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Islamic Branding A Conceptualization of
Islamic Branding A Conceptualization of
Islamic Branding A Conceptualization of
ABSTRACT This article investigates the promising, new subject matter of Islamic
branding, which is yet to receive the academic attention it deserves. It provides a better
understanding of Islamic branding, through conceptualizing the terms relevant to the
brand-Islamization efforts of non-Muslim brands, by identifying the necessary ‘branding
to Muslims’ practices. It differentiates between Islamic products and Islamic brands,
identifies and explains the various types of Islamic branding and links them to the
Islamization of originally non-Muslim brands, that is, international brands, and it
discusses various halal-related issues that an Islamizing firm needs to adhere to in order
to improve its chances of success in the Islamic market. Existing information sources
at both academic and business levels reveal that knowledge remains scarce in this field.
Therefore, the identification and conceptualization of the various Islamic branding
terms offers ample opportunities for researchers to investigate. Researchers investigating
the concept and practice of Islamic branding currently are drawing the inaugural road
map for future research, and thus determining its long-term direction.
Journal of Brand Management (2010) 18, 34–49. doi:10.1057/bm.2010.18
Keywords: Islamic branding; Islamic products; Islamic brands; halal; brand Islamization
There is a new big thing in the world of marketing and it is green, not the familiar grass-green
of the environment, but a deeper green – the traditional color of Islam. (Young, 2007)
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
www.palgrave-journals.com/bm/
Islamic branding: A conceptualization of related terms
and Abdullah, 2009). Although Muslims regional plants for Nescafé and non-dairy
consume 16 per cent of kosher products in creamer as well as the expansion of its Maggi
the United States alone (Kamaruzaman, facilities (Power, 2008). The efforts of these
2006), demand for halal food products by companies build on and transform the image
Jewish and Christian consumers is increasing of their brands from being international to
as those customers become aware of the being Islamic, that is, accepted by the Muslim
halal brand. These religious products, unlike consumer as halal brands. A successful trans-
ethnic products that base their appeal formation can be immensely beneficial to
mainly on being exotic, are associated with jump start an MNC’s brand in an Islamic
the more profound concepts of cleanliness, market as international corporate brands are
purity and kindness, in addition to being only significant if they successfully translate
different and exotic. the core value proposition of the corporate
Islamic religious brands, or halal brands, offering into the new Islamic market; a dif-
are created according to the Islamic prin- ficult task that can only be achieved when
ciples that guide what is permitted not just the entire firm lives and breathes the brand
in the food industry but also in cosmetics, and every aspect of the firm reflects the
pharmaceuticals, logistics, clothing, finance, brand values and essence (Melewar and
hospitality and banking (Minkus-McKenna, Walker, 2003), that is, halal.
2007), thus extending the religious umbrella This study aims to provide a better
much more widely than kosher or ethnic understanding of Islamic branding through
products, which are mainly associated with conceptualizing the terms relevant to the
the food industry. Although this extension brand-Islamization efforts of non-Muslim
provides a much greater opportunity for MNCs by focusing attention on the
a diverse mass of businesses to engage prof- ‘branding to Muslims’ practices. Thus,
itably, the halal market remains unexplored the study gains its significance from several
by the majority of non-Muslim multina- factors: (1) it emphasizes the importance
tional corporations until very recently and of Muslims as a distinct potential market
the relatively small number of MNCs that that remains noticeably under-researched;
dared to engage halal at an earlier stage now (2) the novelty of the topic itself is worthy
enjoy the results of their timely interven- of consideration as research about Islamic
tion; they dominate 90 per cent of the halal branding is non-existent despite the huge
food market (Anon, 2009a). potential the Islamic market presents; (3) it
Non-Muslim MNCs like Nestlé, Uni- defines and differentiates between the con-
lever, L’Oreal, Colgate, Baskin Robbins cepts of Islamic products and Islamic brands;
and Campbell Soup, among others, continue (4) it conceptualizes the major branding
to invest heavily in addressing the Islamic considerations an Islamizing firm needs to
dietary, lifestyle and consumption require- consider; and (5) it would provide a valu-
ments. For example, at the Nestlé corner at able source of insights for future research
the third annual World Halal Forum exhibi- as well as a benchmark for practitioners.
tion, information on Shariah-compliant Finally, the contents of this article are
Smarties, PowerBars, Maggi Noodles, Ice discussed under the following major head-
cream and Koko Krunch breakfast cereal was ings: religion as a brand, the halal market,
displayed. Nestlé also invested CHF 85 mil- serving the modern Muslim consumer
lion in Malaysia in 2009 to meet the increasing and challenges facing MNCs that Islamize.
demand for halal products of which Nestlé The sequence of these headings was
Malaysia is the center of excellence. The based on logic rather than on any specific
investment supports the set-up of new criteria.
