a new-age ramadan deep dive

JUNE 2013 JULY 2013

A NEW-AGE RAMADAN M E N A

Image credit: Corbis images

��Executive Summary ..................................................................................... 3 A New-Age Ramadan..................................................................................... 4 Evolving Consumption Habits .......................................................................... 9 What It Means For brands ............................................................................. 17 What’s Next ............................................................................................. 20 Thought Starters ........................................................................................ 22

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TABLE OF CONTENTS 2

��Ramadan, the Islamic month of fasting and the busiest marketing time in the Muslim world - a great time for brands to be paying attention to their relationship with Muslim consumers. With Muslim populations estimated at 1.5bn and growing at a rate of 1.8%, it makes total commercial sense that advertisers spend the lion’s share of their marketing budgets throughout this month, as consumption rises during Ramadan across all the world’s Muslim communities. During the 9th month of the Islamic calendar from dawn to dusk for the whole month, Muslims refrain from physical intake. The evening meal called Iftar (breaking of the fast) is a mini-celebration and takes place at sunset usually with family and friends, after which Muslims can eat and drink until a final Suhoor meal just before dawn. Socially inclusive in nature, Ramadan and fasting are seen as an opportunity to connect with not just family and friends, but also people at large, all of which revolve around the Iftar and Suhoor occasions. Iftar is traditionally taken at home with family and guests, where it usually falls upon the wife to prepare a sumptuous meal. While this is a huge task – with most of the day spent in preparation – many women see it as a joy to feed their brood. Enculturation, sees Ramadan gradually moving from being religious/ traditional to becoming more cultural, with the emergence of a typical commercial ‘Ramadan Shopper’. Food shopping begins several weeks before Ramadan, so brands are up against a fight when it comes to consumer communications. Ramadan is a noisy time and advertising is cluttered. The Muslim consumer should be at the forefront of every brand’s planning. Although becoming a more commercial festivity, Ramadan is still a time of self-improvement and spiritual gain, where consumers feel obligated to deal with brands that have more charitable activities and initiatives. In our increasingly polarized region, brands need to work hard to integrate Ramadan into a wider strategy that accommodates a spectrum of Muslim brand values – both New-Age mindsets and the more religiously conservative. Simply put, Ramadan engagement with Muslim consumers should not be a one-off, but a chance to turbo boost an ongoing relationship. Moving past glib generalizations to helping Muslims achieve their entertainment, community and spiritual goals during this month - without compromising their religious values. Our New-Age Ramadan report is the result of quantitative, qualitative and desk research by Brand Intelligence MENA during 2012. Specifically for this report, we conducted a social Media listening exercise across 5 key MENA markets – KSA, Morocco, Lebanon, UAE and Egypt.

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EXECUTIVE SUMMARY 3

Source: Ogilvy Noor; AMRB Ramadan Connect; Euromonitor

A NEW-AGE RAMADAN

Image credit: Shutterstock

��New-Age Muslim individuality: With an Arab region more polarized today than ever before – religious conservatives 43%, and liberals 54% - Muslim practices reflect a wide spectrum of ideologies ranging from Religious conservatives to Progressive traditionalists. This emerging progressive mindset is driven by the Arab Millennial, who is more open to change and is intent on living life to it’s fullest on his own terms - as long as it does not compromise his religious values. While Ramadan still largely retains a pattern by which everybody seeks to be shaped, its practices and rituals are increasingly becoming a more individual form of expression, driven by Millennial individuality. Acculturation: Ramadan in the Arab world and particularly the GCC, is undergoing ‘acculturation’, mainly due to the influence of global media, social media and the large number of Muslim migrant workers who have imported a variety of a-traditional symbols, rituals and eating habits that are being slowly assimilated into Ramadan traditions across Arab societies. For example, the symbolic fanoos (colorful lantern) is of Egyptian influence, decorating homes for Eid is originally a North African tradition, gifting as opposed to the traditional monetary ‘Eidiyye’ at Eid is of North American influence and the overindulgent festivity of ‘Suhoor’ gatherings and feasts originated in the Levant. Varying significance of Ramadan across the region: The significance of Ramadan varies across markets. (See next slide).

DRIVERS

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1 | THE ENCULTURATION OF RELIGION 5

Source: JWT MENA 8 trends for 2013; AMRB Ramadan Connect

74

84

87

93

66

I would definitely choose a brand

that is sensitive to my religious needs over one which is

not

Muslim friendly products Percentage of MENA adults who agree that:

Egypt Morocco KSA Qatar Lebanon

SIGNIFICANCE OF RAMADAN ACROSS MARKETS

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1 | THE ENCULTURATION OF RELIGION… 6

Source: JWT SM Listening 2013

��KSA: Reveres and regards this month more than any market in the region and to a higher degree. Being the Mecca of religion, it is not by choice.

