Marketing to Muslims The Growing Importance of Halal Products Case Solution

1. Introduction

This case study presents a detailed strategic analysis of Marketing to Muslims The Growing Importance of Halal Products. The case analysis covers key managerial and strategic issues that Marketing to Muslims The Growing Importance of Halal Products is currently facing due to challenging internal and external environments. The case solution first conducts the strategic analysis by applying the relevant strategic management tools and frameworks, and then presents strategic recommendations based on overall analysis (Hamilton and Webster, 2018).

The case offers a holistic view of Marketing to Muslims The Growing Importance of Halal Products business environment. Case findings are relevant for all key stakeholders of Marketing to Muslims The Growing Importance of Halal Products. Reader should first read the case on Marketing to Muslims The Growing Importance of Halal Products, and then read the analysis.

2. External environmental analysis of Marketing to Muslims The Growing Importance of Halal Products

The external business environment comprises political, economic, social, technological, legal and environmental factors that influence the strategic positioning of Marketing to Muslims The Growing Importance of Halal Products (Khalid and Rahman, 2019).

Here are key external environment characteristics:

External environmental forces are dynamic and uncontrollable

External environment can directly influence the Marketing to Muslims The Growing Importance of Halal Products strategic positioning

External environment requires continuous monitoring to timely identify the potential threats and opportunities (Shtal et al. 2018).

2.1. PESTLE analysis of Marketing to Muslims The Growing Importance of Halal Products

2.1.1. Political

The Marketing to Muslims The Growing Importance of Halal Products must carefully examine the potential impact of global political unrest on its business operations

The Marketing to Muslims The Growing Importance of Halal Products should actively monitor, and respond to the changes to legislation

The Marketing to Muslims The Growing Importance of Halal Products should analyze how taxation policies can influence its profitability in different countries where the company is currently present (Khalid and Rahman, 2019).

2.1.2. Economic

Rising GDP and growing consumer spending can help Marketing to Muslims The Growing Importance of Halal Products in business expansion

Increasing interest rates can increase the debt cost for Marketing to Muslims The Growing Importance of Halal Products.

Reducing inflation can decrease the production cost of Marketing to Muslims The Growing Importance of Halal Products and increase profitability by driving up the sales revenue (Begley et al. 2005).

2.1.3. Social

The aging population can affect the Marketing to Muslims The Growing Importance of Halal Products brand positioning, as Marketing to Muslims The Growing Importance of Halal Products currently targets young people.

Growing preferences for luxury items, and improving lifestyles can create more demand for Marketing to Muslims The Growing Importance of Halal Products premium-priced products (Perera, 2017).

2.1.4. Technological

Government is granting more technology incentives to fuel the innovation. It can help Marketing to Muslims The Growing Importance of Halal Products achieve its innovation objectives.

Emerging automation trends require Marketing to Muslims The Growing Importance of Halal Products to revisit its business model, and enhance process efficiency.

Improving technological infrastructure can enable Marketing to Muslims The Growing Importance of Halal Products to resolve its supply chain inefficiencies (Shtal et al. 2018).

2.1.5. Environmental

The stringent environmental regulations require Marketing to Muslims The Growing Importance of Halal Products to ensure strict compliance with environmental standards.

Consumers’ growing environmental consciousness provides an opportunity to Marketing to Muslims The Growing Importance of Halal Products to launch more green, environment-friendly products.

Marketing to Muslims The Growing Importance of Halal Products should incorporate environmental thinking in its strategic decision-making process to position itself as a socially responsible organization (Moser, 2015).

2.1.6. Legal

The Marketing to Muslims The Growing Importance of Halal Products should take strict measures to avoid discrimination at the workplace.

The Marketing to Muslims The Growing Importance of Halal Products must abide by the consumer data privacy laws to avoid reputation-damaging lawsuits

The Marketing to Muslims The Growing Importance of Halal Products must also ensure strict implementation of workplace safety standards to comply with the health and safety regulations (Khalid and Rahman, 2019).

