Understanding Islamic Marketing

Islamic Marketing is the study of marketing phenomena in relation to Islamic principles and practices or within the context of Muslim societies (Jafari, 2012). Islamic Marketing could be religion-based marketing in which marketing activities are guided within the framework of Islamic Shariah, or Islamic Marketing could also mean the practices carried out by companies, Muslims or otherwise, to Muslim consumers (Alserhan, 2011). According to Ogilvy Noor, the Muslim consumer market, consisting of 1.8 billon people is undeniably the next important (and largely untapped) global opportunity.

The Halal market alone is worth US $2.3 trillion a year and is increasing at US$500 billion a year due to the growth of the global Muslim population. It is expected that the global Muslim consumer Market will reach $30 trillion by 2050.

Celebrating diversity
Over a period of time, an Islamic identity has matured as something that homogenizes diverse audiences and governs some key behavioral traits. As with other niche segments, there is evidence to show that there are patterns of higher consumption and greater loyalty, when aligned with Islam. Just as the Chinese have brought us new terms and concepts such as Guanxi (social relations) and Mianzi (maintaining one's face); and likewise the Japanese with Kaizen (improvement and change for the best) and Kanban (just-in-time production); the modern Muslim world has specific characteristics. Despite the differences because of strong regional characteristics, the basic Islamic principles form the foundation of the common bond between Muslims across the globe. Faith, prayer, fasting, Zakat (charity) and Hajj (pilgrimage) are the five binding pillars of the Muslim community which serve as a metaphor for how they deal with different brands.

Business opportunity
For both, Muslims as well as non-Muslims, this represents a tremendous business opportunity to create new products and services to the needs and nuances of niche Muslim markets. Islamic marketing is not restricted to brands originating from the Islamic countries or only to those companies owned by the Muslims. It goes past both, and is defined in the way companies are striving to reach out to the Muslim customers, with values which are resonant with the community. A good understanding of the Do’s (Halal), Don’ts (Haram) and the grey area in between, goes a long way in determining what will work for the Muslim community, without offending the sentiments of the followers of any other community.

At a broad level, the Islamic marketing efforts can be bucketed under following three categories:

1. Following the Islamic norms and certifying for the same - Halal & Shariah Compliant
   
   A Halal certification goes a long way in finding acceptance within the Muslim community. While Muslims do not specifically look for the Halal branding in all aspects of consumption, it plays an important role in the food and beverage category along with personal care products. Similarly, the Shariah compliant financial options are in huge demand in Islamic countries.
   
   
   Nestle has been selling Halal versions of the company's well-known brands such as Milo, Nescafé, Maggi and Kit Kat since the 1980s to reach out to the consumers in the Islamic countries. It regularly updates the list of Halal products on its location specific websites, the latest one can be checked here for Australia and here for the Malaysian market.
   
   
2. Reaching out to the community with dedicated marketing strategies
   
   A lot of product lines don’t necessarily require a Halal certification for being consumed by the Muslim community. According to a study undertaken by National Defence University of Malaysia, brands which have tried to celebrate the Islamic values and have been Muslim centric have witnessed greater purchase intent from the community. This is true for the global community, as Ogilvy Noor states that almost 90% of Muslim consumers accept that their faith influences the consumption.
   
   Amongst other brands, Pepsi and Coke have been releasing their Ramzan (Ramadan) specific campaigns in Islamic countries, which have gone viral in other geographies as well. However, Paperboat became the first FMCG brand to have launched a Ramzan campaign for the Indian market. Looking at the comments on all social media channels, it looks like the brand managed to successfully weave its core theme of memories with the holy month of Ramzan.
   
   
   On the other hand, Surf Excel's #MadadEkIbadat Ramzan (they prefer to call it Ramazan?) campaign has stole the thunder from the soft drink giants.
   
   

   From the India perspective, it looks like the strategy is to release a campaign on one side of the border and leverage the digital media for creating an impact on the other.

3. Creating special product offerings to meet the demand of the Muslim customers
   
   The mature and the most difficult strategy for a brand looking to capture the Muslim market is to understand their specific concerns so that it can address them accordingly. But quite a few companies have tried that successfully, given the opportunity available with such a large market.
   
   With prayers five times a day, and a pre-prayer ritual that requires washing the hands and arms, traditional fingernail polish has been mostly off limits for the Muslim women, as it prevents water from making contact with the nails. However, Inglot, a Polish company, has tried changing that by launching a new 'breathable' nail polish which the company claims, lets air and moisture pass through to the nail.
   
   

   

   In India, two Gujarati sisters, Mauli and Grishma Teli launched Iba Halal Care, first company to serve Halal cosmetics in the country. They even launched a retail outlet which is women-only and has saleswomen in trendy Hijab to assist the modern Muslim customers. 
   
   Bombay Stock Exchage's Shariah index is another example of creating a dedicated product offering, based on the needs of the Muslim customers. The S&P BSE 500 Shariah Index is designed to track the performance of the Shariah-compliant companies.

Other than the above three categories, there are brands which have found resonance with the larger community, just because of their unique positioning in the market - which by defaults feeds the demand from the Muslim customers. Tang and Rooh Afza are a common sight at Muslim homes, treated as must haves while breaking the fast for instant energy. 

The growing scope of Halal & Islamic Marketing
While traditionally, the Halal and Shariah certifications were restricted to food and finance, the new age companies rising from the Islamic countries have started pushing the envelope for certification across different industries.

To conclude, while serving the Muslim customers, marketeers should not assume Muslims to be a homogeneous and preexisting segment. They need to focus on the daily practices for which the product may be relevant and generate solutions that will help Muslims live proper Islamic lives. A Muslim lives eleven months in a particular way, takes efforts for the month of Ramzan and celebrates Eid as no other day!

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Farhan Shaikh has contributed to IGI Publication's recently released book on Islamic Marketing -  'Islamic Perspectives on Marketing and Consumer Behavior: Planning, Implementation, and Control'. The book brings together the best practices for entry and expansion of global brands into Islamic countries and is an essential reference source for professionals looking to incorporate the laws and practices of Islam into the global presence of their company.