Ayman Hamed, halal as a mega trend in the food industry ihmc 2010-day1-session1
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Transcript of Ayman Hamed, halal as a mega trend in the food industry ihmc 2010-day1-session1
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The Halal Mega Trend
5th International Halal Market ConferenceJune 5th- 6th, 2010Brunei DarussalamBy Ayman Hamed- Marketing DirectorAl-Islami Foods
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Agenda
IV- Taking it Global
I- Finding our Bearing ?
II- Remaing Focused ?
III-Putting it Together ?
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I- Finding our bearing,
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How Did We Get Here?
Cultural Diversity
In South
East Asia (Moslems,
Buddhists, Hindus, Christians)
Fraudulent &
Opportunistic
Practices In The Middle East
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The Opportunity• Global Halal Food Business
Valued at US$580 Billion (Source: Euro monitor)
• Current & Relevant Target Audience of Muslims of 1.8 Billion
• Islam The Fastest Growing Religion In The World
• Halal Food Products Estimated To Constitute 20% of Total Food Value by 2025
• Extended Middle Eastern Region Also Characterized By The Youngest Population
Value is Created, Now Who Will
Capture The Value?
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Which Countries Are Benefiting The MostFrom This Growth?
By in large the leading countries can be described as :
Western, Non Muslim, Industrialized
Australia
USA
Canada
UK and EU
Brazil
India
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What Other Countries Are Now MovingInto Position
Countries that will succeed in penetrating the Global Halal Market will be those that pay attention to the details of, standards, branding and marketing &Collaborate with others.
Malaysia
Thailand
Brunei
Singapore
China
Philippine
Turkey
UAE
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Which Companies Have Recognized the Opportunity!
By in large those that have first mover advantage are Multinationals:
Nestle
McDonalds
KFC
TESCO
Aussie Beef
New Zealand Lamb
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What Other Food Industry Is Benefiting From The Trend?
• Market : Kosher Foods In The US*• Market Size: $100 Billion• Population : 5-6 Million Jews• Products : 86,000 product range• Consumer profile
15% Jews (5% Strict)55% Health Conscious38% Vegetarian24% Dairy-free
• To get a clearer perspective
For Every 1 Halal Product … …….there are 86 Kosher• US Moslems are spending
$16Billion a year on Kosher Products, due to lack of Halal products(*Source: Mintel)
News FlashAlmost half of US S/M products are kosher*
“At least 20,000 kosher certified items, and in many stores the number of kosher products is closer to 25,000 – which is nearly half of all items on supermarket shelves. Up to 125,000 kosher items available. Products such as Gatorade gain kosher certification. Categories, such as coffee, tea & cereals, are virtually all kosher”
a new survey by KosherToday.
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Composition of the $580 Billion HALAL Market
Africa$115 Billion
Middle East$111 BillionS. America
$1 Billion
China$ 5
Billion
Europe (Inc.
Russia)$65 Billion
S. E. Asia$ 95 BillionN. America
$15 Billion
Central & South Asia$175 Bil
(*Source: Euromonitor)
Australia & NZ
$1.5 BillionMiddle East = 19% Of World Value
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What Gives Them The Advantage?
What has given countries, companies & Kosher foods the advantage, is what has traditionally be their advantage
Quality Food Production
Standards
Branding and Marketing
Access to Capital
Control of Distribution and Supply Chain Networks
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II. How Islami remain focused ?
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Who Is Al-Islami ?
Vision: To Become A Global Food Brand By Leading The Agenda On The Emergence of ‘Halal’ As A Global Mega Trend And Capturing The Imagination of Food Lovers Around The World
Mission: To Provide Authentic Halal Food With The Highest Standards Of Quality and Health, Thus Emerging As A Role Model For All Food Providers Around The WorldAim: To be AED 1 Billion by 2013
History : Dubai Coop society born in 1971 by Hajj SaeedLootah. In 1981 launched brand Co-OP Islami to ensure genuine supply of Halal food. Starting with Frozen whole chicken, followed by processed products.
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Halal for Al Islami Foods Is Not A Trend, Or a Variant, Or Part of Our Business
IT IS OUR BUSINESS!!!
Good to Remember……
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Why Al-Islami ?