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 35
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36 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
question about its overseas operations, as Islam, Judaism and Christianity that
the MNC confirms that it ‘encourages its are being vigorously commercialized in
national operations to adapt products a Christmas-like fashion. Nonetheless,
locally, in order to respect the local, regional regardless of what one might think about
and national habits and the tastes, cultural commercialization of religions or national
and religious backgrounds of consumers symbols, such a trend has become an
as well as their purchasing power. While acknowledged fact in the business world
all products must correspond to our quality that needs to be contended with.
requirements, they vary extensively in com- Having said that, it is worth noting that
position, recipe, packaging and branding’ commercializing Islam is much less likely
(Nestlé, 2010). to occur owing to the nature and teachings
At present, many marketing and branding of the Islamic faith itself. In Islam there are
decisions affecting the Muslim consumer clear and strict conditions that must be
are usually based on a western style (Zakaria adhered to before a firm can get on the
and Abdul-Talib, forthcoming). Studies marketing vehicle of religion. In Islam,
that look at marketing decision processes brands cannot be Shariah-compliant until
from an Islamic perspective are so far neg- they fulfill many conditions related to
ligible despite the obvious fact that halal ingredients, logistics, impacts and inten-
products, being noticeably different, require tions. Such fulfillment results in what is
Shariah-compliant marketing decisions. Islamically called ‘halal’ or wholesome
The argument made in this article clearly products. In this regard, religion plays an
points out that in order to engage the halal active role in transforming businesses into
market, marketing and branding decisions ethical entities whose goals rise above sales
need to adhere to the Islamic guidelines and revenues. Hence, it is my view that
and standards as opposed to implementing firms enduring the agony of changing their
standards applicable within the non-Islamic production processes and marketing prac-
market. tices to become Shariah-compliant have
earned the right to use the words ‘halal and
RELIGION AS A BRAND Islamic’ to support their marketing efforts.
According to William Drenttel’s emotional I do not see much harm in utilizing religion
article in the Design Observer My country to improve the business environment or
is not a brand, ‘Branding has its value in make life better in a more general sense.
commerce and it leads to better commercial After all, that is supposed to be the essence
communication, to understanding the needs of religion.
of an audience, or building long-term rela- Nonetheless, some manufacturers have
tionships with consumers. However, when gone too far in their commercialization
the vocabulary of a nation’s foreign policy efforts of Islam. Mecca Cola is the perfect
is the vocabulary of branding, then it is, in example. The company, building on nega-
fact, selling Uncle Ben’s Rice. This transac- tive Muslim sentiments, claimed to have
tion, with the vocabulary of the super- introduced the Islamic alternative to Coca
market counter, is not how I envision my Cola. As usual, people who bought the
country speaking to the rest of the world. drink disposed of the bottles and cans in
The symbol for a country should not be the garbage while children used the bottles
created by branding experts’ (Drenttel, as an object to kick. Muslims did not do
2004). anything and continued to purchase the
Drenttel’s comments might apply even drink. However, if such a product was
more closely to major world religions such introduced by a non-Muslim company, the
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 37
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fallout would have been extreme and the The description of brands based on origin
company might have been labeled as anti- is supported by Rafi-uddin Shikoh, cited
Islamic for disgracing the name of their in Frost (2007), who distinguishes between
most holy place. As such, non-Muslim brands that come from overly Muslim
companies must be extra cautious; their countries and those that specifically address
white outfit can easily stain. the needs of practicing Muslims. According
to Shikoh, there is nothing religious or
Islamic branding defined theological about most of the first-category
Islamic branding can be defined in three brands and they can serve any of the regular
different ways, in all of which the descriptor consumer needs with regular products or
‘Islamic’ is used: Islamic brands by compli- services and they have nothing to do with
ance, by origin or by customer. religious affiliation (Frost, 2007).
38 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
is the concept of halal, unlike the second as home of the Ottoman Caliphate that led
category of brands that are classified as the Islamic world for many centuries.
