Ali 20122ndGIMCProceedingsExtract
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Conference Proceedings
The 2nd Global Islamic Marketing Conference-
Abu Dhabi, United Arab Emirates
28-29 January 2012
Citation details:
Ali, M. Y. (2013), Halal Branding: A Study of Muslim Consumers Perspective, Proceedings of the 2nd Global
Islamic Marketing Conference, Abu Dhabi (UAE), 28-29 January 2012, pp. 1 – 6.
Halal Branding: A Study of Muslim Consumers Perspective
Dr M Yunus Ali,
School of Business, Monash University Malaysia Campus, Jalan Legoon Selatan, 46150 Bandar Sunway,
Selangor, Malaysia, Email: Yunus@monash.edu
Abstract
Purpose - The literature on Islamic Branding is growing but research attention on Muslim consumer
perspective on Halal branding is scarce. Limited research and anecdotal evidence suggest growing consumer
awareness of halal branding but inconsistent use of Halal logo confuses many and affects positive perception.
This paper will report preliminary findings of consumer perception of Halal brand across countries.
Design/methodology/approach - The on-going research is designed to uncover the awareness and perception
of Halal brand among Muslim consumers in a non-Muslim country (Australia) and predominantly Muslim
countries (Bangladesh and Malaysia). A mixed method research approach has been adopted to understand
consumer perspective of Halal as a brand among Muslim consumers.
Findings – Preliminary findings suggest that the inconsistent use of the word “Halal” as a ‘term, sign, symbol
or design’ by marketers across the world has created confusion in consumer mind and hindering the creation
of a perfect shortcut toward communicating value to the growing market segment.
Research Limitations/implications – Being at the early stage, findings are tentative unless further verified
later in this research and other cross-country studies. It will contribute to our understanding on Islamic
Marketing and Islamic Branding for the benefit of growing consumption needs of Muslim ummah in this
globalised market economy.
Practical implications – Findings have practical implications for marketers and Islamic councils/bodies
across the globe to understand the need for standardizing the Halal logo and supervising its use by marketers
consistently.
Originality/value – This is research is one of its kind on his topic and adds great value to understand
consumer perspective for better Islamic marketing practices.
Introduction
The literature on Islamic Branding has been growing fast but research attention on Muslim consumer
perspective on Halal branding is scarce. The Marketing literature on branding is rich and looked at different
perspectives. Keller (1998) defines branding as labelling products and providing meaning, where brands set to
achieve a certain level of awareness and create a bond with consumers. Kotler (Kotler et al, 2007) defines
brand in a more descriptive way as “a name, term, sign, symbol or design or a combination of them, intended
to identify the goods or services of one seller or group of sellers to differentiate them from those of the
competitors” (p. 406). Others see brand as to create differentiation and preference in the minds of customers
(Xie & Boggs, 2006). From this academic perspective “halal” as a symbol certainly qualifies to be considered
as a brand that can differentiate a product from non-halal alternatives and to create preference and bond in
consumers’ mind as the best choice they would chose to utilize. However, taking consumer psychology into
consideration, marketing strategists need further insight into the use of ‘halal’ as a branding symbol for
building consumer bond and preferences for a sustainable competitive advantage in the target market segment.
Alserhan (2010a) in a recent article described true Islamic brands that satisfy three descriptions of Islamic
Branding: (1) Shariah-compliant, (2) originate from Islamic country, and (3) targeted to Muslim consumers.
Besides these true Islamic brands, he categorised “assumed Halal” brands (that are originated from Islamic
countries and targeted to Muslim consumers, but explicitly not Shariah-compliant), and “inbound Islamic
brands” (originated from non-Muslim countries but targeted to Muslim consumers) that are “Islamized” and
made halal. From these descriptions, the true Islamic brand and inbound Islamic brands carry halal logo as
symbol of Shariah-compliant products certified by approved certifying organisations. An advanced Google
search using “halal logo” listed 492,000 entries including halal logo by public and private halal certifying
organisations as well as halal certified products and services globally. The search listed images of multiple
halal logos in a number of countries including Australia (a non-Muslim OECD country), Malaysia and
Indonesia (Muslim countries) and Thailand (Asian non-Muslim country, production base of some
Multinationals targeting Muslim consumers in the region and globally with inbound Islamic brands).
2
Malaysia has popularized the halal concept with a number of practical attempts on both government and
private sectors. The political environment has undoubtedly strengthened it through government initiatives of
introducing halal certification by the Department of Islamic Development Malaysia or JAKIM (Jabatan
Kemajuan Islam Malaysia), and making Malaysia as a Halal Food hub for processing halal food for local and
international markets. These initiatives are reflected in the appearance of high percentage of Malaysia-based
halal logos to certify products and organisations as providers of halal products in the Google search.
