Denmark’s Dairy Company Arla Foods is working on its first formal marketing programme in China, Campaign Asia-Pacific reported.
The communication campaign is going to be run by Draftfcb, after the agency won the account in July.
Last year Arla Foods entered into a strategic cooperation agreement with Chinese Mengniu Dairy to leverage Mengniu’s extensive China experience for distribution and quality control. It is the Arla Organic UHT milk brand, which has received certification by the Chinese Organic Authorities that Draftfcb China will be taking through a brand-building communication campaign.
The work will involve an integrated campaign including TV and events to be launched in the end of the year.
According to Pully Chau, chairman and CEO of Draftfcb Greater China, Arla Foods’ market share in China is not big, but the growth potential is substantial because Arla Foods has a strong concern over health and safety issues, and because consumers in cities like Shanghai can afford the products.
“Once we develop the strong brand awareness for its high quality, we would then create a strong platform for a wider range of premium products on offer in adjacent categories,” Chau said.
Arla Foods currently has offices in Shanghai and Beijing. With a history of 130 years in the dairy business, Arla Foods employs 18,000 employees and has worldwide annual revenues of 11 billion US dollars. Arla Foods in China produces a range of milk, cream and yoghurt and the globally recognized butter and cheese brands such as Lurpak and Castello.