��UAE: Due to the fact that 80% of the market is non-Emirati, Ramadan is more of a cultural experience rather than one they feel connected to. It’s largely about festivity and FOMO on shows and events.

��Egypt: Is all about entertainment and social gatherings more so than any other market in the region. Long delicious meals, evening TV shows and leisurely late nights with loved ones and friends.

��MOROCCO: Focuses on spirituality during Ramadan – connecting with God and family ties – and focuses on festivities during Eid.

��

DRIVERS

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2 | FESTIVITY OVERRIDES SPIRITUALITY 7

Source: JWT Marketing to Muslims 2009 AMRB Ramadan Connect; JWT SM listening 2012

��The boredom factor: Although ‘spirituality’ and ‘piety’ should predominate during the month, reduced working hours, hunger fatigue and closed shopping venues during the day are considered to be the main contributors of boredom and frustration till Iftar. Passing time becomes the main challenge for surviving the month of fasting, prompting excessive sleeping, elaborate mealtime preparations and various amusement rituals to keep busy till the sun sets – all of which ultimately detract from observing religious practices. Sociocultural influence: The existence of religious Ramadan rituals is imperative and provides a sense of security, stability and continuity that is so lacking the rest of the year, through ‘inner’ reflection and serenity. These rituals and practices are learnt and passed down from one’s immediate family. Yet, increasingly, acculturation sees religious rituals slowly being replaced by more cultural ones. Attention is directed ‘outwards’ in celebration of physical urges, both during the day and after Iftar. A fact which, for the more religious conservative, is driving overall nostalgia for the rituals & traditions of Ramadan in the past, in dedication of keeping the spirit alive and creating those special Ramadan moments that made it so memorable. (See next slide)

42

52

61

63

50

30

26

Due to the hectic lifestyle nowadays, I tend to be a bit

relaxed about observing religious

practices

Egypt Morocco Tunisia Algeria KSA UAE Jordan

Relaxing religious adherence (Country) Percentage of MENA Millennials who agree that:

��

PAST AND PRESENT RAMADAN RITUALS

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2 | FESTIVITY OVERRIDES SPIRITUALITY… 8

JWT Ramadan listening 2012

RAMADAN YESTERYEAR

RAMADAN TODAY

•  Spiritual Devotion; Attention is directed INWARDS, where will battles physical urges

•  Physical Devotion; Attention is directed OUTWARDS in celebration of physical urges

•  Religious resolutions and goal setting for stopping bad habits or doing more good things

•  Physical resolutions and goal setting for not gaining weight

•  A month of social bonding and sharing with close ones •  Disjointed families due to busy lives and territorial distances

•  Traditionally homemade Ramadan specialties like ‘Sambousek’ and ‘Ma3moul’

•  Commercial convenience foods replacing traditional homemade Ramadan specialties

•  Explicit Suhoor rituals combining the Messa7arati, prayer and bonding over food

•  Suhoor has become yet another occasion for festivity during the month, characterized by tents, excessive eating and socializing till it’s time to fast

•  Monetary gifts ‘Ediyye’ for Eid al Fitr •  Regular gifts like the ones received all year

•  Focused media channels •  Media fragmentation

Image credit: alriyadh.com

EVOLVING CONSUMPTION HABITS

��Strong social expectation: Women report that more effort goes into cooking during Ramadan than any other time of the year, given that food consumption rises exponentially during the month. Preparing Iftar is a mothers daily paradox, which is why Ramadan has come to wrongly revolve around food. The pressure for women intensifies, as they are expected to cook most of the dishes themselves, with less reliance on house help – exhibiting creative skills and homemaking abilities and keeping up with relatives and neighbors. Increased number of participants at consumption times: With families becoming more nuclear and social obligations in demand, more so during the Holy month, quantities of food prepared are much larger at Iftar and Suhoor. This is evident as cooking time during the Holy month almost doubles. Super-Niche-ness: Cooking is a passion and her favorite form of ‘Self expression’ allowing her creative juices to flow. No other arena in life allows women to be as creative. She enjoys experimenting with recipes and trying out new ones. However, she needs to get it ‘right’ and therefore relies on time-trusted ingredients (and brands) to deliver that. Compliments are her source of inspiration - when her friends look up to her as the cooking ‘expert’ and seek her advice/recipes; when her kids ask for more at the table or boast to their friends; when her husband raves about her food to colleagues etc.

