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The Brand Marketing of Halal Products at PDF
The Brand Marketing of Halal Products at PDF
A timely paper, through literature review and research method of interviewing 34 respondents, the
author examines the brand marketing strategies—applying 4Ps (Price, Product, Promotion and
Place) and other strategic options—of Halal products with reference to Halal companies in Brunei
Darussalam, marketing their Halal products to the region, if not to the world.
Introduction
Islamic branding is taking a centerpiece on the global stage. It is no longer confined
to a country’s demograpy, identified by the narrow lines of nationality or ethnicity
(Nair-Gheswalla, 2007). The reasons are that Islam is the fastest growing religion on earth,
both by birth and adoption. The world Muslim population today is at 1.4 billion, or 22%
of the total population, and has earned a niche for itself as a whole new market to be
reckoned with (Nair-Gheswalla, 2007). It is estimated that by 2010, the Muslim
population will exceed three billion (Evans, cited in The Brunei Times, 2007).
The community has become a huge market segment and companies are scrambling
to satisfy brand new needs they never knew existed. The growing Muslim population
is pushing the companies to produce Halal products to satisfy the customers’ endless
demands (Burgmann, 2007).
* Chartered Marketer, Certified MBTI Administrator, and Certified Behavioral Consultant (The Institute For
Motivational Living, USA), Universiti Brunei, Darussalam. E-mail: patrick_low2003@yahoo.com
© 2008
The TheMarketing
Brand Icfai University
of HalalPress. All Rights
Products: Reserved.
The Way Forward 37
is a project initiated by the Ministry of Industry and Primary Resources along with the
cooperation of the Brunei Islamic Religious Council, Ministry of Religious Affairs and the
Ministry of Health. The creation of the Brunei Halal brand is in line with Brunei Darussalam’s
aggressive effort with the Islamic nation moving towards developing a diversified, competitive
and sustainable economy. Brunei Darussalam has also developed Brunei Halal Standards as
guidelines for the use of Brunei Halal Certification (Brunei Halal, 2007).
The global market is estimated to be worth around $150 bn a year (The Brunei Times,
August 19, 2007) and the Halal food industry is also pegged to grow at a rate of 2.9%
annually (Asia Inc., July-August 2007).
Halal is natural, safer, healthier, cleaner and greener (Drury, 2007). In this regard, Islam,
as a way of life, expects human beings to conserve the environment for several reasons
which may be summarized as follows:
• The environment is Allah’s creation. The creation of this earth and all its natural
resources is a sign of His wisdom, mercy, power and His other attributes and
therefore serves to develop human awareness and understanding of this creator
(Ar-Ra’d, 13: 2-4; 21: 79, cited in Al-Haran and Low, 2008).
• Muslims should seek to protect and preserve the environment because by doing so
they protect Allah’s creatures which pray to Him and praise Him. Humankind might
not be able to understand how these creatures praise Allah but this does not mean
that they do not do so, Allah says.
The seven heavens and the earth, and all beings therein, declare His glory: There is
not a thing but celebrates His praise, and yet ye understand not how they declare His
Glory!” (Al-Israa 17:44, cited in Al-Haran and Low, 2008).
Based on the Islamic teachings, mankind is expected to protect the environment since
no other creature is able to perform this task. Human beings are the only ones that Allah
has “entrusted with the responsibility of looking after the earth. This trusteeship is seen
by Islam to be so onerous and burdensome that no other creature would accept.”
(www.islamonline.net, Islam and Environment).
Literature Review
Emphasis on Halal is indeed growing. It is moving into the mainstream, affecting and
changing how business is being done. Halal is affecting how marketing is being done.
Meat is supposed to be the Halal market leader, but these days, it is a matter
of wholesome meat; a matter of meat and dietary balance plus all about being healthy.
Many other things such as milk, bread, juices, soft drinks, prepared meals and other
foodstuffs carry the label of Halal, and the Halal logo becomes a label and symbol of quality
and religious compliance (Al-Haran and Low, 2008).
Live chicken are transformed into poultry that every Muslim can eat. Halal’s
burgeoning popularity can be linked to religious fervor; and beliefs that it is cleaner,
Research Methodology
As in Low (2007), the research methodology employed involved interviewing. Low (2007)
yields much information from respondents since in-depth interviews and the most widely
applied qualitative methods were applied. Such a methodology allows the researcher
to generate greater insights, and as in this research, it is more appropriate
(Malhotra, 1995). Tull and Hawkins (1993) highlight that interviews can supply more
and better quality ideas to interviewee than just the use of the focus group.
Thus, semi-structured interviews were held with 34 Bruneians: 30 business people and
four administrators in the Civil Service (some were students who were at the point of
research pursuing their Master of Business Administration: MBA) to get their views on
the brand marketing of Halal products. Convenient sampling was relied on, and the
interviewees were business people and administrators, and those who had been referred
to. All the respondents were local Bruneians and Muslims.
