Halal Product11

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International usiness

Principles Of Marketing

Student name: Yusuf Caner KUL

Student ID: 110035655

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Title : Individual Assignment



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Contents:

1. Abstract.

2. Halal Definition.

3. Mission, Vision & Objective.

4. Religiosity.

5. Halal Perception.

6. Halal Product Marketing: Which Way?

7. Marketing of Halal Products.

8. Discussion and conclusion.

9. References.

http://www.halal.gov.my/v3/index.php/en/about-halal-certification/halal-definition

http://www.halal.gov.my/v3/index.php/en/corporate/mission-vission-and-objectives





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1. Abstract:

The Halal market literature revealsthat different interpretations

of what Muslim considers the meaning of halal is the main

challenge to understand the Muslim market. However, there is

no empirical research being done to discover the statement.

Therefore,this research will find out he assumption of the

dissimilarity of Muslims consumers across different ethnicity to

describe the basic process of purchase intention towards Halal

food products.Specifically, this research examines the

difference between Arab Muslims and Non Arab Muslims interms of the level of religiosity and Halal perception. The result

finds that the level of religiosity and Halal perception among

Non Arab Muslims is higher compared to Arab Muslims and

shows that Non Arab Muslims are more careful when

purchasing food products compared to Arab Muslims.



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2. Halal Definition:

Halal originates from an Arabic phrase that means allowed or

permitted by Islamic Law. The definition of Halal according tothe Trade Description Order (Usage of the Term “Halal”) 1975

is as follows: When the term is used in relation to food in any

form whatsoever, in the process of trade or commerce as an

aspect of trading or part of an aspect of trading for the referred

to food, the terms „Halal‟, „Guaranteed Halal‟ or „Muslim Food‟

or any other terms that may be used to indicate or may beunderstood as meaning to indicate as permissible to be

consumed by Muslims and allowed in their religion for the

referred to food to be consumed, must therefore mean the

following, that is, the food for which such terms are being used:

does not stem from or consists of any part of or item from

animals that are forbidden to Muslims by Islamic law, or

animals that have not been slaughtered according to Islamic

law; does not contain any substance that is considered impure

in Islamic law; is not prepared, processed or manufactured

using equipment or utensils that are not free from impurities as

defined by Islamic law ; and that, in the preparation, processing

or storage stage, does not come in contact with or is stored

near any kind of food that does not meet the requirements of

para (s) (a), (b) or (c) or any substances that are considered

impure by Islamic law.





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3. Mission, Vision & Objective

Mission

To ensure that all products endorsed or certified Halal are pure

and Halal in accordance with Islamic principles.

Vision

To become an influential Halal Certification centre recognized

nationally and internationally.

Objective

To examine, certify and regulate all food and consumer

products applicable to muslims in an efficient and effective

manner so as to guarantee purity and halal certification in

accordance with Islamic principles.

4. Religiosity:

In Islam, the term religiosity means fulfilling the requirements of

Islam, faith, belief and charity in word and deed, where do

God's sake, and save the people's rights and follow the orders

of Islam altogether, and avoid the prohibitions and taboos,

worship, and greater religious duties and recommended

(AlGoaib, 2003). Research on religiosity proved that it does

affect consumer behavior and influence the decision process

on Halal food consumption (Bonne, 2007). The attitude on food

consumption depends on individuals ‟level of religious





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commitment or the importance placed on religion in their life

(Moklis, 2006).Past studies show that Muslims with 3 higher

religiosity is said to have a halal consciousness and looking for

products that satisfy their Needs when purchasing halal food

products, for example with the Halal logo (Shafie et al, 2006)

5. Halal Perception

Recently, Muslims are more aware of the importance of Halal

food, which has led to the rapid expanding of World Halal Food

industry (Che man et al, 2010). In other words, the global Halal

wave is happening and shows that Muslim consumers

becoming more conscious to take the issue of Halal seriously

(Husain, 2006).It is important for Muslims to understand the

concept of Halal and Haram that meet the demands of the

religion (CAP, 2006). By having such understanding and

knowledge, the consumer will have a better picture of what is

Halal food consumption, besides be able to make an intelligent

decision according to their preferences and faith

(Ahmad,1996). Muslim consumers must check and judge their

consumption, such asthe ingredients of any particular of food

and drinks before consuming and make a wisedecision(Hussaini, 1984). Thus, every Muslim individual must be

cautiousand concern in the aspect of food consumption to

avoid any doubtful and uncertain food products(CAP, 2006).



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On the other hand, the main challenge is the different

interpretations of what Muslims consider what as Halal. This

has led to misunderstand and even fraud (Bonne,2009). It was

probably because Halal and Haram concepts are profoundly

embedded in the Arab Muslims tradition and history. This

affects the Arabs‟ and non Arab‟s Muslims way of thinking and

acting. Research found that Arabic texts are inadequately

explained, and inaccurately translated into other languages

(AlJallad, 2008). Another possible reason why the different

occurs may be due to social structures, such as immigration

and generation differences (Bonne, 2006).

The easiest way for the Muslim consumers is by purchasing

food products with Halal certification and logo as a significant

way to inform and to reassure that the products are Halal

(Shafie et al., 2006). Past studies show that the Halal logo did

play a role in the Muslim consumer ‟s purchase decision

(Shaari, 2009; Golnaz, 2008). Muslim consumers had no

means or time to check or obtain the necessary information on

the products to satisfy their principles when making a purchase

(Zakaria, 2008). Thus, the Halal logo is the label they can rely

on in determining the Halal status of a product (Zakaria, 2008).

