zoomFrom Egypt to Indonesia, there is one, cohesive market defined by Islam. Yet in these tight times, companies targeting the world's 1.4 billion Muslims need to move beyond the traditional dichotomy of consumers being either ‘conservative' or ‘Westernised'.
It is during the Holy Month of Ramadan that most international companies tend to notice their Muslim consumers. Spending patterns change and consumption of some products, including everything from date bars to Vimto, the purple fruit cordial, skyrocket.
However, according to a new study by global advertising firm JWT and market research agency AMRB, there are certain themes that resonate across the Muslim world throughout the year.Communication and marketing works much better across socio-cultural lines rather than geographic lines," Roy Haddad, chairman of JWT MENA, said at a press conference earlier this month. "What puts people together is the culture they share, the values they share and the beliefs they share."
It is during the Holy Month of Ramadan that most international companies tend to notice their Muslim consumers. Spending patterns change and consumption of some products, including everything from date bars to Vimto, the purple fruit cordial, skyrocket.
However, according to a new study by global advertising firm JWT and market research agency AMRB, there are certain themes that resonate across the Muslim world throughout the year.Communication and marketing works much better across socio-cultural lines rather than geographic lines," Roy Haddad, chairman of JWT MENA, said at a press conference earlier this month. "What puts people together is the culture they share, the values they share and the beliefs they share."
The research was conducted in 10 predominantly Muslim countries: Saudi Arabia, the UAE, Malaysia, Pakistan, Indonesia, Jordan, Algeria, Egypt, Iran and Turkey.
The result, entitled The Life and Times of the Modern Muslims: Understanding the Islamic Consumer, probes the attitudes and values of 7500 consumers, most of whom are in the upper, urban socio-economic class of consumers usually targeted by advertisers. Earlier research had mainly looked at Muslims in Western markets such as the US and the UK.
The new survey found that in most markets, less than a third of respondents felt that their national identity is more important than their religious identity. Only Turkey (54 percent) and Iran (49 percent) bucked the trend. Common themes that emerged included high importance placed on family life and a belief that education needs to play a stronger role in shaping society.
"More and more products have to have a brand value, they have to have a role in society," Haddad says, citing the booming Islamic banking sector as an example.
In all but two countries, more than half of those surveyed said they would prefer to deal with Islamic banks rather than a non-Islamic bank, even if they have to pay more.
Saudi Arabia and the UAE were among the top scorers: 76 percent of Saudis and 71 percent of Emiratis said they would opt for an Islamic bank when given a choice.
In the hospitality sector, UAE-based Landmark Hotels has announced plans to open 10 Islamic hotels in UAE and Saudi Arabia over the next two years. The hotels will be free of alcohol, serve halal meals and have pledged to donate part of their earnings to charity.
But large chunks of the Islamic market remain underserved.
"Take the 250 million Muslim women who dress in a compliant way," Haddad says. "That should open a huge market for clothing, cosmetics, and all that comes with that."
In the US, Muslims are the biggest consumers of kosher products, spending $16bn a year. In the UK, the halal market is growing at 15 percent annually, compared to an average market growth of around 1 percent.
The global halal market is estimated to be worth $580bn. "If any company gets 10 percent of that you have a global company the size of Nestlé," Haddad says.
But it is perhaps in the Muslim world's burgeoning young population that the largest opportunity exists.
"I think the most significant aspect of this is that it's a very young population," Haddad says. "Europe, Japan and China are getting older. The only real demographic growth that is happening is in the Islamic world."
That youth has a strong hunger for self-expression, which seems to be borne out by the results. With the exception of respondents from Jordan, 80 to 90 percent of all interviewees agreed with the statements: "Today's generation does not just accept things - they try to understand the reasoning behind it", and: "It is good that today's generation voices opinions that they strongly believe in".
In the past, companies have sometimes split Muslims into two groups: conservatives and those who are ‘Westernised'.
"No Muslim that I know wants to be more ‘Westernised'. Yes, they want to be modern, but not ‘Westernised'," Haddad says.
He hopes the study will prompt more advertisers to take notice of the Islamic market, whilst realising that not all Muslims are the same.
"We're saying: ‘There are so many nuances in the Islamic world, and understanding those nuances helps you market to them better.' We are not a monolithic body of 1.4 billion people, but there are values that we share.
Marketing to Muslims
by Soren Billing on Friday, 28 November 2008
According to the new report, famous New Age Muslims include Egyptian talk show host Amr Khaled, and also singer Ahmad Sami.
Based on their findings, the authors of the report came up with five different consumer segments, or clusters, within the Islamic market that they hope will become a useful tool for advertisers in the future.
"What used to happen is, we used to borrow these clusters from the West, and then try to adapt them and force them into the Muslim culture. Here we tried to create new clusters that are proper and really belong to the realities of the Muslim world," he says.
The first group, Religious Conservatives, is extremely religious and conservative and does not approve of gender interaction. They expect others to follow religious practices. People in this group are generally have a negative view of the media and are considered information averse. As consumers they are not brand conscious and would override their personal choices for religious beliefs.
"What used to happen is, we used to borrow these clusters from the West, and then try to adapt them and force them into the Muslim culture. Here we tried to create new clusters that are proper and really belong to the realities of the Muslim world," he says.