DRIVERS

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�43% increase in the number of dishes prepared or cooked at home during Ramadan

17% more time spent on meal preparation than usual

1 | COOKING TAKES CENTER STAGE 10

Source: AMRB Ramadan Connect; Kraft Cheddar Digital JWT UAE

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2 | VARIETY IN-DEMAND

��Curbing daytime monotony: While Ramadan during the day takes on a very structured form – work, prayer, daytime napping, TV and meal preparations - boredom and frustration still dominate the day. The uniqueness of the month is further supported by the government and accommodated by conservatives and liberals alike, with fines for not complying with the reduced working hours and prohibited daytime eating - adding more hours to an already irksome day. The last couple of hours prior to Iftar are the most tedious. As a result, males and young Millennials are increasingly injecting variety into daytime routines, carving out alternative forms of daylight entertainment. Moving out of bed and off the couch to the outdoors, opting to pass time through sports or daily ‘pre-Iftar’ get-together’s as opposed to sleeping it off like their predecessors. Family engagement: With 30 days of mealtime planning, keeping the family engaged and creating anticipation out of meal times becomes a challenge. Elaborate traditional meals are giving way to easy, versatile recipes that can be made everyday for the family – be it giving traditional recipes a modern twist or trying a totally new recipe discovered on the net. As such, mealtime variety is being reframed as having the same dish more often – but presented differently each time, which does not have adverse effects on family budgets. Offering visual variety is achieved by using different ingredients to customize familiar dishes, or serving up new garnishes or toppings each time the dish is presented. Mothers tend to add their ’Personal touch’ to everything they do, including traditional recipes that their mothers have taught them and take pride in their ‘little ’secrets’ to enhance the overall dish and create variety

Source: AMRB Ramadan Connect; Kraft Cheddar Digital JWT UAE; JWT Ramadan Listening 2012

I don’t rest until I decide what we are going to have for Iftar.

The hardest part of Ramadan for me is the boredom.

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DRIVERS

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3 | IDLE CONSUMPTION

��Higher demand for goods and services during the Holy month: Although, theoretically, individuals are commanded to curb their desires during Ramadan, conspicuous over-consumption has become a noticeable occurrence in all aspects of daily life, especially in the purchase of foodstuffs, apparel and leisure activities. People actually tend to consume more, purchase in bulk and purchase more than they actually need. Demand increases so much it amounts to over half the consumer spending during the remaining 11 months of the year. Individuals witness a decline in their purchase power after Ramadan, as a result of the higher prices against their fixed incomes. This higher consumption equates to higher economic growth, which is generally only a short term effect. ‘We’ concept: Among Muslims in Ramadan, ‘I’ is often substituted by ‘we’ and the use of expressions like ‘the people’ or ‘everybody’ is very common as people start thinking of others and not just themselves, often splurging on overabundance to match the mind set. These expressions underline the extent to which collective awareness is present in the attitudes and behaviour of the people during the fasting month with charitable activities and initiatives like mass Iftars for the poor prevailing ‘Mawa2id Al Rahman’. Transformative Category consumption: While categories are used the same way during Ramadan, foods move from consumption to ingredients, allowing customized variety to regular dishes. New product categories such as Sambousek, ingredients for sweets, fruit juices and cooking oil, which are normally consumed in moderation are all now in excessively high demand. Promotions and sales are particularly appealing to consumers this time of the year.

Source: h,p://www.bbc.co.uk/news/business-‐19281749 h,p://www.reuters.com/arBcle/2011/08/16/uk-‐middleeast-‐ramadan-‐idUSLNE77F04220110816

h,p://thepeninsulaqatar.com/qatar/201338-‐consumer-‐spend-‐set-‐to-‐hit-‐qr700m-‐this-‐ramadan.html

People in the GCC countries heavily rely on personal bank loans to meet their uncontrollable expenditures during Ramadan. About three-fourths of the citizens of these countries are indebted due to personal loans, which frustrate household budgets and strain increasingly cash-strapped individuals. This practice has to be curbed. People should be made aware about how to be economical and productive.