Islamic by origin and appeal to customers Another example would be the 350 000
using the traditional, not the value-laden pigs raised by Egyptian farmers (all pigs in
Islamic marketing approach. Egypt were slaughtered in 2009 in the wake
of the swine flu). Islam takes such a strong
Islamic brands versus Islamic stand against the consumption of pig prod-
products ucts that these became associated in the
While it might be politically or geograph- Muslim psyche with a multitude of social
ically acceptable to describe all products and physical illnesses including loss of jeal-
originating from Islamic countries as Islamic, ousy over female relatives, incurable dis-
it would be religiously incorrect to do so eases and body deformations, in addition to
in cases of Shariah non-compliant products committing a major sin. The answer to the
as a non-compliant product cannot be joke question of how to slaughter pigs in
branded as Islamic. Because brands are a halal way to make them Islamic has much
closely linked to emotions, even more so wider applications; a product which is
when religion is involved, such a distinc- haram (non-Shariah compliant) by nature
tion becomes necessary for companies plan- cannot be made Islamic or halal by process.
ning to approach consumers in Islamic Islam approves only wholesome products
markets under a religious slogan. that have been raised, prepared and trans-
In the case of the first two types of ported wholesomely from ‘farm to table’,
branding, Islamic brands by compliance and and to the Muslim consumer, pigs and
Islamic brands by country of origin, there alcohol and their by-products are not
is still some confusion as to the difference wholesome, in the first place. MNCs need
between Islamic brands and Islamic prod- to learn to distinguish between these two
ucts as they are used in many cases inter- in order to communicate more effectively
changeably. It is not until the difference with their potential Muslim markets. Gen-
between these two is recognized and erally, engaging these markets has two
abridged that Islamic branding can fulfill requirements, providing Shariah-compliant
its potential (Young, 2007). For example, products and relocating to Muslim markets.
Turkey is a Muslim country, yet its total Fulfilling these requirements will not guar-
wine production in 2005 was an enormous antee success but will significantly improve
287 000 hl according to the International an MNC’s chances of it. However, to relo-
Organization of Vine and Wine (acronym cate while not paying attention to the core
OIV). Any business person with the slightest requirement of being Shariah-compliant
knowledge about Islam would know that will get these companies nowhere in their
wine is forbidden and strongly condemned efforts to brand themselves as Islamic.
in Islam; there is no such thing as Islamic Although the location will support an
or halal wine. Even Barbican does not pro- MNC’s efforts in that regard, it is only sec-
mote its non-alcoholic beer as beer in the ondary to Shariah-compliance.
Muslim market but rather as a malt drink Relocating to Muslim markets could be
seen by many in the Muslim world as good a significant differentiating factor as it pro-
for the kidneys. Therefore, laboring to vides assurance to the Muslim consumer in
brand Turkish wine as an Islamic product several ways. First, MNCs having national
would not make much sense despite the subsidiaries tend to employ mostly nationals.
fact that Turkey is 98 per cent Muslim in In the case of MNCs operating in Muslim
terms of population and despite its history countries, it is safe to say that most of their
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 39
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employees in these subsidiaries will be intended for Islamic markets will most
Muslims, which clearly sends the message likely fail regardless of how it is packaged
that these products are produced by Mus- or offered. The elegant design and pack-
lims for Muslims and those would not be aging of a bottle of champagne will not lure
producing non-Shariah-compliant products. Muslim consumers into buying it; the rule
Another advantage is one related to the is halal first then enhancements.
product logistics being perceived as halal,
that is, were not contaminated during THE HALAL MARKET
storage, shipping and, in some cases, were ‘We are now at the point where halal is
not shipped through or by nations or com- more than a religious duty. Halal is big busi-
panies that are being perceived negatively ness: counting Islamic finance, as well as
by the Muslim consumer. A third advantage drugs and foodstuffs, and is dovetailing with
would be an improved image if these MNCs contemporary consumer concerns from
source ingredients locally. Local suppliers animal welfare to GM crops and fair trade’
who profit from their business relationships (Power, 2008). An MNC tapping into the
with the MNC will work as dedicated rep- vast halal market makes it more global in
resentatives within their Muslim communi- terms of attending to the needs of Muslims
ties. Sourcing input locally further strengthens as a new segment of customers; companies
the company’s image as Shariah-compliant are not going to be truly global unless they
as it is taken for granted that all food stuffs serve this market (Power and Gatsiounis
produced in Muslim countries are halal. 2007). For example, Nestlé engaged the
Adversely, relocating to Islamic markets halal industry very early in comparison to
might negatively affect how consumers in other manufacturers. In fact, halal imple-
these markets perceive the quality of locally mentation – covering the aspects of control,
produced items. Consumers make stereo- assurance and management in ensuring that
typical associations between products and the products achieved halal status and being
countries based on their perceptions of sustained through out – began in Nestlé
a country’s know-how and reputation Malaysia in the 1970s, followed by the for-
relative to the design, manufacturing or mation in the 1980s of a halal committee
branding of particular generic goods to oversee halal standards from farm to fork
(Usunier and Cestre, 2007). For a relo- for the company’s worldwide operations.
