Islamic Branding: The Understanding and Perception

Abstract

There is such confusion and improper use of the term of Islamic branding and until now there seems to be no clear understanding of what the term Islamic branding means. Therefore to avoid such confusion the term Islamic branding was analyzed by several scholars and this study aims to identify Muslim consumer's perception and understanding of Islamic brands. 20 respondents were selected, which is Segment 1 were 8 females and 2 males. Meanwhile respondents from Segment 2 were 5 females and 5 males that are from various industries such as manufacturing, banking, education and plantation. Segment 1 consisted of students aged 20 to 26 years old and Segment 2 was adult working respondents aged 35 to 50 years old. From the focus group findings disclosed that most of consumers agreed that the Islamic branding defines as a product or service that meets the Sharia-compliant and any parties that involved in Halal accreditations should be seriously implemented strict procedures to the producers in getting the Halal logo. Additionally, significantly in promoting and improving the Islamic brands to the consumers, producers or marketers need to follow all the requirements that required by authorization bodies either in organization's practices and branding features to obtain consumer's trust and confidence upon Islamic branding.

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P r o c e d i a - S o c i a l a n d B e h a v i o r a l S c i e n c e s 1 3 0 ( 2 0 1 4 ) 1 7 9 – 1 8 5
Avai lab le on li ne at www.s cie nc edire ct .com
1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013.
doi: 10.1016/j.sbspro.2014.04.022
ScienceDirect
INCOMaR 2013
Islamic Branding: The Understanding and Perception
Mohd Yusof, Y.La,*, Wan Jusoh, W. J.b
aFaculty of Bu siness Management, Universiti Teknologi MARA, 40450 l, Shah Alam, Selangor, Malaysia
bKulliya h of Economics and Management Science, In ternational Is lamic Uni versity, Malaysia
Abstract
There is such confusion and improper use of the term of Islamic branding and until now there seems to be no clear understanding
of what the term Islamic branding means. Therefore to avoid such confusion the term Islamic branding was analyzed by several
scholars and this study aims to identify Muslim consumer’s perception and understanding of Islamic brands. 20 respondents
were selected, which is Segment 1 were 8 females and 2 males. Meanwhile respondents from Segment 2 were 5 females and 5
males that are from various industries such as manufacturing, banking, education and plantation. Segment 1 consisted of students
aged 20 to 26 years old and Segment 2 was adult working respondents aged 35 to 50 years old. Fr om the focus group findings
disclosed that most of consumers agreed that the Islamic branding defines as a product or service that meets the Sharia-compliant
and any parties that involved in Halal accreditations should be seriously implemented strict procedures to the producers in
getting the Halal logo. Additionally, significantly in promoting and improving the Islamic brands to the consumers, producers or
marketers need to follow all the requirements that required by authorization bodies either in organiz ation’s practices and branding
features to obtain consumer’s trust and confidence upon Islamic branding.
© 2014 The Authors. Published by Elsevier Ltd.
Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013.
Keywords: Islami c marketin g; Isla mic branding; Mus lim con sumers; Sharia-compliance; Halal Accreditations
1. Introduction
Islamic marketing targets Muslim consumers, consumers who are distinctively different from consumers in
general and that it utilizes specific recourses, skills and tools that are relevant and appealing to this particular
segment (Sandikci, 2011).
________
* Corresponding author. Tel.: +60355444694; fax:+60355444693.
E-mail address: yuslina641@salam.uitm.edu. my
© 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013.

