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The numbers are hard to ignore. The Muslim demographic accounts for more than 20% of the worlds population at about 1.6 billion and is expected to increase to 2.2 billion by 2030. Perhaps more enticingly, the Muslim market is now valued at US$ 2.1 trillion globally. The Muslim market represents a significant untapped market, notes Dr Paul Temporal, author of Islamic Branding and Marketing: Creating a Global Islamic Business. These days, when companies are facing ever stronger competition in established markets and many companies are rushing into highprofile regions such as China, India and Brazil, the single biggest market in the world has been largely overlooked. Islamic markets could present a potentially greater opportunity for growth with comparatively little competition from international or local brands. In Malaysia, where Muslims make up more than 60% of the population, it is natural for marketers to focus on this market segment based on the sheer volume and value to their business. THE FUTURISTS Who is todays Muslim consumer? With an estimated growth rate of US$500 billion a year, what is most notable about this market segment is the fact more than 40% of the Muslim population is under 24 years of age. Meet the Futurists, deemed the next frontier for marketers. These youths are proud to be Muslim and are very individualistic. Their viewpoint is: dont tell me how to be a Muslim, what I choose to embrace is my own thing. This is a generation of consumers who want to not only engage with brands, but expect much more from them as well, explains Shazia Khan, associate planning director at Ogilvy Noor, the Islamic marketing consultancy arm of Ogilvy. The young contemporary Muslim consumer is goal-orientated and ambitious, and finding individualistic brands that reflect this zest and drive is appealing. According to Khan, they are frustrated at the current offerings in the market and want brands that are innovative and forward thinking. The traditional formulas do not apply to this group, with research finding it put off by stereotypical portrayals of the Muslim identity. They want to be engaged and shown advertising that is engaging. Its not rocket science, but its about marketers understanding that it is not what they thought these consumers wanted. It actually puts them off, that extreme attitude, this is a generation that grew up post9/11 Khan says. This same group is also sensitive to the heritage of brands, wanting to know if there is a strong mother brand backing a particular offering. Khan says: This is a very connected and savvy
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BEYOND
Worth US$2.1 trillion globally, the Muslim market cant be ignored. Gabey Goh finds out how companies can make the most of their opportunities.

DUTY

THE CALL OF

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generation and you cant hide from them. How many skeletons do you have in the closet? They will come out. If you let them down, they know they have the power and they are not afraid to boycott your brand. Jumaatun Azmi, managing director and founder of KasehDia, agrees, adding consumers in this segment make choices that reassert their identity as Muslims, and choose products that are Syariah-compliant. It can be a highly risky segment if the consumer driving this industry is not fully understood by the brand owner, she says. Commenting with reference to the halal industry, Jumaatun says: While other brands factor in the emotional triggers when creating a brand personality and image, a halal brand has to additionally factor in the values that form the basis of the emotional triggers in this consumer segment. This consumer is looking for products that fit into a halal lifestyle and looks beyond just how the meat is slaughtered.

A halal brand has to additionally factor in the values that form the basis of the emotional triggers in this consumer segment.
Jumaatun Azmi managing director and founder of KasehDia

Halal must now encompass the whole supply chain and meet lifestyle demands of the Muslims of today, while remaining true to the fundamental religious requirements of halal which is basically what is permissible according to the Quran. THE MUSLIM DOLLAR Izelan Basar, channel manager for Muslim lifestyle channel Astro Oasis, notes Islamic marketing is fast gaining popularity among companies locally, and this is because of the strong emerging middle class of Muslim consumers.

