Market - Superbrands

Market
was to place collectable cards inside tablet
chocolate packages.
In 1880, Suchard opened his first subsidiary
abroad, in Lörrach, Germany. When he died
four years later, his son-in-law, Carl Russ, took
over the business and in 1888 he opened new
subsidiaries in Bludenz (Austria) and in other
European countries. In 1893, ‘Suchard’ became
Switzerland’s first international brand. A turning
point in the history of the product came in 1901
when the company produced its first tablet milk
chocolate under the label, ‘Milka’. The name,
Milka, was derived from the combination of
German words ‘milch’ (milk) and ‘kakao’ (cocoa).
In 1970, Suchard and Tobler formed a partnership
as the Interfood Group. When Interfood merged
with Jacobs in 1982, Jacobs Suchard was created.
Jacobs Suchard was then acquired by Kraft
Foods, the largest food and beverage company
in the US and second largest in the world,
thereby making Milka a part of Kraft.
The chocolate confectionery market in Turkey is
worth about US$500 million a year and consists
of four different categories: tablets, bars, wafers
and pralines. Apart from these, other chocolaterelated products include chocolate-covered
drajees and chocolate spreads. There are five
companies, including foreign and Turkish, leading
this market. In addition, as is frequently the case
in the food industry, there are also many small
companies producing chocolate products.
Research has shown that annual per capita
chocolate consumption in Turkey is 1 kg while it
is 8 kg in Great Britain and 9 kg in Germany and
The Netherlands. The chocolate confectionery
market in Turkey has an annual volume of 75
tons. Chocolate covered products (bars and
wafers) constitute 70% of the market while
tablets and pralines constitute 30%.
Having products in all these categories, Milka
is one of the leading brands in the Turkish
chocolate confectionery market and consistently
strengthens its position through both volume
and value growth.
Product
Achievements
Milka, which is the number one chocolate brand
in Europe, is one of the top three brands in the
Turkish confectionery market. Since its launch in
Turkey in 1993, it has continued to grow rapidly
and has become a favourite with Turkish
consumers.
In the second half of 2004, Milka launched
M-Joy, Noisette, Knister-Q, Milka Summer Flavours
and the Milka Coffee Line. Driven by these
successful launches and the successful performance of
regular Milka 80 g and 40 g tablets, Milka chocolate
sales in the first half of 2005 are double the amount
sold in the same period of 2004. Consequently,
Milka has proven to be the biggest contributor
to the record growth in tablet chocolate market
this year and has gained significant market share
at the expense of competitors.
In the research concerning ‘brands and the
effects they have on the consumer’ which was
carried out with 10,000 respondents in 2003,
consumers chose Milka as the most reliable
brand in the chocolate category and Milka won
a Consumers Award.
History
Milka’s creator was Philippe Suchard (1797-1884),
the leading Swiss chocolate manufacturer and
one of the world’s most renowned figures in the
field of chocolate manufacturing. When Philippe
was 12 years old, he went to Neuchâtel to buy
some medicine for his sick mother. While there,
he saw that chocolate was used instead of medicine.
This chocolate blend was worth three days’
work. This was the day when young Philippe
decided to get in to the chocolate business in the
future and to make lots of money selling this exotic
blend. Following this decision, Philippe went to
Bern to do an internship in the sugar confectionery
industry in 1815 and left Switzerland to go to
the United States after eight years.
After returning to Switzerland, Philippe
started a business in the sugar confectionery
industry. But his real dream was to produce
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SUPERBRANDS
chocolate. Likewise, after one year, he built a
water-mill based chocolate plant in Serriére in
1826. He was able to produce 25-30 kg of
chocolate per day at those times. During the
first 30 years, the Suchard family managed the
business: Philippe used to work long hours with
his wife and children.
Philippe discovered the importance of marketing
and branding. As a result, he became one of the
leading business people of his time. He exhibited
his products at the World Fair in Paris, put
advertisements on tramways, buildings and in
newspapers, and developed special packaging for
his products. Another marketing tool he used
Quality has a long tradition at Milka. Over a
century ago, in 1901, the Swiss confectionery
producer Philippe Suchard created one of the
first varieties of full-cream milk chocolate. Not
only did he mix milk (Milch) and cocoa (Kakao),
he also spawned the name ‘Milka’ in the process.
