Talking to the "Third One Billion" | John Goodman, Ogilvy | iStrategy Singapore 2010


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Talking to the "Third One Billion". Presented by John Goodman, President (APAC) of Ogilvy during iStrategy Singapore 2010.

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Talking to the "Third One Billion" | John Goodman, Ogilvy | iStrategy Singapore 2010

  1. 1. Talking to The ‘Third One Billion.’
  2. 2. Why?We believe that the global Muslim community has been underserved as consumers by brands and companies. Islamic Branding is one of the next big global growth opportunities - the Halal market alone is worth USD 2.1trillion annually.While the economic opportunity is clearly evident, we believe we need to genuinely understand the Muslim consumer.
  3. 3. 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
  4. 4. There are a staggering 1.8 billion Muslims living across the world today.
  5. 5. Where do most Muslims live? Country Muslim population 1. Indonesia 188,619,000 2. Pakistan 144,788,000 3. India 131,213,000 4. Bangladesh 118,512,000 5. Turkey 67,864,000 6. Iran 67,610,000 7. Egypt 64,647,000 8. Nigeria 54,891,000 9. Algeria 31,729,00010. Morocco 31,642,000
  6. 6. But also...In Europe 53 millionIn North America Between 2.5 and 7 millionIn Russia Between 14.5 and 20 millionIn China 21.7 million
  7. 7. This would be our globe if we looked only at Muslims.
  8. 8. They are young. • 52.5% of the population in these countries is under 24 years old. • They have the potential to deliver the ‘Demographic Dividend’* of India and East Asia. • Together, Muslim youth account for 11% of the world’s population.*Demographic Transitions and Economic Miracles in Emerging Asia, David Bloom
  9. 9. To date, the Muslim consumer has been commonly misunderstood. Common errors: Stereotyping Insensitivity Over-simplification Causing many marketers to stumble,inadvertently offend, fail to cross borders, or fail to resonate.
  10. 10. It is our challenge to understand them. “The soft revolutions combination of conservative symbols, like Islamic dress, with contemporary practices, like blogging, may confuse outsiders. But there are few social movements in the world today that are“In 2008, the GDP of the 5 large countries more important toin and around the Middle East - Egypt, understand.” – Robin Wright, TIME, 2009Iran, Pakistan, Saudi and Turkey - apopulation of 420 million - was $3.3trillion - the same size as India but at 1/3of the population.”- Vali Nasr, Forces of Fortune, 2009
  11. 11. What have we done so far? • A two-year piece of global research, conducted in partnership with TNS.• In depth analysis of the state of Islamic Branding and the needs of the New Muslim Consumer. • Established partnerships with leading Islamic scholars and academics globally. • Published the pioneering study, • ‘Brands, Islam and the New Muslim Consumer’ – a landmark development in the field.
  12. 12. Our approach is new. We start by understanding core Islamic values - the values of the Shariah. honesty, sincerity, respect, community, consideration, kindness, peacefulness, purity, authenticity, patience, discipline, transparency, trustworthiness, moderation, modesty, understanding, humility, self- improvement, equality, dignity.This is not an exhaustive list, but one developed through consultation with religious scholars and academics..We believe these are values that most Muslims would recognise as being core to their faith.
  13. 13. And then we analyse how these values translate into actualconsumer behaviour in daily life.
  14. 14. Our definition of Islamic BrandingBranding that is empathetic to Shariah values in order to appeal to the Muslim consumer ranging from basic Shariah friendliness to full Shariah compliance in all aspects of the brand’s identity, behaviour and communications.
  15. 15. We’ve learned a lot about Halal and Shariah- compliance. Brands and companies are considered liable to good Shariah- compliant behaviour, just as people are.It cannot be a tokenistic on-pack gesture, or lived only through a Muslim-friendly variant/ sub-brand. It needs to be lived and breathed as a core value system by the entire company behind the brand.It is deeply reassuring, and in majority-Muslim markets, taken for granted. It is only when brands fail to demonstrate their Shariah-friendliness that they get into trouble.
  16. 16. The Noor Category Index How important is Shariah-compliance in each category?Note on the data: All ratings were captured at a sub-category level. Sub categories ratings within eachcategory measured were aggregated to provide a one score index for each category.
  17. 17. Our research has pointed us to the emergence of the New Muslim Consumer
  18. 18. Our deep segmentation charts an evolution... THE The The FUTURISTS Synthesizers Movers (6%) (6%) ‘Religion ‘Religion Individuates Enables Me’ Me’ The The ‘Religion ‘Religion Connected Identifiers Connects Me’ Identifies Me’ (27%) (27%) ‘Religion ‘Religion Centres Me’ Purifies Me’ The The Grounded Immaculate (23%) (11%) THETRADITIONALISTS
  19. 19. We call the New Muslim Consumers ‘the Futurists’. They are driven by pride in who they are, and by their reach for success in all that they do.
  20. 20. They look confidently to the innovation-loving/ globally-travelled/ well-educated
  21. 21. But stay firmly rooted in the values that define them.Family values/ togetherness and community/ respect/ religious ritual/ cultural heritage
  22. 22. They are the New Muslim Consumers. proud to be unafraid to Muslim challenge driven demandby success the very best take open no prisoners We call them ‘The Futurists’ to the world demand a rooted in who fair hearing they are
