Professional Documents
Culture Documents
TEKNOLOGI
MARA
sona
Lecture
FARIDAH H J HASSAN
PENERBITPPRESS
UNIVERSITI TEKNOLOGI MARA
© UiTM Press, UiTM 2013
All rights reserved. No part of this publication may be reproduced, copied, stored
in any retrieval system or transmitted in any form or by any means;
electronic, mechanical, photocopying, recording or otherwise; without
p r i o r p e r m i s s i o n in w r i t i n g from the D i r e c t o r of U i T M P r e s s ,
Universiti Teknologi MARA, 40450 Shah Alam, Selangor Darul Ehsan, Malaysia,
e-mail: penerbit@salam.uitm.edu.my
Faridah Hj Hassan
Professorial Lecture: Halal Food Marketing : Dare to Win! /
FARIDAH HJ HASSAN.
References: page 91
ISBN 978-967-363-498-9
I. Halal food industry-Malaysia. 2. Halal food~Malaysia~Marketing.
II. Judul.
338.19595
Mohamed Firdaus
Nabilah
Mohamed Fikri
Nur Sarah
Contents
List of Figures ix
List of Tables xi
Preface xiii
Acknowledgements xv
Introduction 1
Concept of Marketing 1
Conclusion 87
Recommendations 89
References 91
Index 99
VIII
List of Figures
x
List of Tables
Halal Food Marketing: Dare to Win! looks into the potential of the
global Halal food market as well as what Malaysia could offer. It is
also important to be informed on Malaysia's current trade activities,
connections and positions as to see whether Malaysia could capitalise
on existing trade affiliations in order to promote and market Malaysia's
own Halal products based on the marketing mix of the four 4Ps - Product,
Place, Price and Promotion. The Halal food market is a lucrative business
due to the fact that the Islamic faith has been widely understood and
accepted both by suppliers (in Muslim and non-Muslim countries) as
well as buyers and futhermore Muslims are growing in population. Thus
it is important to know where Muslims are residing in the world as that
is where the Halal food market has the highest potential. By applying
the SWOT (Strength, Weaknesses, Opportunities and Threats) analysis
using the matching and resultant strategies, a marketer will be able to
identify the business opportunities by priority and win the return on
investments in the global market.
Sincerely,
Faridah Hj Hassan
(PhD) Marketing and Strategic Management FCIM UK
Dean Faculty of Business Management
UniversitiTeknologi MARA, 40450 Shah Alam, Selangor DE.
XVI
Halal Food Marketing:
Dare to Win!
INTRODUCTION
With the positive growth of the Muslim population together with better
economic and education condition worldwide, the demand for Halal
products and services is very large and is expected to grow. Malaysia's
Halal food industry has a lot of products that can be offered and marketed
in the Halal world. Companies export to foreign markets because of the
need to diversify markets and reduce risks, to expand sources of revenue
and also to enhance competitiveness through product improvement and
economies of scale (Faridah and Rosidah, 2011).
CONCEPT OF MARKETING
must be done in a way that one neither becomes a loser nor becomes
avaricious, and where the rights of buyers and sellers and all other parties
involved are also protected. He also believes that marketing practices
not only play a role in raising the business profit and standard but also
in raising the quality of services or products preferred by the customer.
Adherence to such ethical practices can help to elevate the standard of
behaviour and thus, the standard of living of traders and consumers alike.
Four Ps Four Cs
Product Customer Solution
Price Customer Cost
Place Customer Convenience
Promotion Customer Communication
Gaurav Akrani, Mudit Katyani and Manoj Patil (2010), Marketing Mix and 4Ps of Marketing,
Kaylan City Life, India
2
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Islamic rules refer to the organising activities that are involved with
products and activities that are prohibited or related to unethical
behaviour. Halal marketing is an Islamic rule that is lawful for Muslim
consumption by decree of Shariah compliance. Islamic dietary and
consumption system is different and unique compared to other ethnic
3
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
dietary systems (Ameur, 2011). Halal food marketing has improved and
developed since the demand for Halal food increased all over the world.
The opportunities in Halal food can be seen as advantageous to other
manufacturers to invent Halal food marketing strategies.
Of late, the term Halal has attracted much attention from non-
Muslim consumers around the world. The Halal market has developed
in small numbers of Muslim populations such as in European countries
5
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
and the United States of America. The unique and healthy properties of
Islamic diet has attracted these non-Muslim consumers to ensure what
they eat comes from good quality ingredients and are safe.
Halal food market has the potential to widen its market due to the
massive agriculture production by exporting countries and the greater
purchasing power among the Muslim communities' consumers in the
importing countries.
The relevance of labelling products with the Halal logo shows the belief
in the right of Muslim consumers to be adequately informed. The Halal
logo has therefore become a marketing advantage for the products
marketed to the Muslim world. The Halal certificate is seen as advanced
and important to Muslim societies in Saudi Arabia, Malaysia, Indonesia,
Brunei and other Muslim countries. These Muslim countries are relying
on the certifications made by the accepted credible certifying bodies that
are already in place. The Halal certificate acts as a marketing advantage
to the Halal food market.
Halal is an Arabic word meaning lawful and permitted. This Halal concept
comes from the Holy Quran which it uses to describe objects and actions
(www.isnaHalal.ca). Islam is a natural way of life and encompasses
the concept of an economic system based on human cooperation and
brotherhood, which is based on the consultation and dietary laws for all
humanity. Halal consists of anything that is free from any component
that Muslims are prohibited from consuming. This can be classified as
'pork free' in its physical existence, including food substances such
as gelatine, enzymes, lecithin and glycerine as well additives such as
flavourings and colouring (Zakaria, 2008).