180 Y.L. Mohd Yusof and W.J. Wan Jusoh / Procedia - Social and Behavioral Sciences 130 ( 2014 ) 179 – 185
Therefore, with the pre-existing of Muslim consumer, this segment can be targeted, reached and to certain
extent, predicted by marketers. The changes of demographics and purchasing power of Muslim consumers and the
success of Muslim entrepreneurs have begun to render Islamic marketing a scholarly and managerially attractive
field (Sandikci, 2011). Hence, the practice of Islamic branding as marketing strategies has been gaining considerable
momentum in academic circles within the past few years, both within and outside of the Islamic world, (Alserhan,
2010a). The phenomenon of Islamic marketing and branding as a new and separate discipline has attracted the
attention of both academics and practitioners from within and outside the Muslim world (Wilson & Liu, 2010).
Nevertheless, until now there seems to be no clear understanding of what the term Islamic branding means
(Copinath, 2007), therefore to avoid such confusion and reduce the likelihood of improper use, the term Islamic
branding was analysed by several scholars. From Alserhan (2010a) perspective, the true Islamic brands are Halal
produced in an Islamic country and meant for Muslim consumers, meanwhile traditional Islamic brands originating
in Islamic countries and targeting Muslim consumers, assumed to be Halal, the third one is inbound Islamic brands
that is Halal brands that target Muslim consumers but originate from non-Islamic countries and outbound Islamic
brands that is Halal brands that originate from Islamic countries but not necessarily targeting Muslim consumers.
Alserhan (2010a) and Wilson (2011) also defines an Islamic brand according to three constructs: country of origin,
target audience and whether it is Halal. Meanwhile, Ogilvy Noor (2010) states that Islamic branding is a branding
approach which is friendly or compliant with Sharia’ principles.
From all understanding of terms of Islamic branding, Jumani & Siddiqui (2012) had stated a brand should fulfill
all aspects of the brands for the Muslim consumers, because the Muslim consumer consumes those goods or
services, which fulfill the Islamic laws and norms. Muslim consumers want brands that speak to them (Power &
Abdullah, 2009), Islamic brands or Halal brands are created according to the Islamic principles that guide what is
permitted not just in the food industry but also in cosmetics, pharmaceuticals, logistics, clothing, finance, hospitality
and banking (Minkus-McKenna, 2007). The Halal food market and Islamic finance sector have exploded in the past
decade and the many other Islamic product and services including cosmetics, real estate, hotels, fashion and
insurance, (Alserhan, 2010a).
2. Literature Review
Brands are closely linked to emotions, even more so when religion is involved; such a distinction becomes
necessary for companies in Islamic markets understand a religious implications. From Wilson (2011), brands are
created with intention by their owners, the relationship of patronage and encouraging consumption will occurred.
Halal, Islam and Muslims will always cause brand academics and practitioners problems. The understanding of
what is Halal and Islamic brands is very crucial and if Muslim consumers are not encourage and nurture, the Islamic
brands will be may remain as cultural products and the status of being Halal is temporal. For Muslims, branding
cannot be separated from faith, which dictates that all activities should be divine and his feelings shall be in line

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with Allah’s guidance, (Alserhan, 2010a). The increasing interest in Islamic brands and marketing because of the
compelling argument provided by the sheer size of market, growing awareness of Islamic consumption and greater
empowerment of Islamic consumers. Other than that, Islamic countries and companies have seen the power of
branding in global markets and witnessed conventional brands moving into Muslim market. Therefore, it is a good
start for academic scholar to turn Islamic brands to conventional market indeed.
Islam, as with any other well-known religion, has an image. It can be considered to be a brand in its own right,
with its own brand image; and like any global brand. Nevertheless the image of Islamic brands is viewed differently
by different people in different places even though from Muslim consumers. The academic scholar shall think about
do all Muslims think the same and behave in the same way, do they want the same products and services and the
most important, do Muslims want conventional brands or Islamic brands, (Sandikci, 2011). Islamic branding is a
reality and not a myth. The differences between Islamic brands and conventional brands are Islamic brands
manufacture righteousness, their sellers invite into a righteous life meanwhile their buyers engage in worship,
(Alserhan, 2010b). One of the most fundamental obstacles to the growth of Islamic brands is achieving brand
awareness when entering crowded markets dominated by Western or conventional brand. On the other hand,
educating consumers about what Halal means is also a challenge for marketers. Temporal (2011) had pointed out
that in Muslim to Muslims marketing perspective, having an accepted Halal brand is important; but from a Muslim
to non-Muslim marketing perspective, top quality is an additional imperative. Islamic brands can harness the values
of the religion in order to build brands of universal appeal to both Muslim and non-Muslim audiences. Some brands
cleverly mix the rational and emotional characteristics of their brand’s personality, so the brand can flex the brand
character to suit the audience they are addressing. If this situation happened, it will harm the purity and the message
of Islamic brands. For that reason, the investigation of Halal and more, specifically those aspects pertaining to
branding and business, are still in their infancy, and it is a need for academic scholar to find out about Islamic
brands, (Wilson & Liu, 2010). Alam & Sayuti (2011) had mentioned that each product category offers many
different brands either locally named or internationally recognized. Some of the local brands appear to capture their
own niches by projecting themselves as Islamic brands and it is also indirectly signals the Halal status of their
products. It would be religiosity incorrectly and unethically if the product that is not Sharia-compliant branded as
Islamic brands (Alserhan, 2010b)
3. Data Collection and Analysis
Focus group interviews were held using a structures format consisting of three parts. The discussion with the
respondents for each segment lasted approximately between 30 minutes and 60 minutes. All interviews were audio
taped and transcribed. Since some of the respondents answered the questions in both English and Malay languages,
therefore the recording and the field notes were transcribed using both languages. There are 20 respondents that
have been selected for this study. A sample of 10 respondents was students aged 20 to 26 years old and another 10
were adult working respondents aged 35 to 50 years old. The main reason for selecting two different segments of

