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

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Marketing to the Islamic WorldMustafa M.
FaroukFederation of Islamic Associations of New
ZealandPresentation to the International
Marketing Class MARK 302 School of Marketing
International Business, Victoria University of
Wellington, October 6, 2006
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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

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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

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NZ trade with the Islamic world

• New Zealands 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
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The Muslim consumer Beliefs

• Islam 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.

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The Muslim consumer Practice

• Prayers
• Charity (Zakat)
• Fasting (Ramadan)
• Pilgrimage (Hajj)
• Others (e.g. being a good neighbour)

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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

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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)

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The Muslim consumption pattern

• Islamic dietary terms
• Halal- lawful
• Haram- unlawful
• Makrooh- discouraged
• Mashbooh- suspect

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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

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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

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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 (2431).
• 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.

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Gender Separation and its Marketing Implication
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.

• 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?id1047
972006
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Islamic marketing/business ideals

• Only lawful activities are permitted (Halal)
• 2168 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)
• 2275 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!

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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
• 590 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!

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Islamic marketing/business ideals

• Promise must be kept and truth must be told
• 613 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."

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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

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Commercializing Islam

• 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/0,3
  604,870413,00.html

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Commercializing Islam

• In 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/m
  iddleeast/22doll.html?ex1285041600en72bb8cc089b
  f9435ei5090

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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 spokeswoman
• http//news.bbc.co.uk/2/hi/middle_east/4666298.st
  m

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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

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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/