Fast-growing tobacco company Alzawrae is intent on diversifying its business into new geographies amid the rising popularity of shisha products. And travel retail is already a key marketing platform.
Amman-based Alzawrae has a long track record in the tobacco business, with notable strength in domestic markets such as Iraq and elsewhere in the Middle East. It established shisha tobacco production brand Mazaya in 2010 to spearhead its expansion drive. That drive has moved from an initial Middle Eastern domestic market focus to one with international reach and accelerating growth, according to Brand Manager Rawan Elayan.
“Our sales growth is hitting +60% on average this year in comparison with previous years. We expect to record even higher growth as we enter new markets and sustain our presence in current ones.”
That growth will be further enhanced by rising awareness of shisha tobacco. “Shisha is not a niche market and has recorded strong growth in the past three years. We believe that shisha tobacco will become the trendiest tobacco product across all markets in the next three to five years.”
Travel retail will play a vital role in boosting awareness and encouraging discovery of the brand, says the company. “Being present in duty free is prestigious and is a showcase for our brand that directly affects brand perception and progressively increases sales volume.”
Exclusive to duty free items will help increase that visibility. “Exclusives make the consumer feel special,” said Ms Elayan. “It is important to launch special editions in that channel. We worked on a premium tin box last year that was exclusive to travel retail, and we also have something in the pipeline for next year.”
In a segment as highly competitive as tobacco, with space at a premium and challenges from other categories, how can Mazaya set itself apart? Ms Elayan said: “We have chosen quality and attention to detail over many other factors and state it as our competitive advantage. This is what differentiates Mazaya from its competitors. We use pure French tobacco and all natural ingredients.”
She added: “Our product is the first indicator of our values; quality and variety go hand in hand in accomplishing this. We also work on high-standard promotional items to reinforce perception and innovation to best serve customers’ needs.”
There are challenges too in growing the brand’s share of voice, as the company admits. Ms Elayan said: “The retailers’ job is to provide space and opportunity for new categories and brands. That is a challenging job for them given space constraints for tobacco products.”
Mazaya is now present in 20 markets, though rapid growth also presents its own demands. “We must present excellence and differentiation in each market, customised to the needs of each,” said Ms Elayan.
And those demands are only likely to grow, as the brand expands its network to new regions and sales channels.
Ms Elayan said: “We have expanded dramatically in the past three years. To continue that is our target in 2017, especially with the introduction of shisha tobacco as a new category to travel retail markets. Our target is to be present in global duty free area in the USA, Africa and Europe, in border duty free and on cruise lines in the future. Frankly speaking the sky is the limit.”
