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Ayman Hamed, halal as a mega trend in the food industry ihmc 2010-day1-session1

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  • 1. The Halal Mega Trend 5th International Halal Market Conference June 5th- 6th, 2010 Brunei Darussalam By Ayman Hamed- Marketing Director Al-Islami Foods
  • 2. Agenda I- Finding our Bearing ? IV- Taking it Global II- Remaing Focused ? III-Putting it Together ?
  • 3. I- Finding our bearing,
  • 4. Cultural Fraudulent Diversity & In Opportuni South East stic Asia Practices (Moslems, Buddhists, Hindus, Christians) In The Middle East How Did We Get Here?
  • 5. The Opportunity • Global Halal Food Business Valued at US$580 Billion (Source: Euro monitor) • Current & Relevant Target Audience of Muslims of 1.8 Billion Value is Created, • Islam The Fastest Growing Now Who Will Religion In The World Capture The Value? • Halal Food Products Estimated To Constitute 20% of Total Food Value by 2025 • Extended Middle Eastern Region Also Characterized By The Youngest Population
  • 6. Which Countries Are Benefiting The Most From This Growth? By in large the leading countries can be described as : Western, Non Muslim, Industrialized  Australia  USA  Canada  UK and EU  Brazil  India
  • 7. What Other Countries Are Now Moving Into Position Countries that will succeed in penetrating the Global Halal Market will be those that pay attention to the details of, standards, branding and marketing &Collaborate with others.  Malaysia  Thailand  Brunei  Singapore  China  Philippine  Turkey  UAE
  • 8. Which Companies Have Recognized the Opportunity! By in large those that have first mover advantage are Multinationals:  Nestle  McDonalds  KFC  TESCO  Aussie Beef  New Zealand Lamb
  • 9. What Other Food Industry Is Benefiting From The Trend? • Market : Kosher Foods In The US* • Market Size: $100 Billion • Population : 5-6 Million Jews News Flash • Products : 86,000 product range • Consumer profile Almost half of US S/M products are kosher* Jews (5% Strict) 15% 55% Health Conscious “At least 20,000 kosher certified items, and in many stores the number of38% Vegetarian kosher products is closer to 25,000 – 24% Dairy-free which is nearly half of all items on supermarket shelves. Up• To 125,000 clearer perspective to get a kosher items available. Products such as For Every 1 Halal Product … Gatorade gain kosher certification. Categories, such as coffee, tea & …….there are 86 Kosher cereals, are virtually all kosher” a new survey by KosherToday. • US Moslems are spending $16Billion a year on Kosher Products, due to lack of Halal products (*Source: Mintel)
  • 10. Composition of the $580 Billion HALAL Market Central & South Asia Europe $175 Bil (Inc. Russia) $65 Billion China $ 5 Billion S. E. Asia N. America $ 95 Billion $15 Billion Africa $115 Billion Middle East $111 Billion S. America $1 Billion Australia & NZ $1.5 Billion Middle East = 19% Of World Value (*Source: Euromonitor)
  • 11. What Gives Them The Advantage? What has given countries, companies & Kosher foods the advantage, is what has traditionally be their advantage  Quality Food Production  Standards  Branding and Marketing  Access to Capital  Control of Distribution and Supply Chain Networks
  • 12. II. How Islami remain focused ?
  • 13. Who Is Al-Islami ? History : Dubai Coop society born in 1971 by Hajj SaeedLootah. In 1981 launched brand Co-OP Islami to ensure genuine supply of Halal food. Starting with Frozen whole chicken, followed by processed products. Vision: To Become A Global Food Brand By Leading The Agenda On The Emergence of „Halal‟ As A Global Mega Trend And Capturing The Imagination of Food Lovers Around The World Mission: To Provide Authentic Halal Food With The Highest Standards Of Quality and Health, Thus Emerging As A Role Model For All Food Providers Around The World Aim: To be AED 1 Billion by 2013
  • 14. Good to Remember…… Halal for Al Islami Foods Is Not A Trend, Or a Variant, Or Part of Our Business IT IS OUR BUSINESS!!!