182 Y.L. Mohd Yusof and W.J. Wan Jusoh / Procedia - Social and Behavioral Sciences 130 ( 2014 ) 179 – 185
respondents is to identify the similarities and differences of respondents’ perception towards Islamic brandi ng. The
detail profiles of the respective respondents are illustrated in Table 1 and Table 2 as stated below:
Table 1. Detail Profiles of Respondents for Segment 1: Students
Respondent
Age
Gender
Marital Status
Qualification
Respondent Y1
20
Female
Single
IIUM Foundation of Law
Respondent Y2
20
Female
Single
Johor Matriculation College
Respondent Y3
20
Male
Single
Perak Matriculation College
Respondent Y4
21
Male
Single
STPM
Respondent Y5
20
Female
Single
Perak Matriculation College
Respondent Y6
21
Female
Single
STPM
Respondent Y7
23
Female
Single
Diploma Politeknik Perlis
Respondent Y8
26
Female
Single
Diploma Plantation
Respondent Y9
22
Female
Single
Diploma Plantation
Respondent Y10
20
Female
Single
IIUM Foundation of Law
Table 2. Detail Profiles of Respondents for Segment 2: Adult with Working Experience
Respondent
Age
Gender
Marital Status
Working Experience (year)
Respondent X1
49
Female
Married
15
Respondent X2
37
Male
Married
10
Respondent X3
36
Female
Married
5
Respondent X4
37
Female
Married
7
Respondent X5
36
Female
Married
11
Respondent X6
50
Male
Married
20
Respondent X7
35
Male
Married
6
Respondent X8
46
Male
Married
15
Respondent X9
39
Female
Single
12
Respondent X10
38
Male
Married
19
4. Discussion
4.1 ‘Fulfilled the Sharia-compliance’
There were a number of explanations were provided by the respondents that could exhibit their thoughtful and
perception regarding Islamic branding. Most of the respondents agreed that the meaning of Islamic brands by
compliance is the brands are appealing strictly on being Sharia-compliant starting from the “farm to the table”.
Respondent Y2 affirmed that ‘what I think about Islamic brand…it meets certain criteria of Islamic
requirement such as it is Halal and it is free from Haram material….’ and Respondent X3 also mentioned that
‘Islamic brands the brand where the sources of product are from Halal sources’.
‘...the meaning of Islamic brand is too broad, that brands that cover each perspectives’ as voiced out by the
Respondent Y3.
Moreover, for Respondent X1 also mentioned that ‘Islamic brand is more than Halal…brands that have all these
Islamic values’ and Respondent X2 also agreed by saying his opinion that ‘…following the Islamic guidelines and
that is what we call Islamic brands’. Respondent X2 also added his opinion that ‘Islamic brand is the brand that
using Islamic name’. Meanwhile Respondent X4 said that ‘…following whatever requirement by Sharia’.
From these statements indicates that most of the respondents share the similar thoughts regarding the