2.2. Porter five forces of Marketing to Muslims The Growing Importance of Halal Products

2.2.1. Bargaining power of suppliers

The growing number of suppliers is weakening their bargaining power against Marketing to Muslims The Growing Importance of Halal Products (Dobbs, 2014).

Marketing to Muslims The Growing Importance of Halal Products has a wide supplier network, which strengthens its negotiation ability.

Low product differentiation further reduces the supplier bargaining power, as Marketing to Muslims The Growing Importance of Halal Products can easily switch to suppliers that offer better terms and conditions (Dobbs, 2014).

Overall, the bargaining power of suppliers for Marketing to Muslims The Growing Importance of Halal Products is low.

2.2.2. Bargaining power of buyers

There are a small number of buyers that buy in large quantities. It enhances their bargaining power against Marketing to Muslims The Growing Importance of Halal Products (Cho et al. 2019).

Buyers are price insensitive, and cannot easily switch to other companies due to economic and psychological switching costs. It reduces their bargaining power against Marketing to Muslims The Growing Importance of Halal Products.

High product differentiation further discourages the buyers from switching to competitors (Dobbs, 2014).

Overall, the bargaining power of buyers is moderate-to-low for Marketing to Muslims The Growing Importance of Halal Products.

2.2.3. Threat of new entrants

High entry barriers make it difficult for new entrants to enter in the market

The high initial capital expenditure also erects an entry barrier for new firms

Marketing to Muslims The Growing Importance of Halal Products has a loyal customer base, which further reduces the risk of customers switching to new entrants (Grundy, 2006).

Overall, threat of new entrants for Marketing to Muslims The Growing Importance of Halal Products is low.

2.2.4. Threat of substitutes

The emerging innovative technologies are increasing the threat of substitutes for Marketing to Muslims The Growing Importance of Halal Products

Growing threat of substitutes is compelling Marketing to Muslims The Growing Importance of Halal Products to continuously improve product quality (Bruijl and Gerard, 2018).

Changing consumer demographics and their growing tech-savvy nature is further increasing the substitute threat for Marketing to Muslims The Growing Importance of Halal Products

However, the brand loyalty increases the psychological switching costs, which somehow reduces the substitute threat (Dobbs, 2014).

Overall, the substitute threat for Marketing to Muslims The Growing Importance of Halal Products is moderate to high.

2.2.5. Industry rivalry

The competition among existing market players is intense

The market is mature, and is approaching saturation point, which further intensifies the industry rivalry

However, high-quality differences and brand loyalty deters the customers from switching to competitors (Dobbs, 2014).

Overall, the industry rivalry is moderate to high, which makes the business environment challenging for Marketing to Muslims The Growing Importance of Halal Products.

3. Company level analysis of Marketing to Muslims The Growing Importance of Halal Products

Up till now, the case study presented a holistic environmental and industry-level analysis. This section now presents the Marketing to Muslims The Growing Importance of Halal Products level analysis by applying relevant tools and frameworks.

3.1. SWOT of Marketing to Muslims The Growing Importance of Halal Products

SWOT is a strategic management framework that helps Marketing to Muslims The Growing Importance of Halal Products in understanding its core strengths and weaknesses. Framework also identifies opportunities and threats that reside in Marketing to Muslims The Growing Importance of Halal Products’s external business environment (Helms and Nixon, 2010).

3.1.1. Strengths

The Marketing to Muslims The Growing Importance of Halal Products holds a market leadership position, and has highest market share.

The Marketing to Muslims The Growing Importance of Halal Products has high customer loyalty, which makes it difficult for competitors to attract its customers.

The Marketing to Muslims The Growing Importance of Halal Products has strong financial health, which allows the company to spend heavily on R&D, and fuel the innovation (Sarsby, 2016).

The Marketing to Muslims The Growing Importance of Halal Products has successfully positioned itself as a responsible corporate citizen.

The Marketing to Muslims The Growing Importance of Halal Products has a wide supplier and distribution network, which helps in the business expansion (Valentin, 2001).