Haris Ismail, vice-president for branded content at Astro, observes there are two main approaches to Islamic marketing: general brand association, largely the domain of FMCG products, and Syariah-compliant products, usually from the Muslim manufacturers who will deploy the Islamic claim over their products. Jumaatun says: To create a competitive brand, the marketer must first and foremost understand the values this market is based on trust, purity, quality, fair-trade, integrity and transparency. As a proponent of the use of branded content

Noor BrAND INDex

Source: Ogilvy Noor/TNS 2010

Malaysia Malaysia F&N ramly Ayamas Nestle iNdex 136 136 131 131 131 131 1330 130 129 128 128 128 127 127 127 127 127 124 123 123 111 108 106 105
Food & dairy

iNdex 121 120 115 112 110 105 104 103 103 103 103 102 101 101 98 97 97 93 91 90 87 83 82 81 80
PersoNal Care

Shurah Balqis Colgate Sari Ayu Johnson & Johnson Sunsilk Biore Lux Pantene Fair & Lovely rexona Clean & Clear Head & Shoulders rejoice Dove Nivea Darlie Body Shop SK II LOreal Close Up eucerin Crabtree & evelyn Axe LOccitane

Malaysia Lipton Alicafe Boh Tea Milo Power root Nescafe Yeos Peel fresh Seasons F&N Sunkist Marigold Drinho Ovaltine Mirinda Vico Coca Cola Pepsi 7 Up
Beverage

iNdex 137 135 134 133 132 131 131 131 130 128 127 126 126 126 126 124 124 120 120

Marigold everyday Quaker Walls Anlene Kraft Dumex Maggi Yakult Knorr Vitagen Fernleaf Dutch Lady Magnolia Farm Best Pringles Five Star Lays Heinz Nido

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in reaching this market segment, Haris points to the recent efforts of Garnier, owned by LOral, as an example of a successful execution. The brand wanted to improve its equity among the female Malay audience so a drama series called Tudung Ekspres was created, which depicted the lives of four Muslim women from diverse backgrounds and socio-economic status. Through the show, these characters personified the new-age Muslim women who are modern and progressive in tackling lifes challenges that one faces in a metropolitan city. At the same time they hold true and steadfast to the teachings of Islam and traditional values, Haris says. The show had success with a cult following averaging 600,000 viewers each episode. However, Izelan says companies could do more in Islamic marketing because their involvement is limited to using Malay talents and Malay culture nuances rather than Syariahcompliant approaches. Perhaps these companies are not ready to embark on Islamic marketing as a strategy because generally they do not have the processes in place. However, he notes local companies, who have embraced this form of marketing, have seen their efforts pay off. We see potential and, in fact, high demand for Islamic products which are currently under represented in the market place, he says. For Izelan, education is the key in finding success, driven largely by the rising population of more discerning consumers who demand better products which suit the Muslim lifestyle. The marketing fraternity needs to be educated in Syariah-compliant marketing approaches to equip themselves with the understanding of how to best utilise Islamic marketing, he says. Haris adds: religion is a delicate topic at the best of times and when involving matters such as religion, we must consciously be sensitive because it is very intricate and you would not want to oversell or undersell something such as this. Khan notes that to date, it is the FMCG giants such as Nestl and Unilever that have been the most successful in resonating with the Muslim community in their campaigns. She cites Sunsilks Lively Clean & Fresh shampoo campaign as a breakthrough in speaking to Muslim consumers beyond the traditional cues. Unilever, which owns the Sunsilk brand, says the product is the first shampoo to speak directly to the lifestyle of a tudung wearer. The ad features a young woman wearing a headscarf saying she can now do what she wants because she no longer has to worry about itchiness, before she goes on to kick a goal in a co-ed soccer game.
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MAY OUR BONDS NEVER BREAK

Maxis Mobile Services Sdn. Bhd. (73315-V)

This Hari Raya let us remember what is truly important. Let us ask forgiveness for the times we werent there, and give heartfelt thanks for the times we were. Let us cherish, deep in our hearts, the bonds that make us strong. As we come home to those we love, let us find true peace.

