ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS
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3 ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS
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5 ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS PAUL TEMPORAL John Wiley & Sons (Asia) Pte. Ltd.
6 Copyright 2011 John Wiley & Sons (Asia) Pte. Ltd. Published in 2011 by John Wiley & Sons (Asia) Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons (Asia) Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore , tel: , fax: , enquiry@wiley.com. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought. Neither the authors nor the publisher are liable for any actions prompted or caused by the information presented in this book. Any views expressed herein are those of the authors and do not represent the views of the organizations they work for. Other Wiley Editorial Offices John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia Wiley-VCH, Boschstrasse 12, D Weinheim, Germany Library of Congress Cataloging-in-Publication Data ISBN (Hardcover) ISBN (e-pdf) ISBN (e-mobi) ISBN (e-pub) Typeset in 10.5/13.5 Berkeley Medium by MPS Limited, a Macmillan Company Printed in Singapore by Toppan Security Printing Pte. Ltd
7 Contents Preface...xi Acknowledgments...xix 1 Introduction... 1 Islam: The Religion and the Brand... 1 Is Islamic Branding a Myth or a Reality?... 2 The Five Pillars of Islam... 4 The Principles of Islamic Trade and Commerce...5 The Interface between Islam and Trade... 9 How Are Islamic Brands Doing? Why the Interest in Islamic Branding and Marketing?...11 Could There Be an Islamic Economic Union? Why Muslim Nations Need to Develop Strong Brands.15 Introduction...15 Why Do Countries Need Branding?...15 Why Do Islamic Countries Need to Undertake and Encourage Branding?...16 The Power and Rewards of Country Branding...18 The Connection between National and Corporate Branding...21 National Brand Structures Sector and Industry Branding...25 Case Study 1: Brunei Halal Brand...26 Case Study 2: Sarawak Summary: Branding for Islamic Countries and Industries...38
8 vi Contents 3 An Overview of Muslim Markets...41 Introduction...41 The Growing Global Muslim Market...41 The Gallup Coexist Index JWT Muslim Market Segmentation...58 Ogilvy & Mather Worldwide and Ogilvy Noor...65 Retail Muslim Consumer Segmentation Summary: What Does All This Mean? The Range of Opportunities in Islamic Branding and Marketing The Nature and Structure of Islamic Markets...81 Introduction...81 A Typology of Islamic Brands Building a Brand Strategy...91 Introduction...91 Brand Strategy...91 Case Study 3: Hallmark Inc The Role of Consumer Insight...95 Case Study 4: Unilever Malaysia...96 Creating a Brand Strategy...98 Brand Personality, Attitude, and Trust Speed, Agility, and Innovation Brand Positioning The Need for Positioning Statements How to Write and Use a Positioning Statement Brand Management...118
9 Contents vii Can Islamic Brands Use Western Techniques to Go Global? Case Study 5: Opus International Group plc Case Study 6: Petronas Summary Opportunities in Islamic Brand Categories Introduction Islamic Foods and Beverages Case Study 7: Yildiz Holding Islamic Financial Services Islamic Education Islamic Entertainment and Edutainment Case Study 8: Sami Yusuf Case Study 9: THE Islamic Travel, Tourism, and Leisure Case Study 10: CrescentRating.com Islamic Medical, Pharmaceutical, and Beauty Products and Services Islamic Fashion and Products for Women Islamic Internet, Media, and Digital Products Vast Opportunities; No Big Brands Summary The Future: Opportunities in the Internet, Media, and Digital World Introduction The Impact of Internet Developments on Marketing...180
10 viii Contents Social Media Branding and the Muslim Lifestyle Consumer Implications for Islamic Branding and Marketing Case Study 11: Muxlim Inc.: I Case Study 12: Muxlim Inc.: II Other Internet Brands Opportunities in Traditional Media Case Study 13: Islam Channel Case Study 14: emel Case Study 15: Aquila Summary Challenges Facing Islamic Brands Introduction Key Challenges for Aspiring Muslim Brands: The Six A s Summary Key Success Factors and Strategies for Aspiring Islamic Brands Introduction Understand the Market Clearly Build Your Brand Based on Islamic Values with Universal Emotional Appeal Case Study 16: Al Rajhi Bank in Malaysia Position Your Company and Brand on Relevance to the Market Case Study 17: Chicken Cottage Ltd
11 Contents ix 4. Communicate the Brand Appropriately and with Islamic Appeal Case Study 18: Olpers Case Study 19: Zain: I Gain First Mover Advantage in New Industries and Categories Consider Mergers, Acquisitions, and Partnerships Case Study 20: Godiva Chocolatier Develop New and Ethical Business Models Using Islamic Values and Practices Case Study 21: Zain: II Case Study 22: Johor Corporation (JCorp) Build an International Brand Using Western Techniques and Appeal Case Study 23: Dubai Aluminium (DUBAL) Aim for a Niche Market Case Study 24: Ummah Foods Case Study 25: Bateel Offer a Close Alternative in a Major Category Case Study 26: Fulla Case Study 27: Beurger King Muslim (BKM) Case Study 28: OnePure Beauty Summary Challenges and Key Strategies for the Building and Marketing of Non-Muslim Brands to Muslim Markets Introduction
12 x Contents Gaining Brand Awareness Ensuring Accessibility Case Study 29: QSR Brands Berhad and Yum! Brands Gaining Acceptability Achieving Suitable and Consistent Standards and Quality (Adequacy) Understanding the Culture Gaining Trust (Affinity) Case Study 30: Nike Case Study 31: MoneyGram International Attack from Brand Competitors Case Study 32: The Nestlé Approach Summary Summary of Power Brand Strategy Programs for Muslim Markets Strategies for Non-Muslim Brands Strategies for Muslim Brands The Future of Islamic Branding and Marketing Appendix 1: The Oxford Research and Education Project on Islamic Branding and Marketing: Brief Project Overview Appendix 2: The Inaugural Oxford Global Islamic Branding and Marketing Forum: Summary of Proceedings, July 26 27, 2010, Oxford, England Index