Stringent Sharia’a’ & Quality Complianc
e
1st, truly Regional Halal Brand
Our Brands
Regional Manufact
uring
Meeting Consume
r Lifestyle
Global Sourcing
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Our Corporate Strategies(The Big Five)
Build a powerful, local, regional & global “Halal” brand
1
Drive expansion through innovation(In Formula, Packaging, Benefits, channels etc.)5
2Develop a brand led organization
Aggressively expand geography(in every category)4
3 Increase our total market share (Existing Geographies, Concepts,
Categories & Channels)
Invest heavily in ATL & BTL
Dominate the Category SOV
Expand New Concepts such as Meat Shop, Cart & Farooj
Re Launch in KSA &Europe
Based on Better Consumer Understanding Develop
new Food solutions
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Communication Evolution of Al- ISLAMI Brand
Functionality (HALAL)
Lifestyle/convenience
1. Emphasis on HALA as real Differentiator
2. Emphasis on Benefits
“Healthier, Nutritious &
Tastier
3. Going beyond the
trade-off of Functionality & Convenience to
Bonding (Universal Values)
1. Halal Interruption : Emphasizing What Is Real Halal (Functional2. Halal Intrusion: Emphasizing Tangible Benefits (added value3. Halal Engagement: Emphasizing Universal Values (Motherhood)
BuildA Powerful, Local, Regional & Global “Halal” Brand 1
Interruption IntrusionEngagement
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Functional
BuildA Powerful, Local, Regional & Global “Halal” Brand
1
Benefits & Lifestyle
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Bonding
BuildA Powerful, Local, Regional & Global “Halal” Brand
1
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2Develop A Brand Led Organization
Expected SOV for 2010 will be around 60% of the total Frozen meat category
60%
40%
Islami Others
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3Increase Our Total Market Share (Existing Geographies, New Product, Categories & Channels)
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Dubai
Aggressively Expand Geography(in every
category)42013 Geographic Scope
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Improved Consumer Understanding (Ladder of Features & Benefits)
Emotional Aspect
Functional Aspects
Healthier lifestyles, happier
lives.
Healthier, tastier meals.
No Hormones, less fat, 100% grain fed
Real halal, (Hand slaughtered, no stunning, Al
Islami representative)
Launch a host of new complimentary and novel products
Drive Expansion Through Innovation
(It could be Formulas, packaging, Benefits, channels etc.)
5
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III. How Islami is putting it together
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SUPPLY CHAINThe Engine of Corporate Value Creation
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But How to Capture Value ?
Willingness To Pay
Willingness To Supply
Cost of Sales
Sales Value
Value Capture
DifferentiationActivationInnovationTrading TermsOverheadsPartnershipsBusiness SystemManaging EcosystemSupply Chain CostsManaging Exit Effectively
Me Too ProductsPoor Market ActivationSubstitutesGreysRetail ConcentrationDistributor GapsWrong Business SystemLegislation (Duties)Inefficient ProcessesHeavy Competition
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The Value Creation
PLAN•Farm•Annual Planning•Innovation Ideas•Market Development•Negotiation Strategy•Pricing Strategy•Marketing Strategy•Target Audience•Consumer Insights•Sales Strategy
SOURCE & PROCURE•Raw Material •Slaughtering•Additives•Ingredients•Supplier Negotiations•Agency Selection•Human Resources•Government Accreditation•Packaging•Endorsements
MAKE•Processing•Preliminary Operations•Conversion Operation•Preservation Operation•Product Development
•Contract Packing •Supplier Management•Advertising Production•Media Buying•Cash Management
DELIVER•Warehousing•Finished Goods•Distribution Coverage•Distributor Storage•Shipping Agents•Logistics •Transportation•Media Execution•In Store Execution•Sales Operations•Customer Care
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Driving Value Creation ObservationSlaughtering Process
Fundamental To Company Philosophy & Value Creation
Highly Complex Procurement & Negotiation Strategy (Multiple Suppliers / Channels / Worldwide Sourcing Network / Halal Inspections)
Dual Go To Market Chain Inclusive of a. Procurement of Finished Product &b. Local Manufacturing
Management of Cash to Fuel Growth Vital Ingredient to Sustainable Success
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The Value Capture
Channel Mgt•Showcasing Offer (Push)•Hypermarket•Supermarket•Self Service•Grocery• Impulse Channels•Retail Store•Wholesale•Restaurants•Leisure Outlets•Online•Direct Marketing•Shop in Shop•Showcasing Offer (Pull)
Marketing•Advertising Radio•Advertising Digital•Advertising B2B•Advertising Direct Mail•Merchandising•Sponsorship•Endorsements•Accreditations•Sampling•Promotions•Loyalty
Customer•Reach (Media)•-Channel Selection•-Program Selection•-Readership Profile•-Digital Profile•-Habits & Attitudes
•Reach (Purchase Point)•-Sampling•-Promotions•-Store Profiling•-Location•-Demographics•Customer Care
Loyalty• -Helpline•-Website•-Serving Suggestions•-Maintenance•-Clubs / Associations•-Blogs•-Tips / Advice•-Loyalty Cards
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From Farm To Food Inspiration Observation
Business Has Articulated The Go To Market Model Throughout The Value Chain
The Company Philosophy Dictates The Value Creation Component
The Marketing Story (Real Halal) Drives The Ability of The Company To Capture Value
Full Integration Of The Entire Organization KEY to Sustainable Success (Product / Format / Systems / Geographies)
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IV- How to Take it Global ?3S’s & 3P’s
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Where Do We Go From Here?
Submission
(Ta’ah)
Sincerity
(Ikhlas)
Sacrefice
(Tadh’heya)
We need to Balance between the two demands 1. The Heavenly (3S’s)2. The Earthly(3P’s)
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Where Do We Go From Here?