cating company, some time must lapse This section introduces the major
before its local subsidiary or branch can branding considerations that a firm needs
establish it self as a quality producer that to understand as a prerequisite to entering
stands on equal footings with its mother the Islamic market. They include: defining
company, that its local staff are competent, who the halal customers are, differentiating
and its locally sourced material are of com- between the different categories of halal,
parable quality to material sourced interna- explaining the importance of innovation in
tionally. The Muslim markets in this article halal, explaining difficulties in halal certifi-
are defined as those comprised of people cation, explaining the growing importance
adhering to the Islamic faith. To them the of halal logistics and differentiating between
word Islamic also has geo-political conno- halal and kosher as religious products.
tations but when it comes to consumption,
halal becomes a basic qualifying condition Customers of halal
and only then all other supplementations Halal is an Arabic word that is equivalent
and enhancements become differentiating to the English word lawful and wholesome.
factors. A product that is not halal yet It is an all-encompassing concept that
40 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
encourages a Muslim to adopt products that of the needs of this segment and the motives
promote goodness in all aspects of life, safe underlying its decisions.
for consumption and produced in a clean Food plays an important role in Islam,
and healthy environment. and Muslims tend to have large families,
It is predicted that the market for halal therefore their expenditures on groceries
products will continue to grow substan- are high. They also buy big cars and spend
tially. As it grows, it is envisioned that aisles more on home decoration and vacations.
in supermarkets all over the world will be As Muslim populations grow in most
dedicated to these products, in much the countries in the world, it is worthwhile for
same way as kosher and other ethnic prod- grocers in appropriate markets to adjust
ucts do today (Minkus-McKenna, 2007). assortments and marketing approaches.
Like kosher and organic industries, halal Worldwide estimates are that 70 per cent
products are moving into the mainstream of Muslims follow halal standards. But
and appealing to consumers looking before they can meet the needs of devout
for high-quality, ethical products. Some Muslims, grocers have to understand the
Shariah-compliant firms reveal that not all dietary restrictions that dictate their pur-
of their customers are Muslim. For example, chases, and that might prove harder than it
at the Jawhara Hotels, an alcohol-free sounds. Although there are some clear
Arabian Gulf chain, 60 per cent of the guidelines regarding the Muslim diet, there
clientele are non-Muslims, drawn by the is no worldwide authority on halal. Pres-
hotels’ serenity and family-friendly atmos- ently, there are more than 15 halal logos
phere. A quarter of the customers of the in the market (Minkus-McKenna, 2007).
Dutch-based company Marhaba, which
sells cookies and chocolate, are non- Halal categories
Muslims (Power and Abdullah, 2009). The halal industry is growing in sophistica-
Grocers that learn the rules guiding tion as well as size. It is no longer about
Muslim diets will win a loyal following. just meat; it is embracing products from
Supermarkets are selling a lot more Middle lipstick to vaccines to savings accounts. To
Eastern foods such as hummus and cous- illustrate, in 1990 the Islamic Food &
cous these days, as more American con- Nutrition Council of America had only
sumers develop a taste for them. But this 23 clients paying for its halal certification
is just the leading edge of a trend that could services. Last year it certified products for
result in broader and more lucrative sales 2000 companies worldwide (Power and
for stores that get to know and serve the Gatsiounis, 2007).
US Muslim market. For example, recent In general, the halal market can be
research done by the advertising agency divided into three interlinked categories;
JWT on Muslim consumers in the United food, lifestyles and services.