3.1.2. Weaknesses

The Marketing to Muslims The Growing Importance of Halal Products currently has a high employee turnover rate.

The Marketing to Muslims The Growing Importance of Halal Products is facing supply chain inefficiencies, which are lowering the organizational productivity (Madsen, 2016).

The Marketing to Muslims The Growing Importance of Halal Products is unable to quickly resolve the customer complaints, which causes customer dissatisfaction (Helms and Nixon, 2010).

The hierarchal structure of Marketing to Muslims The Growing Importance of Halal Products causes resistance to change.

3.1.3. Opportunities

Marketing to Muslims The Growing Importance of Halal Products can invest on emerging automation and artificial intelligence technologies to improve the process efficiency

Marketing to Muslims The Growing Importance of Halal Products can accelerate the green product development, and invest on green marketing efforts to capture the attention of environment-conscious customers (Solaiman et al. 2015).

Marketing to Muslims The Growing Importance of Halal Products can invest on an online influence marketing strategy to expand the reach to a young population

Marketing to Muslims The Growing Importance of Halal Products can find strategic partners around the globe to achieve its expansion objectives (Sarsby, 2016).

3.1.4. Threats

The growing industry competition among existing players and thinning profit margins has become a major threat for Marketing to Muslims The Growing Importance of Halal Products

Global political unrest can negatively affect the Marketing to Muslims The Growing Importance of Halal Products performance at the international stage

The expanding grey market and the influx of replica goods can negatively affect the Marketing to Muslims The Growing Importance of Halal Products revenue (Davidson et al. 2019).

Aging population can threaten the Marketing to Muslims The Growing Importance of Halal Products survival that, primarily focuses on young customers

After presenting the SWOT analysis, the next framework analyzing the Marketing to Muslims The Growing Importance of Halal Products’s marketing mix strategies.

3.2. Marketing mix of Marketing to Muslims The Growing Importance of Halal Products

3.2.1. Product

Marketing to Muslims The Growing Importance of Halal Products offers a wide product variety that meets the needs of diverse customers

Marketing to Muslims The Growing Importance of Halal Products has consistently maintained high product quality to justify premium prices

Marketing to Muslims The Growing Importance of Halal Products invests heavily on the quality improvement and management to meet the customers’ product quality expectations (Singh, 2012).

Marketing to Muslims The Growing Importance of Halal Products invests on innovative marketing and communication strategies to set a clear product positioning, and communicate how its products are different from competitors.

Marketing to Muslims The Growing Importance of Halal Products offers warranties and after-sale services that enhances the overall customer experience (Ferrell et al. 2021).

3.2.2. Price

Marketing to Muslims The Growing Importance of Halal Products adopts a premium pricing strategy, which is aligned with the company’s premium brand image.

Marketing to Muslims The Growing Importance of Halal Products avoids offering price discounts to maintain brand exclusivity (Baines et al. 2017).

Marketing to Muslims The Growing Importance of Halal Products does not charge any hidden prices, and has integrated transparency in its pricing model

Marketing to Muslims The Growing Importance of Halal Products also offers value-added elements, and adopts a bundle pricing strategy to boost the sales (Giri et al. 2020).

Marketing to Muslims The Growing Importance of Halal Products offers credit payment options for the customer convenience.

Key factors that Marketing to Muslims The Growing Importance of Halal Products considers while setting the prices include- brand image, customers’ expectations and purchase capacity, and on-going competition.

3.2.3. Place

Marketing to Muslims The Growing Importance of Halal Products adopts a selective distribution strategy to reach the target market

The Marketing to Muslims The Growing Importance of Halal Products chooses distributors who are located in urban areas, and can preserve the premium brand image

Currently, Marketing to Muslims The Growing Importance of Halal Products has a distribution network that is spread in more than 50 countries

Marketing to Muslims The Growing Importance of Halal Products has adopted Omni-channel strategy, and sells its products through multiple online and offline channels, including- official outlets, authorized distributors, the company website and mobile application (Palmatier et al. 2016).

