International marketing

Question

A report by Thomson Reuters and Dinar Standard estimated that the global halal economy will hit $3 trillion in 2023. Using relevant example, illustrate how a foreign marketer targeting halal market(s) can integrate the knowledge of product component model and characteristics of innovations in product adaptation decisions.

Answer 1

If a foreign marketer wishes to take advantage of the growing halal market, which is projected by Thomson Reuters and Dinar Standard to reach $3T globally, he or she should identify where the market growth is occurring, where the market is underserved, which benefits are most important to the target consumers in that market, and what types of innovations to product, packaging, or distribution will be most advantageous to those consumers.

If the focus is on halal foods (as opposed to cosmetics or pharmaceuticals), a marketer might turn their attention to Turkey or the EU. France, in particular, is a rapidly-emerging market for halal food items. A hypothetical investigation into the halal foods available in France might reveal an abundance of frozen packaged convenience foods for adults, but few frozen ready-made meals targeted towards children. The foreign marketer would then want to conduct research to understand what types of halal foods children are especially interested in. Further research would be conducted with their parents to understand which additional benefits besides being halal are paramount: specific nutritional qualities (non-GMO, low/no sugar, all-natural), sustainable packaging, "fun" to eat, etc. As this example illustrates, the foreign marketer identifies a growing market, searches for gaps in the types of products that are currently available, and then develops meaningful innovations using a product component model that leverages the core benefits that are most important to the market's target consumers.