IJMRR/ Dec 2013/ Volume 3/Issue 12/Article No-10/3938-3948

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INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH

AND REVIEW
HALAL MARKETING: GROWING THE PIE
Tajamul Islam*1, Dr. Uma Chandrasekaran2
1

PhD Research Scholar, Department of Management Studies, School of Management,

Pondicherry University, Pondicherry, India.
2

Associate Professor, Department of Management Studies, School of Management,

Pondicherry University, Pondicherry, India.

ABSTRACT
This conceptual paper provides a general understanding about Halal and Islamic marketing.
Based on the limited published literature available we have tried to understand the status of
various categories of Halal products and services in Islamic and Muslim majority countries.
The concept of Halal or Islamic marketing was traditionally understood to apply to food
products and banking & financial services but its increasing consciousnessis seen among
consumers of other product categories like pharmaceuticals, cosmetics, fashion, education,
leisure & entertainment and hospitality & tourism services. Many multinational companies
have scored very well on the Noor Index that measures the Halal-ness of brands as perceived
by consumers. Further, the considerable overlap between the principles of Islamic,
Vegetarian and Green marketing has led us to speculatethat one can shape marketing strategy
and expand market potential with Halal certification. Finally the study discusses the
relevance and potential for Halal and Islamicmarketing in India as it has the third largest
population of Muslims after Indonesia and Pakistan.
Keywords: Halal marketing, Islamic marketing, Noor Brand Index, Halal products, Halal
Brands, Halal certification.
INTRODUCTION
Marketing is the concept of sensitively serving and satisfying human needs (Kotler &Levy,
1969). The essence of marketing lies in identifying, sensing and probing the needs of
customers and meeting those needs profitably by coming out with an offering that satisfies
the need. The marketing process is the set of activities through which organizations identify
and exploit opportunities to serve consumer needs (Sanchez, 1999).Consumers differ in their
preferences and needs and these differences are the outcome of innumerable factors that
shape their consumption behavior. One of the important factors that design and influence the
consumers choice is the religion he or she belongs to.The role of religious beliefs cannot be
avoided or ignored as religious affiliation tends to influence the way people live, their
choices, their eating habits and whom they associate with (Famet.al, 2004).Religions of the
world have deeply influenced consumer behaviordueto their effects on attitudes toward
consumption and consumption choices as shaped by religiosity (Wilkes, Burnett & Howell,
1986). According to Delener (1994) the effectiveness of global marketing strategies will be
*Corresponding Author

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enhanced by the knowledge of religious differences in consumption decision processes. From

his study of consumption decision making of Catholics and Jews, Delener (1994),called for
developing marketing mix strategies that consider the decision maker's
religiousness.Religions have belief and value systems that are expressed in terms of
prohibitions, acceptances, sanctions, behaviors, actions and reactions. Although religion may
be a personal choice, the practice of it is reflected as a communal or group behavior and
hence can be expected to exhibit the normative nature, dynamics and psychology of social
groups. Religioninfluences consumer choice both directly as well as indirectly. Normative
influences determine the consumers choice by laying down the modes of conduct that it
proclaims. For instance, Hinduism prohibits eating beef and Islam prohibits consumption of
pork andalcohol. Besidesthis, religion influences formation of values and attitudes.Bailey &
Sood (1993) have cited the works of Markin, 1974; Luqmami et al., 1980; Jain, 1984;
Czinkota and Ronkainen, 1990 affirming that marketing literature documents the effects of
major religious beliefs and practices on consumer behavior such as the importance of fasting
and feasting to patterns of food purchases, belief in taboos on clothing styles and activities of
women, practices of personal hygiene related to purchases of toiletries and cosmetics, and
influences on housing and entertainment patterns. The outcome of this interrelationshipbetween religion and consumption is the development of new specialized
products and services, designed and targeted at the followers of different religions across the
world. Besides the development of religion-specific products and services, it has also led to
the development of new areas of study and research that focus on studying consumers in the
context of their religious affiliation.
ISLAMIC MARKETING OR HALAL MARKETING
Islamic marketing or Halal marketing assumes that religion affects consumer choice and thus,
follows Islamic laws, principles and guidelines in strategic marketing decisions of designing,
communicating and delivering products and services to customers.
Islamic marketing fulfills needs through Halal products and services with the mutual consent
and welfare of buyers and sellers for achieving material and spiritual well-being in the world
here and the hereafter (Alom &Haque, 2011).
Adding the word Islamic to marketing will be understood to mean Shariah compliant
practices i.e., adhering to the teachings of Islam in all facets of trade, applying
Islamicbusiness ethics and observing the market manners as dictated by the religion of Islam
(Bakr Ahmad Alserhan,2011).
A school of thought that has a moral compass which tends towards the ethical norms and
values of Islam and how Muslims interpret these from their varying cultural lenses (Wilson
2012).
Islamic marketing is a relatively new area of study in marketing,even thoughShariah
compliant practices have been in place for a longer time. Muslims around the world have
been ensuring that they are consuming Halal products and services by enquiring about
ingredients and by avoiding products and services that do not conform to their religious

