Marketing of Halal product and branding

Assalamu alaikum and a very good day to all my beloved visitors,

First and foremost, since i have joined the Graduate school of management in Malaysia(MBA) IIUM, i have benefited a lot of knowledge such as,understanding the islamic exporters conceptual, the difference between Islamic banking and conventional banks, editing term papers, individual assignments, and working well with others. Moreover, my professor Dr wan jamaliah has appointed me to do a very extensive research about Marketing Halal products, which is very interesting and booming. Therefore, I'm going to share with you my first part of the research which i have already completed.

halInternational Islamic university Malaysia

Graduate school of management

Term paper

Topic: The marketing of halal products

Instructor: Assoc Prof Dr. wan jamiliah

Semester 1, 2010/2011

21-09-2010

By: Ahmed M Adam

Section 2(MBA)

Contents

1- Introduction………………………………………………………………………………………………1.0

2- Over view…………………………………………………….…………………………………………….2.0

3- Four tools of marketing mix.………..…………………………………………………………….3.0

4- The Islamic perspectives(marketing halal product)……………………………………4.0

5- Islamic branding(The next big Thing)………………………………………………………….5.0

6- Conclusion………………………………………………………………………………………………….6.0

7- End Notes…………………………………………………………………………………………………..7.0

Introduction

Today, there is no doubt that Islam is the fastest growing religion on earth, both by birth and adoption, with the Muslim population estimated to reach 2 billion by 2010. With the global Halal market estimated to be worth US$580 billion a year and the Halal food industry pegged to grow at a rate of 7% annually (Asia Inc, July/August 2007), businesses should indeed be tapping at this growing market segment.

The Islamic product consumers are growing rapidly, this will cause that more companies to start producing many halal products. Let us look back on the other hand, Halal’s burgeoning fame can be linked to religious fervor; and beliefs that it’s cleaner, healthier and tastier (Burgmann, 2007).

Halal logo has now become a symbol of quality and religious compliance and this makes it sound as the new green. Then again, some argue it is driven by consumers’ urge to follow ritual or their desire for acceptance, while others see it as part and parcel of another rising global trend.

According to the Pew Research Center a comprehensive demographic study (Mapping the Global Muslim Population) of more than 200 countries finds that there are 1.58 billion Muslims of all ages living in the world today, representing 24% of an estimated 2009 world population of 6.8 billion.

The study shows that , Not only is the Muslim population a significant percentage of the global population but AT Kearney also point out that the market for sharia compliant products or services – that is products and services that confirm to Islamic Law – totals USD$2trillion annually and is growing rapidly. Every one is firmly believe that Islamic product and branding has entered the highest level of selling goods and services not because of its only for Islamic people but also other nations found benefits.

As Muslim countries build up, today there is an expressed need to develop and market their own brands to the rest of the world. Additionally, there is gigantic attention amongst non-Muslim companies in how to enter and penetrate this global marketplace, which spans many industries, including finance, food and beverage, cosmetics, healthcare, pharmaceuticals, logistics, tourism, fashion, and others.

An additional motive for the tremendous acceptance of Halal within the global population is the process of assimilation. Foreign foods in some countries as in Europe have become assimilated and local tastes are changing, encouraged by global tourism and reverse colonization. For instance, Curry is now the number one take away meal in the United Kingdom and kebabs are a typical German staple (Evans, 2007). Both are halal meals, once non Muslim people understand those products they will never turnover not because of the quality but because of the catering process.

Nowadays, halal is not considered only for the food but also non food segments, Most broadly, it may also be applied to cosmetics and pharmaceuticals, hygiene products and nutritional supplements, travel, art, music and books; even marriage and finance (Burgmann, 2007).

Importance on Halal is also growing. It is fast becoming a new market force and identifier, and is now moving into the mainstream market, affecting and changing perception on how businesses are being conducted, including from a marketing point of view. Marketers are trying to figure out how to supply a real halal product and most companies are conducting halal product market research and targeting specially for Muslim products.

Overview

The study of purchaser behavior is very important when it comes to marketing of halal goods. A Fact of the matter is Muslim consumers are almost and very much similar to any other consumer segments, of course demanding healthy and quality products, which must also conform to shariah requirements. Let’s say, in Islam, it’s not allowed to eat a meat that has been slaughtered without the name of the ALMIGHTY ALLAH, which is why Islam has recommended and stressed about slaughtering wet goods which is for shariah practices.

Mc Donald’s In Singapore can be seen as a prime example; it has seen an influx of eight million patrons a year after obtaining a Halal certification. Since being certified, “Halal, KFC, Burger King and Taco Bell have all seen an increase of 20 percent in customers” (Hairalah, cited in Hazair, 2007a: 13). For instance, although 86% of Singapore’s population is non Muslim but the small segment of Muslim population living in Singapore will shift to the right and increase the marginal benefit mcd’s

Moreover, consumers always turning their attention to a well-marketed product which does not have the halal symbol, but definitely they would read the ingredients, in contract to purchasing one that has less credibility but sports halal logo.

However, its worthwhile that we take a look at each of the four of marketing mix (product, pricing, place, promotion) that can be used to satisfy consumers and of course the company objectives.

On the other hand, i have shown in the intorduction that islamic marketing halal product is significant to Islamic exporters. apart from the introduction and the overview of this topic, i will further post the full PAPER sooner or later insha allah.

It's my great pleasure if you leave some comments and contribute two to three lines regarding your view of point about Marketing halal products and how to maintain, manage, innovate and make them REAL PRODUCTS for every one including non-muslim consumers.

ahmed adam

Graduate school of management

International islamic university Malaysia

ahmedarea@gmail.com

PS: kindly include the name of the original author (ahmed) if you further need to reuse or save this property.

CopyRight@2010 Simple ahmed

Regards,