States highlighted their importance as a
market segment. The report describes the First, the food category is currently domi-
Muslim market as being young, big and nated by non-Muslim multinationals such
getting bigger ( JWT, 2007). In the United as KFC and Nestlé, although Muslim-
States, Muslims are already being described owned manufacturers such as Al Islami
as the ‘new Hispanics’. Although recogni- brand in the United Arab Emirates and
tion of this new target for primarily western Almarai in Saudia Arabia as well as a myriad
marketers is timely, the issue is far deeper of small local manufacturers are growing
and more complex (Minkus-McKenna, rapidly. The lack of Arab halal brands in
2007); it requires a different understanding the international marketplace is due to the
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 41
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fact that the concept of halal food was never force behind their marketing campaigns. At
an issue at the Arab countries level because the end of the day, people will not buy
it was taken for granted that all food sold halal simply because it is halal. They are
in these markets is halal. The recognition going to buy quality products. Ideology
of the significance of being halal did not does not make a better-tasting burger, a
evolve until the Arab markets became more better car or a better computer, but it
open to global trade and were flooded with makes a powerful marketing pitch (Power
food products coming from non-Muslim and Abdullah, 2009). Halal brands cannot
countries that do not have a clear under- stand still. In the medium term, it is possible
standing of the importance of the halal for competitors to copy those aspects that
concept to their Muslim markets. have given them the advantage. It is there-
fore imperative for them to innovate con-
Second, in the lifestyle category which is also tinuously (Melewar and Walker, 2003).
dominated by non-Muslim multinationals, New halal products and services include
Islamic producers of halal cosmetics, that is, food and non-food items and they originate
without alcohol or animal fats, are slowly in the Middle East, Europe and Southeast
establishing their brands in the Muslim mar- Asia. The Swiss food giant Nestlé is a pio-
ketplace. The slow development of the halal neer in the field. It has had a halal com-
lifestyle category, in comparison to the food mittee since the 1980s, and it has long had
category, can be attributed to two factors. First, separate facilities for its halal products. As
albeit important, it did not have the same a result, the company’s turnover in halal
urgency as food. Second, both Muslims and products was US$3.6 billion in 2008 with
multinationals learned late that as halal actually 75 of its 456 factories equipped for halal
extends beyond food, normal day activities can production. For non-food items, compa-
also be Islamized and classified as halal, and nies like South Korea’s LG and Finnish
thus special Islamic-compliant lifestyle-related cell-phone giant Nokia also target Muslim
products began to be developed to meet the consumers. LG provides an application that
needs of this market and to, at the same time, helps direct users to Mecca, while Nokia
capitalize on the opportunity it provides. provides downloadable recitations from the
Quran as well as maps of locations of major
Third, the services category includes finance, mosques in the Middle East.
hospitality and logistics, among others. Of Such offerings increase brand loyalty.
these, the halal financial services are the Mainstream brands can actually appeal to
most developed with Islamic banks control- Muslims without making changes to their
ling huge amounts of money and growing core products; these companies can alter
at an annual rate of nearly 15 per cent. their marketing communications to show
Banks that operate according to Sharia law Muslims that their brands care about
are doing well during the global downturn them as consumers (Power and Abdullah,
because they tend to be more conservative. 2009).
In hospitality, hotels are increasingly running
Islamic lines, such as Dubai’s Villa Rotana, Halal certification
which offers quieter and more family- Companies use halal certification and logo
friendly places to stay (Anon, 2009a, b). as a way to inform and assure their target
Muslim consumers that their products are
Halal innovation Shariah-compliant (Shahidan and Othman,
To keep growing, halal firms know they 2006); that is, it confirms that the products
cannot simply rely on religion as the driving are permissible under Islamic Law. For a
42 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 43
Alserhan
to eat by Muslims and Jews. However, serve the modern Muslim consumer who
unlike kosher which applies only to food, is attracted to the glamorous western life-
halal is a term encompassing not only foods styles, yet observes the teachings of his/her
and drinks, but all other matters of daily religion. These consumers are looking for
life; it includes everything a Muslim does: companies that will provide products and
trade, finance, entertainment, work, educa- services that could help them lead their
tion, consumption and so on. Nonetheless, own glamorous Shariah-compliant lifestyle.
both of these food laws have their roots in Muslim consumers want brands that speak
scripture, the Bible and Torah for kosher to them (Power and Abdullah, 2009).