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beliefs. With the phenomenon of globalization and liberalization many multinationals are
realizing the opportunities and imperatives of studying this growing segment.
CONCEPT OF HALAL AND HARAM
Halal and Haram represent Islamic law based on the teachings of The Holy Quran and
Sunnah(the prophets way of life)and regulate every aspect of a Muslims life.The word
Halalis usually understood to refer to the food that is permissible according to Islam.
However in Arabic, it refers to permissible behavior, speech, dress, conduct, manner and diet
(Al-Jallad, 2008); Halal is that which is permitted, with respect to which no restriction
exists, and the doing of which the Allah has allowed, and Haram is that which the Law Giver
has absolutely prohibited and the one that commits it is liable to incur the punishment of
Allah in the hereafter as well as legal punishment in this world. Haram is the antonym of
Halal which means prohibited or forbidden. Besides Halal and Haram, a third category
Makruh or the detestable is that which is disapproved by Allah albeit not as stronglyand
the one who commits it is not punished as he is punished for a Haram act, except when he
does it in excess and in a manner which leads an individual towards what is Haram (AlQaradawi, 2002).
The ubiquitous influence exerted by the Halal-Haram dichotomy in a Muslims day to day
activities makes the concept of Halal marketing applicable and extendable to other products
and services besides food. Marketers can cash upon the tendency of Muslim consumers to see
Halal and Haram in everything, by providing the Halal versions of their products and services
and coming up with innovative products. Muslims around the world are becoming more
conscious about the Halalness of other categories like pharmaceuticals, cosmetics, clothing,
banking & financial services, education, leisure & entertainment and hospitality & tourism
services.
WHY HALAL?
Available literature suggests that the emergence of the Muslim middle class attentive to the
values of Islam and interested in modern consumption(Sandikci,2011), the relatively
homogeneous nature of the Muslim communityespecially in consumption of foods (Baker
Alserhan &Zeid Alserhan,2012), the increasing acceptability of Halal products among nonMuslims and the emergence of Muslim entrepreneurs(Sandikci,2011) are the factors that have
caught the attention of marketers and made them revisit their erstwhile strategic choice of
ignoring this market. A number of multinational companies have Halal versions of their
products and services. MNCs from non-Islamic countries like Nestle, Unilever, LOreal,
Colgate, Baskin Robbins and Campbell Soupsare increasinglyaddressing Islamic markets and
enjoy almost 90% market share in Halal foods, cosmetics and medicines (Alserhan,
2010).Nestle Malaysia produces about 300 Halal products in its food and beverage range
which are exported to more than 50 countries worldwide. Ogilvy and Mather launched
Ogilvy Noor which is the worlds first specialist Islamic Branding consultancy in May
2010. Ogilvy Noor introducedthe Noor Index which measures the Halalness of products and
services and aims to help brands and companies better understand and communicate to
Muslim consumers worldwide.