Interestingly, these halal logos are not uniform enough to symbolize uniqueness of the products to be
perceived as different from non-halal certified products and services. Figure 1 below presents logos of
different halal certifying organisations in Malaysia including JAKIM and different logos used by JAKIM to
certify products and organisations delivering halal products and services.
Australia, on the other hand, has a very small Muslim community (in one estimate only around 1.5% of the
population) but its export to overseas Muslim markets around the globe is estimated to worth around $8
billion annually. According to Food Safety Australia, there are at least 15 organizations at the state and
national levels including Halal Certification Authority Australia, Australian Halal Food Services Trust,
Australian Federation of Islamic Council, Islamic Co-ordinating Council of Victoria and Perth Mosque
(Western Australia) that can certify a company as being Halal. Halal certification is regulated by the Federal
Government through the Australian Quarantine and Inspection Service (AQIS). As shown in Figure 2, halal
certified products from Australia carry the halal logo in Arabic script only at the centre of a circle of the
certifying organisations. Interestingly enough, halal logos are not only different for different certifying
organisations; different halal logos carrying certification by the Australian Federation of Islamic Council
(AFIC) were identified in the Google search.
Figure 2: Logo of Halal Certifying Organisations and Halal Logos in Australia
“Halal” as a commercial brand has reported to be invented by some Muslims who came to touch the “Kosher”
brand in the USA, and worked in 1970s to establish a regulating body on the lawful Islamic food and
nutrition. Interestingly, the Google search only listed a few halal certifying organisations at the state levels
and none was clearly found to be national pick body in its birth place. Limited research and anecdotal
evidence suggest growing consumer awareness of halal branding but inconsistent use of halal logo confuses
many and affects positive perception.
Besides this likely confusion over the halal logo, some Muslim consumers may have different perception of
halal where halal certification is not considered only criterion for choosing acceptable products for
3
consumption. For instance, country of origin and absence of ‘haram’ elements in the product are considered
other means of adopting products that may satisfy individuals’ understanding of halal consumption. The first
category falls into the “traditional Islamic brands” which Alserhan (2010) described as “brands originating in
Islamic countries and targeting Muslims” and that “are assumed to be Halal” (p. 103). For many Muslims
around the globe, Halal is part of a belief system and moral code of conduct, which is integral in daily living
of Muslim community (Wilson and Liu, 2010). From that perspective, the understanding of halal is central to
every Muslim’s belief and is considered to be known as necessity; and is based on the general rule of Islamic
jurisprudence which holds everything as halal unless stated otherwise. These perspectives may have an
impact on the awareness and adoption of halal branded product either true Islamic or inbound Islamic brands
as well as traditional Islamic brands but thus far no research has investigated consumer perception on this
with rigor. This paper will report preliminary findings of consumer perception of Halal brand across
countries.
4
community are required to get their products and services certified-Halal. Halal certification is a document
that is issued by an Islamic organisation, to certify that the product meets the Islamic dietary guidelines in
term of contents, process, transportation, storage and distribution. A growing number of multinationals
having realised the significance of the Islamic markets have successfully catered to the halal needs of this
market. For instance Nestle, a pioneer in processing Halal food has become the largest food manufacturer in
the Halal sector with over 100 Shariah-compliant product lines manufactured in 75 out of 481 factories
worldwide (Walker et al, 2007) and lead the market with more than $5.2 billion annual sales in Islamic
countries in 2008 (Waric, 2010). Their Halal products ranges of food and beverages, including confectionery
such as Kit Kat and Smarties, Maggi Soups, Milo malted drinks and Nescafe (Nestle, 2010). Colgate-
Palmolive, on the other hand, have an internal Halal committee that ensures that all the toothpaste and
mouthwash manufactured in Brazil, China and Thailand are free of all animal DNA to be Shahriah compliant
and certified halal by Malaysian Halal Certification authority JAKIM (Colgate Malaysia, 2010). However,
numerous blogs and web links raised concerned about the claim.
Very recently Cadbury Australia obtained halal certification for its Cadbury chocolates from an Australian
Halal Certification authority and became focus of some anti-Muslim individuals who used their internet social
network to threat boycott of Cadbury products. However, the lucrative global Muslim market encouraged
many other multinationals to obtain halal certification, especially for food, dairy and meat products. Fast food
giants McDonald’s, KFC, Domino Pizza dominate in many Muslim country markets with halal certification.
The literature suggests that Muslim consumers share the same traits of mainstream consumers who demand
healthy and quality products, but the products must conform to Shariah compliance as well (Al-Harran and
Low, 2008). The inbound Islamic brands from these multinationals from non-Muslim countries (Alserhan,
2010a) are well known world wide for their product quality and world class image. However, it is not quite
clearly known if their halal certification also satisfies Muslim consumers’ expectations of Shariah compliance
requirements to be accepted as Islamic brand.
