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Muslim branding talk for oic kl june 10 2011


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Muslim Branding-- Myth Or Reality--
Presented at the OIC World Business Conference on June 10 that deals with the incorrect perception called muslim branding.

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Muslim branding talk for oic kl june 10 2011

  1. 1. MusliM BrandingMyth or reality?
  2. 2. Contents What is “Muslim” or “islamic” Branding? What is the “global Muslim Community”?3 How do you create a “Brand identity” for the global Muslim Community? Daily Baraka Ltd
  3. 3. 3What is “Muslim” or“Islamic” Branding?islamic Branding is “branding” that’s empathetic to shariah values,ranging from basic shariah friendliness to full shariah compliance in allaspects of a brand’s identity, behaviour and communications, in order toappeal to the Muslim consumer,”. (definition by Ogilvy noor) Daily Baraka Ltd
  4. 4. Is there a Muslim Brand?The term “ Muslim Brand” stems from the tendency of the marketing andadvertising industry’s habit of consumer segmentation based on certain‘ethnic’ parameters“There is no such thing as a Muslim brand because brands can’t have areligion. They can align themselves with the values of a religion”Nazia HussainDirector of Cultural Strategy, Ogilvy Mather Global Daily Baraka Ltd
  5. 5. Does ‘Halal’ signifyMuslim Brand?The term Halal is recognised as a brand component as well as theplatform for a brand’s identityas a brand component: communicate adherence to supply productionparameters i.e. in food flagging the hygiene factor by re-assuringadherence to the slaughter processas a platform its used to ‘flag’ that the brand is for the Muslimcommunity i.e. the halal branding is used as part of a offensive(penetrating) or defensive (adhering to) strategy in order to satisfy thecommunity’s standardisation requirement“At a certain stage Halal branding is important to establish credentials,”says Ayman Hamed, Director of marketing at Dubai-based Al Islami Foods.“But a brand has to offer solutions to the Muslim consumers beyond theHalal aspect without losing [sight of] it. Daily Baraka Ltd
  6. 6. Summing up:What is a Muslim Brand a brand that’s empathetic to the values of islam and adheres to all aspects of shari’ah in its identity a brand that has the required Halal credentials3 a brand who’s primary market is the global Muslim community. Daily Baraka Ltd
  7. 7. Who is this “Muslim branding” for? Daily Baraka Ltd
  8. 8. Global Muslim PopulationHighlights:l 0% of global Muslims live in asia MEna argest number of Muslims living as minorities are inl l russia ( mill) germany ( mill).l /3rd of the population lives in 0 countries of which, are in asia: indonesia, Pakistan, india, Bangladesh, iran and Turkey.l Countries with Minority POP: India 161 mill Ethiopia 28 mill China 22 mill Russia 16 mill Tanzania 13 mill TOTAL 240 mill Daily Baraka Ltd
  9. 9. What is the Global MuslimCommunityit’s not a segment:l That can be qualified by one primary differentiator- age, language or skin colour, Orl hrough attitudes and behaviour that are in accordance to that differentiator Tl unlike other cultural consumer segments the global Muslim consumer segment is made up of a myriad of sociocultural sets that have been influenced by emigration and adaptation to social and environmental norms of current place of residence and livelihoodl his ‘adaptation’ has brought about today’s Muslim consumer who has a strong , unique, T individual value system and identity that is based and governed by the islamic identityl despite the heterogeneity of the Muslim populations with majority and significant minority populations in some countries around the world, islam constantly bonds together their daily lives and influences their consumption habits, through the centricity of faith. Muslims’ own belief in the significance of islam in their lives is pervasive. Daily Baraka Ltd
  10. 10. 0 Who is the ‘New Muslim Consumer’? mer Consu rs e Products Numb ices Purchasing Serv Power Consumer Halal Needs hShari’a intCom pla Daily Baraka Ltd
  11. 11. “Muslim consumers are a growing, influential and extremely loyalgroup, making them a desirable market for mainstream brands.But reaching them requires more than launching Sharia-compliantproducts. Making inroads to this sector takes deep understanding ofthe values of this community and building the brand from there.”Young, Connected and Muslim– Marketing Week 24 June 2010 Daily Baraka Ltd
  12. 12. l % of the Muslim community is under yearsl % of this define themselves by faith and not race -- rather than distance themselves from religion in order to progress and succeed, closely associating and attempting to live through the values of islam is what ‘gives life purpose and direction’l % believe that religion should be adapted to suit individual lifestyles and crucially, they’re finding their own ways of doing sol % want to ‘protecting islamic values from Western lifestyle and media influence’ -- The move towards conservatism should not be mistaken for a rejection of high- tech lifestyle products. instead, new Muslim Consumers are often highly technically literate. at the same time they do not believe in an automatic acceptance of technology particularly if they reject the underlying ideas and values.l They believe in crafting ways forward out of their own faith, believing that religion and progress, far from being mutually exclusive, are practically inseparable. Daily Baraka Ltd