  • 15. Why Al-Islami ? Global Sourcing Stringent Sharia’a’ & Regional Quality Manufactu Compliance ring 1st, truly Meeting Regional Consumer Halal Lifestyle Brand Our Brands
  • 16. Our Corporate Strategies (The Big Five) 1 Build a powerful, local, regional & global “Halal” brand Invest heavily in ATL & BTL 2Develop a brand led organization 3 Increase our total market share Category SOV Dominate the (Existing Geographies, Concepts, Categories & Channels) Expand New Concepts such as Meat Shop, Cart & Farooj 4 Aggressively expand geography(in every category) Re Launch in KSA &Europe 5 Drive expansion through innovation (In Formula, Packaging, Benefits, channels etc.) Based on Better Consumer Understanding Develop new Food solutions
  • 17. 1 BuildA Powerful, Local, Regional & Global “Halal” Brand Communication Evolution of Al- ISLAMI Brand Functionality 3. Going beyond the (HALAL) trade-off of Functionality 1. Emphasis on & Convenience to HALA as real Bonding (Universal Differentiator Values) Engagement Interruption Intrusion 2. Emphasis on Benefits “Healthier, Nutritious & Tastier Lifestyle/conven ience 1. Halal Interruption : Emphasizing What Is Real Halal (Functional 2. Halal Intrusion: Emphasizing Tangible Benefits (added value 3. Halal Engagement: Emphasizing Universal Values (Motherhood)
  • 18. 1 BuildA Powerful, Local, Regional & Global “Halal” Brand  Functional  Benefits & Lifestyle
  • 19. 1 BuildA Powerful, Local, Regional & Global “Halal” Brand  Bonding
  • 20. 2Develop A Brand Led Organization  ExpectedSOV for 2010 will be around 60% of the total Frozen meat category 40% 60% Islami Others
  • 21. 3 Increase Our Total Market Share (Existing Geographies, New Product, Categories & Channels)
  • 22. 4 Aggressively Expand Geography(in every category) 2013 Geographic Scope Dubai
  • 23. 5 Drive Expansion Through Innovation (It could be Formulas, packaging, Benefits, channels etc.) Healthier Emotional lifestyles, happier lives. Aspect Launch a host of new complimentary and novel products Healthier, tastier meals. No Hormones, less fat, 100% grain fed Functional Aspects Real halal, (Hand slaughtered, no stunning, Al Islami representative) Improved Consumer Understanding (Ladder of Features & Benefits)
  • 24. III. How Islami is putting it together
  • 25. SUPPLY CHAIN The Engine of Corporate Value Creation
  • 26. But How to Capture Value ? Willingness To Pay Sales Value Me Too Products Differentiation Poor Market Activation Activation Substitutes Innovation Greys Trading Terms Retail Concentration Value Capture Overheads Distributor Gaps Partnerships Wrong Business System Business System Legislation (Duties) Managing Ecosystem Inefficient Processes Supply Chain Costs Heavy Competition Managing Exit Effectively Cost of Sales Willingness To Supply
  • 27. The Value Creation PLAN SOURCE & MAKE DELIVER PROCURE • Processing • Warehousing • Farm • Annual Planning • Raw Material • Preliminary • Finished Goods • Innovation Ideas • Slaughtering Operations • Distribution Coverage • Additives • Conversion • Distributor Storage • Market Development • Ingredients Operation • Shipping Agents • Negotiation Strategy • Preservation • Supplier Negotiations • Logistics • Pricing Strategy Operation • Agency Selection • Transportation • Marketing Strategy • Human Resources • Product • Media Execution • Target Audience Development • Government • In Store Execution • Consumer Insights Accreditation • Contract Packing • Sales Operations • Sales Strategy • Packaging • Supplier Management • Customer Care • Endorsements • Advertising Production • Media Buying • Cash Management
  • 28. Driving Value Creation Observation Slaughtering Process Inclusive of a. Procurement of Fundamental To Company Finished Product &b. Local Philosophy & Value Creation Manufacturing Highly Complex Management of Cash to Fuel Procurement & Negotiation Growth Vital Ingredient to Strategy (Multiple Suppliers / Sustainable Success Channels / Worldwide Sourcing Network / Halal Inspections) Dual Go To Market Chain
  • 29. The Value Capture Channel Mgt Marketing Customer Loyalty •Showcasing Offer (Push) •Advertising Radio •Reach (Media) •-Helpline •Hypermarket •Advertising Digital •-Channel Selection •-Website •Supermarket •Advertising B2B •-Program Selection •-Serving Suggestions •Self Service •Advertising Direct Mail •-Readership Profile •-Maintenance •Grocery •Merchandising •-Digital Profile •-Clubs / Associations •Impulse Channels •Retail Store •Sponsorship •-Habits & Attitudes •-Blogs •Wholesale •Endorsements •-Tips / Advice •Restaurants •Accreditations •Reach (Purchase Point) •-Loyalty Cards •Leisure Outlets •Sampling •-Sampling •Online •Promotions •-Promotions •Direct Marketing •Loyalty •-Store Profiling •Shop in Shop •-Location •Showcasing Offer (Pull) •-Demographics •Customer Care
  • 30. From Farm To Food Inspiration Observation Business Has Articulated The Full Integration Of The Entire Go To Market Model Organization KEY to Throughout The Value Chain Sustainable Success (Product / Format / Systems / The Company Philosophy Geographies) Dictates The Value Creation Component The Marketing Story (Real Halal) Drives The Ability of The Company To Capture Value
  • 31. IV- How to Take it Global ? 3S‟s & 3P‟s
  • 32. Where Do We Go From Here? We need to Balance between the two demands 1. The Heavenly (3S‟s) 2. The Earthly(3P‟s)
  • 33. Where Do We Go From Here? We need to Balance between the two demands 1. Heavenly (3S‟s) 2. Earthly (3P‟s)
  • 34. Where Do We Go From Here? We need to Balance between the two demands 1. Heavenly (3S‟s) 2. Earthly (3P‟s) Patronage Sacrefice (Loyalty) Sincerity Product (Differentiation) Submission Profit
  • 35. Top Trends in Food Processing (And their mini-trends) 1 Organic = Healthy (Non-GMO, Fair Trade, Sustainability, Regional, Minimalism, “Natural”) 2 Get Well Soon (Diabetes & Obesity, Kids‟ Health, Food Safety, Women‟s Health, Allergies & Immunity, Well-Being, Energy) 3 Age Awareness (Aging, Teens, Kids) 4 Control Yourself (Serving (Size, Convenience, On the go) 5 Eat Global, Buy Local (Ethnic Flavors, Multinational Production Regulations) 6 Kosher/Halal (Food safety, Certification, Oversight, Spiritualism)
  • 36. One take Out OnTrendSlide HALAL  Organic = Healthy Trend Multiplier/  Get Well Soon Accelerator*  Be Ware Of Your Age * One of the reason Kosher Foods Took off in 2004  Control Yourself  Eat Global, Buy Local
  • 37. Where we go from here?