Conducted in a meeting setting, the interviewing sessions took place at conveniently
located sites, and 34 business people and postgraduate students with work experience were
selected in the sample. They were selected because the nature of their work involved
marketing. Data was collected for a period of nine weeks from August 10, 2007 to October
23, 2007.
A pilot test for this study was run on the list of key questions to be posed to the
interviewees. The final questions are shown in Exhibit 1 below. Question 4: “What other
strategic branding options or ways would you, as marketer, do or apply to promote, say, your
own brand of Halal products?” was amended and updated because previously, the question
“What other ways would you as the marketer do or apply to promote, say, your own brand
of Halal products?”, was felt to be too plain and did not exact and extract much strategic
branding input. The words ‘strategic branding options’ were vital, and the words ‘please
elaborate’ were necessary to draw the interviewees out to be more expressive.
Exhibit 1: Key Questions
1. What are your views on the marketing of halal products?
2. What are your perceptions of the brand marketing of halal products?
3. What are the key factors in the branding of halal products?
4. What other strategic branding options or ways would you, as marketer, do or apply to promote, say,
your own brand of halal products?
5. Any other comments that you wish to make or share?
The purpose is to get a detailed account from the business people and working adults
on what their perceptions were on ways to up the brands of Halal products in Brunei and
this part of the world. There is no substitute for pre-testing the interview questions
Findings
As for the question, “What are your views on the marketing of Halal products?”, the
majority replied that there was a need for ‘more coordinated approach’, ‘building awareness
even among Muslims’ and ‘building bridges with or gaining support with Non-Muslims
such as those who understand the big picture and even empathize the idea of eating
healthy food’ and ‘being generally green’. All respondents agreed to the idea of ‘creating
a symbol, some icon…as a trust mark being placed on the Halal products so that Muslims
would know that such products are Halal or acceptable for the Muslim community’
(interviewees’ input, mentioned 36 times). ‘The symbol can represent the Halal quality
of the products’ (interviewees’ input). Such Halal symbol gives the consumers the
psychological comfort that they have bought the religiously correct products; it also
minimizes their post-purchase dissonance.
Next, in terms of, ‘What are your perceptions of the brand marketing of Halal
products?’, a majority (30) of the interviewees or 88.23% of the total interviewees
expressed the need for proper communication (mentioned 36 times) and 28 interviewees
or 82.35% of the total interviewees highlighted that they wanted to see more clear
positioning of Halal products as the way forward in branding such products.
With regard to the question, ‘What are the key factors in the branding of Halal
products?’, There should be ‘a clear distinction between haram (forbidden) products and
Halal (Islamic allowed or permitted) products’ (interviewees’ input; mentioned 25 times)
and the ‘marketing communications should be made in that direction’ (interviewees’
input; mentioned 36 times). Twenty-five interviewees or 73.52% of the total interviewees
opined ‘product packaging’ as a key factor in brand marketing of Halal products.
Halal companies need to commit and ‘convey quality to their customers’ (interviewees’
input; mentioned 16 times).
To the question, ‘What other strategic branding options would you as marketer do or
apply to promote, say, your own brand of Halal products?’. A majority of 25 interviewees
or 73.52% of the total interviewees expressed the need for Halal companies to look
Assimilation
The marketing and branding of Halal products is enhanced by foods everywhere in the
world being assimilated with changed local tastes. Foreign foods in some countries as in
Europe become assimilated and local tastes change, encouraged by global tourism and
reverse colonization. Curry is the number one take away meal in the UK and Kebabs are
a typical German staple (Evans, 2007).
After examining the growing importance of Halal and the fact that Halal (lawful in the
Islamic sense) is fast becoming a new market force and identifier, the next part of the paper
will assess and highlight the branding strategies in marketing of Halal products.
Product Packaging
Twenty-five interviewees or 73.52% of the total interviewees indicated ‘product packaging’
as one of the prime factors in brand marketing of Halal products, and in this regard, when
a Muslim consumer buys a Halal product, he is doing so because of his commitment
to Islamic principles and teachings. Some Halal food producers have developed
a patronizing attitude towards the buyers, feeling that the consumers’ lives will remain
hard and dry since they will not be able to enjoy the product (El-Mouelhy, 2007).
Such an attitude needs to be changed. The quality must be there as well as the willingness
of the suppliers to supply such quality Halal products.
According to El-Mouelhy (2007), the patronizing attitude is a very real and common
happening. It has affected the Halal food trade between many countries. He cited that
some of the high income oil rich Muslim countries used to import poultry, meat and dairy
products from some of the fellow Muslim countries that were rich in agriculture and cattle.
The exporters of those Muslim countries took the importers for granted and on some
occasions failed to either maintain quality or meet various other commitments that they
had made. This resulted in problems for the importers. The exporters who, despite
complaints, did not do much to improve the situation; lost the buyers’ trust, and they
started looking for other sources of supply.
