Halal Exigo Marketing WHRS 100623

8/9/2019 Halal Exigo Marketing WHRS 100623

1/23

Emerging Pattern of Innovation in

the Halal Food Industry

World Halal Research Summit

June 2010, Kuala Lumpur

www.exigomarketing.com


2/23

What Im going to cover..

Exigo Marketing credentials

Why consumer insight is critical to developing newHalal food innovations

The main types of FMCG research

Who is the Muslim consumer?

Singapore & UK Muslim consumer insights

How to use consumer insight in a Halal innovationprogramme



3/23


Consumer and Shopperinsight

Market & CompetitorIntelligence

Brand Segmentation &Positioning

Commercial Planning &Structure

Technology & Innovation

Pricing & Profitability

Optimization

Route to Market andChannel Management

Global Business Matching

Representation

s e g m e n t a t i o n

b u s i n e s s

m a t c h i n g

p r o d u c t

c u t t i n g

a n a l y s i s

F G I s

priority matrix NPD process

Tools and

templates

I&R process

Exigo Marketing is an International ManagementConsultancy specializing in FMCG

Together with clients, we develop and implementwinning strategy


4/23

Better understanding of the consumer through every type ofmarket research is one of the keys to the new ways of doing

business for brands. Growth can only be sustained in thelong-term by knowing and respecting the consumer better.

The Walpole Group



5/23

Targeting the right customer is fundamental to value creation.Recent market research has shown that when the full costs of

supporting customers is taken into account, the majority ofcustomers (usually around 70%) are not profitable at all.

The mistake is not being selective enough in seeking growth. Itis invariably better to invest in developing long-term loyalty

from a smaller number of high-value accounts than seeking tonet everybody and anybody.

Peter Doyle, Value-based marketing, 2000



6/23

The Two Main Types of FMCG Research

Problem Identification

Market potential and sizeMarket dynamics & TrendsU&AConsumer/shopper profileImageForecastingBusiness Trends...

Problem Solving

Product and Packagingresearch

PricingSegmentation &positioning

Promotion effectivenessAdvertising test...



7/23

Why Consumer Insight is Critical to

Developing New Halal Food Innovations

Generally speaking the number of new FMCG products launched every year isincreasing

Whilst there are pillar brands in most categories that have stood the test of time,product life cycles on average are falling

Worldwide the food industry is about repeat sales, without which brands andbusinesses die...

Therefore, understanding the consumer: who they are, who should be targeted,what their lifestyles are, their values, and so on are so on is critical to building long

term loyalty



8/23

Arguably, the Majority of Consumer

Goods Companies have Little

Understanding of the Muslim Consumer

Many of the products sold by MNCs in the Islamic world are simply Halal versionsof what is available elsewhere

Halal Marketing strategies have tended to focus on certification & traceability

In the UK for example there are many consultancies offering Halal certificationadvice, by contrast there are very few dispensing advice on how to target or

understand the Muslim consumer

In Exigos view for most FMCGs targeting the Muslim consumer has not been apriority



9/23

Therefore, for this seminar we willshowcase some insights from a Muslimconsumer lifestyle survey conducted byExigo Marketing...

...we wondered what we would uncover



10/23

Muslim Consumer Insight

Exigo conducted a survey amongst Muslim consumers in Singapore, the UK and on-line for this seminar

to provide a different perspective for discussion we deliberately tried to selectconsumers who are not resident in Malaysia

The purpose of the survey is to share some initial insights into the Muslim consumer,their attitudes to food as well as their lifestyle and religious beliefs

The total sample size was 61 people

Respondents had to rate 48 statements covering attitudes to food, lifestyle andreligious beliefs

The questionnaire was designed by Exigo Marketing with all analysis done internally.All questions and answers were in English

The results presented do not necessarily follow the flow of the questionnaire

The results shown should be viewed as directional and designed to promotediscussion

Exigo Marketing will not take any responsibility for any decisions taken based onthese insights



11/23

The Key Questions Centered around 4 Themes

I tend to stick to my favourite food and beverage brands

I tend to buy food at large modern retail outlets

I tend to watch a lot of cooking shows on TV

Foods from overseas are very tempting

Taste is the most important factor in choosing which foods I eat

The nutritional values of food are more important than taste

I often snack and eat between meals.

I prefer organic and natural food.

Attitudes to Food

I always read the labels and ingredients lists of packagedfoods very closely

I dont buy packaged foods unless they have a Halallogo on the packaging

I understand and can explain easily what Halalmeans

In my country I trust the process for decidingwhether or not a product is Halal

Importance of Labelling

I trust the opinion and advice given by doctors

Generally speaking I am happy with my body weight.

It doesnt matter whether or not the doctor I see is a Muslim

I wish there were more Halal pharmaceutical products

Health

I would describe myself as a religious person.