  • 38. 3 key Ingredients to Success Build A Brand + Master The All brands made of Supply/Value products/services, but Chain not all products are Farm to Food brands ! Halal Build A Global Halal Cooperative/Board A body that will advance the Halal Agenda globally
  • 39. 3 key Ingredients to Success Build A Brand + Master The All brands made of Supply/Value products/services, but Chain not all products are Farm to food brands ! Halal Build A Global Halal Cooperative/Board A body that will advance the Halal Agenda globally
  • 40. 3 key Ingredient to Success Build A brand Halal • “In technocratic and colorless times, brands bring warmth, familiarity and trust.” -Peter Brabeck, Former CEO Nestle • “The art of marketing is the art of brand building. If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.” - Philip kotler, kellogg “
  • 41. Product Vs. Brand
  • 42. Physical Space Clutter Is Extending Into The Mental Space
  • 43. Building A Brand A Process That combines Short Term & Long Term Planning 3. Planning For Decades Grows Brand Value 2. Plan for three Years Grows Channel BRAND 1. Planning for One year grows sales Channel Sale Years
  • 44. A Word Of Caution : The Propeller Effect Vs. The Elevator Principle • Every Thing You Do Pulls The • Every Thing You do Adds Brand In Different Directions To The brand The The Communication Brand The Packaging The Brand Product Packaging Product The The The The Communication
  • 45. What is The Right fit? Brand Strategy Corporate Strategy
  • 46. SO……. How Can we give Halal Brands extra lift ?
  • 47. To Give Halal Brands Extra Lift…. HALAL  Organic = Healthy  Get Well Soon Trend Multiplier  Be Ware Of Your Age * One of the reason Kosher Foods Took off in 2004  Control Yourself  Eat Global, Buy Local
  • 48. Example Of Trend Multiplier/Accelerator
  • 49. HALAL Brands Potential Trend Multipliers/Accelerators •Organic • Fair Trade •Animal Welfare (Free Range) • Environmentally Friendly (Biodegradable)
  • 50. 3 key Ingredient to Build Halal Master The Supply chain Halal “If you want to grow your way to greatness, put value creation first” - Ken Favaro
  • 51. Value Chain Is a connected series of organizations resources and knowledge streams involved in the creation and delivery of value to end customers
  • 52. 3 key Ingredient to Build Halal Build A Global Cooprative  The World Gold Council‟s mission is to stimulate and Halal sustain the demand for gold and to create enduring value for its stakeholders - The World Council  From agricultural, fiber and textile research, market information and technical services, to advertising and public relations, fashion forecasts and retail promotions, we keep one goal in mind: To ensure that cotton remains the first choice among consumers in apparel and home products. - Cotton Inc
  • 53. In Summery  Halal Is A Mega Food-trend That Will Make Nearly 20 % of all food sold by 2025  Al-Islami Foods has Articulated it Go-To-Market Business Model  Supply Chain is the Engine of Value Creation 3 key Ingredients to Success 1. Building A Brand (Not a product) 2. Mater the Supply Chain/Value Creation 3. Create A Global Halal Board
  • 54. Foods For Thoughts Gee! Does this mean every new product needs to be an organic, whole-grain, 100- calorie, ethnic-oriented and Halal snack loaded with omega 3s and anthocyanins with an easy-open top and large-Print Labels ! • Indication Are Such a product would sell well As long as we remember , when it comes to food, Taste comes on top any trend
  • 55. Thank you
  • 56. Upgrading The HALAL Proposition? • Wider Range • Global Halal Certification • Better packaging • Consistent Supply • Professional Audit • Better Quality