  23. 23. When it comes to brands, they are forging new relationships. Brands are important as tools in identity-building. Brands can make them feel globally connected, and up-to-speed. Brands can reassure, and provide a link with heritage.Brands can make them feel actively involved in their communities. Brands are expected to engage in honest, open, equal dialogue. Brands are expected to take their values as a starting point. But brands can also disappoint, and let them down.When they succeed, brands today are openly welcomed into their core inner circle of trust and loyalty.
  24. 24. BRAND Noor Index Score* Lipton 131 Nestlé Nescafé 130 122 The Noor Nido Kraft 118 117 Global Brand Maggi 117 Mirinda Pringles 110 110 Index 2010 Lay’s 110 7 Up 109 How Colgate 108 „Muslim-friendly‟ Lux 108 are global brands Sunsilk 105 today? Close Up 103 Dove 103 Pantene 102 Rexona 102 Head & Shoulders 101 Heinz 101 Nivea 98 Fair & Lovely 97 Pepsi 95 Coca-Cola 94 Air Arabia 91 L’Oréal 90 Axe 88 Emirates 85 Red Bull 78 Etihad Airways 77 Singapore Airlines 63 Cathay Pacific 62 Citibank 59 Standard Chartered 54 HSBC 51 RBS 47 *Numbers represent the % agreement with the statement ‘this brand iscompletely Halal or Shariah-compliant’, averaged across our four markets.
  25. 25. CIMB Islamic
  26. 26. Why is it successful? • Inclusive • Muslim-friendly values • Progressive and innovative • Collective
  27. 27. Nokia
  28. 28. Why are Nokia successful? • User-friendly, accessible to all • Shariah-friendly values • Innovative in local content • Caring personal touch • A means of self-expression
  29. 29. Wardah
  30. 30. Reason for success?• Addresses conflict of ‘modern beauty’ and ‘purity of faith’ • Halal presented as modern and scientific • Low price, highly accessible • Empowers Indonesian women within the scope of faith
  31. 31. This approach puts the Muslim consumer first, for the first time.We start by understanding And then analyse whatMuslim consumer values. they mean for brands.Purity Be authentic 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.
  32. 32. So, how well do Indonesian companies reflect this?
  33. 33. Some Stories from Indonesia
  34. 34. Spiritual Mobile Apps:Esia Hidayah (PT Bakrie Telecom tbk) & Flexi Muslim (Telkom Group)
  35. 35. Reason for success? • Reconciles modernity and faith• Empowers Indonesian families within the scope of faith
  36. 36. Mizan –an Arabic word originally means “balance”– was established in 1983 by three university students and two of their seniors. It originally aimed at developing a new genre of Islamic literature in Indonesia. Mizan‟s book has gradually taken the shape of modern and seriously written books representing differing Islamic 1999, PT Mizan Publika functions as the holding company of 8separate business entities and 5 other strategic businessunits.Those entities include :•PT Mizan Pustaka (publishing company)•PT Mizan Grafika Sarana (printing company),•PT Mizan Dian Semesta (direct selling and marketing company)•PT Mizan Media Utama (distribution and marketing company)•DAR! Mizan Publishing House (publishing company),•PT Bentang Pustaka (publishing company),•PT Lingkar Pena (publishing company),•Hikmah Publishing House (publishing company),•Mizan Cinema (production house),•MP Book Point (book store).
  37. 37. Reason for success?• Inspires a modern way of thinking within a wide range of products.• Tapped into a different kind of community to develop network and strategic business unit in Shariah way
  38. 38. How Mizan delivers the core Islamic values - the values of the Shariah. Honesty Discipline  Sincerity  Transparency Respect Trustworthiness Community  Moderation Consideration  Modesty Kindness Understanding Peacefulness  Humility Purity Self-improvement Authenticity Equality  Patience Dignity.This is not an exhaustive list, but one developed through consultation with religious scholars and academics..We believe these are values that most Muslims would recognise as being core to their faith.
  39. 39. In the Silver Screen (2008) (2007) (2009) 4,500,000 ticket sold 3,400,000 ticket sold 2,400,000 ticket soldA female teacher‟s plight to keep a an Indonesian student in Cairo who Life and love of an IndonesianMuhammadiyah school running - defends the progressiveness of Islam, student in Cairo giving education to the poor but his love life trapped him in to polygamy issue.
  40. 40. (2008) (2010) (2009) 1,000,000 ticket sold 800,000 ticket sold About: A very poor family who believes that if KH Ahmad Dahlan, the founder of A female Muslim who it‟s a God will, anything can happen. This is a Muhammadiyah, who teach about challenges the status Quo. film made by an Ustadz.progressiveness in Islam and facing rejection from the conservatives.
  41. 41. Reason for success?• A presentation of a modern, inspirational, educated people who go the distance to achieve success while holding on the Islamic value. • Inspires Indonesian Muslims within the scope of faith
  42. 42. Aa Gym: The Rise and Fall of a brand
  43. 43. Reason for success?• Moslems presented as modern, inspirational, educated, progressive, up to date, and successful Reason for failure?
  44. 44. A Brand does not necessarily need to have Islamicsymbols in order to tap into the Islamic value and resonate with Muslim Audience
  45. 45. How this volunteering movement delivers the core Islamic values - the values of the Shariah. Honesty Discipline Sincerity Transparency Respect Trustworthiness Community Moderation Consideration Modesty Understanding Kindness Humility Peacefulness Self-improvement Purity Equality Authenticity Dignity. PatienceThis is not an exhaustive list, but one developed through consultation with religious scholars and academics..We believe these are values that most Muslims would recognise as being core to their faith.
  46. 46. What will work• Help others• Be better Moslems• Positive & progressive