Suchard dressed this new type of chocolate in a
lilac-colored wrapping showing an unspoiled Alpine
landscape with a cow in the foreground. This
marked the birth of a brand that swept the market,
first in Switzerland, then later in Germany and
Europe. Today, the colour lilac and the Milka
cow are the epitome of finest chocolate enjoyment.
Since its first appearance, Milka has gained a
reputation for the smoothest and most delicate
chocolate taste that melts in the mouth and it is
this feature differentiates Milka from all other
chocolates. This special characteristic comes
from the fact that Milka is produced with Alpine
Milk, the milk of cows raised in the clean air and
natural environment of the Alps.
Careful development of the brand has been a
foremost concern at Milka from the very outset.
Originally Milka was only available in tablet form.
Over the last 10 years, the brand has expanded
from there into virtually all the neighbouring
confectionery segments. Tablets continue to be
the core product under the Milka umbrella brand,
which now embraces seasonal products, countlines,
pralinés as well as bakery items. The basis for
the lilac colours success is the brand’s enormous
strength, which derives from the confectionery
expertise, quality, credibility and tradition
exemplified by the brand.
Recent Developments
Tradition, quality and confectionery expertise
have played a major role in the success of Milka.
Nevertheless, other factors have also been
crucial. The ongoing development of the brand
and the products manufactured under it leading
the market by continuously introducing new
innovative products, has played an important
role in this success. Just over the past one year,
Milka has introduced a number of ‘firsts’ and
innovations in the chocolate sector:
Milka M-Joy is one of these innovations.
Introduced for the first time in September 2004,
M-Joy brought a completely new dimension to
chocolate, one that the consumer met with great
enthusiasm. Milka M-Joy has many features that
distinguish it from other chocolates. Not only is
it much thicker than others, but it is also filled
with chunky ingredients. M-Joy has four flavours,
whole hazelnut, whole almond, crunchy caramel
and milk. Moreover, M-Joy packaging can be
opened and resealed repeatedly without tearing
– a feature that keeps the chocolate inside fresh
for a long period even after opening the package.
Because of these innovative features and its
taste, the Milka M-Joy has captured a lot of
attention, propelling it to a significant market
share. Furthermore, M-Joy’s rapid rise in popularity
has positively influenced the market share of
Milka’s other chocolates as well. Mostly due to
the M-Joy launch, total Milka chocolate 2005 first
half sales increased by 97% against the same period
in 2004, making its market position even stronger.
Milka Gofree: Milka Gofree combines rich
chocolate and crispy wafer. It was introduced in
May 2005 in four varieties – hazelnut, white chocolate,
strawberry and cocoa. Milka Gofree is imported
from Milka’s wafer-manufacturing base in Poland.
Milka Knister-Q: Knister-Q is a brand-new
chocolate with popping candy. It is a favourite
with children and of those who are young at
heart. The incomparable chocolate taste and
popping candy are a delightful and entertaining
combination for anyone who loves chocolate.
Milka Noisette: This hazelnut cream-filled
tablet chocolate is delicious enough to enjoy
anytime. Breakfast toast spread with hazelnut
cream chocolate (noisette) has an incomparable
flavour and brings pleasure to many. Being the
first tablet chocolate with hazelnut cream in
Turkey, Milka Noisette also has a successful
share performance in the market.
Limited Editions: Another of Milka’s ‘firsts’ has
been offering special seasonal collections, which
are manufactured in Milka’s Lorrach plant in
Germany during only certain months of the year
and in limited amounts.
Among these Limited Editions, Milka Coffee Line
consists of cappuccino-filled milk chocolate,
espresso-filled bitter chocolate and latte macchiato
filled white chocolate. Another example is Milka
Summer Flavors which are produced only for
the summer and consist of strawberry-filled milk
chocolate, cherry-filled bitter chocolate, and
mixed fruit-filled white chocolate variants.
Promotion
As early as 1951, Milka advertising began to focus
on the colour lilac, extending it from the
packaging to the whole communication of Milka,
turning it into an integral part of the brand.
