1. How Brands Can Reach The Muslim Consumer John Goodman President, Ogilvy noor
2. AgendaThe opportunity of the Muslim consumer marketDemystifying ‘Islamic branding’ and ‘halal’Who is the new Muslim consumer?Practical guidance: How brands can engage with the Muslim consumer Community Purity Clarity and relevanceWhat next?
3. THE OPPORTUNITY
4. The rise of China’s 1 billion
5. India’s 1 billion is also attracting attention
6. The Muslim consumer has been calledthe rise of the ‘third billion’
7. There are a staggering 1.8 billion Muslims living across the world today.
8. This would be our globe if we looked only at Muslims.Source:  www.worldmapper.org
9. More than 60% of the world’s Muslimpopulation is in Asia-Pac % of World Region Muslim Population Asia-Pacific 62.10% Middle East- 19.90% North Africa Sub Saharan 15.00% Africa Europe 2.70% Americas 0.30%
10. And more than 60% of the halalopportunity is here as well Value Region % $bn Africa 155.9 23.6% Asia 418.1 63.2% Europe 69.3 10.5% Australia/Oceania 1.6 0.2% Americas 16.7 2.5% Total Halal Food Market 661.6 Size Source: 6th World Halal Forum Presentation 2010
11. The Muslim consumer market: snapshotPopulation: 1.8 billionEstimated market size: $2.1 trillion and growingHalal food: $661 billion
12. DEMYSTIFYING‘ISLAMIC BRANDING’ AND ‘HALAL’
13. 5 useful words the global Muslim community - Ummaha set of guiding life principles, a mental and moral compass - Shariah light, enlightenment - Noor acceptable to Muslims, in accordance with good practice - Halal forbidden to Muslims - Haraam
15. What is halal? Halal – the ingredients are in line with Islamic prescription, correctly slaughtered, acceptable animal derivatives, no alcohol ‘Tayyib’ – wholesome and good Increasing emphasis on ethical and organic, focusing on the end to end supply chain Halal is increasingly popular with non-Muslim consumers due to perception of quality and health
16. How will Muslim consumers know it’s halal? Authority and clarity The authority of appropriate certification bodies Clear logo Detailed and backed-up Clear explanation of the brand’s approach to ‘halal’ and where it fits on the scale of shariah-friendliness or compliance Detailed explanations available at consumer touch-points such as website – consumers will be rigorous in tracking every claim to its source
17. Halal is important to the Muslim consumer - and means more than just food Tier  One Tier  Two The Noor Category IndexTier  three Note on the data: All ratings were captured at a sub-category level. Sub categories ratings within each category measured were aggregated to provide a one score index for each category.
18. Halal is important to the Muslim consumer- and means more than just food Tier One: Shariah-compliance is an absolute must Tend to be related to bodily consumption, due to high standards of hygiene and safety. Tier Two: Categories are still close to the body or in regular usage, so Shariah-compliance is still important. consumer scrutiny of categories in this tier, eg cosmetics and fashion, is set to grow, and brands should take note. Tier Three: acceptance of possible non-compliancy Categories are the least regularly consumed, and so Shariah-compliance standards are more flexible. There is a mature acceptance of the need for some of these categories (eg airlines) to be openly appealing to all consumer groups.
19. Halal is important to the Muslim consumer- and means more than just food $13bn Halal cosmetics $100bn Halal travel $96bn Muslim fashion
20. THE NEW MUSLIM CONSUMER
21. They are youngThey are driven by pride in who they are, and by their reach for success in all they do. They look confidently to the future. But stay firmly rooted in the values that define them. They are fully engaged with the world, but are defining their own place in it.
22. The New Muslim consumerTech-savvySelf-empoweredBelieves in faith and modernitySee Islam as a means to improvethemselves and their communityCreative in solving their own challengesBrand conscious and loyalHolds brands to account
23. HOW BRANDS CAN ENGAGE WITH THE NEW MUSLIM CONSUMER
24. We take a new approach.We  start  by  understanding   And  then  analyse  what    core  Muslim  values  like  these     they  mean  for  brands.    Purity   Be  authen9c  in  word  and  deed.    Honesty   Be  transparent.    Humility   Avoid  hubris.    Discipline   Display  eﬃciency.  Togetherness   Be  part  of  the  community.  Image-­‐consciousness   Help  project  the  right  image.
26. The consumer is part of a community When you speak to the Muslim consumer, you speak to the Muslim community A duty to divulge The ummah Ramadan Hajj Eid
27. Practical guidance: engaging the community Key traits of the new Muslim consumer: Crosses cultural and geographic boundaries to connect with those of shared values via digital and social media An obligation to share knowledge about brands Corporate error is punished, but corporate empathy is rewarded with loyalty Engagement strategies Endorsement through word of mouth Responsible citizenship Supporting the community
28. Case study: supporting the communityPersil and Pril’s “This place is our country” campaign (Egypt)
30. Purity affects body and soul Purity of ingredients is crucial Purity of a brand’s intention affects consumer perception Purity of mysterious processes and ingredient labels is becoming increasingly important
31. Practical guidance: purity Key traits of the new Muslim consumer: Importance placed on upholding the values of halal and tayyib Will be rigorous in checking halal credentials Increasingly demanding of end to end ethics in the supply chain Purity should be ‘technical’ as well as in the ethos Desire for purity extends to wider consumption such as health, pharma and personal care Engagement strategies Ensure that certification is conducted by bodies with credibility with the target consumer Do as you say: ensure your products and processes are all halal and as you say they are Make halal information available at all touchpoints, especially on the web Do not over-claim on any product
32. Case study: purityOlper’s (Pakistan)
33. CLARITY AND RELEVANCE
34. Clarity and relevance The New Muslim consumer treats brands like people: and holds them to similar account. They expect people to be clear, and expect the same for brands We talked earlier about the importance of clarity of certification processes and logos This must include honesty about what is and isn’t fully halal, otherwise you will get found out Clarity leads to trust. If trust is breached, the brand must work hard to build it
35. Practical guidance: clarity and relevance Key traits of the new Muslim consumer: Clear intentions and values: They expect brands to be clear about what they stand for, just as they expect it from people Clear communication: They expect brands to lay out clearly how their products and business do or do not comply with their shariah aspirations Relevance of the brand must be clear Engagement strategies Be open and honest about what parts of the product and brand are halal Train staff to be clear in communicating the brand message and product features Ensure that the brand message is relevant to the Muslim consumer, the relevance is clearly communicated and that expectations can be met
36. Case study: clarity and relevanceRumah Zakat (Indonesia)
37. WHAT NEXT?
38. Three key messagesThe Muslim consumer market is growing rapidly, especially inAsiaThe values Muslim consumers ask for appeal to wideraudiences tooMuslim consumers want brands to reach out to them to helpnavigate their aspiration for a Muslim lifestyle, and brands thatdo will be rewarded with loyalty and endorsementLabelling things ‘Islamic’ or ‘halal’ is not enough: brands mustengage on the level of values, and must work hard to build andmaintain trust
39. What Ogilvy Noor does A  data-­‐based  in-­‐depth  look  at  the  core  values  and   trends  in  the  world  of  the  Islamic  consumer,  and  how   they  will  aﬀect  your  brand     Direct  consultancy  on  brand  posi9oning,  visual   iden9ty,  consumer  marke9ng,  CSR,  research,  etc.    In  short,  a  full  toolkit  for  successful  brand  building  to   Muslim  consumers.
40. THANK YOU QUESTIONS John  Goodman   President,  Ogilvy  Noor    John.Goodman@ogilvy.com   www.ogilvynoor.com   @OgilvyNoor