and the Quran for halal. Muslim consumers in general are fol-
To be more specific, while Islam pro- lowing suit to their western counterparts.
hibits all intoxicating alcohols, liquors and Those consumers are well aware of this fact;
wines, these are considered kosher. Thus, it is deeply rooted in their psyche since the
foods and drinks showing the kosher symbol Prophet of Islam told them, ‘You shall
while containing alcohol are not halal. Gel- follow the paths of those who came before
atine is considered kosher by many Jews you, even if they entered a ruined hole of
regardless of its source of origin. For Mus- a desert monitor (Agama) you shall enter it
lims, if the gelatine is prepared from non- behind them. The companions of the
Shariah compliant source, it becomes haram Prophet asked: [you mean] the Jews and
(prohibited). Enzymes in cheese making are the Christian? He said: who else?’. Admiring
considered mere secretion according to the western lifestyle is seen by Muslims as
some kashrut organizations, which makes all a prophetic prophecy. Such a prophecy is
cheese kosher. Muslims, on the other hand, being translated into business opportunities
look for the source of the enzyme. If it is by leading multinationals that seek to pro-
coming from the swine, it is considered vide Islamic versions of mainstream western
haram. Hence cheeses showing kosher sym- products and services such as fast food, gyms
bols may not be halal (Hussaini, 1993). and luxury hotels, to mention only a few.
Moreover, both halal and kosher share a These businesses are allowing Muslims to
strict emphasis on cleanliness that is con- express their religious principles through
sidered even by the non-observant as syn- helping them buying Islamic, connecting to
onymous with good food, which potentially their Islamic roots by what they eat, wear
broadens the appeal of halal and kosher and play. For example, traditional foods
beyond their traditional niches. consumed by Muslims are now competing
In the United States, the kosher food with pizzas, burgers and donuts in addition
industry is valued at $100 billion and 90 000 to an array of foods that have only recently
kosher products, compared to about 1000 entered the Muslim menu. KFC, Pizza hut,
halal-certified products. Muslims’ purchases Dominos, Dunkin donuts and Subway
account for 16 per cent of the entire US kosher chains have hundreds of halal franchises
food industry. On the other hand, although across most Muslim countries. Moreover,
halal products attract some Jewish consumers, Muslim travelers want luxurious hotels with
the Jewish purchases of halal are very small by clients behaving and dressing less provoca-
comparison (Minkus-McKenna, 2007). tively, places where they can go to with
their families (Power and Abdullah, 2009).
SERVING THE MODERN MUSLIM These and other demands of the Muslim
CONSUMER consumers are a sign of the new Islamic
Businesses, allured by the grand potential consumption identity, a market based on
of the Islamic market, are studying how to religious-compliant personal lifestyles.
44 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
New versus existing brands historical separation between state and faith
A major issue facing MNCs contemplating in western societies. This inseparability
an entry into Islamic markets is whether to affects Muslims’ attitudes and behaviors
use the same brands to enter or to introduce toward products they buy and companies
new brands designed specifically for these they deal with. For instance, all Danish
markets. For example, should Nestlé intro- companies are still stumbling from the car-
duce the same successful brands it sells out- toons published in a Danish newspaper
side of the Muslim world unchanged, or several years ago because they were seen
should it brand them differently. What by the Muslim population as derogatory to
would make better business sense: to sell an Islamic subject. In fact, these companies
Smarties as is to Muslims or to develop a faced massive consumer boycott that
new brand of them specifically for Muslims. resulted in serious losses for many of them.
Should McDonalds sell Big Macs and the The effect of these cartoons will prevent
rest of its product range in the Arab Muslim any Danish company in the near future
market or should it sell MacArabia and form establishing itself in the Islamic market,
similar Arabized brands? especially with the existence of viable alter-
The answer to this question is not natives to the Danish brands. Even the
straightforward. Managing and developing more established and rooted American
a single corporate brand is far simpler and brands face difficulties in the Muslim market
cost-effective than managing a portfolio of during tensions between Muslim states or
country or region-specific brands. Such an individuals and the United States. Melewar,
international expansion of a corporate brand an international authority on branding and
is bound to create economies of scale in its brand management warns of the impor-
own right. However, there are also disad- tance: ‘different nations have differing
vantages in using the existing corporate degrees of national identities. Not only
brands unchanged. A company entering the does this take the form of patriotism, but
Islamic market may be able to spread its it can also determine how likely a nation
risk by using a tester brand that, in essence, is to endorse the brand of a particular
can afford to fail because the company country. In order to understand this oppor-
could, in theory, reintroduce itself to the tunity, the corporate brand must first
market with a different offering in the understand the perception it has in terms
future. If an existing brand was used to of nationality, and more importantly, does
enter that market and it failed to be accepted that perception of nationality help or hinder
as Islamic, failure would damage the com- it’ (Melewar and Walker, 2003).
