Talking to The ‘Third One Billion.’

Why?

We believe that the global Muslim community has

been underserved as consumers by brands

and companies.

Islamic Branding is one of the next big global

growth opportunities - the Halal market alone

is worth USD 2.1trillion annually.

While the economic opportunity is clearly evident,

we believe we need to genuinely understand

the Muslim consumer.

5 useful words

the global Muslim community - Ummah

a set of guiding life principles, a mental and moral compass - Shariah

light, enlightenment - Noor

acceptable to Muslims, in accordance with good practice - Halal

forbidden to Muslims - Haraam

There are a staggering 1.8 billion Muslims

living across the world today.

Country Muslim population

1. Indonesia 188,619,000

2. Pakistan 144,788,000

3. India 131,213,000

4. Bangladesh 118,512,000

5. Turkey 67,864,000

6. Iran 67,610,000

7. Egypt 64,647,000

8. Nigeria 54,891,000

9. Algeria 31,729,000

10. Morocco 31,642,000

Where do most Muslims live?

In Europe

53 million

In North America

Between 2.5 and 7 million

In Russia

Between 14.5 and 20 million

In China

21.7 million

But also...

This would be our globe if we

looked only at Muslims.

Source: www.worldmapper.org

They are young.

• 52.5% of the population in these countries is under 24 years old.

• They have the potential to deliver

the ‘Demographic Dividend’*

of India and East Asia.

• Together, Muslim youth account for 11% of the world’s population.

*Demographic Transitions and Economic Miracles in Emerging Asia, David Bloom

To date, the Muslim

consumer has been

commonly misunderstood.

Common errors: Stereotyping Insensitivity

Over-simplification

Causing many marketers to stumble,

inadvertently offend, fail to cross borders, or fail to resonate.

It is our challenge to

understand them.

“In 2008, the GDP of the 5 large countries in and around the Middle East - Egypt, Iran, Pakistan, Saudi and Turkey - a population of 420 million - was $3.3 trillion - the same size as India but at 1/3 of the population.” - Vali Nasr, Forces of Fortune, 2009

“The soft revolution's combination of conservative

symbols, like Islamic dress, with contemporary

practices, like blogging, may confuse outsiders. But there

are few social movements in the world today that are

more important to understand.”

– Robin Wright, TIME, 2009

What have we done so far?

• A two-year piece of global research, conducted in partnership with TNS.

• In depth analysis of the state of Islamic Branding and the needs of the New Muslim Consumer.

• Established partnerships with leading Islamic scholars and academics globally.

• Published the pioneering study,

• ‘Brands, Islam and the New Muslim Consumer’ – a landmark development in the field.

Our approach is new.

We start by understanding

core Islamic values - the

values of the Shariah.

honesty, sincerity, respect, community, consideration, kindness, peacefulness, purity,

authenticity, patience, discipline, transparency, trustworthiness, moderation,

modesty, understanding, humility, self-improvement, equality, dignity.

This is not an exhaustive list, but one developed through consultation with religious scholars and academics..

We believe these are values that most Muslims would recognise as being core to their faith.

And then we analyse how these

values translate into actual

consumer behaviour in daily life.

Our definition of

Islamic Branding

Branding that is empathetic to Shariah values in order to appeal to the Muslim consumer

ranging from basic Shariah friendliness to full Shariah compliance in all aspects of the brand’s

identity, behaviour and communications.

We’ve learned a lot about

Halal and Shariah-

compliance.

Brands and companies are considered liable to good Shariah-compliant behaviour, just as people are.

It cannot be a tokenistic on-pack gesture, or lived only through

a Muslim-friendly variant/ sub-brand.

It needs to be lived and breathed as a core value system by the entire company behind the brand.

It is deeply reassuring, and in majority-Muslim markets, taken

for granted. It is only when brands fail to demonstrate their Shariah-friendliness that they get into trouble.

Note on the data: All ratings were captured at a sub-category level. Sub categories ratings within each

category measured were aggregated to provide a one score index for each category.

The Noor Category Index How important is Shariah-compliance in each category?

Our research has pointed us to the

emergence of the

New Muslim Consumer

‘Religion Individuates

Me’

‘Religion Enables Me’

‘Religion Identifies Me’

‘Religion Connects Me’

‘Religion Centres Me’

‘Religion Purifies Me’

The Synthesizers

(6%)

The Movers

(6%)

The Identifiers

(27%)

The Connected

(27%)

The Grounded

(23%)

The Immaculate

(11%) THE

TRADITIONALISTS

THE FUTURISTS

Our deep segmentation charts an evolution...

We call the New Muslim Consumers

‘the Futurists’.

They are driven

by pride

in who they are,

and by their

reach for

success in all

that they do.

They look confidently

to the future. technology-savvy/ innovation-loving/ globally-travelled/ well-educated

But stay firmly rooted in

the values that define them. Family values/ togetherness and community/ respect/ religious ritual/ cultural heritage

They are the New Muslim Consumers.

We call them ‘The Futurists’

proud to be Muslim

unafraid to challenge

driven by success

open to the world

demand a fair hearing

demand the very best

take no prisoners

rooted in who they are

When it comes to brands, they are forging new relationships.

Brands are important as tools in identity-building.

Brands can make them feel globally connected, and up-to-speed.

Brands can reassure, and provide a link with heritage.

Brands can make them feel actively involved in their communities.

Brands are expected to engage in honest, open, equal dialogue.

Brands are expected to take their values as a starting point.