6
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Hence it is understood that there are two essential factors that should
be stressed for Muslim food consumption, namely Halal which it is
permissible and tayyib refers to good quality. The Quran states that eating
food that is Halal and the avoidance of what has already been forbidden
(Haram) is an obligation of every Muslim. Every hukm (ayat) laid down
in the Quran has its own reasoning and must not be taken for granted.
7
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
ASIA
9
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
a
I Total Ha!a! Food
Expenditure by
Continent. 2009
Figure 3: Global Food Market Size and Global Halal Food Market Size
Source: Global Pathfinder Report, 2010
10
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Figure 3 shows the global food market size and global Halal food
market size. The blue bars represent the food expenditure by continent
and the purple bars are the total Halal food expenditure by continent
in 2009. This provides evidence that Asia was the biggest consumer of
Halal food, at 62% as compared to the other continent. The World Halal
Forum held in Singapore in July 2009 by the International Halal Integrity
(IHI) Alliance pointed out that the global food market was valued at USD
$3,992.2 billion and the global Halal food market was worth an estimated
USD $634.5 billion, with Asian countries making up USD $400.1 billion
of total Asian Halal food market size.
Asian countries are one of the world's leading suppliers and also
importers of Halal certified products in the world. Even though these
countries compete in the international front, there has been substantial
trading in Halal products among them. For example, Malaysia is a
major exporter to Indonesia and Brunei. According to the Halal Industry
Development Corporation of Malaysia, among all Halal products on a
global scale, 10% is represented by meats, and 35% is processed food
and non-alcoholic beverages. Value-added beef products and deli are
classified within the processed food category, which also includes a wide
variety of other products, such as cookies, candies, and so on. Although
they target Muslim consumers, the non-Muslim consumers or markets
cannot be overlooked since they are also interested to consume Halal
products and offer huge opportunities for food producers to cater to the
potential demand from them.
11
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Thailand, and Vietnam. For this study, issues related to Halal food in
Muslim and non-Muslim countries in only five major countries - Brunei,
Malaysia, Singapore, Indonesia and Thailand - were studied.
Country
Brunei
B^=
Malaysia
E3
Singapore
SI
Indonesia
Population 408, 786 29, 179, 952 5, 353, 494 248,216, 193
*2012 Muslims: Muslims: Muslims: Muslims: 213,
estimate 273 886.62 17,624,691 80,3024.1 714, 142. 173
(67%) (60.4%) (15%) (86.1%)
Currency Brunei Dollar Malaysian Singapore Rupiah (IDR)
(BND) Ringgit Dollar Rp 1.0381/
(MYR) (SGD) Rm 0.0003
1 S$/
RM 2.5926
GDP: Total $20,969 $447,279 $314,911 $1,124 trillion
billion billion billion
| : PPP $49, 384 $15,568 $59, 711 $4,666 |
Source: Index Mundi, 2013
Brunei Darussalam
12
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
13
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Malaysia
14
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Malaysian brands
15
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
for several years, and exemption of duty import. This will attract various
investors, either domestically or internationally, so that Malaysia can
become the central trading hub for Halal products. Malaysia must also
intelligently market itself and achieve the Halal-hub's main objective of
providing a credible platform in connecting global Halal supply-chain
and certification for Halal Assurance.
17
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
18
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Singapore
19
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Price: $2.60 (RM 6.65) Price: $2.00 (RM 5.10) Price: $2.85 (RM7.30)
Figure 9: Singapore Halal Logo and Halal Products
20
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Figure 10: Issues in Singapore - Halal Stamp on Product that Contained Pork
Ingredients
The issue in Singapore is the claim that their Halal logo was
recognised all over the world; however, some non-Halal products that
have pork elements had the Halal stamp on it. This shows that the
authorising body did not inspect the product carefully. This will harm
the image of Singapore's Halal logo and Muslim customers will refuse
to buy any Halal products from Singapore.
Indonesia
21
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Indonesian brand
\ s
$ $ & >
NE
Issues in Indonesia
22
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
completely independent plants, one for Halal and the other for non-Halal
products. Delivery and storage of non-Halal products are done using
dedicated trucks. As a result, there is no co-loading with Halal products.
Thailand
24
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
At the J.M Food Industry, they have four types of ready to eat
food - fresh, prepared, chilled, frozen - and sauce. They are famous for
Thai sauce and the torn yum combination taste of sweet, sour and spicy.
Besides that, they also export Thai banana and pineapple fritters as seen
in figure above.