pany’s future efforts to engage that market On the other hand, some countries are
(Melewar and Walker, 2003). perceived positively by the Muslim con-
sumer. For example, before the majority
Country of origin vote by the people to ban building Minarets
The country of origin of the MNC is of in the country, Switzerland had no known
special importance for companies wishing historical conflicts with Muslims and it was
to enter the Islamic market. The Muslim the chosen place where many Muslims
consumer is very sensitive emotionally keep their money and spend their vaca-
because of several factors, including the tions. In comparison to being from a
unification between religion and life in country that is perceived to be hostile to
Islam, unlike western consumers whose Muslims in general or disrespectful of the
behaviors have largely evolved independent Islamic faith, which hinders entry into the
of the influence of religion owing to the Islamic market, being associated with a
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 45
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46 © 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49
Islamic branding: A conceptualization of related terms
communities, training and developing people, Engaging local communities can help
as well as bringing products to the market MNCs blend in and be perceived as part-
adapted to the taste and nutritional needs of ners or collaborators, as well as significantly
local consumers. This is part of Nestlé’s DNA eroding hostilities stemming from the per-
and the long-term approach we take to eve- ception of these companies as exploiting
rything we do’. This is very much in line the working class (Adelman, 1994), helping
with the increased involvement of multina- authoritarian regimes appear more legiti-
tionals in the promotion of social welfare, in mate, depleting the environment and
developing countries in particular, through putting the country’s sovereignty at risk
the facilitation of partnerships and coopera- (Amsden, 1989).
tion with the public and non-profit sectors
of the state in which they operate (Parkan, CONCLUSION
2009). Creating value for its customers neces- In order to maximize their chances of suc-
sitates that the MNC is able to appropriate a cess in Islamic markets, MNCs need to
value-creating process in its international build branding localization competencies.
operations (Mir and Mir, 2009). As far as branding is concerned, and in
However, it is important to note that in comparison to their local Muslim counter-
the wider market context, that is, not con- parts, multinationals generally commence
sidering the Islamic market, there might not with the key advantage of a higher level of
always be a business case for CSR in devel- managerial competence in marketing and
oping countries and therefore MNCs see a brand building. These MNCs are equipped
need to identify and understand other pos- with sophisticated marketing and brand-
sible CSR drivers (Idemudia, 2008). More- building skills that are far ahead of most of
over, the term social responsibility might their local counterparts – many of which
not always mean the same thing to every- are still struggling to master elementary dis-
body. It can mean legal responsibility or tinctions such as the difference between
liability, socially responsible behavior in an marketing and sales (Williamson and Zeng,
ethical sense, charitable contributions, being 2004).
socially conscious or aware, a synonym for MNCs should carefully weigh their cul-
legitimacy in the context of belonging or tural understanding when entering Islamic
being proper or valid, or a sort of fiduciary markets. Relying on their aforementioned
duty imposing higher standards of behavior branding expertise while overlooking or
on businessmen than on citizens at large underestimating the importance of having
(Idemudia, 2008). The difficulty in con- cultural knowledge and sensitivity could
ceptualizing and determining what non- greatly hamper their efforts. A hasty entry
direct profit activities the firm should without thorough appreciation of the reli-
undertake to enhance its image is an added gious and cultural motivations and reasons
burden that businesses internationalizing, or underlying the Muslim consumer behavior
in this case Islamizing, have to deal with. could hinder or even completely hold a
Being engaged at the community level brand’s penetration. There are numerous
is an important factor that humanizes a examples of well-established MNCs making
firm, as opposed to seeing that firm as a simple mistakes that had tragic conse-
purely commercial entity with selfish quences on their international operations.
bottom line interests; it is kind of giving an The lessons that companies keep learning
MNC a local passport and accepting it as over and over again from these examples
a member of the community instead of is that they can never be careful enough
stamping it as a villain (Guillen, 2000). when operating in different cultural settings
© 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 1, 34–49 47
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