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Islamic brands. The uses of Islamic brands shall meet the criteria of Islamic requirement such as fulfilling the
Sharia-compliance. It is evident from the explanations that most of the respondents from Segment 1 stated that
Islamic brands are a brand that holds Halal sources. Meanwhile, from Segment 2 bears a clear perception of Islamic
brands whereas these brands embraces all the requirements of Sharia and most brands have to use Islamic names.
4.2 ‘Issues in Halal Accreditation’
In Malaysia and especially Muslim market, the use of Halal accreditation is required by each producer. As
Muslim consumer, a product or service with Halal logo is the paramount importance in daily life. However, this
issue had been brought up by several of the respondents in Segment 1 and 2.
Respondent Y9 had come with a different opinion towards this important issue that related to Halal accreditation
where she had stated that ‘…Halal accreditation that has been given by the authorization bodies is questionable…’
Respondent Y4 suggested that ‘…the authorization bodies should make severe monitoring…and extra checking from
other parties...so that fraud of Halal logo can be controlled’ and Respondent Y5 agreed with the statement where
she mentioned that ‘…adjustments and standardization need to be made, Halal logo from the authorization bodies
shall be standardize and no doubt about it...’
Meanwhile for Respondent X2 said that ‘… some of the consumers think that Halal logo already represent for
Islam, but it is more than that…’
The researcher had received numerous opinions from Respondent X5 and X8 on regards of Halal accreditation or
certification:
‘…even though some brands accredited Halal by the authorization bodies, it will not showing that the product is
Islamic brands and with Sharia-compliance...’
‘…if you say Halal, XXX is the only authorization bodies that issue Halal certification. Non-Muslim can apply for
the certification and are they are following the Sharia-compliant?’ He also added ‘Halal and Islam is two different
things…when we follow Islam, then we can get Halal…’ and this statement was agreed by Respondent X7.
Based on the above statements, the researcher found that the respondents agreed that Islamic brands need to have a
reliable Halal Accreditation and can be trusted among by consumers. However, strict implementation by the
authorization bodies should be implemented in order to regain the trust and confidence of consumers.

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4.3 ‘Behind the Scene’
Identification of what, where, how and who are “behind the scene” of the product or service’s brands are important.
In another word means practice is another theme that derived from the respondents to explain their understanding
towards Islamic branding. The responses given by Respondent Y6 and Y7 include the following:
‘…if I want to buy burger or hot dog, I will choose Ramly Burger because he is Muslim producer…’
‘…local products that produce from our country, it is Halal…’
But, surprisingly Respondents Y3 has come out with a different view towards this issue ‘…lots of Non-Muslim
producer have come out with numerous Islamic brands especially in banking sector…’
Respondent Y7 added ‘if the producer has good practices such as no corruption, so you can produce an Islamic
brands’
By looking at the outcomes from another segment, the importance of “behind the scene” and practices are very
important elements in identifying what is Islamic branding. Respondents X2 highlighted that ‘…it is not just the
Halal logo, but it is involving the process how to process the product and how they operate the company itself…’
Moreover, Respondent X3, X7 and X9 agreed in certain thought that:
‘…brands those produce by Islamic companies’.
‘The producer is Muslim people’.
‘…if the producer is Muslim, we will not asking about Halal certification because we already know that it is Islamic
brand’.
Nevertheless, Respondent X6, X8 and X10 are greater emphasis on practices of the companies such as:
‘…the process and implementation is very important especially no interest charges…’
‘If you do not know who is the maker, the raw and production material and those people who are working within in
the production…until the distribution channel. There is a question mark whether it is Halal or not’.
‘Even though the product is Halal but the way how the business implemented for example bribery, does not
guarantee it is Islamic brands’

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From the segment 1 perspective, the findings show that most of the respondents will straightly point out that if the
producer is Muslim people and as well as the country of origin, they are assuming that the product and the brand is
Halal and Islamic. But, from the view of segment 2 it revealed that the practices within the companies that owned
by Muslim producer shall be based on Islamic values.
5. Conclusion
A number of issues had been explained and justified by all the respondents in Segment 1 and Segment 2. The
respondents were able to discuss and answer all the questions freely based on their thought, knowledge and
experiences. The themes or issues that have been identified were ‘Fulfilled the Sharia-compliance’, ‘Issues in Halal
Accreditation’ and ‘Behind the Scene’. It is believed that the theme of ‘Fulfilled the Sharia-compliance’ was mostly
expected been indicated by the respondents towards the definition of Islamic branding. It is due to the fact that the
respondents were agreed that the use of Islamic brands must meet the Sharia-compliance.
In addition, the respondents were able to connect the first theme with these two themes which are ‘Issues in
Halal Accreditation’ and ‘Behind the Scene’. It was proven when the respondents kept on mentioning about the
importance of Halal accreditation in Islamic brands and the practices that been implemented by the producers in
introducing the brands. From all the statements that were received from both segments showed that Halal
accreditation from the authorization bodies are very important to gain consumer’s trust and confidence.
Nevertheless, a proper implementation and authorization should be made by any authorization bodies or other
parties that involved in making sure that any concerns of consumers can be addressed in the future. Careful
monitoring should be seriously considered by any relevant authorities in order to use the exact Halal logo. By
having and fulfilling Sharia-compliance is not only rely on the production of raw materials, but in terms of
production, marketing strategies, work ethics, employees and business plan needs to be considered.
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