Issues in Thailand
East Asia
25
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
South Korea
27
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
above, other food makers that earned Halal certification from more than
one Muslim state are Namyang Dairy Products, Nongshim, Pulmuone,
Orion and Lotte Confectionary.
m1
Daesang USD $5.29 RM16.9042 (500g)
Chunjungone •<r (500g)
Mayonaise
28
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
them expand their Halal food products regionally and globally. In March
2013, the Korea Trade-Investment Promotion Agency (KOTRA) under
the Ministry of Trade, Industry and Energy signed a memorandum of
understanding with Majelis Ulama Indonesia, Indonesia's top Muslim
clerical body and Halal certification issuer, to make it easier for domestic
food makers to enter the Indonesian market (Park, 2013). Korea Agro-
Fisheries Trade Corporation (aT) opened a branch office in the Indonesian
capital, Jakarta, last July to help Korean food exporters advance to the
Muslim food market. 88% of Indonesia's population is Muslim and the
Halal food market there reaches USD$70 billion. Last year, Indonesia
imported about USDS 150 million worth of Korean foods. Among the
Korean products, Indonesian people mainly prefer sauces, snacks,
instant noodles and processed coffee products. The Jakarta aT office
made efforts to promote Korean foods utilising 'Hallyu' (Korean culture
wave) marketing and by conducting sales promotions for Korean foods
in cooperation with large local distributors.
China
2S
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
and Gansu provinces and in Inner Mongolia. The key advantage of the
Chinese Halal industry is access to cheap labour. Islam was introduced
into China officially in 651 in the Tang Dynasty (618-907) through
marriage with Arabic traders. The Muslim Hui ethnic group was formed,
and thus Chinese Halal food history started. It is very common to see
wines served at Halal restaurants in big cities like Beijing, Shanghai,
Guangzhou, Shenzhen in China. However in Northwest China's Shaanxi,
Gansu and NingxiHui Autonomous Region where you will see a large
Muslim population, Halal restaurants are very strict on alcohol. Wines
are strictly prohibited at Halal restaurants in those provinces. To run
a Halal restaurant in China, Halal certificates is required and this can
usually be obtained from the local Ethnic and Religious Affair's Office
of the city after necessary inspections. In some areas, Halal certificates
is issued by mosques (IslamiChina, 2002).
30
PROFESSORIAL LECTURE; HALAL FOOD MARKETING: DARE TO WIN!
The Xi'an Yongxin Halal Food Company has invested in the West
Halal Food Base, located in the Xi'an Bonded Area and covering an area
of 70 mu (about 4.67 hectares). The Halal food processing import and
31
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
32
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
China is also one of the main importers of Halal food products from
Malaysia. In 2011, Malaysia exported food products worth RM20.6 billion
to more than 200 countries, of which, processed food contributed about
RM13.5 billion. The main exports were cocoa and cocoa preparations
(RM3.8 billion), prepared cereals andflourpreparations (RM1.6 billion),
and margarine and shortening (MIDA, 2012).
Japan
The Japanese are very inventive in their daily lives and this includes
innovation in new food products that are Halal and in accordance to
shariah laws. There are a few food products that has already been
approved by Halal bodies such as JAKIM from Malaysia. The spirit of
innovation in Japan can definitely help the nation to further expand its
business in the Halal food industry globally. Dumplings or 'gyoza' are
not Halal as the filling is usually pork meat. However, due to the increase
33
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
34
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
35
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
The main markets are Saudi Arabia and the United Arab Emirates
(UAE), contributing more than RM71 billion.
36
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
South Asia
Pakistan
37
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Pakistani food companies made inroads into the UAE market at the
Gulf Food exhibition in February 2012. The major groups held fruitful
meetings at the exhibition and they launched their products from June
onwards, according to industry insiders. K&N's Foods (private) Limited,
a leading name in poultry and meat products in Pakistan, is expected to
market its products in the UAE by June. Other brands like Sufi Cooking
Oil and Habib Oil, leading herbal trademark, Qarshi and confectionery
products leader, Hilal, among others are also planning to enter the UAE
food market this year (Rizvi, 2012).
38
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
India
India is one of the key Halal markets which has a large food safety
concerned population which also encompasses over 177 million Muslims
(Mulani, 2012). According to the Halal India Management Board, the
potential market of Muslim customers is largely untapped but investors
face the problem of using only Halal products. More than 10% of the
world's Muslims lives in India and this makes it the third largest Muslim
community in the world, after Indonesia and Pakistan. There are more
than 175 million Muslims in India having approximately 15% of the
total population with a larger youth ratio, spread out in all states of India.
20 districts have more than 50 % Muslim population in India while 68
districts have more than 25 % share in total population. Most of the
Muslims prefer to buy only Halal-certified products.
39
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
I1IW41.'H.'I'M ASIA-PACIFIC
PAKISTAN ~~" _ - J -CHINA-CONTROLLED
CONTROLLED ^ . . KASHMIR
KASHMIR Countries w i t h t h e Largest P rojected Increase
. '—.— INDIAN-CONTROLLED in N u m b e r of Muslims, 2 0 1 0 2 0 3 0
KASHMIR
UTTAR PRADESH LSHMAltC pftojecieo pROJtcreo
30.7m ( I 8 . S V ) HUS11M MUSLIM NUMERICAL
PAKISTAN D.miCjWl BIHAR POPULATION POPUIATION INCREASE
* = •lots'c proportion of Mm
^•'•M^SHBHKSBSiSi
• More than 10 million • 5-10 million 1 -5 million Lees lhan 1 milion
s>\* * $
I N D I A •
www.halalindia.com
V J
< < < . * #
Figure 23: India Halal Logo
40
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Bikano, the sweet and the namkeen brand from Bikanervala Foods,
has seen a 30% jump in soanpapdi and cookies sales in the Malaysian
market in the last year, partly due to the Halal-certification that gave it
a higher visibility on retail shelves there (Phadnis,2012).
