BBM 1114 ● PRINCIPLES OF MARKETING

Individual Assignment

Report

(HALAL product’s marketing)

STUDENT ID NAME
110043585 HESHAM .B. ALSADEGH ALI

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TABLE OF CONTENT Page

 Executive Summary Pg.3

 Introduction Pg.3

Pg.4
 Objectives

Pg.4-7
Discussion

 Explain about Halal products(Example)

 Halal product market (Marketing strategy)

Conclusions and recommendations Pg.7-8

List of Reference Pg.9

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Executive Summary

It is certainly undeniable that halal product sectors in the world promises a very huge market
with the capacity of Muslims today surpassing 1.5 billion. Looking at the current world scenario,
halal products nowadays receive a very high demand due to the increase of population which is
ever growing that reaches a total of 2 billion with 57 of the world’s countries are Muslim
majority countries. Islamic countries have taken a lot of initiatives to market its halal products
such as through branding, promotion, e-commerce and distribution. However, it is doubtless that
there are a lot of problems and challenges especially in halal certification and legal rights in
getting intellectual property protection.

Introduction

Malaysia today for example is a respectable Islamic country, progressive and highly regarded by
other Islamic countries. The development of Malaysian halal industry that a successfully venture
in the international halal market, especially in the food sector has raised the name of Malaysia.

If carefully observed, the development of halal industry in Malaysia shows a great potential in
terms of increased profitability through business opportunities that can be explored in this market
for halal products. Furthermore, the present demand for halal market is expected to increase due
to the increasing growth of population that reaches two billion people with 57 countries in the
world are Muslim majority. This is also based on the increasing number of users and halal food
products, which now totals four billion people.

The word ‘halal’ is significant to all Muslims, more so in this day and age of market
globalization. In Malaysia, the halal certification by the Malaysian Department of Islamic
Development is internationally recognized and is among the most sought-out certifications by
Islamic bodies around the world. This is because the experience of Malaysia as a multi-ethnic
country makes it a requirement to have a suitable mechanism to ensure the halalness of products
and services for Muslims, as required by the Sariah law.

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With the objective and the intention of becoming the major hub for halal food production,
Malaysia has developed special zones to encourage more foreign and local investments to go into
business for production and processing of food products. Renowned as an Islamic country that
fights for the safeguard of Muslims’ rights, Malaysia has successfully introduced a number of
halal systems that has gained international recognition.

Islamic banking and financial system and other financial products that are based on Islamic law
pioneered by Malaysia have been adopted by many parties, including among non-Muslim
countries. The success of the country in leading the development of halal system in the food
sector should be fully utilized by the business and production community in particular the small
entrepreneurs who are basically involved in industrial and food business.

Discussion

Halal food market exists wherever there are Muslim consumers whose tastes and preferences are
governed by Halal rules on food specification. Halal food may apparently be the same as other
food, but its nature, technique of its processing involving the ingredients, handling, use of
various methods from the beginning to the end, is always the one approved and recommended by
Islamic law.

Issues face the halal product:

Increasing the volume of sales.

For example, wine manufacturers sponsor and promote sporting events. The spectators watching
the sport in the field go there to have the so called "Good Time"; and the same is true for those
watching the event on TV at home. Since the western idea of a good time is associated with
drinking alcoholic beverages, this is what exactly happens. Those watching the game in the
stadium or on TV end up drinking heavily, hence increasing the sale of beer and other alcoholic
beverages.

The producers of Halal food can take the cue from this relationship and sponsor activities that
would raise the level of Islamic consciousness of the people, eventually contributing to increase
in the demand for their particular product.

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Efficient distribution network.

From the producer's point of view, there are two types of markets for Halal food, The Market in
non-Muslim countries and the Markets in the Muslim countries.

In the case of the non-Muslim countries the problem is serious because the Muslim communities
are scattered. Thus it is difficult to distribute through dealers because in many cases there are no
dealers but only the scattered small retailers. The labor cost is so high that the price will become
uncompetitive compared to the same product that lacks Halal attributes. Despite these difficulties
one cannot discount the big potential of Halal food market. The answer is to make the product
Halal in the first place and make it available for all, also to take part in exhibitions and
conferences of the Muslim Communities in the various big centers.

The real issues in the Muslim countries markets are honoring the commitments on a regular
basis, maintaining quality as well as In dealing with the local distributors it is important to know
their culture, their expectations and their way of saying 'Yes' and No'. One should also be ready
to learn how things can be made to move in that culture.

Advertising.

Promoting is the key to marketing and sales. From the Halal point of promoting, strategy
depends upon whether a particular market is comprehensive Muslim majority or it is a mix of so
many different communities.