SELAMAT HARI RAYA AIDILFITRI

Emotional resonance: Brands must find the right frequency with their Muslim consumers
New Straits Times: H33cm x W26.1cm (8col)

The marketing fraternity needs to be educated in Syariah-compliant marketing approaches to equip themselves with the understanding of how to best utilise Islamic marketing.
Izelan Basar channel manager for Astro Oasis

THE RIGHT NUMBER In the case of Salamfone, Malaysias and the worlds first Syariah-compliant telecommunications provider, the tenets of Islam are hard-wired into its business and brand philosophy. For example, as part of its brand promise, it also offers a hotline service to its subscribers Talian Hidayah where one can call to ask for religious advice, ask for guidance on a particular fatwa (religious edict) and a halal directory to

check if an eatery is certified. Launched in April, its CeO Kamshul Kasim says he saw a need to address a gap in the market. Weve been hearing a lot about Islamic banking and insurance and I thought to myself, what if we did something similar in the telco space? says the industry veteran who boasts 25 years in telecommunications. Many would ask whats so halal or haram
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CoMMoN ChalleNges
1. Developing trust Brands have to inform, educate and reassure the consumer about product quality (and this is where halal certification and Syariahcompliance comes in). Having a fully certified halal supply chain is expected. Simultaneously, being seen to be Syariah-friendly (through compliance) is equally important. 2. Islamic values The understanding of Syariah values (which the consumer empathises and aligns their life with), needs to be clearly shown in the brands communications. 3. Intention Business (as per Syariah) is based on intention or Niat. Islamic value-based businesses need to ensure value maximisation for the community in which it operates. This, in itself, is a paradigm shift in terms of how we know business is done. This particular point of difference needs to be communicated, explained and understood by those representing the branding so as to be communicated to the consumer. Such commitment from an organisation has to be led by the CeO and no-one less. It has to be carried out in a rigorous way through many parts of the organisation before the marketing and branding process can begin. 4. Branding When an organisation goes in for branding, there is no compromises in sophistication. If the branding is not given its full essence and sophistication, todays Muslim consumer will not allow us to get away with it and the brand will fail. Secondly, use of emotions conforming within the ethical responsibilities (that the organisation has) must be allowed in the brand communication.

CoMMoN MisCoNCePtioNs
1. Muslim only purchase during the holy month of Ramadhan. Incorrect. Muslim consumers are like any other consumers who need products and services through the year. Advertisers behaviour reflects the misconception, that is, addressing Muslims only during ramadhan giving the impression to others that Muslims only buy during ramadhan and no other time; therefore they (Muslims) need not be addressed at other times of the year. 2. Over use of standard symbols such as the arch and crescent moon. Shows a lack of understanding of Islamic culture and leads to alienating Muslims (especially younger ones). 3. The halal mark (and Syariah-compliant) gives a product brand identification for the Muslim community. The halal mark is for Muslims to know the product has complied with required process regulations. It does not do anything other than support brand activities. 4. The Muslim consumer is a stereotype Previous segmentations of the Muslim consumers have been on the scales of devoutness to Islam. Thus there were either liberals or conservatives. research by JWT and Ogilvy Noor clearly shows six distinct segments classifying the global Muslim consumer wherein the approach has been to see how religion plays a central role in the life of the Muslim consumer.

Joy Abdullah senior consultant at Daily Baraka

Core Muslim values Purity Honesty Humility Discipline Togetherness Image-consciousness Source: Ogilvy Noor

What they mean for brands Be authentic in word and deed Be transparent Avoid hubris Display efficiency Be part of the community Help project the right image

about a telco provider? Its not just a matter of certification, its also getting the concept of the business, even our source of funds right, for example we cannot accept money that is tied to gambling. It is the basic tenets of the company and our transactions must be equitable and fair in accordance with the rules. In addition to being certified as Syariahcompliant which is annually reviewed, other requirements the company must fulfil include the advertising of its pricing. It must be transparent, up front and clearly stated. The brands primary audience is Muslim consumers 25-55 with its secondary target 17-24. For now, it is focusing its efforts in the predominantly Muslims states of Perlis, Kedah and Kelantan.
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Kamshul explains the primary group are mostly consumers who are ready and accepting of Salamfones value proposition and says what surprised him most was the numerous queries from non-Muslim consumers. When I ask them why, the reply is usually because theyve observed how Islamic companies practise their business and think that similar approach would apply in our case, which appeals to them, he says. When asked about the challenges the brand faces when it comes to marketing its services, Kamshul says while there are many similarities in Islamic and secular marketing, there are some distinct differences. Our executions would be slightly different because we have to work within certain boundaries. With conventional campaigns, you could use almost anything, in whatever style you want. In our case we cant because once you say you are Syariah-complaint, you have to seek approval from a committee before proceeding. He admits it remains quite restrictive (we cant be like Calvin Klein using a tall dark handsome man showing a six-pack!), but while limiting in a way, it encourages creativity. Agreeing with Kamshuls assessment of there being room for creativity, Ogilvy Noors