Meanwhile, due to the outstanding significance
of the lilac colour for the brand, the colour
acquired protection in the global confectionery market
as part of the Milka trademark.
Since 1972, the Milka cow has been actively
used as a brand symbol and a synonym for the
exclusive use of Alpine milk. The cow, the
embodiment of ‘the most tender temptation
since chocolate began’, is now the subject of
many anecdotes. Back in the 1970s, though,
nobody could have ever imagined that the lilac
cow would one day become a household figure.
One thing is definite in any case – the Milka
cow has to be a ‘Zimmenthal’. This breed is
particularly good-looking, with a characteristically
straight back and large head. Every TV commercial
requires a new cow, however, because no animal
could be expected to put up with the tiring
journeys to all of the various film locations in
the Alps. One secret remains – how does the
cow turn lilac? The answer is simple. A spray
mask and a dry spray similar to
that used by actors to dye their
hair are all that is needed to turn
a Zimmenthal cow into a lilac one.
Once shooting has finished, the dye
is brushed out again. A vet is always
on hand to make sure the star of the
show is well looked after.
From the first day it was made up to the
present day, Milka has emphasised the
same idea in its communication with consumers:
‘Milka chocolate has the creamiest, smoothest
and most tender chocolate taste because it is
made with real Alpine milk’. In the manufacture
of Milka chocolates, only ‘Alpine milk’ – the milk
of cows raised in the natural environment of the
Alps, where the air and water are clean – is
used and this is the reason for Milka’s smooth
and melt-in-your-mouth taste.
In Turkey and many other countries, Milka’s
advertising campaign, ‘Milka Inc.’ launched in
2003 has emphasised this simple idea and carried
one main theme: ‘Milka owes its smooth and
tender taste to the perfectionism and dedication
of its passionate Alpine workforce’ – or, ultimately, to
‘Milka Inc.’ itself. All the advertisements
conducted within this campaign add a veneer of
humour to this theme. This same campaign was
also adapted to and used for the launch of Milka
M-Joy and made a major contribution to
company’s record success in 2004.
Milka is the leading sponsor of European Ski
tournaments and Alpine skiers. Through these
sponsorships, it continues to carve a niche in the
hearts of consumers for the Alpine world.
In Turkey, the idea of ‘most creamy, smooth
and tender chocolate’ has also been used in
non-TV advertising and promotional campaigns.
For example, in 2005, Milka conducted a
radio/internet campaign – ‘Most Tender
Messages’ – whereby consumers send their
messages of endearment to Milka from the website
www.milkamesaj.com. Every week, Milka selects
ten ‘most tender’ messages for national radio
broadcast. The winners get the chance to
announce their messages to the whole country
and win a box of Milka products. The great interest
shown in this campaign has allowed Milka to
spread its values throughout Turkey while also
establishing a close dialogue with consumers.
Brand Values
The fundamental image of Milka derives from
the theme ‘most tender chocolate which melts
in the mouth and which is also ‘tender to the
soul’. The company emphasises this message and
image in all its advertisements. Similarly, Milka’s
brand values and outlook are based on
innocence, feeling young at heart, being able to
look at the world through the eyes of a child,
using imagination to enlighten the world, and
being optimistic, mischievous and cheerful. It is
these characteristics of Milka that soften the
hearts of consumers, making them feel young at
heart and putting a smile on their faces. The
tone, atmosphere and theme of Milka’s
advertisements reflect and stress these values.
www.milka.com
THINGS YOU DID’T KNOW ABOUT
Milka
The name ‘Milka’ comes from combining the
German words for ‘milch’ (milk) and ‘kakao’
(cocoa).
Milka’s ‘lilac cow’ has acquired an important
place in international popular culture in recent
years – so much so that when children in
Germany are asked to draw scenes of nature,
they draw lilac-coloured cows.
Milka uses only ‘Alpine milk’ – the milk of cows
raised in the clean air and natural environment
of the Alps – in its chocolate.
Milka holds the sole right to use the lilac colour
in the chocolate confectionery products
category in all countries where it’s sold,
including Turkey.
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