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a) Fastest growing religion: Islam is the second most practiced religion in the world after
Christianity and is one of the fastest growing religions. According to CIAs World Factbook
2013, Muslims represent almost 22.74 per cent of the worlds population. The estimates by
The Pew Forum on Religion and Public Life (2011), reports that the worlds Muslim
population is expected to increase by about 35 per cent in the next 20 years, rising from 1.6
billion in 2010 to 2.2 billion by 2030.Almost 63% of them live in the Asia-Pacific, 20% in
the Middle East& North Africa, 15% in Sub-Saharan Africa, 2.7% in Europe and 0.3% in the
Americas. Further the report reveals an interesting finding that as of 2010, people under age
30 make up about 60 per cent of the total population of Muslim-majority countries.
b) Huge market potential: The World Halal Forum Report, 2010 estimated the global
Halal products market at a whopping US$ 2.3 trillion(not including banking),and 67% or
US$ 1.4 trillion of this market is comprised of food and beverage. Pharmaceuticals make up
22% or US$ 506 billion, with cosmetics and personal care amounting to US$ 230 billion. If
the service sector is also included then the potential size of the Halal market will be
astronomical. Ignoring a market with such huge potential especially in times of saturation in
the global markets, would not be a wise proposition. An interesting feature of Halal products
has been that they can be passed on to non-Muslim consumers as well. Most Halal products
are guided by the general Halal principles emphasizing cleanliness and prohibition of harmful
ingredients.
c) Homogenous market &shared norms - Ummah: The Muslim market is considered to
be a relatively homogenous market and consumer group (Baker Ahmad Alserhan &Zeid
Ahmad Alserhan, 2012). Although there are some researchers who argue against the
proposition of homogeneity of Muslim consumers and emphasize the heterogeneity and
presence of numerous sub-segments in the Muslim consumer market (Ozlem Sandikci, 2011),
there are certain principles and values that bind all Muslim consumers together. Every
Muslim in the world is guided by The Holy Quran and the Prophets Sunnah prescribing
some absolute norms: Every Muslim is supposed to eat Halal food and refrain from Haram.
Behaviors that are permitted or Halaland prohibited or Haram are so for every Muslim in the
world, no matter where they live. The concept of Ummah (nation) has become critical for
marketers engagingwith Muslim markets (Baker Ahmad Alserhan &Zeid Ahmad Alserhan,
2012).This homogenous nature of Muslim consumers around the world should act as a great
advantage to a marketer.
d) Centrality of Faith: Faith is something that is central to consumption among Muslims.
In a study by Ogilvy Noor on American Muslims, it was found that 97% of respondents
agreed that being Muslim affected their consumption behavior, with over half saying that it
was a primary factor of consideration in every single purchase decision. 80% of respondents
said that they would buy brands that support Muslim identity. 83% felt it their responsibility
to inform all their friends and family of what they know of the brands behavior and
sentiment. These explorations confirm that this segment is led by WOM amongst its
members, is accessible and viable presenting a tremendous opportunity for marketing and
communication programs.
PRODUCT CATEGORY APPLICATIONS OF HALAL
a) Halal in Food& Beverages Market
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Sixty seven per cent of Halal market, approximately US$ 1.4 trillion, is comprised of Halal
foods and beverages.This could be due to the historically held view of Halal as an obligation
to be followed in foods only.In the Quran it is mentioned that all foods are permitted or Halal
except those specifically mentioned as prohibited (Alam&Sayuti, 2011).
Riaz and Chaudry (2004), quote that all foods pure and clean are permitted for consumption
by Muslims except the following categories including any product derived from them or
contaminated with them:carrion or dead animals, flowing or congealed blood, swine
including all by-products, animal slaughtered without pronouncing the name of God on them,
animals killed in the manner that prevents their blood from being fully drained from their
bodies, animal slaughter while pronouncing a name other than God, intoxicants of all types,
including alcohol and drugs, carnivorous animals with fangs, such as lions,dogs,wolves or
tigers, birds with sharp claws (birds of prey) such as falcons,eagles,owlsor vultures, land
animals such as frogs or snakes.
The major authenticity concerns for Muslim consumers regarding meat and meat products
includes pork substitution, undeclared blood plasma, use of prohibited ingredients, pork
intestine
casings
and
non-Halal
methods
of
slaughter
(Nakyinsige,Che
Man,Sazili,2012).These concerns have given birth to the emergence of the idea of Halal
Certification which involves examining the conformance of the entire food supply chain to
the Islamic dietary rules that do not tolerate Haram (prohibited) materials
(Marzuki,Hall,Ballantine,2012).
b) Halal cosmetics and personal care
The concept of Halal may also affect non-food products; importantly, products that may
touch the body in ways other than as food, such as cosmetics, personal care products,
pharmaceuticals or even clothes. The trend to makeHalal choices in cosmetics is catching up
with Muslim consumers (Daud et.al, 2012). Cosmetics are considered to be Halal only when
all the ingredients comply with the Halal and Shariah requirements and Haram ingredients
like alcohol and materials derived from pig are not used in their preparation. Moreover all
ingredients must be manufactured, stored, packaged and delivered in accordance with strict
Halal standards. There are various estimates about the current size of the Halal cosmetics
market ranging from US$5-14 billion sales per annum. These estimates probably vary due to
the different definitions of what constitutes Halal products (Murray Hunter, 2012).
c) Halal pharmaceuticals
Although Muslims are allowed to consume non Halal products in life threatening situations,
the demand for Halal pharmaceuticals is growing. One of the long-standing issues regarding
pharmaceuticals and biopharmaceuticals of concern to Muslim consumers is the use of
gelatin. Gelatin is a protein normally obtained from two sources: porcine (from pig) and
bovine (from cow bone and hide).Another ingredient that is to be avoided in Halal
pharmaceuticals is alcohol (ethanol).Besides alcohol and gelatin; there are other excipients or
pharmacologically inactive substances that may become contentious for Muslim
consumers(Maizirwan et.al, 2009).Malaysia introduced the worlds first ever standard for
Halal pharmaceuticals in the year 2011 codenamed MS2424:2010.This standard draws

