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The Halal food industry in Germany

Written by T. Engel

Paper category

Term Paper


Business Administration>General




"Term Paper: Regarding food, halal means that the food meets the dietary standards described in the Quran. There is a direct correlation between the number of faith-based consumers and the absolute number of products in demand. It occupies an important place in the lives of Muslim consumers of all religions (Riaz and Chaudry, 2004, p. 1). At the end of 2016, among all European countries, the country with the second most Muslim population was Germany with 4.95 million. Through continuous globalization, the population is still growing, and there is no sign of ending. As the Muslim population increases, so does the consumption of halal food (Clark, 2020). With halal food as the core, the revenue of global halal products is expected to increase by 1.2-2 trillion in 2015 (Omar, Bahrom & de Mello, 2015, p. 32. Except for faith-oriented and loyal halal consumers , Will also provide long-term sustainability for further business operations (El-Rahim, Ramadan, Spear, 2020, p. 366). Objectively, the halal food market shows an attractive and profitable niche market Signs that the market has considerable growth potential. Its loyal and growing customer base provides a prosperous future prospect. Contrary to its benefits, there are some obvious shortcomings that need to be considered before attempting to enter the market. From a production perspective Looking at it, one challenge is the high initial cost of obtaining the halal certificate required for halal food production, as well as the high cost of providing infrastructure and logistics to maintain halal standards. The lack of available knowledge about the needs and needs of halal consumers constitutes entry into halal Greater barriers to the food market (Hashim et al., 2018, pages 55-58). In the past few years, the needs of target groups are happening. In order to quickly adapt and understand consumer behavior, companies need to understand their presence in the market. The status and desire of halal consumers. (El-Rahim et al., 2020, p. 366.) For this reason, price issues, locations and products need to be resolved. Due to the lack of market research in this field so far, this is challenging The aforementioned issues reveal the importance of market research for understanding target market customers. (International Trade Commission, 2015, p. 46). This will lead to successful market entry. Investment in market research will be improved by reducing The cost of a less profound strategy pays off. The strategy learns from its mistakes and helps create a sustainable competitive advantage for the company. According to Porter, even in a niche market, a company should adopt a specific strategy to achieve Success. (Porter, 1980, p. 82.) Therefore, the agency is studying whether product differentiation or specific pricing strategies can create long-term advantages for companies trying to enter the halal food market. The research aims to discover the desires of halal food consumers and enable new companies to successfully enter the market. It focuses on the younger generation in Germany with more specific target groups. Research question: How satisfied is the new generation with the supply chain of the halal food industry in Germany? The questionnaire is designed to find two types of data about participants. First, obtain the personal data of the participants to classify the members of the sample group. Secondly, their views on market conditions and possible improvements will make consumers more satisfied with halal food. European-style questions provide participants with more options to answer and express their wishes. After that, the agency merged the answers into groups for more precise analysis. The grouping shows the changes most people want, and then lays the foundation for the most effective recommendation. In order to collect the necessary data, the agency decided to conduct interviews because it specializes in this type of data collection. The topic of halal food is usually related to religious beliefs; face-to-face interviews provide a better platform for collecting reasonable data. As the project started during the corona crisis, it was decided to conduct interviews using European methods. One of the opportunities that this decision provides for the agency is to be able to work with a smaller group of participants to protect the health of all those involved. In addition, the design of the questionnaire is more open, giving participants more freedom in the way they answer the questionnaire and showing their views on the topic and its challenges. The realization of the interview was initially challenging, but the use of online interviews solved these problems through Skype. Although each interview was a little nervous at the beginning of the unusual situation, after a few minutes, the participants became very comfortable. The first part of the questionnaire aims to find out the participants’ personal data, such as education, age, and religious beliefs. The second half of the questionnaire focuses on data related to halal market research. The focus is on key factors such as availability, price, or satisfaction with market conditions. The open question structure allows people to express more profound answers and gives the analysis team a new perspective on the research goals. When the participants answered the questions, they established new connections between different key factors, which significantly improved the study." Read Less