Marketing to the Islamic World Mustafa M. Farouk Federation of Islamic Associations of New Zealand Presentation to the International Marketing Class MARK.

Marketing to the Islamic World

Mustafa M. Farouk

Federation of Islamic Associations of New Zealand

Presentation to the International Marketing Class MARK 302 School of Marketing & International Business, Victoria University of Wellington, October 6, 2006

Contents• The Islamic world• New Zealand trade with the Islamic world • The Muslim consumer:

– Belief & its implications to marketing– Practice & its implications to marketing– Sources of law & its implications to marketing

• The Muslim consumption pattern• The Muslim dressing pattern• Gender separation and its implications• Islamic marketing/business ideals• Advertisements and promotions to Muslims• Current trends in Islamic markets

– Commercialising Islam– Global events and the Muslim consumer

The Islamic world

• Estimated population 1.3-1.7 billion

• ~ 40,000 live in NZ• Fastest growing religion in

the world• Muslims are widely

distributed around the world

• Diverse colours, ethnic groups, languages, cultures

• United in faith

NZ trade with the Islamic world

Source: MIA NZ Annual report 2005

• New Zealand’s annual exports to ICCI countries totalled over $2.2 billion in June 2005

• NZ export to GCC alone is worth 720 million in 2005

• NZ negotiating a FTA with GCC countries

• New Zealand exports to Malaysia were worth $546 million; about half of this was in dairy and meat products.

Bulk Halal certified

Bulk Halal certified

The Muslim consumer: BeliefsIslam: Means peace but from the spiritual point it means peace and complete submission to the will of God. When we submit to the will of God then we will have true peace

– Oneness of God (Allah)

– His angels

– His messengers (Abraham, Moses, Jesus, Mohammad E.T.C. Peace be upon them all)

– His books

– The day of Judgement

– Divine destiny good or bad.

The Muslim consumer: Practice

• Prayers

• Charity (Zakat)

• Fasting (Ramadan)

• Pilgrimage (Hajj)

• Others (e.g. being a good neighbour)

The Muslim consumer: Sources of law

• The Quran (Muslim Holy book)

• The traditions of the Prophet

• The consensus of learned Muslims on emerging issues derived from the Quran and the traditions of the Prophet (PBUH)

• The laws of the land as long as they do not contradict God laws

Islam is a complete way of life

Everything a Muslim does from entering the toilet, eating, doing business, national and international marketing to politics can be an act of worship

Saying of the Prophet (SAW):

One should not please a creation at the expense of the creator (God)

The Muslim consumption pattern

Islamic dietary terms

• Halal- lawful

• Haram- unlawful

• Makrooh- discouraged

• Mashbooh- suspect

The Muslim consumption pattern

Allowed* (Halal):• Properly slaughtered cattle,

sheep, goats, deer, camel, chicken etc.

• All sea foods without the need for slaughter

• All non-poisonous vegetables and fruits

* This list is not exhaustive

The Muslim consumption pattern

Prohibited (Haram):• Dead meat or carrion• Swine and all products and ingredients

derived from swine• Flowing or congealed blood• Foods dedicated to idols• Intoxicants of all types • Carnivorous animals with fangs and

birds of prey with sharp claws

The Muslim dressing pattern

And say to the believing women that they should lower their gaze and guard their modesty; that they should not display their beauty and ornaments except what (must ordinarily) appear thereof; that they should draw their veils over their bosoms and not display their beauty except to their husbands, their fathers, their husband's fathers, their sons, their husbands' sons, their brothers or their brothers' sons, or their sisters' sons, or their women, or the slaves whom their right hands possess, or male servants free of physical needs, or small children who have no sense of the shame of sex; and that they should not strike their feet in order to draw attention to their hidden ornaments. And O ye Believers! turn ye all together towards Allah, that ye may attain Bliss (24:31).

“Every part that is permissible to touch may be looked at, and every part that is forbidden to be looked at may not be touched” Bakhtiar, L. (1996). Encyclopedia of Islamic Law. P.74.

Gender Separation and its Marketing Implication

There are no

bored-looking husbands or boyfriends waiting around. In fact, there's not a single man in sight. Welcome to Israel's first women-only shopping experience. http://news.bbc.co.uk/2/hi/middle_east/4923618.stm

AT THE time, most people agreed it seemed a good idea: carriages on Japanese commuter trains set aside specifically for females would dramatically reduce the number of women being molested by the chikan who get their kicks by having a sly fondle among the tightly packed bodies. And it worked. http://news.scotsman.com/international.cfm?id=1047972006

http://www.now.org/nnt/summer-2002/gender.html

At least three major U.S. companies — including McDonald's, Pizza Hut and Starbucks ……………have made a number of changes to their business practices in "deference" to Saudi customs, including maintaining segregated seating in their restaurants and having separate entrances for women and men.