41
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
status. India has always been free from the dreaded Mad Cow Disease
(BSE) and has been free from Rinderpest since 1995. There has not been
a single incidence of Contagious Bovine Pleuro Pneumonia (CBPP) in
India in the past 12 years. Foot and Mouth Disease (FMD) remains the
only issue of concern, though it is controlled through various measures
(Rahman, 2010).
42
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
EUROPE
43
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
EUROPE
Muslim r e of O v e r a l l P o p u l a t i o n , 1990-2030
United Kingdom
44
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
10K9 lOKg
Fresh Chicken Frozen IQF BuyS 1
Niblet W i n g Chicken Niblet or more <
(1st Joint) Wing (1st Joint) E18.99<
15Kg lOKg
Fresh Chicken Frozen IQF Buy 10
Niblet W i n g Chicken or more
Niblet W i n
S
(1 st Joint) (Plain Box}
45
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
The figure above shows the range of different sizes and weight
of Halal beef burgers in the United Kingdom pricing range, which is
between 6 to 12 Euros.
million of them lives in London. They are responsible for the 20.5 billion
Euros of Muslim spending in the UK, and 700 million overall value of
the UK Halal market.
In 2010, the European Halal Food Park was built to increase the
Halal process and market. The objective of the Halal Park was to focus
on the growing demand for Halal beef and sheep in the UK. Examples
of meat that is produced by UK Halal Park is beef, lamb, veal, mutton,
chicken, burgers, sausages and marinated meat products. Besides that,
diverse packaging materials are used to suit wholesalers, retailers and
food service customers. In Europe, about 6 million people are consciously
buying Halal meat. According to Halal Food Authority (UK), "significant
quantities of the meat sold in the UK on the open market are slaughtered
under Halal standards". This explains why the Halal market is slowly
expanding around the world. The safety and quality of the meat has
increased the household demand. Britian's biggest hotel and restaurant
group, Whitebread, which owns the Beefeater and Brewers Fayre chains,
admit that more than three-quarters of its poultry is Halal. Of this, the
highest amount of the meat was supplied by the New Zealand Halal
market.
47
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
j*>^
Muslim Food Board (UK)
Recognised by:
Indonesia (MUI)
Malaysia (JAKIM)
Singapore (MUIS)
World Halal Food Council
HALAAL
Figure 29: Halal Logo in United Kingdom Recognised by JAKIM
Source: www.Halal-zertifikatde
48
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
49
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
France
The Halal market in early 2005 in Europe earned more than 5 billion
Euros. As in all multi-cultural societies, France has seen a rapid growth in
the Halal market over the few past years. The Muslim population living
in France is estimated at 7 million people and 70% of them originate
from countries such as Algeria, Morocco, Tunisia, while others are from
Turkey and diverse Africa Muslim countries (Zakaria, 2008). France is
reported to have the largest population growth for Muslims in Europe.
In France, the non-Muslims' total demand for Halal food is estimated to
reach about USD3 billion annually and they spend up to 14% on food
50
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
only. On the other hand, Muslim consumers spend about 30% to 35%
purchasing Halal foods (World of Halal).
France is a country that has just started to develop the Halal industry
since the demand of Halal products from Muslim consumers is growing.
The first step in developing the Halal market is through the development
of Halal food markets. In 2001, the expansion of Halal shops increased
due to high demand. The Halal market is focusing on the meat segment
which every Muslim takes seriously, particularly on how the meat has
been slaughtered and processed (Zakaria, 2008).
51
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Source: www.Halal-zertifikat.de
AUSTRALASIA
Australia
The growth of the Halal concept in Australia is from the increase
in Muslims in the country (Dickson, 2009). Basically, Muslims are
52
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
53
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
54
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
New Zealand
Tan (2013) clarified that in New Zealand there are 1.5 % of
Muslim population, the same as in Australia. He had justified that the
total population is 3.8 million. Even though there is a small population
of Muslims in New Zealand, there are a lot of restaurants that provide
Halal food in order to market their business. Besides, New Zealand is
also a big exporter of dairy milk and beef like Australia. In fact, New
Zealand is the largest exporter of Halal sheep in the world.
55
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
SUPERMARKETS
In New Zealand, they also had issues regarding Halal food, such as
Halal hysteria where most of the consumers wanted to ban Halal food.
Besides, the way the supplier of meat slaughtered the animal was cruel
(Hassan, 2012).
56
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
W _^,"^i„„ 513799 W
••^™ N e w Z e a l a n d H a l a l € . ^ n i t y i n g Authority ^ ^ 4
w
A . A HAIVtOMAMI J>SAMV A B W I A l .
w 4 . 4
W DMiuiMiCttur!-;
DT«IVI~.:
MALAVWA
AU-HAiiriounxint
Order No: VIV K 4 V W 0 B .
ta^RAJ
RRRRR K.*W«i«ha <K«»V «:«i0 I b M l N w n b t n ; -*KX il>4*> i%»UM ' MRRM
W S t i p H |wi
r r w n » d AH
H.lC.HTMIllWjVARMAWll'i?inM;w.