An article published in the Journal of Islamic Marketing investigated the impact of religiosity on consumer
new product adoption (Rehman and Shabbir, 2010). Though the research model simply looked at the impact
of different dimensions of religiosity of a consumer on his/her new product adoption behaviour, the model has
a merit to be used to explain Muslim consumers’ adoption of halal products in general and different types of
Islamic brands in particular. This research intends to adapt Rehman and Shabbir’s (2010) model to investigate
the adoption of true Islamic brands, traditional Islamic brands and inbound Islamic brands by Muslim
consumers in a Muslim majority market and a non-Muslim country market. While the research attempts to
explore the Muslim consumer perceptions through exploratory qualitative approaches where no a-priori
research expectation is unwarranted, the following general propositions were in mind for the adaptation of
Rehman and Shabbir’s (2010) model in this study:
Proposition 1: The greater the religiosity of the consumer, the higher the adoption of true Islamic brands.
Proposition 2: The greater the religiosity of the consumer, the lesser the adoption of (a) traditional and (b)
inbound Islamic brands.
5
were arranged initially to understand the issue in hand from scholars. The first interview was with an Islamic
scholar and Director of Islamic Studies of a university in Brisbane, Australia. While the second interview with
an academic of Islamic Banking and Finance of the same university in Brisbane (Australia) was arranged to
understand his expert knowledge on the adoption of Shariah compliant products in general and Islamic
Finance in particular, the third interview with a Marketing scholar in Malaysia provided much needed
understanding of consumer perception of halal branding in Malaysia. Each of these interviews lasted around
an hour. The first interview in particular was aimed at understanding the Shariah rules of halal and haram in
Islamic way of life, complexity of the consumption context for Muslim consumers in a non-Muslim country
such as Australia, halal certification in Australia, and seeking his expert opinion on a draft research instrument
for the next phase of the study.
This one-on-one interview was followed by focus group interview with a cross-section of Muslim consumers
in Brisbane (Australia). The researcher himself moderated the focus group interview to initiate discussion on
all important and relevant issues, probing, balancing participation among participants and encouraging
participants to discuss any issue they find relevant. The focus group consisted of five family persons
generally involved in family consumption decision making and lasted around an hour and half.
6
Interview with the Marketing academic in Malaysia revealed a different experience with halal certification.
The highly practicing Malaysian Muslim perceives locally manufactured halal products certified by JAKIM as
authentic and reliable. However, she does not believe that all products produced in Malaysia or any other
Muslim countries are halal unless certified. She does not rely only on halal certification of a restaurant unless
run by Muslim. She expressed her reliance on well known Multinational brands that are halal certified and
produced in Muslim countries. To her halal certification is enough if the product is sold in store carrying only
halal products and does not bother checking ingredients of the products.
The focus group in Australia comprised two doctors, one engineer, one accountant and an IT person. Two of
them were very pious Muslims, two were practicing Muslims and the other leads relatively easy life style.
This focus group interview revealed an interesting consumer perception about their consumption of halal
products that support propositions of this study. The two pious Muslim demonstrated attitude towards the
acceptance of halal products that are very similar to those of the first two interviewees in Brisbane. They
follow complete halal way of life and their criteria of accepting halal goods and services seemed very strict.
They were very critical about the existence of numerous halal certifying organisations in Australia and lack of
unique halal certification guidelines throughout the Muslim world.
The two practicing Muslim members also expressed their desire for halal way of life; both of them were aware
of different halal brands of food, pharmaceuticals, healthcare and cosmetic products and preferably buy those
products. However, their criteria of accepting halal product were not that stringent and expressed their
acceptance of a product as long as it carries a halal logo of any certifying organisation. They even expressed
their acceptance of Multinational product brands that are targeted to Muslim markets or products that
emphasize purity and humanity though not halal certified. They also prefer checking ingredients of the
product rather than believing halal logo and they have lesser reservation about any halal certified products
manufactured in non-Muslim countries. They also believe that most products manufactured in Muslim
countries are halal and they prefer buying those products from ethnic grocery stores. The person who leads
relatively easy life style is relatively new in Brisbane. He expressed his awareness towards halal products but
his consumption pattern is not so restricted though avoid haram foods and drinks. In summary, the in-depth
interviews as well as focus group interview data lend some support to the propositions of this research that the
extent of religiosity of the consumer has positive relation with the adoption of true Islamic brands and
negative relation with the adoption of traditional and inbound Islamic brands.
Research Limitations and Implications
Being at the early stage, findings are tentative unless further verified later in this research and other cross-
country studies. It will contribute to our understanding on Islamic Marketing and Islamic Branding for the
benefit of growing consumption needs of Muslim community in this globalised market economy. Findings
have practical implications for marketers and Islamic councils/bodies across the globe to understand the need
for standardizing the Halal logo and supervising its use by marketers consistently. To win the acceptance of
cross-section of Muslim consumers multinational firms should invest more on thoroughly understand Muslim
consumer perception and incorporate Shariah compliance in their attempt to target this growing market.
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