Islamic marketing/business ideals

• Only lawful activities are permitted (Halal)– 2:168 O MANKIND! Partake of what is lawful and good on

earth, and follow not Satan's footsteps: for, verily, he is your open foe.

• All transactions involving usury/interest are prohibited (Haram)– 2:275 THOSE who gorge themselves on usury behave but

as he might behave whom Satan has confounded with his touch; for they say, "Buying and selling is but a kind of usury" - the while God has made buying and selling lawful and usury unlawful. Hence, whoever becomes aware of his Sustainer's admonition, and thereupon desists [from usury], may keep his past gains, and it will be for God to judge him; but as for those who return to it -they are destined for the fire, therein to abide!

Islamic marketing/business ideals

Use of Images are discouraged

Narrated 'Aisha: I purchased a cushion with pictures on it. The Prophet (came and) stood at the door but did not enter. I said (to him), "I repent to Allah for what (the guilt) I have done." He said, "What is this cushion?" I said, "It is for you to sit on and recline on." He said, "The makers of these pictures will be punished on the Day of Resurrection and it will be said to them, 'Make alive what you have created.' Moreover, the angels do not enter a house where there are pictures.'“

Dealing in intoxicants, gambling and games of chance is prohibited– 5:90 O YOU who have attained to faith! intoxicants, and games of

chance, and idolatrous practices, and the divining of the future are but a loathsome evil of Satan's doing:' shun it, then, so that you might attain to a happy state!

Islamic marketing/business ideals

Promise must be kept and truth must be told

– 61:3 Most loathsome is it in the sight of God that you say what you do not do!

– Narrated 'Abdullah bin Abu Aufa: A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Verse was revealed:-- "Verily! Those who purchase a little gain at the cost of Allah's covenant and their oaths . . . Will get painful punishment." (3.77) Ibn Abu Aufa added, "Such person as described above is a treacherous Riba-eater (i.e. eater of usury).

Undercutting another in business prohibited

– Narrated 'Abdullah bin Umar: Allah's Apostle said, "You should not try to cancel the purchases of one another (to get a benefit thereof), and do not go ahead to meet the caravan (for buying the goods) (but wait) till it reaches the market.“

Brokering is prohibited

– Narrated Tawus: Ibn 'Abbas said, "Allah's Apostle forbade the selling of foodstuff before its measuring and transferring into one's possession." I asked Ibn 'Abbas, "How is that?" Ibn 'Abbas replied, "It will be just like selling money for money, as the foodstuff has not been handed over to the first purchaser who is the present seller."

Advertisement and promotions

• Interest free deals can be attractive to Muslims

• Buy one get one free has no issues and is attractive

• Cash deals are better than offering a chance to win. The latter may be seen as gambling which is prohibited

• Auction selling may be seen as undercutting one another in business, which is prohibited

Think Muslim, drink Muslim, says new rival to Coke

French firm capitalises on anti-US feeling to sell cola http://www.guardian.co.uk/international/story/0,3604,870413,00.html

Commercializing Islam

Commercializing IslamIn Damascus, a Fulla doll sells for about $16, in a country where average per capita income hovers around $100 per month. And yet, said Nawal al-Sayeedi, a clerk at the Space Toon toy store in the city's upscale Abou Roumaneh neighborhood, Fulla flies off the shelves.

http://www.nytimes.com/2005/09/22/international/middleeast/22doll.html?ex=1285041600&en=72bb8cc089bf9435&ei=5090

Global events and the Muslim consumer

• Impact of Middle East conflicts

• Danish cartoons

• We have taken 40 years to build up a very big business in the Middle East, and we've seen it come to a complete stop in five days.

Astrid Gade NielsArla spokeswomanhttp://news.bbc.co.uk/2/hi/middle_east/4666298.stm

Global events and the Muslim consumer

Cone-demned ... 'spinning whirl' ice creams look similar to the world Allah written in Arabic script

 Ice creams are being withdrawn from Burger King — because a design on the lid looks like the word Allah. http://www.thesun.co.uk/article/0,,2-2005430136,,00.html

Global events and the Muslim consumer

Nike apologized to Muslims for any unintentional offense, agreed to recall all products carrying the design, introduced training for

Nike designers in Islamic imagery and agreed to investigate how the design came about.

http://www.cnn.com/US/9811/21/nike.islamic/