IBBHRJ
4
W rradKtlaailik
r»».*., date
1/tX.VJOG*
aBBBatf
A
L ^ L ^ * ^ t ^ L ^ L ^ L ^ i
Figure 36: Halal Processed Food Certificate Provided by the New Zealand
Certifying Authority
AFRICA
57
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Egypt
The country in Africa that has a potential opportunity for Halal food
market is Egypt, with a 78.19 million Muslim population that prioritise
the usage of Halal products (Muslim population, 2013). Egypt focuses
on processed food products such as pasta or noodles, savoury biscuits,
sweet biscuits, bread and rolls and snacks (Market Analysis Report,
2011). These products have a higher demand and this has contributed
towards the economy in Egypt. Besides that, Egypt is also popular in
terms of tourism. There are 1600 travel accommodation outlets and all
these travel outlets serve Halal food such as high quality beef, seafood,
sauces as well as canned vegetables and fruit (Egypt Agriculture Report,
2010). This sector contributed towards the economy of Egypt and this
shows the opportunity for the Halal market to expand.
58
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
AMSOI.A i*«Bl
59
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Morocco
Tunisia
Algeria
60
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
The import and export of Halal products in Africa will have gone
through all the procedures in order to get the Halal certification by the
Muslim Judicial Council (MJC), which is the first Halal authority in
Africa. However, the Halal authority has been replaced by the National
Independent Halal Trust because of several issues and the last Halal
logo in Africa has been replaced by the South African National Halal
Trust (SANHA). This is because consumers are more confident with the
way that this body manages Halal food products, whether imported or
exported, in terms of their procedures. This body also gives seminars,
public programmes and community programmes in order to highlight
the dangers of non-Halal foods. Thus, the consumers will not have any
doubts regarding the Halal logo certified by this body (Tayob, S., 2012).
Many plans have been developed by the Halal Industry Development
Corporation (HDC) regarding the opportunity to promote Malaysia as
a Halal standard to be used in Africa. It also wants to collaborate with
MIDA in order to facilitate the trade of Malaysian Halal products and
increase the investments into the Halal sector in Malaysia by the African
Halal sector (Industry Report, 2007). Halal products, especially food,
should be expanded not only in the nations that have high population
of Muslims but also in other nations to make Halal products become
globally successful.
61
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
AMERICA
Muslim Popula
3%0% • Asia-Pacific
• MiddleEast-North Africa
• Europe
• Americas
62
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
AMERICAS
PROJECTED
1990 2010 2030
Americas 2,990,000 5,256,000 10,927,000
Central and South America 1,147,000 1,720,000 2,050,000
North America 1,842,000 3,536,000 8,677,000
AMERICAS
PROJECTED
Pew Research center's Forum c<t Religion & Public Life • 7TB Future or the Global Mustim Population, tanu*
Source: Pew Research Centre's Forum on Religion & Public Life (2011)
63
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Canada
64
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
In terms of beef and veal exports, Egypt, the UAE and Indonesia
are among the largest markets for beef and veal exported by Canadian.
While for poultry, Pakistan and Iran were the largest potential for
Canadian exporters to expand their business and export the poultry there
since they are among the countries that demand poultry. The Pakistan
poultry market is USD768,294 while Iran's is USD289, 850. According
to Grace (2000), as Canada has already entered the poultry industry in
those countries, there are several opportunities to export other meats and
products that follow the Halal requirement. This will help to increase
the Canadian poultry export value.
65
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
66
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
United States
In the United States, the demand for meat has increased and this
has raised an alarm about the future of the meat industry. The US is also
67
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
one of the meat exporters in the world and almost 36 % of meat was
exported to the Middle East region in 2011 (Agriculture and Agri-Food
Canada, 2013). In 2012, the percentage of meat exports to the Middle
East increased 13 %. As the demand for quality Halal food is increasing
in the Muslim world, the US meat industry can gain from the opportunity
available as well as face some challenges that may occur in the future.
Opportunities for the US market will get bigger in the future since
for example, the Middle East relies heavily on imports of between 80 to
90 %. According to Global Pathfinder (2011), fresh meat continues to be
under supplied in Muslim countries like the Middle East, Malaysia and
Indonesia. Thus, the US can cater to these countries in order to expand
its market share of meat exports throughout the world.
68
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Recognised by:
• United States Department of Agriculture (USDA)
• Majlis Ugama Islam Singapura (MUIS) (Singapore)
• JabatanKemajuan Islam Malaysia (JAKIM)
• Muslim World League (MWL) (Saudi Arabia)
• Majelis Ulama Indonesia (MUI)
• Islamic Committee Office of Thailand
• Philippine Halal Association
• United Arab Emirates (UAE) Municipalities
Issues in America
69
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Argentina
70
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
SWOT MATRIX
72
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Besides that, the external opportunities are the factors that Malaysia
can take advantage of to improve its service or service quality. The
external opportunities may vary from the Muslim consumers who
nowadays have started seeking total Halal lifestyle, potential market for
processed foods and also rising demand for fast and convenient Halal
food choice.
73
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
74
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
SO Strategies
75
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
WO Strategies
76
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
TS Strategies
77
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
WT Strategies
78
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Figure 4 2 : 4Ps
Product iBranding
79
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
30
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
tTmfocmatKm
Avdi
WOMB
;,.IIIII!V
pet»r save f:cf ICC 9
7??ll tsafci
used IpfjM
540
RJfl
2119 MM
77 mg
*^5S^Sk*r*^.Uterte,W*2i<i fe^
81
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Before After
82
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Price
83
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
84
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Place
85
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Promotion
86
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
CONCLUSION
87
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
88
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
RECOMMENDATIONS
89
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
2. S e l a n g o r Halal H u b , Pulau
Indah, Selangor State Agency 1,000 acres
3_ M e l a k a Halal H u b , Serkam,
Melaka State Agency 135 acres
6. T a n j c i n g M a n i s Halal Hub.
Sarawak (TMHH) State Agency 77..000 ha
7. P e n a n g I n t e r n a t i o n a l Halal
H u b , Bukit M i n y a k ( P I H H ) State Agency lOO acres
90
References
Abdullah, M. A. (2010). Dean keli makan organ babi haram. (B. H. Online,
Interviewer)
Al-Haran Saad and Low P (2008), "Marketing of Halal Products: The Way
Forward", The Halal Journal, Jan/Feb 2008, pp. 44-46.