Alternatively, the Muslim consumers generally check and

identified from which country a food product is originated

before purchasing them (Ahmed, 2008). Past country of origin

(COO) studies have proven that COO as product info, affect



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consumers evaluation and responses of products (Bilkey

&Nes,1982). Previous studies also has proven that Muslim

consumers are still preferred to purchase and consume Halal

food from their own country or countries, which are

predominantly Muslims(Bonnet al., 2007)

6. Halal Product Marketing: Which Way?

Today, Islam is the fastest growing religion on earth, both by

birth and adoption, with the Muslim population estimated to

reach 2 billion by 2010. With the global Halal market estimated

to be worth US$580 billion a year and the Halal food industry

pegged to grow at a rate of 7% annually, businesses should

indeed be tapping at this growing market segment.

Halal's burgeoning popularity can be linked to religious fervor;

and beliefs that it's cleaner, healthier and tastier. Halal logo hasnow become a symbol of quality and religious compliance and

this makes it sound as the new green. Then again, some argue

it is driven by consumers' urge to follow ritual or their desire for

acceptance, while others see it as part and parcel of another

rising global trend.Another reason for the tremendous

acceptance of Halal within the global population is the processof assimilation. Foreign foods in some countries as in Europe

have become assimilated and local tastes are changing,

encouraged by global tourism and reverse colonization.



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Curry is now the number one take away meal in the United

Kingdom and kebabs are a typical German staple.Emphasis on

Halal is also growing. It is fast becoming a new market force

and identifier, and is now moving into the mainstream market,

affecting and changing perception on how businesses are

being conducted, including from a marketing point of view.

7. Marketing of Halal Products

The study of consumer behavior is vital when it comes to

marketing of Halal products. The fact of the matter is that

Muslim consumers are very much similar to any other

consumer segments, demanding healthy and quality products,

which must also conform to Shariah requirements.McDonald's

in Singapore can be seen as a prime example; it has seen an

influx of eight million patrons a year after obtaining a Halal

certification. Since being certified, "Halal, KFC, Burger King

and Taco Bell have all seen an increase of 20 percent in

customers". Consumers would turn their attention to a well-

marketed product that does not have a Halal mark but they

would read its ingredients, in contrast to purchasing one that

has less credibility but sports a Halal logo. It is therefore

worthwhile that we take a look at each of the four tools of

marketing mix that can be used to satisfy customers and

company,objectives.



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8. Discussion and conclusion

Overall, these findings have supported the assumption of the

dissimilarity of Muslim consumers across different ethnicity.This study introduces a set of construct to describe the basic

process of behavioural intention towards Halal food products.

Results from the research is hopedto assist marketers in

formulating effective marketing strategy both in local and

international markets.The results also will provide an important

insight for marketing strategists. Further research is also

required to explore a wider geographical scope to generalize

the overall population as well as avoiding from sampling bias.



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9. References.

Al-Goaib, S.,2003. Religiosity and social conformity of university students:

an analytical study applied at King Saoud University, Arts Journal of KingSaoud University, Vol. 16 No. 1.

Bonne , K., & Verbeke, W., 2006. Muslim Consumer's Attitude TowardsMeat Consumption In Belgium: Insights From A Means End Chain

Approach Anthropology Of Food.

Moklis, S. 2006. The Influence Of Religion On Retail Patronage BehaviourIn Malaysia.University Of Stirling, United Kingdom .

Shafie, S., & Othman, M. N. 2006. Halal Certification: InternationalMarketing Issues and Challenges. Paper Presented At The Ifsa Vii WorldCongress Berlin, Germany.

Husain, S. (2006, September 16).Local halal food companies urged toshape up or lose out.Gulfnews.com. Retrieved February 28, 2011 from

http://gulfnews.com/business/economy/local.

Che Man Y. , Sazili A.Q., 2010. Food Production from the Halal

Perspective. In: Guerrero-LegarretaI.,Alarcón-Rojo, A.D., Y. H. Hui, Alvarado C.Handbook of Poultry Science andTechnology. 183-216.

Hussaini, M. M., & Sakr, A. H. (1984). Islamic Dietary Laws And PracticesThe Islamic Food And Nutrition Council Of America.

CAP, 2006. Panduan Persatuan Pengguna Pulau Pinang : Halal HaramPersatuan Pengguna Pulau Pinang, Malaysia .

Ahmed, A.,2008. Marketing Of Halal Meat in the United Kingdom-Supermarkets versus Local Shops.British Food Journal.

Shaari, J. A. N., & Nur Shahira M.A., 2009. Dimension of Halal Purchase Intention: APreliminary Study. Paper Presented At The EleventhInternational Business Research Conference, Australia.

http://gulfnews.com/business/economy/local





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Zakaria, Z., 2008. Tapping Into the World Halal Market: Some Discussionson Malaysian Laws And Standards. Jurnal Syariah, 603-616.

Bilkey WJ, Nes, J., 1982. Country-Of-Origin Effects On Product

Evaluations. Journal Of International Business Studies,, 89-99.

Bonne , K., Vermeir, I., F., B.-B., & Verbeke, W., 2007. Determinants OfHalal Meat Consumption In France. British Food Journal, 367-386.

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