Targeting: Kraft Initiative Woos Asian American Moms

Kraft hopes to tap into the growing buying power of Asian Americans next month with its first marketing effort targeting the group.

Kraft joins marketers in the auto, telecom and health care categories but so far, only a few food and beverage companies, including Nestlé An-heuser-Busch and Hormel, have launched marketing efforts aimed at the segment, which is estimated to have $363.2 billion in buying power, per the Selig Center for Economic Growth in Athens, Ga.

"Food companies have been slow to target Asian-Americans," said Vincent Tam, director of client services at Admerasia, the New York-based agency that won Kraft's Asian business in May. "They find it daunting and complex that there are so many Asian groups. But as diverse as we are, we have shared values."

Kraft's spend was not disclosed. The company spent $32 million on media targeting Hispanics last year, per TNS. Total spending on Asian-

language media for 2004 was $100 million—a minuscule slice of the $279 billion U.S. ad market, but growing 10% a year, per New California Media, Los Angeles (Nielsen Monitor-Plus pegs the figure at $116.9 million).

Admerasia, whose clients include Mercedes-Benz, Denny's and Delta, is developing in-language print ads for Kraft breaking Aug. 8 in Chinese newspapers in Los Angeles and New York aimed at immigrant Chinese-speaking moms. The ads feature Kraft's portfolio of Oreos, Ritz, Kraft Barbecue Sauce, Capri Sun and Philly Cream Cheese in culturally relevant settings. "It's not that they want to use our products as ingredients for their own Chinese cooking," said Kathy Nyquist, Kraft's associate director of multicultural marketing. "They want to learn how to use our products on which occasions for Western meals."

To that end, bilingual brand ambassadors will be deployed to retailers to offer samples, give basic product information, teach shoppers where Kraft brands are merchandised in-store and provide tips on things like which products are good to pack in lunch boxes as good snacks. As part of the effort, Kraft also will target community events like the Harvest Moon Festival in Los Angeles in September.

Kraft tested the concept in Los Angeles three years ago by sampling various brands, including Jell-O, Capri Sun and Kraft Pourable Dressings, at 99Ranch supermarkets, the largest Asian retailer in the U.S. Focus groups and research followed.

"It told us they were familiar with Kraft-branded products like Kraft Cheese Singles and Jell-O from their homelands," said Nyquist. "More importantly, they told us they wanted to learn how to use our products in making Western-style meals in their desire to adapt to Western culture."

Research also showed that marketers could overcome resistance to lactose intolerance, a common condition among Asians. "Our focus groups showed us that Chinese-speaking immigrant moms give their lactose-intolerant kids cheese for the calcium it provides," said Tam.

Bill Imada, president of the Asian American Advertising Federation, Los Angeles, said other food marketers will likely follow Kraft's lead: "Kraft's entry will make a big difference to those food makers who are on the fence."