Beef and Lamb News, New Zealand . (2013). Market. New Zealand.
Cheng, K.L.P. (2008). The Brand Marketing of Halal Product: The Way Forward.
Journal of Brand Management, Vol. V (4) pp. 37-50.
Egypt Agriculture Report (November, 2010). Past, Present and Future Report.
Agriculture andAgri - Food Canada, 1-9
Egypt Agriculture Report (November, 2010). Past, Present and Future Report.
Agriculture andAgri- Food Canada, 1-9.
Faridah Hj. Hassan, Rosidah Musa (2011), Potential of Halal Products in the
Domestic and Global Market, FAMA - UiTM - MOA Repart.
92
REFERENCES
Gaurav Akrani, Mudit Katyani and Manoj Patil (2010), Marketing Mix and 4Ps
of Marketing, Kaylan City Life, India
Halal Event Ltd. (2013). List Approved Halal Authentication Bodies. Retrieved
from http://Halalfoodfestival.com/list-of-approved-Halal-authentication-
bodies.phpKaufman, J. (2013). Can Buying Food Contribute to Terrorism?
The Counter Jihad Report.
Halal Hub, (2012). Ministry of International Trade and Industry. Retrieved from
http://www.miti.gov.my
Halal Hub. Center for Maritime Economics and Industries, pp. 1-33. Retrieved
from http://www.mima.gov.my
93
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New Jersey:
Prentice Hall
Lipes, J. (2013, January). Foods Mislabeled as Halal Imports. Radio Free Asia.
Retrieved from http://www.rfa.org/english/news/ on 19 September 2013
94
REFERENCES
Market Analysis Report (June, 2011). Saudi Arabia, Egypt and the United Arad
Emirates Consumers, Markets and Demand based Products. Agriculture
and Agri-Food Canada, 2-23.
Market Indicator Report (April, 2011). Global Pathfinder Report: Halal Food
Trend. Agriculture And Agri-Food Canada, 2-8.
Morocco Agriculture Report (November, 2010). Past, Present and Future Report.
Agriculture and Agri-Food Canada, 2-12.
Mulani, H. (2012, July 12). $632 billion Halal foods market among fastest
growing. Indian Muslim Population in the World (2013). Retrieved from
www.muslimpopulation.com on 26 September 2013.
Market Indicator Report (April, 2011). Global Pathfinder Report: Halal Food
Trend. Agriculture And Agri-Food Canada, 2-8.
Market Analysis Report (June, 2011). Saudi Arabia, Egypt and the United Arad
Emirates Consumers, Markets and Demand based Products. Agriculture
and Agri-Food Canada, 2-23.
Morocco Agriculture Report (November, 2010). Past, Present and Future Report.
Agriculture and Agri-Food Canada, 2-12.
Market Indicator Report (April, 2011). Global Pathfinder Report: Halal Food
Trend. Agriculture And Agri-Food Canada, 5-8.
Market Indicator Report (April, 2011). Global Pathfinder Report: Halal Food
Trend. Agriculture And Agri-Food Canada, 2-8.
95
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Market Analysis Report (June, 2011). Saudi Arabia, Egypt and the United Arad
Emirates Consumers, Markets and Demand based Products. Agriculture
and Agri-Food Canada, 2-23.
Morocco Agriculture Report (November, 2010). Past, Present and Future Report.
Agriculture and Agri-Food Canada, 2-12.
Phadnis, S. (2012, May 21). Indian brands get 'Halal' stamp, set to woo Muslims
in global markets. The Times of India. Retrieved from http://articles.
timesoflndia.indiatimes.com
9b
REFERENCES
Rizvi, M. (April, 2012). Pakistan: Pak food brands set to make UAE foray.
Retrieved from http://Halalfocus.net on 1 October 2013
Sungkar, I. and Hashim, D., (2009). The Global Halal Food Market and Updates
on Global Halal Standards. The World Bank, 3-27.
Sungkar, I. and Hashim, D., (2009). The Global Halal Food Market and Updates
on Global Halal Standards. The World Bank, 3-27.
Salama (2013). China: West Halal Food Base. Retrieved from http://Halalfocus.
net on 1 October 2013
Sungkar, I. and Hashim, D., (2009). The Global Halal Food Market and Updates
on Global Halal Standards. The World Bank, 3-27.
Shahbandari, S. (2013). Halal mark a must for all food products in UAE:
New certification system from next year, gulfsnews.com. Retrieved from
gulfnews.com on 13 September 2013
Salama (2013, April). Japan: Firms appeal to Muslims with Halal food. Halal
Focus. Retrieved from Halalfocus.net on 20 September 2013
97
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Schiffman, Leon, G., and Kanuk, Lealie, Lazar (1997) Consumer Behavior.
Published by Prentice Hall, Sixth edition, p.446.
