Repositioning Halal to appeal to both Muslim and non-Muslim consumers in Johannesburg, South Africa
Date
2021
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Abstract
The Muslim population worldwide is expected to grow significantly, representing 30% of the global population by 2030. This demands an appreciation of their unique consumption characteristics. However, the reputational damage Islam continues to suffer leaves non-Muslim consumers apprehensive about consuming halal products and multinational corporations apprehensive about entering the halal industry valued at USD 3.22 billion in Africa alone; and USD 2 trillion globally. One area in the halal literature that has received inadequate attention is the comparison between the consumption habits of Muslim and non-Muslim consumers especially in Africa where the population of Muslims is growing rapidly with a huge potential for halal consumption. Therefore, this study aimed to identify and study the variables that will prove feasible in marketing packaged food and cosmetic products to signal its halal status to Muslim consumers and signal another significant food and cosmetic trend to non-Muslim consumers. Adopting a mixed method approach, qualitative interviews were conducted with Muslim consumers to determine their understanding of halal, these responses have been content analysed to reveal underlying themes, that support and assist in explaining the quantitative data. Quantitative survey data has been gathered from both the Muslim and non-Muslim segments and analysed using a structural equation model to pinpoint moderating factors that drive the intention to purchase halal by both segments. The study found that the Functional and Social values drive the intention to purchase halal, where a large focus should be placed on marketing the utilitarian features of the product. The study also recommends, amongst others, the importance for marketers with hopes of serving the halal market to invest in a halal education campaign and work closely with the product development teams to ensure successful branding and positioning. This will ensure that marketers strike a careful balance between serving both the Muslim and non-Muslim segments from the basis of a solid understanding of what halal means particularly amongst the Muslim segment. An understanding of how to strike this balance will be of value to multinational corporations and small businesses interested in expanding their market share to the growing Muslim population
Description
A research report submitted in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2021
Keywords
Muslim, Halal, Consumption Values, UCTD