The Untapped American Muslim Consumer Market

The Untapped American Muslim Consumer Market By Rafi-uddin Shikoh Posted October 6th, 2009

A while ago, as I was going through my subscribed Time magazine, I was reminded of marketing sophistication in action. I noticed that the Ford Taurus advertisement on the back of my copy was different from another copy of Time magazine (same Edition) that was subscribed by a female colleague. Hers had a female in the ad (mine had no person) and the car was of a different color. Ford obviously was trying to appeal to us differently. Ford does more than customize its marketing communications as it also develops its products for various segments (rugged trucks, Mustang sports car, family mini-vans etc.) America has indeed been the world’s most sophisticated consumer market and so no wonder its marketers are the most innovative. From major brands such as Ford, McDonalds, Coca-Cola, Disney, Apple, Citibank to smaller emerging brands, the level of market segmentation and target marketing in this vast/ diverse market is incredible. Customers are communicated and products customized based on needs that are categorized by demographic (gender, age, income, education, life-stage, ethnicity), psychographic (values, personality, lifestyles, hobbies), and behavioral (readiness, attitude, usage patterns, etc.) segmentations. Faith-based marketing precedents Among the various segmentations, faith-based marketing in the US has undoubtedly been another way to better reach and standout with large segments of audiences. Christian magazines today reach over 100 million Christian readers throughout the US every day (National Mail Order Association, 2008). Marketers from all categories of products and services advertise here and find this an effective way to build brand loyalty. A point to note here is that these publications do make exceptions not allowing advertising for sex, gambling, alcoholic beverages, or tobacco products. In addition to marketing messaging to reach this segment, there’s also an over $4.2 billion market (EPM Communication, 2004) of products specifically geared to the Christian market (books, gift items, music, school curricula, etc.) Similarly, the market for ‘kosher’ food products in the US isestimated at more than $9 billion catering to Jewish faith based needs. There are an estimated 5-6 million Americans of Jewish faith.According to the US Bureau of Census (2005), 40% of US grocery sales were certified kosher.  Also, the average number of kosher products in American supermarkets is 17,000 and 40% of the retail food products sold in the US today bear some type of kosher certification. Today, the kosher market has a much wider appeal than just for American Jews and is not limited to food products only. According to data compiled by Integrated Marketing Communications, consumers spent approximately $165 billion for kosher products in 2003. American Muslim consumers: the un-tapped potential Today there is a large and growing population of American Muslims who also provide marketers – mainstream and niche – tremendous opportunities. Opportunities that are, 1) related to better accessing them through right media, custom messaging and services, and 2) delivering products and services unique to their needs. Estimates of the American Muslim population vary widely from 2 million to 7 million, with Muslims active in all walks of American society as doctors, entrepreneurs, lawyers, educators, athletes, and musicians. A 2007 JWT (major marketing agency) study showed that Muslim Americans spend about $170 billion on consumer products and estimated that this figure is expected to grow rapidly as the population expands and younger Muslims start working. Coverpage of Newsweek's July 30, 2007 Edition Also, the 2007 Pew survey found that Muslim Americans generally mirror the U.S. public in education and income levels, with immigrant Muslims slightly more affluent and better educated than native-born Muslims. Given the above, it would seem logical that both mainstream and niche marketers are including the American Muslim segment in their marketing mix or business plans. There is indeed a growing ‘Halal’ product category (similar to kosher - products in compliance with Muslim religious laws) emerging in the US covering Halal food deli’s, finance, clothing, media etc. Walk the streets of New York city (Manhattan) and you will find a Halal food stall on every other corner. ‘Halal’ mortgage offerings are now maturing. Amana Mutual Fund (managed based on Islamic rules of non-interest bearing, ethical investments) has even become a recognized quality fund amongst all US funds. However, conspicuously missing are main-stream American consumer brands focus on this segment. No major brand has effectively targeted this segment in a consistent way. It’s surprising that the 2007 JWT study that substantiated the size and potential of this market hasn’t yet drawn any attention from major marketers. An AdvertisingAge, November 2008 article, (magazine read by major US marketers) aptly asked “It's a $170 Billion Market, Why Aren't You Targeting It?” 2009 American Muslim Consumer Conference – Another look Perhaps the American Muslim market had been hard to reach (given its fragmentation and diversity), perhaps the right media channels weren’t available, perhaps the post-9/11 environment made it difficult for main-stream marketers to pursue it. Much of this however is changing – in an environment of economic crisis, the growing potential of American Muslim consumers is getting harder to ignore; a variety of media channels to access this market are maturing; and the post 9/11 environment of mass-media negative perceptions of Muslims is fading. An upcoming conference, American Muslim Consumer Conference (AMCC), October 31st, 2009 in New Brunswick, NJ, USA is set to present this changing environment and the new market opportunity. This event is bound to provide marketers with another convincing look at this market. The event has a great lineup of speakers of marketers, analysts, and experienced Muslim market entrepreneurs who will cover American Muslim markets scope, trends and opportunities, and ways to effectively reach them. In an economic environment where any new idea or opportunity is worth evaluating, this market is bound to provide invaluable opportunities for both main-stream marketers and niche Halal market entrepreneurs. It’s the proverbial ‘elephant in the room’ for US marketers, one which they will increasingly run into. The question is: who are the few who will creatively and effectively ride it?