental
  misunderstanding of the economic, social and
  religious implications of counterfeited goods."
• Mr. Haroon Sugich, C.O.O. of TRACCS

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'Fatwa' helps Proctor Gamble in
Anti-Counterfeiting Campaign

• We submitted a carefully worded letter in the
  form of a real-life situational scenario to the
  Grand Mufti of Saudi Arabia explaining what
  trademark counterfeiting was and posing the
  question, Is it halal (permissible) or haram
  (forbidden)? We then followed the letter up with
  a series of telephone conversations and after a
  period of several weeks, we received the official
  reply from the Higher Council of Ulama that
  trademark counterfeiting was indeed haram. This
  was supported by verses from the Holy Quran and
  passages from the Prophetic hadith literature."
• Mr. Haroon Sugich, C.O.O. of TRACCS

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Commercializing Islam

• Think Muslim, drink Muslim, says new rival to
  Coke French firm capitalises on anti-US feeling
  to sell cola
• http//www.guardian.co.uk/international/story/0,3
  604,870413,00.html

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Commercializing Islam

• In Damascus, a Fulla doll sells for about 16,
  in a country where average per capita income
  hovers around 100 per month. And yet, said Nawal
  al-Sayeedi, a clerk at the Space Toon toy store
  in the city's upscale Abou Roumaneh neighborhood,
  Fulla flies off the shelves.
• http//www.nytimes.com/2005/09/22/international/m
  iddleeast/22doll.html?ex1285041600en72bb8cc089b
  f9435ei5090

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Commercializing Islam
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Global events and the Muslim consumer

• Impact of Middle East conflicts
• Danish cartoons
• We have taken 40 years to build up a very big
  business in the Middle East, and we've seen it
  come to a complete stop in five days.
• Astrid Gade NielsArla spokeswoman
• http//news.bbc.co.uk/2/hi/middle_east/4666298.st
  m

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Global events and the Muslim consumer

• Cone-demned ... 'spinning whirl' ice creams look
  similar to the world Allah written in Arabic
  script Ice creams are being withdrawn from
  Burger King because a design on the lid looks
  like the word Allah.
• http//www.thesun.co.uk/article/0,,2-2005430136,,
  00.html

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Global events and the Muslim consumer

• Nike apologized to Muslims for any unintentional
  offense, agreed to recall all products carrying
  the design, introduced training for Nike
  designers in Islamic imagery and agreed to
  investigate how the design came about.
• http//www.cnn.com/US/9811/21/nike.islamic/