The first group, Religious Conservatives, is extremely religious and conservative and does not approve of gender interaction. They expect others to follow religious practices. People in this group are generally have a negative view of the media and are considered information averse. As consumers they are not brand conscious and would override their personal choices for religious beliefs.
hey don't want to access the internet. They believe the media is bringing in Western values, which is not something that they subscribe to," says Gagan Bhalla, AMRB's MENA general manager.
"This is probably the group that is most under pressure. It's very hard for them to take a step forward but at the same time, as society is evolving they feel left behind. Their reaction is very negative," Haddad says.
Societal Conformists believe that social norms should be adhered to, even if it comes at the expense of personal choice. They lack self confidence and depend on others to make decisions. According to the report, this group uses religion to make people adhere to traditions because they are not comfortable with change.
At the same time they are not particularly religious and are positively disposed towards Western values. "They would like to see Western programmes on TV and they would like to visit Western countries on vacation," Bhalla says.
Non-Traditional Strivers are open-minded and ambitious. They are willing to compromise on religious values in order to get ahead in life.
This segment, which mainly emerged in the Southeast Asian countries, is highly influenced by economic factors and will sway with whatever enhances their living standards.
Extreme Liberals are very liberal, independent and assertive. They are not very particular about traditional and religious practices. They are pragmatic individuals who like to explore different options even if it might not conform to accepted religious and societal norms. This group is not expected to grow significantly in size in the near future.
New Age Muslims are moderates who are somewhat traditional and religious, but who do not expect others to follow religious practices. They see no contradiction between modernity and Islam.
The report describes this group as "the result of a desire for progress and modernity while reacting to the Western pressure on Islam". They are religious but believe in female empowerment and gender equality. They are also pro-media and realise the potential advantages of the internet.
"People are underestimating how fast this segment is growing," Haddad says.
According to the report, famous New Age Muslims include singer Ahmad Sami and Egyptian talk show host Amr Khaled.
So, how to use this information in your marketing strategy? Haddad uses ready-made meals as an example. "I am not going to go to the Religious Conservative, I am going to go to the New Age Muslim because most likely it's a dual-income household."
The product would also be pitched in a slightly different way. "In a Western market you would probably position the product on a convenience platform," Bhalla says.
However, to a New Age Muslim woman, being able to spend time with your family is likely to be a bigger selling point than convenience. "Although she is a modern woman, there are some religious and cultural values that she subscribes to," he says.
What surprised the authors the most was the size of each segment in some countries. The highest number of Extreme Liberals was - perhaps predictably - found in Turkey.
But the highest percentage of Religious Conservatives was found in Jordan and Egypt, both often seen as relatively liberal countries.
The UAE had the largest portion of New Age Muslims, followed by Saudi Arabia and Pakistan in second place.
The opportunity lies in when you stop viewing this market from a monolithic point," Haddad says. "There are a lot of opportunities in this market for any marketeer who wants to take it seriously.
"This is probably the group that is most under pressure. It's very hard for them to take a step forward but at the same time, as society is evolving they feel left behind. Their reaction is very negative," Haddad says.
Societal Conformists believe that social norms should be adhered to, even if it comes at the expense of personal choice. They lack self confidence and depend on others to make decisions. According to the report, this group uses religion to make people adhere to traditions because they are not comfortable with change.
At the same time they are not particularly religious and are positively disposed towards Western values. "They would like to see Western programmes on TV and they would like to visit Western countries on vacation," Bhalla says.
Non-Traditional Strivers are open-minded and ambitious. They are willing to compromise on religious values in order to get ahead in life.
This segment, which mainly emerged in the Southeast Asian countries, is highly influenced by economic factors and will sway with whatever enhances their living standards.
Extreme Liberals are very liberal, independent and assertive. They are not very particular about traditional and religious practices. They are pragmatic individuals who like to explore different options even if it might not conform to accepted religious and societal norms. This group is not expected to grow significantly in size in the near future.
New Age Muslims are moderates who are somewhat traditional and religious, but who do not expect others to follow religious practices. They see no contradiction between modernity and Islam.
The report describes this group as "the result of a desire for progress and modernity while reacting to the Western pressure on Islam". They are religious but believe in female empowerment and gender equality. They are also pro-media and realise the potential advantages of the internet.
"People are underestimating how fast this segment is growing," Haddad says.
According to the report, famous New Age Muslims include singer Ahmad Sami and Egyptian talk show host Amr Khaled.
So, how to use this information in your marketing strategy? Haddad uses ready-made meals as an example. "I am not going to go to the Religious Conservative, I am going to go to the New Age Muslim because most likely it's a dual-income household."
The product would also be pitched in a slightly different way. "In a Western market you would probably position the product on a convenience platform," Bhalla says.
However, to a New Age Muslim woman, being able to spend time with your family is likely to be a bigger selling point than convenience. "Although she is a modern woman, there are some religious and cultural values that she subscribes to," he says.
What surprised the authors the most was the size of each segment in some countries. The highest number of Extreme Liberals was - perhaps predictably - found in Turkey.
But the highest percentage of Religious Conservatives was found in Jordan and Egypt, both often seen as relatively liberal countries.
The UAE had the largest portion of New Age Muslims, followed by Saudi Arabia and Pakistan in second place.
The opportunity lies in when you stop viewing this market from a monolithic point," Haddad says. "There are a lot of opportunities in this market for any marketeer who wants to take it seriously.
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