The Future of the Global Muslim Population (2011). Pew Research Center's
Forum on Religion and Public Life
World Halal Forum (2009) World Halal Forum: The Global Halal Food Market
and Updates on Global Halal Standards 2009, International Halal Integrity
(IHI) Alliance: Singapore
Xinhua (2013). Halal food helps Ningxia explore international market, Global
Times. Retrieved from www.globaltimes.cn on 14 September 2013
Xinhua. (2009). Indonesia bans beef import from New Zealand, some from
Australia. Jakarta, Indonesia
98
Index
A D
advertise 87 Dare 1,90
Africa 34, 43, 50, 57, 58, 60, 61, 68, demand 1, 2, 3, 4, 5, 9, 10, 11, 19, 22,
93, 94, 98 23, 25, 27, 29, 34, 42, 43, 46,
America 6, 43, 62, 63, 64, 68, 69, 70, 47,50,51,58,63,64,65,67,
71, 72, 80, 96 68, 70, 73, 74, 76, 77, 83, 86
Asia 9, 10, 11, 21, 25, 26, 29, 34, 37, domestic 4, 8, 27, 29, 31, 70, 88
39, 43, 44, 68, 85, 88, 93, 94
Australasia 52 E
awareness 10, 26, 78, 80, 86, 88 educate 79,86
B Europe 34, 39, 43, 44, 45, 47, 50, 74,
75,76
Beverages 13 expenditure 11,43
business 1, 2, 4, 12, 26, 28, 33,43, 47, export 1, 15, 25, 32, 47, 53, 56, 57,
55, 65, 76, 79, 83, 88 58, 61, 64, 65, 68, 70, 72, 74,
business opportunities 91 87, 88, 97
c F
certificate 6,14, 34, 42, 53, 55, 70 Food 1, 7, 8, 10, 15, 18, 19, 21, 22,
continent 8, 9, 10, 11, 26, 34, 57, 58, 24,25,27,28,30,31,32,37,
60,64 38, 41, 42, 43, 47, 48, 49, 54,
customer 1, 2, 3 56, 57, 60, 65, 68, 81, 90, 91,
92, 93, 95, 96, 97, 98
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
food consumption 7,10 Halal logo 6, 12, 13, 14, 19, 21, 25,
Food Marketing 1, 90 47, 53, 61, 63, 73, 74, 75, 76,
fourPs 2 78, 80, 86, 88
Halal MARKET 4
G Halal marketing 3, 4, 9
Halal Market Products 5
GCC ix, 19, 35, 36
Halal park 16, 89
global 11, 13, 14, 15, 17, 27, 39, 70,
Halal Processed Food Certificate 57
72, 74, 75, 77, 85, 90, 97
Halal products 1, 4, 5, 8,10,11, 12,
Global Food Market Size 10
13, 14, 15, 17, 21, 23, 33, 35,
Global Halal Food Market Size 10
39,43,44,51,53,58,60,61,
Global Halal Logo 80
70, 71, 74, 75, 77, 78, 79, 80,
global Halal market 15,72
83, 86, 87, 88, 89, 98
H Halal sector 61
Halal Supermarket 52
Halal 1, 3, 4, 5, 6, 7, 8, 9, 10,11, 12, HALMAS 89,90
13,14,15,16,17,19,20,21, HDC 15,36,61,89,91,94
22, 23, 24, 25, 26, 27, 28, 29, hygiene 7, 8, 34
30,31,32,33,34,35,36,38,
39, 40, 41, 42, 43, 44, 45, 46, I
47,48,49,50,51,52,53,54,
import 12, 17, 31, 42, 58, 60, 61, 64,
55,56,57,58,60,61,62,63,
99
64, 65, 66, 67, 68, 69, 70, 71,
Industrial Park 30, 31, 89
72, 73, 74, 75, 76, 77, 78, 79,
international 4, 8, 10, 11,14, 19, 23,
80,81,83,85,86,87,88,89,
27,31,99
90,91,92,93,94,95,96,97,
investors 14, 17, 39, 89
98,99
Islam 6, 7, 19, 25, 26, 30, 54, 69, 73,
Halal authentication bodies 33
75, 92, 98
Halal bodies 33
Islamic diet 6
Halal certificate 6, 34, 53, 55, 70
Islamic law 32, 69
Halal concept 6, 7, 25, 52, 53, 86
Islamic rule 3
Halal Food Industrial Park 30, 31
Islamic slaughter 7
Halal food industry 1, 26, 28, 31, 33,
issues 12, 26, 32, 36, 39, 53, 56, 61,
35, 39, 64, 72, 73, 75, 78, 89
68,87
Halal Food Products 28, 31, 41
Halal Fresh Chicken 45
Halal LAW 6
Halal lifestyle 73, 74, 75, 77
100
INDEX
J N
JAKIM 7, 8, 14, 15, 27, 29, 33, 34, 48, nation 21,33,83
52, 69, 74, 75, 78, 79, 88, 92, non-Halal 21,23,61,86
93,94 non-Muslims 10, 13, 23, 25, 44, 46,
Journal 36, 39, 91, 92, 94, 95, 96, 97 50,51,53,71,77,86,87
K o
key Halal markets 19, 39, 65, 66 Opportunities 68, 71, 74, 91
L P
labelling 3, 6, 53, 77, 80 permissible 7, 37
Logistic 16 Place 2, 3, 85
population 1, 5, 8, 10, 12, 14, 19, 21,
M 23, 25, 26, 29, 30, 34, 35, 37,
Malaysia 1, 6, 7, 8, 10, 11, 12, 14, 15, 39, 43, 44, 45, 46, 47, 50, 53,
16, 17, 18, 19, 23, 27, 28, 29, 55, 58, 60, 61, 62, 63, 64, 70,
32,33,42,48,52,55,61,66, 71, 78, 79, 83, 85
68, 69, 71, 72, 73, 74, 75, 76, potential 6, 8, 9, 11, 13, 23, 39, 46,
77, 78, 79, 83, 85, 86, 87, 88, 53, 58, 60, 64, 65, 71, 72, 73,
89, 92, 93, 94, 96 76, 77, 78, 83, 85
Map 35, 59, 67, 71, 93, 94, 95 poultry 5, 22, 38, 45, 47, 51, 65, 66,
