Marketing to the Islamic World

Marketing to the Islamic World Mustafa M. Farouk Federation of Islamic Associations of New Zealand Presentation to the International Marketing Class MARK 302 School of Marketing & International Business, Victoria University of Wellington, October 6, 2006

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

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

NZ trade with the Islamic world
New Zealand’s 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 Source: MIA NZ Annual report 2005

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.

The Muslim consumer: Practice
Prayers
Charity (Zakat)
Fasting (Ramadan)
Pilgrimage (Hajj)
Others (e.g. being a good neighbour)

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

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)

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

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

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

The Muslim dressing pattern
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 (24:31).
“ 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.

Gender Separation and its Marketing Implication
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?id=1047972006 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. http://www.now.org/nnt/summer-2002/gender.html

Only lawful activities are permitted ( Halal )
2:168 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 )
2:275 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!

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
5:90 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!

Promise must be kept and truth must be told
61:3 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 purchase r who is the present seller."

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

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/0,3604,870413,00.html
Commercializing Islam

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/middleeast/22doll.html?ex=1285041600&en=72bb8cc089bf9435&ei=5090

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 Niels Arla spokeswoman
http://news.bbc.co.uk/2/hi/middle_east/4666298.stm

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

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/

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Marketing to the Islamic World — Presentation Transcript