Advertising agency Ogilvy & Mather, part of Sir Martin Sorrell's WPP, is launching what it calls “the world's first Islamic branding practice”.
The venture, Ogilvy Noor, is aimed at reaching the new generation that is “redefining what it means to be modern and Muslim, creating new meanings of religious pride, economic progress and global citizenship”.
According to John Goodman, regional president, south and south-east Asia, at Ogilvy & Mather (O&M). , “the Muslim consumer is viewed as a critically important segment for marketers, with the halal segment alone worth $2.1 trillion, and growing at $500 billion annually.”
Interestingly, the top three brands rated by the inaugural Noor Global Brand Index as being completely halal in the eyes of Muslim consumers are Lipton, Nestlé and Nescafé — makers of tea, coffee and chocolate drinks.
Research conducted in four key Muslim markets – Malaysia, Egypt, Saudi Arabia and Pakistan, has identified the New Muslim Consumer as a critically important development for brands hoping to build successful relationships with the Muslim world.
Ogilvy Noor, as it is named, is positioned as the world's first marketing consultancy service focused on Islamic branding practices. “It's not a strategy, but a dive into a particular community's values and thoughts,” says John Goodman. “We hope that Noor can help marketers everywhere to understand more about how this huge minority thinks about brands,” he adds.
Ogilvy Noor is led by a team of experts in key Muslim markets of Asia, the Middle East, Europe and North Africa. “It is an idea whose time has come,” says ad veteran Mohammed Khan, founder of Enterprise Nexus and ex-chairman of Bates Enterprise.
O&M will send researchers to Muslim-centric locations such as Aligarh, Hailakandi, Barpeta in Assam etc, to discern their likes and indifferences. Given the sensitive nature and homogeneity factor, projects will be more tilted towards on-group and local activities.
Ameen Ul Haque, vice-president, planning, at O&M, says the Muslim market in India cannot be ignored because of its size and the challenges in India here are different from other places. “There are unique challenges in India, one of inclusion rather than exclusion,” he says. The idea is to communicate about brands that are coherent with Islamic values, which will help members of the community to be included in the larger mainstream.
The primary study, excluding India, was confined to Muslim predominant markets. “Our aim was to do research and find out values that drove the Muslim consumer and extrapolate in a manner that would have universal appeal,” he says.
In doing so, the report, 'The Brands, Islam and the New Muslim Consumers' debunks many of the stereotypes that surround Muslim consumer attitudes towards brands and their marketing communications. For example, halal stickers, while important to showcase certification, are no longer sufficient to persuade the new Muslim consumer of a brand's belief in Islamic values.
There are more than 150 million Muslims in India and they have a huge amount of purchasing power. There are three big eid festivals in a year, offering immense scope for marketers of footwear, clothes, food and FMCG products, says Mohammed Khan.
The global Halal market value for trade in Halal foods is estimated at US $547 billion a year. European Supermarket giants Carrefour and Auchan aggressively pursue Halal food retailing and exporting countries including Australia and New Zealand have stepped up their diplomatic and marketing efforts to increase their share of the market. New Zealand Lamb exports account for 40 per cent of the world market and 95 per cent of all New Zealand lamb exports are now Halal, while non-Halal production is being phased out.
Key to this sector however is understanding that full Shariah compliance means that production and logistics are also compliant, that the business is financed with permissible funds and that safety and hygiene meet religious standards.
The interesting thing for manufacturers and marketers to consider is that non-Muslim consumers often embrace the standards set by Halal and Haram requirements, broadening their appeal.