Marketing to the Islamic World

Mustafa M. Farouk
Federation of Islamic Associations of New Zealand

Presentation to the International Marketing Class MARK 302 School of Marketing & International Business, Victoria University
of Wellington, October 6, 2006
Contents
• The Islamic world
• New Zealand trade with the Islamic world
• The Muslim consumer:
• Belief & its implications to marketing
• Practice & its implications to marketing
• Sources of law & its implications to marketing
• The Muslim consumption pattern
• The Muslim dressing pattern
• Gender separation and its implications
• Islamic marketing/business ideals
• Advertisements and promotions to Muslims
• Current trends in Islamic markets
• Commercialising Islam
• Global events and the Muslim consumer
 The Islamic world
• Estimated population 1.3-1.7
billion
• ~ 40,000 live in NZ
• Fastest growing religion in
the world
• Muslims are widely
distributed around the world
• Diverse colours, ethnic
groups, languages, cultures
• United in faith
 NZ trade with the Islamic world
• New Zealand’s annual
exports to ICCI countries
totalled over $2.2 billion in
June 2005
• NZ export to GCC alone is
Bulk Halal
worth 720 million in 2005 certified

• NZ negotiating a FTA with

GCC countries
Bulk Halal
certified
• New Zealand exports to
Malaysia were worth $546
million; about half of this
was in dairy and meat
products. Source: MIA NZ Annual report 2005
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.
The Muslim consumer: Practice
• Prayers
• Charity (Zakat)
• Fasting (Ramadan)
• Pilgrimage (Hajj)
• Others (e.g. being a good neighbour)
The Muslim consumer: Sources of law

• The Quran (Muslim Holy book)

• The traditions of the Prophet
• The consensus of learned Muslims on
emerging issues derived from the Quran and
the traditions of the Prophet (PBUH)
• The laws of the land as long as they do not
contradict God laws
Islam is a complete way of life
Everything a Muslim does from entering the
toilet, eating, doing business, national and
international marketing to politics can be an act
of worship

Saying of the Prophet (SAW):

One should not please a creation at the expense
of the creator (God)
The Muslim consumption pattern
Islamic dietary terms
• Halal- lawful
• Haram- unlawful
• Makrooh- discouraged
• Mashbooh- suspect
The Muslim consumption pattern
Allowed* (Halal):
• Properly slaughtered cattle, sheep, goats,
deer, camel, chicken etc.
• All sea foods without the need for slaughter
• All non-poisonous vegetables and fruits
* This list is not exhaustive
The Muslim consumption pattern
Prohibited (Haram):
• Dead meat or carrion
• Swine and all products and ingredients
derived from swine
• Flowing or congealed blood
• Foods dedicated to idols
• Intoxicants of all types
• Carnivorous animals with fangs and birds of
prey with sharp claws
The Muslim dressing pattern
And say to the believing women that they should lower their gaze and
guard their modesty; that they should not display their beauty and
ornaments except what (must ordinarily) appear thereof; that they should
draw their veils over their bosoms and not display their beauty except to
their husbands, their fathers, their husband's fathers, their sons, their
husbands' sons, their brothers or their brothers' sons, or their sisters' sons,
or their women, or the slaves whom their right hands possess, or male
servants free of physical needs, or small children who have no sense of the
shame of sex; and that they should not strike their feet in order to draw
attention to their hidden ornaments. And O ye Believers! turn ye all
together towards Allah, that ye may attain Bliss (24:31).

“Every part that is permissible to touch may be looked at, and every part
that is forbidden to be looked at may not be touched” Bakhtiar, L. (1996).
Encyclopedia of Islamic Law. P.74.
Gender Separation and its Marketing Implication
At least three major U.S. companies —
There are no bored- including McDonald's, Pizza Hut and Starbucks
looking husbands or ……………have made a number of changes to AT THE time, most people
boyfriends waiting their business practices in "deference" to Saudi agreed it seemed a good
around. In fact, customs, including maintaining segregated idea: carriages on
there's not a single seating in their restaurants and having separate Japanese commuter trains
man in sight. entrances for women and men. set aside specifically for
Welcome to Israel's
females would
first women-only
shopping dramatically reduce the
experience. number of women being
http://news.bbc.co.u molested by the chikan
k/2/hi/middle_east/ who get their kicks by
4923618.stm having a sly fondle among
the tightly packed bodies.
And it worked.
http://news.scotsman.com/
international.cfm?id=1047
972006

http://www.now.org/nnt/summer-2002/gender.html
Islamic marketing/business ideals
• Only lawful activities are permitted (Halal)
• 2:168 O MANKIND! Partake of what is lawful and good on earth,
and follow not Satan's footsteps: for, verily, he is your open foe.