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various guidelines in the areas of manufacturing and handling of pharmaceutical products to

ensure that the final product is permitted under Shariah law. The global market for
Halalpharmaceuticals is reported to be worth more than US$800 billion, with an expected
annual growth of approximately 6 percent (Chew Kherk Ying, 2011).
d) Halal Hospitality& Tourism
According to Wikipedia Halal Tourism is a subcategory of religious tourism which is geared
towards Muslim families who abide by Shariah rules. The hotels in such destinations do not
serve alcohol and have separate swimming pools and spa facilities for men and women.
These hotels offer prayer rooms,Halal certificates for food, and, in general, a Muslim friendly
environment. It is commonly associated with Middle Eastern countries, especially when it
comes to Hajj and Umrah packages for pilgrims. Muslims all over the world travel to Mecca
and Medina annually to perform the Hajj (Islamic Pilgrimage).The verses of the Quran
endorse travelling with a view to achieving spiritual, physical and social goals. Tourism is
thus harmonious with Islam and in fact, is encouraged by its teachings, but at the same time
the religion demands obligation to the teachings regarding dress, conduct, food, prayer etc.
(Farahani and Henderson, 2010)
The Al Jawhara Garden Hotel, Dubai, UAE is considered to be the leader in Halal friendly
hotels by Crescentrating (a rating agency that rates travel and hospitality services and
facilities for Halal friendliness). The staff at Al Jawhara is well versed with the requirements
of Muslim Guests. They always greet the guest with the Islamic greetingAssalamu
alaikum(Islamic greetings), all female staff wear the Hijab, the hotel has contracted with AlIslami to supply Halal Food, no alcohol is allowed, and so on. Recently, New Zealand
Tourism and Christchurch International Airport launched a new culinary tourism guide
focusing on meeting the needs of Halal travelers. The guide provides general tourism
information as well as a list of Halal classified restaurants and cafes including Halal certified
and vegetarian dishes (Hindustan Times, October 2012).
ISLAMIC MARKETING - STRATEGIC APPROACHES:
a)

