Islamic marketing Evolution and implication

Islam means “surrender to the one god, Allah” Principles of Islam are conveyed through

◦ The Holy Qur’an: the scared text for Muslims◦ Hadith & Sunnah: the sayings and doing of Prophet

Muhammad Shariah: Islamic constitution and law

What is Islam ?

"No Arab has any superiority over a non-Arab, nor does a non-Arab have any superiority over an Arab. Nor does a white man have any superiority over a black man, or the black man any superiority over the white man. You are all the children of Adam, and Adam was created from clay“

Prophet Muhammad (PBUH)

Muslims searching for ways to accommodate there religious values into there day to day activity

Muslims buying and consumption is heavily influenced by Islamic “shriah”

These adaptation are becoming more challenges due to media and globalization

Introduction

Becoming essential for them to adapt global changes .

Due to this the have formed there own consumption behavior that bring there Islamic pattern .

This made people to examine the trends in Islamic marketing

Introduction

This study is focused on Comes under major countries having the

max Muslim population Having a historical sources of dissemination

for Islam and Islamic knowledge

Egyptian Market

Spread throughout all the continents and regions of the world .

Max live in Asia pacific region rather than in ( middle east region .

Muslim population 1.6 billion expected to inc by 35% in next 20 yrs reach 2.2 billion.

Spread of Muslim societies

Worlds Islamic population in different regions

These have stats indicate significant growth in no of Muslim consumers world wide .

Islamic application in different countries Egypt , Indonesia , the UAE the largest Arab country is Egypt which is

know for “Al Azhar” . People come to Al Azhar to know more

about qur’an , hadith, shari’ah .

Worlds Islamic population in different regions stats

Interest is inc at fast pace Co are trying to adapt Islamic principles in

there businesses Islamic branding , halal branding , Islamic fashion

Academic side establishment journals that focus on Islamic marketing (lead to academic conf and executive workshops)

New era for Islamic marketing

in past Muslim dint have much attention but from past few decade they have gained attention due to there economic development and competitiveness

This has attracted many FDIs into this market .

And they have changed themselves in Muslim countries as well as non Muslim countries

New era for Islamic marketing

Largest Muslim country Has oldest Islamic institutions Al Azhar Which motivate students from all over the

world to come and learn more about Islam Students became the major contribution to

the Egyptian GDP ( more than 80%)

Islamic marketing in egypt

consumer beliefs and attitudes toward various consumer practices

they hypothesized that religion and religiosity constitutes a main part of a person's characteristics.

They hypothesized that religiosity is positively related to consumer ethical beliefs ,

that age is positively related to ethical behavior of consumers

there is a positive relationship between Islamic based marketing and consumers' Islamic-based behavior.

Scottand Joseph (2003)

the relationship between Islamic identity and managers' business practices.

the study found that the Qur'an and Prophet Muhammad's Hadith are the main source for Islamic ethics Hadith when making buying and consumption decisions.

multinationals are trying to associate their brands with Islamic values

Another study conducted by Rice (1999)

study investigated the area of Islamic branding

understanding of Islamic branding through conceptualizing the terms relevant to the brand-'Islamization‘.

It differentiates between Islamic products and Islamic brands .

Al Serhan's(2010)

examined the extent to which Islamic banks are following Islamic Shariah

The researchers developed an index called the 'Ethical Identity Index' (EII) which is a measure that relates the ethical identity communicated in the annual reports of the studied banks

banks from the Arabian Gulf region ,

Haniffa and Hudaib (2007)

Gain popularity in 1970s Its fundamentally different from traditional

banking. Based on investment on real assets

Requires banks to partner with institutions to invest in projects

Its fundamentally different from traditional banking.

Its fundamentally different from traditional banking.

Islamic banking

Central concept in Islamic baking and finance is justice which is achieved through sharing of risk

In this shareholder has to share profits and losses

Main diff they operate in accordance with the rules of shari’ah

Islamic banking

Sukuk (Islamic bonds), Takaful (Islamic insurance), Wadiah (safekeeping), Ijarah thumma al bai' (hire purchase), Murabahah (cost plus)

Other Islamic banking terms are:

India's present laws obstruct the establishment of Islamic banking  the banking resolution act  (1949) 

 

Islamic banking in india

prohibits the operation of banks on a profit-loss basis , forbids murabaha, or, the buying, selling, or barter of goods (8), impedes ijara, or, bars the holding of immovable property for a period greater than seven years (9), and requires the payment of interest (21).

However, there is no reason for these regulations not to be amended. The purpose of regulations is to ensure smooth and standardised operations, not vet business models; the market will be the best judge of the efficiency and pitfalls of Islamic banking.

In india

Halal logo

• In Arabic, the word Halal means permitted or lawful. Halal foods are foods that are allowed under Islamic dietary guidelines. According to these guidelines gathered from the Qu'ran, Muslim followers cannot consume the following: 

• pork or pork by products

• animals that were dead prior to slaughtering

• animals not slaughtered properly or not slaughtered in the name of Allah

• blood and blood by products

Halal food

Global size US$ 547billion in 2009 Western markets invested in Halal market

to meet the inc in demand In UK the governament revealed 51% of

local students acquire halal retail sales exceeded GBP 400million in UK

Islamic banking

QSR Brands guarantees that all the products it manufactures and sells in Malaysia are Halal.

The QSR Brands Shariah Advisory Council stringently oversees the whole chain of its Halal food manufacturing processes to ensure Halal compliance with JAKIM's Halal Certification requirements.

JAKIM's Halal logo are displayed on all of our product packaging certifying that it has passed the tests of Halal compliance.

KFC

KFC

MCDONALD’S TO PAY $700,000 TO MUSLIM GROUPS OVER ISLAMIC DIETARY LAW DISPUTE

Mc donalds

Growing market of $96 billion Fashionable Islamic dresses for woman Local brands started to grow like EL motahageba , tie shop Some other examples Fulla replica of barbie Even cartoons and and other fulla recived

great attention

Islamic fashion

Fulla encouraged Muslim girls to wear veiled dresses outdoors were as at home were allowed to wear western sloths and t-shirts

Islamic fashion

Launched first satellite Saying giving opportunity to Arabic media Hundreds of new movies , songs , sports etc

like iqraa and resala

Satellite broadcasting

An Egyptian Muslim cleric has called on the Muslim and Arab world to boycott Starbucks because he claims the female character depicted in the company’s logo is actually Queen Esther, the heroine in the story of Purim

Starbucks

starbucks

“Do you know who Queen Esther was and what the crown on her head means?“

• Higazi asked. "This is the crown of the Persian kingdom. This queen is the queen of the Jews. She is mentioned in the Torah, in the Book of Esther. The girl you see is Esther, the queen of the Jews in Persia."

Starbucks

Someone gave me a 'Nike' shoe. Can I wear it. 'Nike' brand is always under controversies. Once I saw a picture in a paper showing the Arabic word 'ALLAAH' written on the shoes' sole. But this shoe which is with me does not have any such markings.

Nike logo

Nike logo

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  is His slave and Messenger.

If it is true that this company had produced shoes on which the word “Allah” is written, then it is a company that is an enemy to Allah and His Prophet . Therefore, the Muslims are obliged to boycott such a company 

Nike

High growth rate Success of many Islamic products Services proved to be successful during

turbulent times by banking Place for many MNC companies to innovate

and expand there businesses . Taking into consideration in increase in

population

Conclusion

QUESTIONS

Thank you