Profit
Product(Differentiation)
Patronage(Loyalty)
We need to Balance between the two demands 1. Heavenly (3S’s)2. Earthly (3P’s)
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Where Do We Go From Here?
Profit
Product(Differentiation)
Patronage(Loyalty)
Submission
Sincerity
Sacrefice
We need to Balance between the two demands 1. Heavenly (3S’s)2. Earthly (3P’s)
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Get Well Soon (Diabetes & Obesity, Kids’ Health, Food Safety, Women’s Health, Allergies & Immunity, Well-Being, Energy)
2
Top Trends in Food Processing(And their mini-trends)
Organic = Healthy (Non-GMO, Fair Trade, Sustainability, Regional, Minimalism, “Natural”)1
3 Age Awareness
(Aging, Teens, Kids)
Control Yourself (Serving (Size, Convenience, On the go)4 Eat Global, Buy Local (Ethnic Flavors, Multinational Production Regulations)5 Kosher/Halal (Food safety, Certification, Oversight, Spiritualism)6
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One take Out OnTrendSlide
Organic = Healthy
Get Well Soon
Be Ware Of Your Age
Control Yourself
Eat Global, Buy Local
HALAL
Trend Multiplier/ Accelerator** One of the reason Kosher Foods Took off in 2004
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Where we go from here?
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Master The Supply/Value
Chain Farm to Food
Build A Brand +
Halal
All brands made of products/services, but not all products are brands !
Build A Global Halal
Cooperative/BoardA body that will advance
the Halal Agenda globally
3 key Ingredients to Success
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Master The Supply/Val
ue ChainFarm to food
Build A Brand +
Halal
All brands made of products/services, but not all products are brands !
Build A Global Halal
Cooperative/BoardA body that will advance
the Halal Agenda globally
3 key Ingredients to Success
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Build A brand
• “In technocratic and colorless times, brands bring warmth, familiarity and trust.”-Peter Brabeck, Former CEO Nestle
• “The art of marketing is the art of brand building. If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.”- Philip kotler, kellogg “
Halal
3 key Ingredient to Success
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Product Vs. Brand
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Physical Space Clutter Is Extending Into The Mental Space
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A Process That combines Short Term & Long Term Planning
Value
Years
2. Plan for three Years Grows
Channel
3. Planning For
Decades Grows Brand
Building A Brand
Channel
Sale
BRAND1. Planning for One year grows sales
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A Word Of Caution :The Propeller Effect Vs. The Elevator Principle
The Brand
The Communication
Th
ePro
duct
The Packaging
• Every Thing You Do Pulls The Brand In Different Directions
The Brand
TheCommunication
Th
e
Pack
agin
gTh
e
Pro
duct
• Every Thing You do Adds To The brand
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What is The Right fit?
Brand Strategy Corporate Strategy
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SO……. How Can we give Halal Brands extra lift ?
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To Give Halal Brands Extra Lift….
Organic = Healthy
Get Well Soon
Be Ware Of Your Age
Control Yourself
Eat Global, Buy Local
HALAL
Trend Multiplier* One of the reason Kosher Foods Took off in 2004
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Example Of Trend Multiplier/Accelerator
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HALAL BrandsPotential TrendMultipliers/Accelerators
•Organic
• Fair Trade
•Animal Welfare(Free Range)
• Environmentally Friendly(Biodegradable)
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Master The Supply chain
“If you want to grow your way to greatness, put value creation first”
- Ken Favaro
Halal
3 key Ingredient to Build Halal
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Value Chain Is a connected series of organizations resources and knowledge streams involved in the creation and delivery of value to end customers
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Build A Global Cooprative
The World Gold Council’s mission is to stimulate and sustain the demand for gold and to create enduring value for its stakeholders
- The World Council
From agricultural, fiber and textile research, market information and technical services, to advertising and public relations, fashion forecasts and retail promotions, we keep one goal in mind: To ensure that cotton remains the first choice among consumers in apparel and home products.
- Cotton Inc
Halal
3 key Ingredient to Build Halal
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In Summery
Halal Is A Mega Food-trend That Will Make Nearly 20 % of all food sold by 2025
Al-Islami Foods has Articulated it Go-To-Market Business Model
Supply Chain is the Engine of Value Creation
3 key Ingredients to Success1. Building A Brand (Not a product)
2. Mater the Supply Chain/Value Creation
3. Create A Global Halal Board
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Foods For Thoughts
Gee! Does this mean every new product needs to be an organic, whole-grain, 100-calorie, ethnic-oriented and Halal snack loaded with omega 3s and anthocyanins with an easy-open top and large-
Print Labels !
• Indication Are Such a product would sell well
As long as we remember , when it comes to food, Taste comes on top any
trend
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Thank you
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• Wider Range
Upgrading The HALAL Proposition?
• Global Halal Certification
• Better packaging
• Consistent Supply• Professional Audit
• Better Quality