- Dr Sami Al Nusairi

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People go for shopping during Ramadan and buy food and non-food items without thinking or planning. At the end of the month, they find that many of the items are in surplus and were not needed at all - Dr Noora Al Maadadi

DRIVERS

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4 | MILEAGE FOR CHARITY AND GOOD WORK 12

96

81

91

99

87

I trust and respect brands that are

socially responsible

Socially responsible brands Percentage of MENA adults who agree that:

Egypt Morocco KSA Qatar Lebanon

��Super-sensory consciousness: Generosity and selflessness are de facto a core practice of the Islamic faith driving Muslims to ‘doing good’, more so in Ramadan - the month of ultimate charity and giving. Consciousness and self-censorship are in overdrive as one tries to do, say and act in goodness and avoid evil at all times. Observance of religious duties: Overall, the Muslim world practices varying degrees of piety throughout the year, but come Ramadan, a general attitude of spiritual devotion and generosity prevails. Customary religious duties such as charity, kindness and family support become priorities and there is a general feeling of inexplicable self satisfaction and serenity even towards the ‘little’ things. Discretionary charitable giving aside, Zakat is one of the core obligatory pillars of faith during this month. Ongoing charitable rewards: In the Islamic faith, one good deed bestows reward – so, what about in the case of ongoing good deeds. Long term charitable solutions with a focus on building and sustainable solutions, are the winning factors of any charitable work that is very dear to Muslim hearts – not to be confused though with CSR. Charity is about selfless giving while CSR is about creating a win-win partnership within the community.

Source: JWT SM listening 2012; CSR Middle East 2012; JWT Social Ethos Survey

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5 | DEMAND FOR DIGITAL CONTENT

��Increased digital uptake in the MENA: With 40% penetration in the MENA, browsing the internet has become one of the region’s favorite pastimes. 83% of Arab Millennials use the Internet daily, and 78% now claim to prefer the Internet to TV. Also, 70% of daily internet users spend three hours or more online, which is three times higher than those watching the same amount of TV. The growth of social media and mobile video consumption across MENA is one of the highest in the world and according to Nielsen, consumers in the MEA region are among the most engaged in online decision-making. Smart boredom: Although TV viewing increases hugely during Ramadan as MENA consumers anticipate the high quality Ramadan programming fuelled by comedies, quizzes and religious shows, digital consumption is expected to ramp up by about 30 percent during Ramadan - only for different content across markets and at different timings. Consumption peaks 8PM-12 PM, following Iftar then again 3AM-6AM following Suhoor. Social network sites dominate along with local news websites and local content generated entertainment based portals, stressing the rising demand for Arab content. The internet is also becoming an important tool for women, looking to plan and prepare Iftar meals and has created infinite sources of inspiration on world cuisine – where ‘recipes’ are mostly searched as opposed to ‘brands’ and also allows them to share their own creations. ��Varying search interests for Ramadan across markets: KSA and Morocco appear to be more religiously committed than the rest of the region, while Egypt and UAE are more interested in the social/ entertainment aspect of Ramadan. (See next slide).

Source: AMRB Ramadan Connect; TNS Annual Mobile Life Study 2013; JWT SM listening 2013

Search volumes for ‘recipes’ online by Arab women double during the month of Ramadan vs.

regular months

14

SEARCH RELATED INTERESTS FOR RAMADAN ACROSS THE MENA

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5 | DEMAND FOR DIGITAL CONTENT…

Source: JWT SM listening 2013

Country Google search interests for Ramadan

KSA Religiously devoted

-  Ramadan photos & greetings -  Ramadan symbols “رمزيات رمضان ” -  New Ramadan shows -  Ramadan related prayers among

the rising searches

UAE Culturally Inquisitive

-  New Ramadan shows -  Ramadan habits overall -  New Ramadan shows among rising searches

Top related terms Rising related terms


15

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5 | DEMAND FOR DIGITAL CONTENT…

Source: JWT SM listening 2013

Country Google search interests for Ramadan

Lebanon Low interest

- Ramadan habits overall

Morocco Traditionally committed

- Ramadan food and religious

searches (Umra) - Delicious Ramadan food among

rising searches

Egypt Socially Festive

-  Ramadan songs (in general/

downloads) -  Ramadan films/shows -  Ramadan songs, music and

games among rising searches



SEARCH RELATED INTERESTS FOR RAMADAN ACROSS THE MENA… CONTD.

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WHAT IT MEANS FOR BRANDS

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2. Revive the RAMADAN SPIRIT; cater to the finer nuances of the Holy month and play to the NOSTALGIA of the Ramadan of yesteryear. RELIGIOUS CUES could enhance communication appeal.

3. Help women balance their personal and religious roles; consider CONVENIENCE OR RELEVANCE needs. ENHANCE or SIMPLIFY cooking processes.

4. Enable SUPER- NICHNESS, allowing women to engage socially on a deeper level. Through NEW PRODUCT PORTFOLIOS or CREATIVE APPLICATION.