Khan adds it goes beyond the halal certification when it comes to really resonating with todays Muslim consumer. The brand needs to live it. The Muslim consumer will ask, whats your brand story like? Are you reflecting values I share? Its more than a product they are buying into. And such values must also be communicated clearly through any brand communications, she says. When it comes to the realm of corporate social responsibility initiatives, Khan draws on the following Hadith: He is most charitable who gives so secretly that his left hand knows not what his right hand has given. The problem is that when brands do it, they dont do it well, with advertising campaigns shouting about what charitable works they have done. Thats off-putting, if youre doing it, do it without shouting about it, Khan says. Kamshul agrees, citing the same Hadith adage when speaking about Salamfones approach to Infaq (charity). For every call made, one cent is automatically put into a separate account for charitable causes. In May of this year, a landslide hit an orphanage in Hulu Langat in Klang, killing 16 people. When the company found out, it made a rM5,000 donation to the orphanage using the funds.
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No to stereotypes: The modern Muslim shuns orthodox portrayals and craves an innovative approach by brands.

million, Kamshul says. However, he admits the situation is evolving and it is only a matter of time before people realise the value of it. FINDING QIBLAH By 2050, more than 60% of the global under-18 population will be Muslim. research suggests these consumers will keep to their Islamic values and will want appropriate products. Lifestyle products such as fast-food, personal care, fashion, cosmetics, media products, including social media and digital products, are all likely to benefit from this demographic trend, says author Temporal. It is clear addressing the needs of this consumer group is something marketers can no longer ignore with success determined by not only how well a brand upholds the values of the religious tenets of Islam, but also resonates with those who follow the faith. With a large global market hungry for compatible brands, KasehDias Jumaatun says Muslims, although united by the same fundamental religious requirements, are also an immensely culturally and ethnically diverse community. This poses a challenge to marketers who must take a different approach in different geographic areas. The one-size-fits-all approach will not work. When asked what advice he would give to brands looking to enter the Muslim consumer space, Kamshul says: Theres definitely a market, but you have to work doubly hard, as its not a free-for-all thing. You have to stick to the rules and it takes double effort and more creativity to get your product out into the market.
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Giving to the community: Salamfones donation to a orphan house, a victim of the recent landslide.

When it comes to alms in Islam, one should not shout, but in our case we could not avoid it, we had to advertise to show how we were disbursing the funds. The money is not ours and belongs to the consumers, he explains, adding adherence to transparency in its transactions was also another requirement. Moving forward, the brand has a target of 200,000 subscribers by the end of the year and currently promotes its offerings via selected traditional channels such as TV (Astros Oasis and TV3) and print (Harian Metro). We feel we are on target in terms of core demographics, but need to increase the stickiness of the brand in the marketplace, he says, adding the days of customers flocking to new brands out
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of curiosity are over, with nine telco players now in the market. The onus is now on players to differentiate within this crowded space. Another challenge is convincing our dealer network to promote it, but to mitigate that ongoing challenge we have gone out and done on-ground promotions to sell the brand. He observes the Muslim market can be seen as too niche within his industry. For example, we target the Muslim population, which is around 18 million people. Take out the very young, the babies and elderly and the number goes down to nine million. Some dont care about their telco being compliant so really its an addressable market of some five

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