Islamic Branding

Islamic brands generally fall into three categories: (i) Islamic by compliance which are
strictlyShariahcompliant brands, (ii)Islamic by origin- they originate from Islamic countries,
their offerings are for regular consumer needs and have nothing to do with religious
affiliation (iii) Islamic by customer- originate from non-Islamic countries but are targeted to
Muslim consumers(Alserhan, 2010).
Following a pioneering collaborative research with TNS Global entitled Brands, Islam and
the New Muslim Consumer Ogilvy Noor the Islamic Branding consultancy of Ogilvy and
Mather conceptualized the Noor Brand Index that benchmarks the appeal of brands to
Muslim consumers. The Noor Index measurements reveal some interesting findings. Lipton,
Nestle and Nescafe top the list as Muslim friendly and Shariahcompliant brands whereas
brands like Emirates and Etihad have a very low ranking despite their Islamic origin. Thus
origin matters less than sincerity, genuine empathy and understanding. Another important
finding of this study is that the closer a category is to the human body and the more regular

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the consumption, the more it must be completely Shariah compliant. Perhaps that is the
reason that Halal standards are well defined and well executed in the F&B (Food &
Beverages) categories. The report further goes on to provide a toolkit for branding success in
Islamic markets by focusing on the following eight areas:

A brands role in the community: all aspects of a companys corporate citizenship

Product: range of offerings, ingredients and manufacturing processes

The brand story and its PR strategy: the tactics brands can employ when talking about
themselves, to better appeal to the New Muslim Consumer

Corporate business practice: every aspect of how the business is run internally

Visual Identity: the specific needs of the Muslim consumer when it comes to visual
information and appeal

Brand communication: a guide built on the Ogilvy experience in Muslim markets

External endorsement: who to partner with and who to avoid

Customer service and delivery: why getting this right is important and how to do so.
b) Halal Certification
A Halal Certificate is a document issued by an approved Islamic organization certifying that
the products meet Islamic laws and are usable by Muslims. Halal certification from a
recognized Islamic organization helps build confidence among Halal consumers and is a
reliable and authoritative testimony to support manufacturers claims that their productsare
Halal compliant. Halal certificates can be of different types as pointed out by Riaz&
Chaudry,(2004):
 Registration of a site certificate - signifies that a plant, a production facility, slaughter
house, food establishment, abattoir or any establishment handling food has been inspected
and approved to produce, distribute or market Halal food.
 Halal certificate for a specific product for a specific duration - certification is issued for a
specified period or for a specified quantity of the product. If the certificate is for a specified
quantity then it is termed a Batch Certificate.
 Yearly certificate - which is automatically renewed contingent on passing the annual
inspection.
Halal certificates can be issued by any individual Muslim, Islamicorganization and agency,
but its authentication depends on the Muslim community to be served or the country
ofexport/import. The issuing authority must be recognized and approved by the
Muslimconsumers. For example in India, Halal India is the apex body for Halal certification.
VEGETARIAN&
CERTIFICATION

GREEN

MARKETING:

POTENTIAL

FOR

HALAL

Environmental ethics in Islam (Rice 1999, Saeed et al 2001, Al-Damkhi 2008) showgreat
similarities between Halal and theprinciples of green marketing as well as vegetarian
products. In the absence of Halal foods Muslims prefer to go vegetarian since there is no
prescription to subject plants or plant based products through any process to make them
Halal. Vegetarian food is acceptable as long as it does not contain alcohol or any intoxicant.