But brands can also disappoint, and let them down.

When they succeed, brands today are openly welcomed into their

core inner circle of trust and loyalty.

BRAND Noor Index Score*

Lipton 131

Nestlé 130

Nescafé 122

Nido 118

Kraft 117

Maggi 117

Mirinda 110

Pringles 110

Lay’s 110

7 Up 109

Colgate 108

Lux 108

Sunsilk 105

Close Up 103

Dove 103

Pantene 102

Rexona 102

Head & Shoulders 101

Heinz 101

Nivea 98

Fair & Lovely 97

Pepsi 95

Coca-Cola 94

Air Arabia 91

L’Oréal 90

Axe 88

Emirates 85

Red Bull 78

Etihad Airways 77

Singapore Airlines 63

Cathay Pacific 62

Citibank 59

Standard Chartered 54

HSBC 51

RBS 47

The Noor Global Brand

Index 2010

*Numbers represent the % agreement with the statement ‘this brand is

completely Halal or Shariah-compliant’, averaged across our four markets.

How

„Muslim-friendly‟

are global brands

today?

CIMB Islamic

Why is it successful?

• Inclusive

• Muslim-friendly values

• Progressive and innovative

• Collective

Nokia

Why are Nokia successful?

• User-friendly, accessible to all

• Shariah-friendly values

• Innovative in local content

• Caring personal touch

• A means of self-expression

Wardah

Reason for success?

• Addresses conflict of ‘modern beauty’ and ‘purity of faith’

• Halal presented as modern and scientific

• Low price, highly accessible

• Empowers Indonesian women within the scope of faith

This approach puts the Muslim

consumer first, for the first time.

We start by understanding Muslim consumer values.

And then analyse what they mean for brands.

Purity

Honesty

Humility

Discipline

Togetherness

Image-consciousness

Be authentic in word and deed.

Be transparent.

Avoid hubris.

Display efficiency.

Be part of the community.

Help project the right image.

So, how well do Indonesian

companies reflect this?

Some Stories from Indonesia

Spiritual Mobile Apps: Esia Hidayah (PT Bakrie Telecom tbk)

& Flexi Muslim (Telkom Group)

Reason for success?

• Reconciles modernity and faith

• Empowers Indonesian families within the scope of faith

Mizan –an Arabic word originally means “balance”– was

established in 1983 by three university students and two of their

seniors. It originally aimed at developing a new genre of Islamic

literature in Indonesia.

Mizan‟s book has gradually taken the shape of

modern and seriously written books representing

differing Islamic views.

in 1999, PT Mizan Publika functions as the holding company of 8

separate business entities and 5 other strategic business

units.Those entities include :

•PT Mizan Pustaka (publishing company)

•PT Mizan Grafika Sarana (printing company),

•PT Mizan Dian Semesta (direct selling and marketing company)

•PT Mizan Media Utama (distribution and marketing company)

•DAR! Mizan Publishing House (publishing company),

•PT Bentang Pustaka (publishing company),

•PT Lingkar Pena (publishing company),

•Hikmah Publishing House (publishing company),

•Mizan Cinema (production house),

•MP Book Point (book store).

Reason for success?

• Inspires a modern way of thinking within a wide range of products.

• Tapped into a different kind of community to develop network and

strategic business unit in Shariah way

How Mizan delivers the core

Islamic values - the values

of the Shariah.

Honesty

Sincerity

Respect

Community

Consideration

Kindness

Peacefulness

Purity

Authenticity

Patience

This is not an exhaustive list, but one developed through consultation with religious scholars and academics..

We believe these are values that most Muslims would recognise as being core to their faith.

Discipline

Transparency

Trustworthiness

Moderation

Modesty

Understanding

Humility

Self-improvement

Equality

Dignity.

(2008)

4,500,000 ticket sold A female teacher‟s plight to keep a

Muhammadiyah school running -

giving education to the poor

(2007)

3,400,000 ticket sold an Indonesian student in Cairo who

defends the progressiveness of Islam,

but his love life trapped him in to

polygamy issue.

In the Silver Screen

(2009)

2,400,000 ticket sold Life and love of an Indonesian

student in Cairo

(2009)

800,000 ticket sold A female Muslim who

challenges the status Quo.

(2008)

About: A very poor family who believes that if

it‟s a God will, anything can happen. This is a

film made by an Ustadz.

(2010)

1,000,000 ticket sold KH Ahmad Dahlan, the founder of

Muhammadiyah, who teach about

progressiveness in Islam and facing

rejection from the conservatives.

Reason for success?

• A presentation of a modern, inspirational, educated people who go the

distance to achieve success while holding on the Islamic value.

• Inspires Indonesian Muslims within the scope of faith

Aa Gym: The Rise and Fall of a brand

Reason for success?

• Moslems presented as modern, inspirational, educated, progressive, up to

date, and successful

Reason for failure?

A Brand does not necessarily need to have Islamic symbols in order to tap into the Islamic value and

resonate with Muslim Audience

How this volunteering

movement delivers the core

Islamic values - the values

of the Shariah.

Honesty

Sincerity

Respect

Community

Consideration

Kindness Peacefulness

Purity

Authenticity

Patience

This is not an exhaustive list, but one developed through consultation with religious scholars and academics..

We believe these are values that most Muslims would recognise as being core to their faith.

Discipline

Transparency

Trustworthiness

Moderation

Modesty

Understanding

Humility

Self-improvement

Equality

Dignity.

What will work

• Help others

• Be better Moslems

• Positive & progressive