Well-integrated Omni-channel strategy offers a seamless experience to the Marketing to Muslims The Growing Importance of Halal Products customers.

3.2.4. Promotion

Marketing to Muslims The Growing Importance of Halal Products avoids offering promotional discounts to preserve the brand exclusivity.

Marketing to Muslims The Growing Importance of Halal Products invests heavily on the celebrity endorsement strategies to promote the brand among the target market.

Marketing to Muslims The Growing Importance of Halal Products also have a strong social media presence, and specifically focuses on the online influencer marketing strategy to create brand awareness (Varadarajan et al. 2010).

Marketing to Muslims The Growing Importance of Halal Products uses both- online and offline marketing and communication channels to promote the brand.

Marketing to Muslims The Growing Importance of Halal Products’s promotional strategy is well-aligned with other marketing mix components to develop a clear brand positioning (Palmatier et al. 2016).

3.3. VRIO of Marketing to Muslims The Growing Importance of Halal Products

3.3.1. Valuable

The Marketing to Muslims The Growing Importance of Halal Products has a wide distribution network that is spread across the globe.

The Marketing to Muslims The Growing Importance of Halal Products has extensive research and development capabilities that fuel the innovation process.

The Marketing to Muslims The Growing Importance of Halal Products offers a seamless customer experience through a well-integrated marketing mix.

The Marketing to Muslims The Growing Importance of Halal Products has strong financial health, and free cash flow that it can invest on innovative projects.

The Marketing to Muslims The Growing Importance of Halal Products has a strong presence over social media that drives the customer engagement, and increases the company’s reach to the target market.

The Marketing to Muslims The Growing Importance of Halal Products has successfully attracted and retained highly skilled staff that drives the overall organizational productivity, and helps the company in achieving its innovation objectives (Cardeal and Antonio, 2012).

3.3.2. Rare

Marketing to Muslims The Growing Importance of Halal Products has built strong relationships with suppliers that enable the company to achieve production objectives even when there is a material shortage in the market

Marketing to Muslims The Growing Importance of Halal Products has access to the rare and hard-to-reach raw material that is used to produce top-quality products (Cardeal and Antonio, 2012).

Marketing to Muslims The Growing Importance of Halal Products has successfully developed a strong brand reputation that keeps customers hooked with the brand

Marketing to Muslims The Growing Importance of Halal Products shares a strong emotional connection with its customers, which increases the psychological switching costs for them (Hernández and Garcia, 2018).

Marketing to Muslims The Growing Importance of Halal Products has developed its image as an environment-friendly, sustainable, and responsible brand that takes care of all stakeholders.

3.3.3. Inimitable

Marketing to Muslims The Growing Importance of Halal Products has developed an in-depth knowledge of customers’ intrinsic motivational needs, and has developed its brand image in a way that shares close relatedness with customers’ desired self-image (Liu et al. 2012).

Marketing to Muslims The Growing Importance of Halal Products has secured exclusive agreements with the suppliers to get access to unique raw materials. The exclusive agreement makes this resource inimitable for Marketing to Muslims The Growing Importance of Halal Products

Marketing to Muslims The Growing Importance of Halal Products has strong transformational and charismatic top leadership that has always successfully led the organization through a crisis (Nusari et al. 2018).

Marketing to Muslims The Growing Importance of Halal Products has developed a robust organizational culture that promotes cohesion, and strengthens the employees’ affective commitment with the organization.

3.3.4. Organized

Marketing to Muslims The Growing Importance of Halal Products has secured the access to human capital (skills and expertise) that is needed to exploit the above-mentioned resources.

Marketing to Muslims The Growing Importance of Halal Products has a well-developed technical infrastructure that supports the business operations, and fuels the innovation process.

Marketing to Muslims The Growing Importance of Halal Products has built extensive expertise, and gained years of experience that helps the company in leveraging its core strengths to exploit the available opportunities.