  13. 13. 3 New Muslim Consumer l By 2050, more than 50% of the world’s population will be Muslim l 52% of the Muslim community are under 24 years old and part of the “Gen C”– Connected Generation” l Exerting enormous socio-cultural influence from being digitally connected l This cultural influence will increase in years to comeYoung Muslims are already Muslims are undergoing a The New Muslim Consumer isstarting to stamp their influence major reassessment of their fundamentally different becauseon the consumption habits of the relationships with religious of a strong reliance on faith andwider global Muslim community. structures, cultural assumptions, the ethical values of Islam. authority, consumption and Can quite confusing for observers It is tempting to view younger who are not familiar with be Muslims through the Generation- these trends. Y prism so favoured by global marketers Daily Baraka Ltd
  14. 14. Key Socio-Cultural Trends Sense of pride is 62% of the young driven by a desire for Muslim consumers is inclusion* proud to be a Muslim first and foremost Identity 45% of this new They believe in crafting generation believe ways forward outthat ‘religion should be adapted to suit indi- of their own faith, vidual lifestyles’** believing that religion and progress, far from being mutually exclusive, are practically inseparable *Rather than distance themselves from Muslims religion in order to progress and succeed, New Muslim have been 38% of these consuma Consumers are often misrepresented ** they’re finding their own ways of doing highly technically literate. so, with 27% agreeing that ‘protecting by the global media, The move towards Islamic values from Western lifestyle and by politicians and by conservatism should not be media influence’ is important to them. educators, and they are mistaken for a rejection of . keen to redress that high-tech lifestyle*** ***they do not believe in an automatic balance acceptance of Western technology, particularly if they reject the underlying ideas and values. Daily Baraka Ltd
  15. 15. WARY OF TOKENISMl The new Muslim Consumer is particularly wary of the tokenism that continues to masquerade as an effective engagement strategy -- stamping products as Halal or shari’ah-compliant is not enough.l The new Muslim Consumer is highly interested in the authority and provenance of brands and the companies behind them. Daily Baraka Ltd
  16. 16. How do we do “BRANDING”for and in this segment? Daily Baraka Ltd
  17. 17. Start with andat the values of Islam. understanding the implication of the “values” of islam4 honesty respect4 consideration kindness4 peacefulness authenticity4 purity patience4 discipline transparency4 modesty community4 dignity. reflecting these values throughout the business modeln underpinning the working of shari’ah in daily life is ‘sincerity of intention’ Daily Baraka Ltd
  18. 18. The Shari’ah commitment needsto go deeper than just sales andmarketing, touching all aspects ofthe company, from manufacturingand packaging to brand story andoverall business practices Daily Baraka Ltd
  19. 19. Get to grips with the role ofHalal Shari’ahl The starting point for marketing and branding must be to consider the roles Halal shari’ah plays in the lives of modern Muslim consumersl and what expectations they have (from brands) when “Halal shari’ah compliance’ is mentionedA brand:l has to offer solutions to the Muslim consumers beyond the Halal aspect without losing [sight of] itl hilst adopting a marketing plan that sits comfortably with W shari’ah values Daily Baraka Ltd
  20. 20. 0Talk with your consumerl The individual’s sense of identity and what they want to do with their life will become even more importantl nowing the consumer, understanding his/her need and delivering on K that would be key to developing a brand relationshipl Brand would be expected to be both, Halal shari’ah compliant, fully Daily Baraka Ltd
  21. 21. Deliver what the brand saysl Creating perception: By actively delivering on the values of the brand By: -- listening and learning to what the stakeholders are saying/asking with regards to their needs and involving them in the brand’s development process. -- understanding the growing social clout in terms of global connectivity through social media amongst the young Daily Baraka Ltd
  22. 22. Three brands that used Islamicvalues to build consumer loyalty l launched in 00 in Pakistan l 30% market share in uHT milk market category success is due to: l Emphasising purity authenticity in its people and products l mphasis on innovative sourcing and distribution E l rand emphasis pure Muslim living B l loving family bonds l intergenerational respect l elebrations of cultural rituals C l Pakistani consumers see OlPErs as the first global Pakistani brand l Tahira in uK / Europe is much more than convenient food brand. l he brand is grounded in family values, respect inclusivity and is seen T as a brand for all Muslims l he spirit of inclusivity and focus on family values is highly resonant with T shari’ah values l CiMB islamic was the first stand-alone islamic bank offering from a full- service bank l as remained careful to be inclusive and pluralist in all its H communications mindful of Malaysia’s cultural religious diversity l rand has attempted to ensure that every aspect of its interaction and B comunication is grounded in core islamic values Daily Baraka Ltd
  23. 23. 3 ShukranThank you Daily Baraka Ltd