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Kraft Takes Targeted Approach To Developing Overseas Sales

Kraft's Tang brand, which was famous in this country a few generations ago as a powered drink that was developed for astronauts, is still going strong in overseas markets such as Brazil and China, Mike Hughlett reports. But the macaroni and powdered cheese product that is a staple in so many cupboards -- and dorm rooms -- here is not a big seller globally. The reality is that regional tastes play a large part in what will sell elsewhere.

"Mac and cheese is iconic, but it's not one of our 10 power brands," says Sanjay Khosla, president of developing markets and global categories at Kraft, explaining that the company is focusing on pushing 10 brands that are the most easily translatable across the borders of 10 countries. "Planting flags all over the world was the old strategy."

Tang's global sales grew 30% in developing markets last year as Kraft stepped up marketing and unveiled packaging and flavor innovations such as "ponkan," a type of mandarin orange, in the Philippines, tamarind in Mexico and guava in Brazil. "Regional tastes are really strong," says Mike Mazzeo, a professor of management and strategy at Northwestern University's Kellogg School of Management.

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