Marketing 1,2,90,91,92,93,94, 73, 74, 76, 77
96,98 Price 2, 3, 13, 14, 20, 24, 28, 32, 34,
marketing mix 2, 3, 8 38, 83, 85
meat 5, 10, 12, 15, 16, 20, 22, 33, 35, pricing 2, 3, 46, 74, 75, 83, 88
38, 39, 41, 42, 44, 45, 47, 49, Pricing Range for Halal Beef
50,51,53,56,67,68,69,73, Burgers 46
74, 76, 77, 87 producer 23, 39, 79
media 86 Product 2, 3, 21, 23, 38, 79, 80, 85, 92
Muslim population 1, 5, 8,10, 21, 25, Product Price x, 85
26, 30, 34, 37, 39, 43, 45, 46, Promotion xiii, 2, 3, 29, 86
47, 50, 53, 55, 58, 60, 62, 63, purchasing power 6, 8, 9, 44, 74
64, 71, 83, 85
101
PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!
Q w
quality 2, 3, 6, 7,13,14, 15, 19, 39, Weaknesses 74
47, 58, 68, 73, 80, 89 Win 1,90
Quran 6, 7 world 1, 4, 5, 6, 11,13, 14, 15, 21, 23,
25,29,33,34,37,39,41,42,
R 43, 44, 47, 53, 55, 60, 62, 64,
reputation 53, 86 68, 72, 79, 85, 86, 87
Retrieved 92, 93, 94, 95, 96, 97, 98, X
99
Xinjiang 32
s
Y
Shariah 3, 4, 15, 19, 37
slaughter 7, 8, 36, 42, 53, 55 youth 39
SME 77
standard 2, 24, 36, 61, 68, 69 z
strengths 72,73,75 zone 60, 93
SWOT Matrix 72, 74
T
tayyib 7
Threats 75
u
usage 58, 60, 80
Uyghurs 32
V
value 1, 15, 30, 31, 47, 65, 83, 89
Value-added 11
veal 47, 65, 66
102
Halal Food Marketing looks into the potential of the global Halal food market as well as
what Malaysia could offer. Halal food market is a lucrative business due to the fact that the
Islamic faith has been widely understood and accepted by both the suppliers as well as
buyers in the Muslim and non Muslim countries. Furthermore, Muslims are growing in
population, thus it is important to know the highest potential of the Halal food market
based on the marketing mix of 4Ps. By applying the SWOT analysis using the matching and
resultant strategies, a marketer will be able to identify business opportunities by priority
and win the return on investments in the global market.
Professor Dr. Faridah Hj. Hassan, FCIM UK, is the Dean of the Faculty of Business
Management, Universiti Teknologi MARA (UiTM) Shah Alam. Previously she was a Director,
at the Institute of Business Excellence, heading the research consultancy, training and
publication unit. Currently, she is an external examiner for several public and private local
universities and colleges, an active Fellow Member of the Professional Chartered Institute of
Marketing (UK), and a Board Council and Regional Member for the Malaysian Chartered
Institute of Marketing. Her appointments were, among others, an ex Dean from 1998 to
2003, an independent Board of Director, a former Panel Investment Advisor for a public
listed trust fund company as well as a visiting professor at USB Iran, University of
Massachusetts USA, and Sheffield Harlem University UK.
Her 32 years of teaching, supervising, examining, board and panel advising, involves
undergraduate, post graduate and professional courses offered by UiTM twinning with
Cardiff, Manchester Business School, Curtin and local universities such as Universiti Malaya,
UPM, UIA, UUM, UTM, UKM, Universiti Petronas, Multimedia, Uniten and Lim Kok Wing to
name a few. Her research interests are in the areas of Marketing and Strategic Management
for corporate and small medium companies, financial institutions and trust funds, public
and private education, as well as tourism and government agencies. She has conducted
research consultancies in the areas of Sports Merchandising Online - Bloom Advertising
Saudi Arabia, Branding and Positioning Strategies on Malaysian Educational Hub from
International Perspective - MOHE, Potential of Halal Products in the Domestic and Global
Market - MOA, Awareness and Perception of Malaysian Fruits by the Japanese Market -
FAMA, Marketing Strategies and ICT Application in Improving Household Income for
Farmers - MDEC, Branding Image on Taman Negara by Foreign Tourists - Jabatan Perhilitan
Negara, Marketing Strategies by Agents in Unit Trust Funds - ASM to name a fe
PENERBrT^
UNIVERSITI TEKNOLOGI MARA