Marketing to Muslims The Growing Importance of Halal Products has built strategic partnerships that help the company in pooling the resources together to gain a strong competitive edge over rivals (Cardeal and Antonio, 2012).

3.4. BCG of Marketing to Muslims The Growing Importance of Halal Products

3.4.1. Stars

The core products of the Marketing to Muslims The Growing Importance of Halal Products fall in the star category. Marketing to Muslims The Growing Importance of Halal Products has secured market leadership in these categories

Marketing to Muslims The Growing Importance of Halal Products’s market share in these product categories is growing due to high market growth potential

Marketing to Muslims The Growing Importance of Halal Products should pay specific attention to these product categories, and should try to preserve the market share

The intensifying competition imposes a threat to the Marketing to Muslims The Growing Importance of Halal Products’s market leadership in the ‘Star’ category

Overall, Marketing to Muslims The Growing Importance of Halal Products should increase investment on the star category to maintain leadership in the growing market (Mohajan, 2017).

3.4.2. Cash cows

Marketing to Muslims The Growing Importance of Halal Products has several product categories in which the firm has attained the market leadership position.

However, the market growth in these product categories has become slowed with time, as the market has become mature.

Marketing to Muslims The Growing Importance of Halal Products should ‘milk’ these product categories as they are an important source of cash flow.

However, Marketing to Muslims The Growing Importance of Halal Products should avoid increasing investment due to slowed market growth, and should bring innovation to keep adding new features.

Overall, Marketing to Muslims The Growing Importance of Halal Products should aim to maintain the current market position, but avoid increasing the investment due to slow market growth (Kader and Hossain, 2020).

3.4.3. Question marks

Marketing to Muslims The Growing Importance of Halal Products has some product categories that are in a growing market segment. Despite high market growth, Marketing to Muslims The Growing Importance of Halal Products is unable to increase the market share in these segments.

The products under this category have the potential to become stars, as they operate in a high-growth market.

But, extensive investment is needed to understand the reasons behind the low market share, and it can affect the cash flow of Marketing to Muslims The Growing Importance of Halal Products.

Therefore, Marketing to Muslims The Growing Importance of Halal Products needs to evaluate if it is feasible to increase the investment to drive the market share, or it is wise to divest from this market segment (Mohajan, 2017).

3.4.4. Dogs

Marketing to Muslims The Growing Importance of Halal Products has one product that operates in a market with low growth potential

Marketing to Muslims The Growing Importance of Halal Products has only a marginal share in this market.

As growth in this market is stagnant, and market share is also marginal, Marketing to Muslims The Growing Importance of Halal Products may consider divesting from this market segment.

It will be unwise to invest in this segment, as this product has turned into ‘dog’, which means the product is aged and waning.

Here, two options are available to Marketing to Muslims The Growing Importance of Halal Products:

o First, Marketing to Muslims The Growing Importance of Halal Products may entirely refresh the dying product.

o Alternatively, Marketing to Muslims The Growing Importance of Halal Products may divest this product from the portfolio.

Considering the current business environment, and competitive dynamics, Marketing to Muslims The Growing Importance of Halal Products is recommended to get rid of this product by taking divestment decisions (Torquati et al. 2018).

3.5. Ansoff matrix of Marketing to Muslims The Growing Importance of Halal Products

Marketing to Muslims The Growing Importance of Halal Products aims to expand its business operations to strengthen the competitive positioning in the market. Ansoff matrix here can help Marketing to Muslims The Growing Importance of Halal Products in taking the right business expansion decision.

Four business expansion strategies available to Marketing to Muslims The Growing Importance of Halal Products are- market penetration, market expansion, product development, and diversification (Loredana, 2016).

Choosing the right expansion strategy is important for Marketing to Muslims The Growing Importance of Halal Products to achieve its expansion objectives.

3.5.1. Market penetration

Marketing to Muslims The Growing Importance of Halal Products can penetrate into existing markets by expanding the market reach. This strategy is recommended when the market has high growth potential.