1. Layer-in MUSLIM COMPLIANT VALUES OR ETIQUETTE to everyday lifestyle activities, allowing the New-Age Muslim to ENJOY EVERY ASPECT OF LIFE without compromising their religious values.

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5. Address their craving for variety. Create alternative daytime pastimes or pre-Iftar routines.

8. Provide practical solutions for curbing unnecessary waste Effective mealtime planning or resourceful up-cycling of leftovers.

7. Engage them through charitable solutions, for the less fortunate or for worthy causes.

6. Harness the digital opportunity; leverage their need for COMPETITIVE SHARE-WORTHY content - particularly Mobile.


WHAT’S NEXT

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EMERGENCE OF A ‘RAMADAN SHOPPER’ 21

��A ‘Ramadan Economy’: No matter where and in which calendar month Ramadan falls, it’s a ‘season’ by itself. There is a kind of pattern by which everybody seeks to be shaped: everybody goes shopping at the same time, cooks the same dishes, breaks the fast together, in the evening everybody watches the same soap opera, the same TV programs. People want to be a part of what’s happening, despite tailoring its manifestations to their own needs. They are carried away by an overwhelming movement. This Ramadan economy is felt the most in the car business, electronic industries, advertising and FMCG consumption with a 30% - 50% increase in the volume of purchased consumer goods by families during the month of Ramadan. Automotive sales and electronic industries soar, as buyers await Ramadan offers and Marketers present customers with the best deals during the month. Commercialization of Ramadan: The commercial potential of Ramadan appears to be growing to approximate that of Christmas, with a heightened sense of sensory perception after dusk; the smells, tastes, sounds and sight are on overdrive. Despite the recent decline in MEA consumer confidence to the lowest level in three years, there is still expected to be a higher demand for and consumption of goods and services during this coming Ramadan, given the deep rooted societal pressures and customs that are adhered to. Like Christmas, a religious context serves as a reason for families and friends to come together at Ramadan, presents are given and special food is eaten. Despite a vast cultural variety in the Muslim world, a typical ‘Ramadan shopper’ is likely to emerge in the same way as the “Christmas shopper” as a global phenomenon.

Source: http://blog.euromonitor.com/2012/07/ramadan-and-consumers-2012-trends.html h,p://gulfnews.com/business/automoBves/uae-‐automobile-‐sector-‐goes-‐all-‐out-‐this-‐ramadan-‐1.1052570

h,p://www.muscatdaily.com/Archive/Oman/Vehicle-‐dealers-‐gear-‐up-‐for-‐Ramadan-‐with-‐special-‐offers


THOUGHT STARTERS

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POWER WOMAN MOTIVATIONS 23

THOUGHT STARTERS

•  Think Efficiency: Time and money are primary challenges during Ramadan. How can your Brand help consumers overcome these challenges – both in-store or in-home challenges and savings - helping them to focus on and enjoy the more meaningful aspects of this occasion?

•  Revive the ‘Spirit’: The more conservative Millennial believes that the ‘true meaning of Ramadan’ is gradually being lost. Infusing core ‘Ramadan values’ into your Brand may not only encourage consumers to feel closer to the Brand but will provide a more festive and spirited Brand experience. Don’t alienate the more progressive mindsets – ‘spirit’ is to be found in festivity too.

•  Whip-up some variety: Passing time is the biggest challenge for consumers during the long daytime hours. What kind of engaging pre-Iftar routines or peer experiences can you create to help pass time during the day – both online or offline? The more competitive and social the experience, the more share worthy the content becomes.

•  Do a whole lot of good: Everybody loves a good guy – particularly in Ramadan – and Millennials love brands

whose purpose inspires them. How can your brand engage consumers through charitable solutions? The best way to get them to share your brand, is to make them feel good about themselves when they buy it.

For a visual perspective on Ramadan across the Muslim world check out this In Focus of Ramadan in photos; http://m.theatlantic.com/infocus/2013/07/photos-of-ramadan-2013/100550/

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THANK YOU

Brand Intelligence MEA 47 Patriarch Howeiyek St. P.O. Box 11-3093 Beirut, Lebanon www.jwt.com

A New-Age Ramadan

Head of Brand Intelligence Mennah Ibrahim Head of Corporate Communications Philippa Clayre Research Analyst Rita Haddad

CONTACT

Mennah Ibrahim [email protected]

Phillipa Clayre [email protected]

© 2013 J. Walter Thompson Company. All Rights Reserved

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a new-age ramadan deep dive

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