In an absolute Muslim Majority case where the total presence of non-Muslims is only marginal,
it is appropriate to emphasize the Halal nature and characteristics of the food so that it attracts
the common folks in the society who are a majority.

In a multi-religious society where Muslims are a significant proportion of the population the
product can be marked as Halal on the label so that the members of the community are aware of
its status as well as promoting the product in the Muslim and ethnic media.

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Creating consumer loyalty

Muslim consumers become loyal when they always get the product they want as well as the
supplier has kept his promise and the Halal nature of the product is beyond doubt, and some
respectable authority stands behind the claims of the producer.

Halal product market (Marketing strategy)

Promotion Strategies and promotional programs within and outside the country is very important
for an agriculture product to go into the market. Malaysia especially just gives greater emphasis
to market its agricultural products aggressively. Without regular promotional efforts and
continuous impact is not significant and the product will require a longer time to be accepted in
the market. Ministry of Agriculture and Agro-based Industry should ensure that agricultural
products produced by our country are being promoted effectively and constantly with the use of
mass media.

Multimedia promotion is increasingly popular during this time such as the Internet, SMS and the
website should be used to ensure the country's agricultural output can reach to all levels of users.
Scale publishing such as newspaper inserts, special issue, interviews, press conferences, news
and articles should be done from time to time. In addition, advertisements such as billboards,
stickers, complimentary gifts, culinary promotions, fairs and festivals and participation of fairs
and exhibition should be intensified so that agricultural products will be renowned, sought after,
desired and purchased without weary.

E-commerce the time has come for the government and the relevant Ministries to create their
own e-commerce that becomes the premier information resource for the agriculture industry of
Malaysia. Content of the e-commerce must have rich information, accurate, current and works
through a web application.

E-Commerce Content also includes information dissemination and sharing of knowledge based
on K- economy and its membership consists of all players in the agriculture industry worldwide.

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E-Commerce functioning method works by all applications and inquiries about the product will
be channeled into e-Commerce website. Catalog application that allows members of the e-
Commerce to update their catalog will list the products in the directory. Among the activities of
e-Commerce are business consultation, investment, trade, promotion, on line merchandise
marketing, branding, campaigns, dissemination of technical information, news and other
miscellaneous business services.

Distribution (Logistics) Inefficient distribution management causes the distribution cost of

agricultural products from producers to consumers to be uncontrollably increasing. This matter,
if it is not resolved results in stunted marketing activities and costs which is not supposedly exist
to be often born by consumers and does not benefit the producers or consumers. Therefore SMEs
should coordinate this so that the parties involved in the marketing activities should create an
efficient distribution system, less post-harvest damage and management of quick damaged
products systematically.

Planning and coordination of distribution activities based on the target of supply and demand
needs to be created. A more liberal business system needs to be identified to address the
distribution works of selected agricultural products in order to avoid losses to the parties
involved in the marketing activities.

Conclusion

The importance and role of Small and Medium Industry are undeniably able to create, expand
and strengthen the basic structure of the halal food industry development in Malaysia. The
country’s success in leading the development of halal system in the food sector should be fully
utilized by small operators who are mostly involved in the food manufacturing industry.

Marketing aspects in the entrepreneurship is a major challenge faced by small entrepreneurs due
to lack of capital and lack of knowledge of marketing strategy. Problems of marketing and the
market have always been a barrier to small industry to grow. Thus, the small operators need to
place more emphasis on the aspect of their marketing. Although there are some weaknesses in
the management of their business, a lot of assistance from the government should be able to help
small halal food Interdisciplinary Journal of Research in Business.
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Industry to face whatever business challenges toward greater excellence. The types of assistance
such as financial assistance, technical assistance and advisory services, halal certification,
registration of intellectual property ownership, market and marketing are often exposed to small
operators.

Not to mention the commitment of operators to promote themselves by willingness to seek and
adopt appropriate technology continuously to produce high quality food products, safe for
consumption, cost-effective and competitive in the global market.

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 List of Reference

The Halal Frontier: Muslim Consumers in a Globalized Market

J. Fischer - 2011

Halal food: a market waiting to be tapped into? | Life

www.theguardian.com
1.

The Halal Market | Imarat Consultants

imaratconsultants.com/the-halal-market
1.
2.

Marketing to Muslims: The Growing Importance of Halal

www.questia.com/marketing-to-muslims-the-growing-important by C Rarick - 2012

Global Marketing - Page 63

By Kate Gillespie, H. David Hennessey

Islamic Branding and Marketing: Creating A Global Islamic

By Paul Temporal - 2011

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