Pricing
In terms of pricing, strong Halal brands have to be created and built. Brands can add value
to a product allowing the manufacturer and sellers to enjoy the ability to command
a higher pricing for their products. Here, a vital point to note is that value is created
by the way of packaging, the image it portrays and the interactions of the consumers with
the seller company; it is not defined by the sellers but by the buyers and consumers
(Kotler, 2000; Low, 2002a and Dolak, 2003).
Good Halal branding, while commanding higher prices can also attract or entice
the non-Muslim consumers. Ordinarily speaking, there is strong perception of high quality
associating with high pricing as in luxury goods or health products, more so when Halal
products are marketed and branded as health food.
Place
As argued in Low (2007a), companies selling Halal products should capitalize on the Muslim
diasporia, selling in Malay Muslim and/or Arab Muslim, Middle Eastern and Central Asian
countries. In this way, the companies have an expanded market and playing field.
However, from the producer’s point of view, there are two types of markets for Halal food:
1. The Market in non-Muslim countries.
2. The Market in the Muslim countries (El-Mouelhy, 2007).
In the case of the non-Muslim countries, the problem is serious because the Muslim
communities are scattered. Thus it is difficult to distribute through dealers because
in many cases there are no dealers but only the scattered small retailers. The labor cost is so
high that the price will not become competitive compared to the same product that lacks Halal
Conclusion
In short, businesses and marketers should realize that Halal marketing is very much like
ordinary marketing and apply the 4Ps aptly. They should also recognize that Muslim
consumers would be loyal and perceive that they have bought the right product brand
when:
• They always get the product they want. (Ease and convenience to customers
is also enhanced).
• They always get quality (They match with their religious beliefs and values; they
feel psychologically and physically safe; they feel comfortable.)
• The supplier has kept his promise, supplying the right quality products and
building the customer’s trust in them.
• The Halal nature of the product is beyond doubt, there should be some form of
Halal certification, and some respectable authority stands behind the producer’s
claims.
The positioning of Malay Islamic Monarchy of Brunei, together with the people’s way
of life or lifestyle can be a strategic option to market Halal products, since it is aligned
with the Halal brand. The reputation of the country too helps in the marketing of the
Halal brand in Brunei and the region. And indeed, by focusing on and growing its Brunei
Halal brand, Brunei Darussalam can, in fact, further diversify and grow its non-oil and gas
industry, moving away from the dependence on its oil and gas industry while
strengthening its economy.
References
1. Al-Haran Saad and Low P (2008), “Marketing of Halal Products: The Way Forward”,
The Halal Journal, Jan/Feb 2008, pp. 44-46.
2. Alsop R and Abrams B (1986), The Wall Street Journal on Marketing, New American
Library, New York.
3. Asia Inc. (2007), “The Brunei Growth Story: Brunei Premium Halal Brand”,
July-August, p. 82
4. Brunei Halal (2007), “Brunei Halal Brand”, Brunei Halal, website: http://
www.bruneihalal. gov.bn/node/102?q=node/37, Accessed on February 18, 2008.
5. Burgmann T (2007), “Halal Flexes its Marketing Muscle”, The Star, July 22, 2007.
Web-site: http://www.thestar.com/Business/article/238551, Accessed on August 20, 2007.
6. Dolak D (2003), “Building a Strong Brand: Brand and Branding Basics”, Website:
http://www.davedolak.com/articles/dolak4.htm, Accessed on September 29, 2006.
7. Drury A (2007), “Halal’s Place in New Zealand”, The Nelson Mail, September 15, 2007, p. 14.
8. El-Mouelhy M (2007), “Marketing Halal” Website: http://www.halalhelpline.org/
marketing.htm, Accessed on September 1, 2007.
9. Epromos (2008), Branding: The 10 Commandments of Branding, Website: http://
www.epromos.com/educationCenter/10branding.jsp, Accessed on February 16, 2008.
10. Evans Hj A (2007), “Halal: A New Market Identifier”, Excerpts from “Understanding
the Muslim Consumer”, The Halal Journal, in The Brunei Times, August 17, 2007, p. 6
11. Gobe Marc (2001), Emotional Branding, Allsworth Press.
12. Han S (2007), “Halal Brand Eyes First Product by Next Expo”, The Brunei Times,
August 20, p. 1.
13. Han S (2007a), “Labelling for Halal Products”, The Brunei Times, August 20, p. 5.
14. Hazair Hadthiah P D (2007), “Avoid ‘Haram’ Names for ‘Halal Food’”, The Brunei
Times, August 19, p. 8.
15. Hazair Hadthiah P D (2007a), “More Trade Than Getting Halal Seal”, The Brunei
Times, August 21, p. 13.
Reference # 25J-2008-12-03-01