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This provides ample scope for obtaining Halal certification for many product and service
categories and opens up hitherto unrecognized opportunities among domestic Muslim
consumer segments as well as export to Islamic countries without any major product
modifications. Comparison of green and Islamic marketing is a highly researchable topic that
can open many possibilities for strategic marketing decisions.
HALAL IN INDIA
As per the 2001 Census,Muslims constitute 13.4 per cent of the total population and around
138 million Muslims live in India. A demographic study by Pew Research Center (2011) puts
India at 3rd position in the list of countries with the largest number of Muslims in 2010 after
Indonesia and Pakistan. The Muslim population in India in 2010 was more than 177 million
which is projected to grow to 236 million in 2030. Although Muslims in India are considered
to be economically and socially backward as per the Sachar Committee Report(2006), their
massive population and the emergence of India as the worlds largest economy after China
offers a great opportunity for marketers within the country as well as outside India. Indias
major exporting partners include UAE, Saudi Arabia, Indonesia, Iraq etc. which are Muslim
majority countries. India is the major hub for meat export and processed products to Muslim
countries like UAE, Saudi Arabia, Malaysia, Jordan, Yemen, Oman, Kuwait, Iran, Egypt,
Qatar etc. According to the United States Department of Agriculture (USDA), India is likely
to become the worlds largest beef (buffalo meat) exporter by 2013. Indias export of buffalo
meat was estimated to rise by 25 per cent to 1.52 million tons in 2012 from 1.22 million tons
in 2011.Export of meat and meat products include buffalo meat, sheep/goat meat, poultry
production, animal casings and processed meat.
Many Indian brands like CavinKare, Daawat, Bikano, Goldwinner oil, Vadilal Ice cream,
Amrutanjan Health Care and Gujarat Ambuja Exports have already embraced
Halalcertification to get a better foothold in markets like Singapore, Malaysia and the Gulf
Cooperation Council (GCC) countries. CavinKare has obtainedHalal certification from Halal
India for three of its products-Fairever, Nyle herbal shampoo and Ruchi pickles. These
products have established themselves in their respective categories in Malaysia, Singapore
and the GCC countries. Nyle shampoo enjoyed a market share of 26.7% in the Singapore
Halal compliant market and 22 % in Malaysia in the year 2012. Bikano saw a 30% jump in
soan papdi and cookies sales in the Malaysian market in the year 2011, partly due to Halal
certification that gave it more visibility and appeal in the market. Amrutanjan has also
obtained a Halal certificate for all its pain balm products exported to Singapore, Malaysia,
West Indies and a few African markets. Global Health City- a Chennai based hospital became
the first hospital in the country to receive Halal certification from Halal Development
Authority. This would ensure that medical tourists coming from the Middle-East (constituting
75% of total medical tourists), get Halal meat in food, have Qiblah(the direction of Mecca)
signs in every room and a prayer hall.
Unani medicine in India can be considered as the Halal version of the Indian pharmaceutical
and drug industry.Although Unani medicine originated in Greece, it arrived in India in the
12th and 13th century with the establishment of Muslim rule, and flourished under the Mughal
Empire. Due to its vegetarian and non-alcoholic composition it offers the best alternative for

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Indian consumers and Halal conscious consumers. Hamdard Laboratories (India) is the
leading brand in this sector and is the worlds largest manufacturer of Unani medicines. The
other major players include Rex (U&A) Remedies Pvt. Ltd, Dawakhana Tibbiya College
Aligarh, New Sharma Lab,Sadar Dawakhana etc.
The other sectors that have considerable potential for Halal marketing in India include
Islamic finance &banking industry, Halal cosmetics and beauty products like perfumes,
shampoos, skincare products, leather industry and Halal fashion industry. Halal has dual
importance and relevance for India due to the presence of the 3rd largest population of
Muslims after Indonesia and Pakistan. Besides the domestic market, it has tremendous export
potential. As Indias major exporting partners include the Muslim majority countries like
UAE and Saudi Arabia, Halal can be an attractive marketing opportunity for India in the
categories of Food, Pharmaceuticals, Cosmetics and Fashion and Unani medicine which
already conforms to Halal standards.
CONCLUSION
The basic objective of this conceptual paperis to highlight the potential of Islamic or
Halalproducts that remain unexplored and untapped. Halal provides a great business
opportunity in times of market saturation and decline phase of other global markets. Halal has
potential in categories other than meat; viz., pharmaceuticals, cosmetics, tourism, FMCGs,
fashion and many more. Going in for Halal certification can be the next big marketing idea
for green and vegetarian brands that are naturally Shariah compliant, keeping in view the
potential and opportunities it offers.
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