13 Preface Very little has been written to date about how Islamic branding and marketing, or marketing to Muslims, differs from or is similar to traditional branding and marketing, which is based on Western corporate development. The lack of literature on the topic is surprising, given the extent of the world s Muslim population and the prominence of Islam. This gap in our knowledge gave rise to The Oxford Research and Education Project on Islamic Branding and Marketing, which is being conducted at Oxford University s Saïd Business School and which I am directing. A brief description of this project is given in Appendix 1. Much of the findings of this research work have been incorporated into this text. A second reason for writing this book is that many of my clients, as well as professional people whom I have met in Islamic countries, have commented to me on the need for a body of thought on this subject area. The extent of this interest, and the impact of the extremely rapid development of Islamic countries on the aspirations of Muslims in a branded world, leave me in no doubt that the next wave of global branding will come from Islamic economies and companies. A third reason is that global brands from Western countries are becoming very interested in Muslim markets. Some have already started to build their brands across the Islamic world and are seeking to achieve a complete global presence by entering the last remaining and biggest significant segment of the world s population. Around 23 percent of the world s population is Islamic, with varying degrees of affiliation and implementation of that religion. While some businesses, academics, and people living in the West often think of the Islamic population as being concentrated in a handful of nations, especially in the Middle East and Southeast Asia, the truth is that there are significant Muslim-minority populations around the world from India to China, and from France to Japan. In Islamic-majority and minority countries throughout the Middle East, Asia, Africa, and Europe, there is a massive amount of business activity, with
14 xii Preface Islamic trade currently assessed as being worth trillions of dollars. In terms of global economic power and commercial success, it is becoming clear that Islamic countries are gaining ground on their Western counterparts. The rising prosperity and spreading population of Islam is, however, only part of the story. Muslim consumers are no different to non-muslims in their love of brands. From a marketing perspective, just as the Western world has done, the Muslim world would dearly like to develop an array of leading global brands of its own. Muslim countries would also like to see their local brands going global, because they have seen how powerful brands can be in making an economic contribution and shaping a country s national image. In particular, they have noticed that the cultivation of intangible assets such as strong brands is seen as an essential feature of a mature, stable national economy. Finally, many Muslim countries want to diversify their business interests in order to achieve greater economic well-being and to rely less on narrow resource-based industries such as energy. Since the late 1980s, there has been a substantial increase in the number and success of Western-held brands. During the 1990s, we saw a competitive response beginning in Asia, with brands from countries such as Singapore, South Korea, India, and China making considerable progress in regional and global markets. It is perhaps not surprising, therefore, that early signs of branding success from Islamic countries, such as those in the Middle East and Asia, are emerging. At the same time, the vast potential represented by large Muslim populations everywhere has caught the eye of the Western multinationals. However, it is only recently that the potential of the global Islamic market has been fully understood. Principally, the impetus for doing more business in Islamic-majority and minority markets has come from three sources: the rapid expansion of Western brands to penetrate these markets in order to gain a global presence; the response from Islamic companies, and the need to rely less on finite resources such as oil production; and the rise of industries that conform to Islamic practice, such as Islamic financial services.
15 Preface xiii By way of response, Islamic audiences love Western brands, but there are three main reasons why they wish to have their own. 1. Western brands are often not compliant with Islamic values (or their ethical base) for instance, in hospitality, food and beverage, pharmaceutical and medical products, and services markets. 2. Islamic countries want to create their own global brands, which they see as strategic business assets and national brand ambassadors. 3. The growth of the educated middle class in Muslim-minority and majority cultures and countries has created an impetus for developing businesses, products, and services that are competitive with the long-established and accepted brands. As a consequence of the above, there is now a considerable surge in demand within Islamic countries and companies to master the branding and marketing techniques and skills so ably demonstrated by the West in order to address international perceptions not just of Islamic products, services, and businesses, but also of the countries and cultures of their origin. What Is Islamic Branding and Marketing? When I use the phrase Islamic branding and marketing, I am not referring just to brands that originate from Islamic countries, although they would of course come under such a definition. Rather, I am referring to any brands that seek to address the needs of Muslim markets. I include in this definition any activity related to the branding and marketing of countries, products, and services to Islamic audiences, regardless of whether or not they derive from a Muslim-majority or Muslim-minority country or have Muslim ownership. This rather broad definition thus encompasses not just Islamic branding and marketing to Muslim-owned businesses, but also companies that don t have Islamic owners but which are reaching out to Muslim consumers. Thus, non-muslim brands would also come under this heading if they were looking to build their brands and market share in any
ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS
ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS ISLAMIC BRANDING AND MARKETING CREATING A GLOBAL ISLAMIC BUSINESS PAUL TEMPORAL John Wiley & Sons (Asia) Pte. Ltd. Copyright 2011 John
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