Marketing to Muslims The Growing Importance of Halal Products can expand the market reach by increasing the customer loyalty, and encouraging them to increase the spending.

Marketing to Muslims The Growing Importance of Halal Products can use the influencer marketing strategy as a tool to create e-WOM. It will create brand awareness, spread the brand message, and enable Marketing to Muslims The Growing Importance of Halal Products to penetrate deeper into the market.

Some other ways through which Marketing to Muslims The Growing Importance of Halal Products can penetrate into the market is- to increase the marketing and promotional budget, making price adjustments, and improving the product quality to gain a larger share from the existing market (Shaw, 2012).

3.5.2. Market development

Marketing to Muslims The Growing Importance of Halal Products can find new geographic markets to launch its existing products

Another way to pursue this expansion strategy is through celebrity endorsements. Celebrities can help Marketing to Muslims The Growing Importance of Halal Products in finding new customers for existing products

Marketing to Muslims The Growing Importance of Halal Products can also consider adding new product dimensions, or revising the packaging to reach new consumer markets.

Another way to pursue this expansion strategy is by exploring new distribution channels. Marketing to Muslims The Growing Importance of Halal Products can strengthen its presence on e-commerce, and open multiple online sales channels to reach new customer markets (Hussain et al. 2013).

Marketing to Muslims The Growing Importance of Halal Products can also charge two different prices to expand the reach from high-end to middle-class customers.

3.5.3. Product development

Marketing to Muslims The Growing Importance of Halal Products can expand its business operations by pursuing a product development strategy.

Instead of adopting a reactive attitude by coping with the competitors, Marketing to Muslims The Growing Importance of Halal Products must proactively behave while launching new products. Some possible proactive product development strategies are discussed below.

To pursue a proactive product development strategy, Marketing to Muslims The Growing Importance of Halal Products may increase investment on research and development activities to bring the product innovation.

Marketing to Muslims The Growing Importance of Halal Products may also invest on the market research to identify and respond to the unmet customer needs (Katsikeas et al. 2016).

Marketing to Muslims The Growing Importance of Halal Products may consider strategic alliance and partnership options to launch new products. It will enable the company to pool the resources and capabilities together, and share risks while launching new products.

Acquisition of smaller firms can also enable Marketing to Muslims The Growing Importance of Halal Products to successfully launch new products in the comparatively shorter time span.

3.5.4. Diversification

Marketing to Muslims The Growing Importance of Halal Products can adopt the diversification strategy to reach new markets through new products.

Marketing to Muslims The Growing Importance of Halal Products can pursue either a related or unrelated diversification strategy.

The related diversification strategy requires Marketing to Muslims The Growing Importance of Halal Products to enter in similar markets. But, unrelated diversification requires Marketing to Muslims The Growing Importance of Halal Products to find entirely new markets (Dhir and Dhir, 2015).

Unrelated diversification is riskier, and can affect the brand image. So, Marketing to Muslims The Growing Importance of Halal Products should pursue a related diversification strategy.

By pursuing related diversification, Marketing to Muslims The Growing Importance of Halal Products can horizontally and vertically add new product lines

Through successful diversification, Marketing to Muslims The Growing Importance of Halal Products can increase its profitability, and generate more revenue from the new products and new market segments (Loredana, 2016).

4. Conclusion

The in-depth strategic analysis of Marketing to Muslims The Growing Importance of Halal Products reveals some interesting insights. Marketing to Muslims The Growing Importance of Halal Products currently holds strong competitive positioning. However, the challenging business environment and intensifying competition require Marketing to Muslims The Growing Importance of Halal Products to adopt a proactive behavior. Marketing to Muslims The Growing Importance of Halal Products needs to continuously assess its external and internal business environment to timely identify the potential threats and opportunities. Here, the application of relevant strategic management tools and frameworks can help Marketing to Muslims The Growing Importance of Halal Products in making wise business decisions. The key to success in a such challenging and complex business environment is- to proactively respond to the external environment by leveraging core strengths, and overcoming the weaknesses.