Thursday, April 21, 2011

KAFI KURNIA - MAGNUM CAFE



Jakartans love new things, and the rapidly growing middle classes of Indonesia's capital always fight to be first -- whether watching the latest Hollywood blockbuster, owning the newest gadget, or being seen in a trendy bar.


But even the most avid trendspotters have been surprised by the craze for Magnum ice cream that has swept the city since the February opening in central Jakarta of the Magnum Cafe, months after the brand was relaunched in Indonesia by parent company and consumer goods giant Unilever.

The success of the cafe, which features the iconic chocolate-coated ice cream on a stick, is a tribute to the rising power of the middle-class, empowered by robust demand and growing investment in the far-flung archipelago.

The queues snake longer each day as ice cream lovers come in droves, waiting for several hours at peak times.

"I did not expect that the queue would be this long, it is probably because the food is good or they (customers) are just only curious about it," said Anto, a customer lining up outside the shop.

He assumed many of people in the queue are there for the first time, just like him.

The cafe offers different ways of enjoying Magnums, from dipping into sauces to Magnum appetizers, main courses, desserts and mocktails.

The menu, created by an Italian chef, includes Waffle de Aristocrat, Goblet of Chocolate, Crown Jewel and Truffle Royale.

"I heard that they are making appetizers, main courses and dessert from ice cream while I only know that Magnum is an ice cream on a stick," said Shinta, a student who waited for one hour and 45 minutes to get a table.

Unilever declined to give the exact number of Magnums sold but said the cafe sells hundreds each day, with numbers ramping up at the weekend.

Marketing consultant Kafi Kurnia said the cafe is part of Magnum's effort to declare that Magnum is not an average ice cream seller and they are competing with Hagen-dazs on the premium level.
말했다.

Kurnia added, for years Hagen-dazs has been known as the premium ice cream in the country and Magnum is trying to get part of its market share.

"When you have a good product and a very good advertising and you launch it with a power of advertising, it works. And one of the case is Magnum. So when Magnum being launched with clever advertising, powerful advertising and strong distribution strategy, don't forget the distribution strategy. Because if you have the product, you have the advertising but you do not have distribution strategy the product will not fly," said Kurnia.

With a slick advertising campaign aimed at adult ice cream lovers, endorsements for the 'luxury' ice cream have come from television stars such as Eva Longoria of Desperate Housewives and Hollywood's Benicio del Toro.

Last year, fashion guru Karl Lagerfeld was recruited to help launch Magnum products in the United States.

At the Magnum Cafe in Jakarta, a Magnum will cost each punter 12,000 rupiah ($1.38) each, in a nation where the average person lives on less than $6 per day, according to World Bank data from 2009.

Magnum's popularity is seen by some economists as further proof that Indonesia's surging economy, the largest in Southeast Asia, is benefiting many, with growth of over 6 percent predicted this year.

"Indonesia, to an extent they have a significant purchasing power and this purchasing power is getting better and better, that's number one. Number two, of course, because this middle class has certain quality of lifestyle," said Kurnia.

He added that most of the middle class spend a lot of their free time in malls.

Ensuring that the economy of 17,000-island Indonesia does not overheat is still a concern for many investors.

Helping allay these fears, in February the central bank surprised markets by raising its policy rate by 25 basis points to 6.75 percent from a record low of 6.5 percent.

But questions remain about whether this has been successful..

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