• All transactions involving usury/interest are prohibited

(Haram)
• 2:275 THOSE who gorge themselves on usury behave but as he
might behave whom Satan has confounded with his touch; for
they say, "Buying and selling is but a kind of usury" - the while
God has made buying and selling lawful and usury unlawful.
Hence, whoever becomes aware of his Sustainer's admonition,
and thereupon desists [from usury], may keep his past gains, and
it will be for God to judge him; but as for those who return to it -
they are destined for the fire, therein to abide!
Islamic marketing/business ideals
Use of Images are discouraged
Narrated 'Aisha: I purchased a cushion with pictures on it. The Prophet (came
and) stood at the door but did not enter. I said (to him), "I repent to Allah for
what (the guilt) I have done." He said, "What is this cushion?" I said, "It is for
you to sit on and recline on." He said, "The makers of these pictures will be
punished on the Day of Resurrection and it will be said to them, 'Make alive
what you have created.' Moreover, the angels do not enter a house where
there are pictures.'“

Dealing in intoxicants, gambling and games of chance is prohibited

• 5:90 O YOU who have attained to faith! intoxicants, and games of
chance, and idolatrous practices, and the divining of the future are but a
loathsome evil of Satan's doing:' shun it, then, so that you might attain to
a happy state!
Islamic marketing/business ideals
Promise must be kept and truth must be told
• 61:3 Most loathsome is it in the sight of God that you say what you do not do!
• Narrated 'Abdullah bin Abu Aufa: A man displayed some goods in the market and took
a false oath that he had been offered so much for them though he was not offered that
amount Then the following Divine Verse was revealed:-- "Verily! Those who purchase a
little gain at the cost of Allah's covenant and their oaths . . . Will get painful
punishment." (3.77) Ibn Abu Aufa added, "Such person as described above is a
treacherous Riba-eater (i.e. eater of usury).
Undercutting another in business prohibited
• Narrated 'Abdullah bin Umar: Allah's Apostle said, "You should not try to cancel the
purchases of one another (to get a benefit thereof), and do not go ahead to meet the
caravan (for buying the goods) (but wait) till it reaches the market.“
Brokering is prohibited
• Narrated Tawus: Ibn 'Abbas said, "Allah's Apostle forbade the selling of foodstuff before
its measuring and transferring into one's possession." I asked Ibn 'Abbas, "How is that?"
Ibn 'Abbas replied, "It will be just like selling money for money, as the foodstuff has not
been handed over to the first purchaser who is the present seller."
Advertisement and promotions
• Interest free deals can be attractive to Muslims
• Buy one get one free has no issues and is
attractive
• Cash deals are better than offering a chance to
win. The latter may be seen as gambling which is
prohibited
• Auction selling may be seen as undercutting one
another in business, which is prohibited
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/0,3604,870413,00.html
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/middleeast/22doll.html?ex=1285041600&en=72bb8cc089bf
9435&ei=5090
Global events and the Muslim consumer
• Impact of Middle
East conflicts

• Danish cartoons

• We have taken 40 years to

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

Astrid Gade Niels

Arla spokeswoman
http://news.bbc.co.uk/2/hi/middle_east/4
666298.stm
Global events and the Muslim consumer
Cone-demned ... 'spinning whirl' ice creams look similar to the world Allah
written in Arabic script
Ice creams are being withdrawn from Burger King — because a design on
the lid looks like the word Allah.
http://www.thesun.co.uk/article/0,,2-2005430136,,00.html
Global events and the Muslim consumer

Nike apologized to Muslims for any unintentional offense, agreed to

recall all products carrying the design, introduced training for Nike
designers in Islamic imagery and agreed to investigate how the design
came about.
http://www.cnn.com/US/9811/21/nike.islamic/