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Kraft eyes the UAE's demand for premium

by ArabianBusiness.com staff writer  on Tuesday, 08 July 2008
YAHYA: Kraft Foods will leverage Milka's strengths inn the UAE.

Dubai and Abu Dhabi have been tipped as crucial growth platforms after the recent launch of Kraft Foods' Milka brand and its expansion in the Middle East will be "dependent on how it rolls out here."

"We will roll it out in other markets such as Saudi Arabia, however the UAE is the first market where we can leverage its strengths and expansion will come after consolidation in this market," said Ahmed Yahya, marketing director, Kraft Foods GCC.

As part of the ambitious launch, Kraft Foods is "looking for partnerships with other brands where it makes sense, some of them would be our own brands; and we are open to European brands or brands with a similar strategy or positioning," Yahya revealed.

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Milka's expansion will come after consolidation in the UAE market.

"This is one of the biggest chocolate brands to come out of Europe, and this is the right time for it to come into this region across the formats, from supermarkets to forecourt retailers."

Yahya revealed the "fine milk chocolate brand" will belong to the impulse category and its presence will be bolstered heavily by below the line activity including in-store displays, radio and sampling campaigns.

"It will be much more targeted, as this product is not for every person. We are positioning it as premium along with other chocolates in the market. Consumers are willing to pay premium prices when it comes to indulgence."

The brand will profit from the need for shoppers to enjoy their "five minutes of indulgence" due to busy lifestyles in the UAE.

"We want to leverage the equity that Milka has, and what better market for that than the UAE because of the huge European, expatriate community? We understand that consumers here have less and less time to enjoy with their families and indulgent times are becoming scarce."

The variants selected, "driven by consumer insights in the UAE and the Middle East," were Chocolate Dessert - offering "unique" milk chocolate tablets filled with whipped cocoa filling - Fruit and Nut, Caramel and Hazelnut and Alpine Milk.

Well-travelled consumers will be familiar with the brand due to its longstanding presence at Duty Free retailers, while expatriates will recognise its "lilac-coloured packaging and the Simmental cow on the branding" representing the natural, wholesome milk from the Alps.

"Milka is a flagship brand for Kraft Foods in the chocolates category and we expect it will make a lasting impression on our consumers here. Milka has over 100 years of heritage as rich as its taste," said Yahya.

The company's strategy will witness its efforts to "be on a parity with other similar European premium brands," and the products will be "slightly premium" in the market.

Kraft Foods recently extended its Oreo brand across the GCC markets with the launch of Wafer Rolls and a TV advertising campaign focusing on "childlike moments for people of all ages."

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