There is a strong link between the food I eat and myreligious beliefs

It is better to have a Sharia complaint bank account

I wear clothes that clearly show what my religious beliefs are

Religious Views



12/23

70% of the sample are 18-24 age group

18-24 25-34 35-44

45-54 55-64 over 65

Glasgow SingaporeKuala Lumpur



13/23

Lifestyle

0 6 12 18 24 30

dont agree at all

dont agree

neither agree or disagree

agree to some extent

totally agree

I like eating out as much aspossible

I surf the internet a lot

I watch a lot of TVI prefer watching soap

operas rather than the news


0 6 12 18 24 30

0 6 12 18 24 30 0 6 12 18 24 30

Only 20% of British Muslimsagreed, compared to over35% Singaporean Muslims

80% of SingaporeanMuslims agreed versus 33%

of British Muslims

Only 40% of people who saidthey prefer organic and

natural food agreed with thisstatement


14/23

Food Habits

0 8 16 24 32 40

dont agree at all

dont agreeneither agree or disagree


totally agree

I tend to stick to my favourite foodand beverage brands

0 8 16 24 32 40

I tend to buy food at largemodern retail outlets

0 8 16 24 32 40

I tend to watch a lot ofcooking shows on TV

0 8 16 24 32 40

Foods from overseas arevery tempting


Surprisingly 60% of peoplewho said they prefer organic

& natural food agreed

40% of SingaporeanMuslims strongly agreed with

versus only 20% of BritishMuslims

Singaporean Muslims muchmore likely to agree than

British Muslims


15/23

Attitudes to Food...

0 8 16 24 32 40

dont agree at all



totally agree

Taste is the most important factorin choosing which foods I eat

0 8 16 24 32 40

The nutritional values of foodare more important than taste

0 8 16 24 32 40

I often snack and eatbetween meals.

0 8 16 24 32 40

I prefer organic and naturalfood.


65% of people who said theywear clothes which clearlyshow their religious beliefs

agreed

61% of British Muslimsagreed compared to 30% of

Singaporeans

62% of people who preferredorganic and natural food

agreed


16/23

Labelling and Halal

0 8 16 24 32 40

dont agree at all



totally agree

I always read the labels andingredients lists of packaged foods

very closely

0 8 16 24 32 40

I dont buy packaged foodsunless they have a Halal logo

on the packaging

0 10 20 30 40 50

I understand and can explaineasily what Halal means

0 8 16 24 32 40

In my country I trust theprocess for deciding whether

or not a product is Halal


45% of those preferringorganic and natural food

strongly agreed

82% of Singaporeans agreedversus 46% of British

Muslims


17/23

Attitudes to Health and Doctors


I trust the opinion and advicegiven by doctors

0 8 16 24 32 40

dont agree at all



totally agree

0 8 16 24 32 40

Generally speaking I am happywith my body weight.

It doesnt matter whether or notthe doctor I see is a Muslim

0 8 16 24 32 40 0 8 16 24 32 40

I wish there were more Halalpharmaceutical products

There was some indicationfrom the data that peoplewho preferred organic and

natural food were more likelyto be ambivalent

75% of people who said thatthe clothes they wear clearly

show their religious beliefsstrongly agreed!


18/23

Religious Values


I would describe myself as areligious person.

0 8 16 24 32 40

dont agree at all

dont agree



totally agree

0 8 16 24 32 40

There is a strong link between thefood I eat and my religious beliefs

It is better to have a Shariacomplaint bank account

0 8 16 24 32 40

I wear clothes that clearly showwhat my religious beliefs are

0 8 16 24 32 40

47% of British Muslimsstrongly agreed versus 5% of

Singaporean Muslims

75% of people who said thatthe clothes they wear clearlyshow their religious beliefs

strongly agreed!

53% of 18-24 year olds were

undecided


19/23

Looking to the Future...

0 8 16 24 32 40

I am eager to try new foodand beverage products

0 8 16 24 32 40

I prefer to buy and cookfresh foods rather than

packaged groceries.


dont agree at all

dont agree



totally agree

Halal only retail shops is agood idea

0 8 16 24 32 400 8 16 24 32 40

Large food companiesunderstand well what Muslim

consumers want

67% of British Muslimsstrongly agreed compared to28% of Singaporeans. Those

liking organic and naturalfood generally agreed with

this statement

65% of of people who saidthat the clothes they wearclearly show their religious

beliefs strongly agreed!

No British Muslims stronglyagreed with this statement!


20/23

Opportunities to Develop more Nutritiousand Convenient Halal food?

0 8 16 24 32 40dont agree at all

dont agree



totally agree

I would like to see morenutritious Halal food on sale

0 8 16 24 32 40

I would like to see more convenient,easy to prepare Halal foods


75% of of people who saidthat the clothes they wearclearly show their religious

beliefs strongly agreed!

85% of 18-24 year oldsagreed


21/23

What can we Conclude from this Initial

Survey?

Not all Muslims are the same!

for example British Muslims less likely to be interested in overseas foods

Reading of ingredients lists and looking for the Halal logo is not universal

Is Halal certification and labelling as clear and meaningful to British Muslims asit is to Singaporeans?

Whilst taste is clearly one of the most important factors in choosing food andbeverage brands, there appears to be a desire for healthier, more nutritious and

convenient Halal foods

further work, for example in-depth interviews, needed to understand whatnutrition and convenience mean to the Muslim consumer

The food industry has more work to do to understand better the needs,motivations and values of the Muslim consumer.



22/23

How to use Consumer Insight in a Halal InnovationProgramme...

1. Decide which consumers you are going to target

By country? Demographic? Lifestyle & values? Heavy users?

2. Understand deeply their functional (e.g. taste, flavour...) as well as emotional

needs (reassurance, religious values..?)

in depth research...FGIs, in home immersion

quantitative product attribute benchmarking

3. Look at other markets, categories and beyond Halal for inspiration

4. Create prototypes and mock-ups and again ask for consumer input

5. After launch constantly seek feedback and insight



23/23

Emerging Pattern of Innovation in

the Halal Food Industry

Thank you!

World Halal Research Summit

June 2010, Kuala Lumpur


Documents

Halal Exigo Marketing WHRS 100623