FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged
goods. Items in this category include all consumables (other than groceries/pulses) people buy at
regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste,
shaving products, shoe polish, packaged foodstuff, and household accessories and extends to
certain electronic goods. These items are meant for daily of frequent consumption and have a
high return. The Indian FMCG sector is the fourth largest sector in the economy with a total
market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a
well established distribution network, intense competition between the organized and
unorganized segments and low operational cost. Availability of key raw materials, cheaper labor
costs and presence across the entire value chain gives India a competitive advantage. The FMCG
market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration
level as well as per capita consumption in most product categories like jams, toothpaste, skin
care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian
population, particularly the middle class and the rural segments, presents an opportunity to
makers of branded products to convert consumers to branded products. Growth is also likely to
come from consumer 'upgrading' in the matured product categories. With 200 million people
expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of
investment in the food-processing industry.
India Biscuits Industry is the largest among all the food industries and has a turnover of around
Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being
USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the
major part of the bakery industry and covers around 80 percent of the total bakery products in
India. Biscuits stand at a higher value and production level than bread. This belongs to the
unorganized sector of the bakery Industry and covers over 70% of the total production.
India Biscuits Industry came into limelight and started gaining a sound status in the bakery
industry in the later part of 20th century when the urbanized society called for readymade food
products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has
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become one of the most loved fast food products for every age group. Biscuits are easy to carry,
tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits
are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and
West Bengal, the most industrially developed states, hold the maximum amount of consumption
of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery
products.
The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh
tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and
above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry
comprising both factory and non-factory units.
The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive
power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery
production. Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke
bond tried to trade in the biscuit industry but couldn't hit the market because of the local
companies that produced only biscuits.
The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India
Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10
years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully

COMPANY OVERVIEW

Cadbury is a British multinational confectionery company owned by Mondelz International. It

is the second largest confectionery brand in the world after Wrigley's. It is headquartered
in Uxbridge, Greater London and operates in more than fifty countries worldwide. It is famous
for its Dairy Milk chocolate and many other confectionery products. Cadbury was established
in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate.

About Mondelz International

Mondelz International, Inc is a world leader in chocolate, biscuits, gum, candy, coffee and
powdered beverages. The company is comprised of the global snacking and food brands of the
former Kraft Foods Inc. following the spin-off of its North American grocery operations in Oct.
2012. Mondelz Internationals portfolio includes several billion-dollar brands such
as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered
beverages and Trident gums. Mondelz International has annual revenue of approximately $36
billion and operations in more than 80 countries.

About Mondelez India Foods Private Ltd.

Mondelez India Foods Private Ltd. (formerly Cadbury India Ltd.) is a part of Mondelz
International and is in the business of creating delicious moments of joy. It operates in five
categories chocolate, beverages, biscuits and gums & candy and has been a chocolate category
leader since its inception in India for over six decades. Cadbury Dairy Milk, CDM Silk,
Celebrations, Bournville, 5Star, Perk, Gems, Glow and Toblerone are brands available in India
under the chocolate category. The beverage portfolio consists of Bournvita and Tang. Oreo is a
part of its biscuit portfolio, while Gums & Candies consists of Halls and Choclairs.
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BUSINESS ENVIRONMENT
Analysing business markets
India represents perhaps Krafts (Mondelez) most promising developing market, with its
ballooning population and growing consumer base. Given the way Oreo is performing in India
there is a high possibility that Oreo will introduce its other products as well. India has an
estimated market of Rs 13,000 crore biscuits market here. The snaking and eating out sector in
India is on the rise. Abroad Oreo is undoubtedly a cookie brand with the highest brand equity and
know all over the world. The business markets will also see the sales and revenue models of
Oreo across the globe and compare it to the Indian market. It helps in gauging the gaps in the
business and devising strategies to overcome them.
B2B and B2C focus
B2C Oreo mainly engages in B2C business where the biscuits are manufactured for the
customers and sold to them directly via retail outlets. This is more transactional in nature and
short lived process. Customer satisfies his own personal need.
B2B Oreo under Cadbury engages into B2B business when it ties up with McDonalds for
McFlurry or Cafe Coffee day for Oreo shake on their menu. This will be more relational and
long term in nature.

Analysing consumer markets

Building consumer insights by taking a 360 degree view of the daily lives of your consumers,
their consumption habits, their buying habits, lifestyle and the changes that occur in their lifetime
are important so that the right products are always marketed to the right customers in the right
way and the product keeps evolving as the customer evolves so as to remain relevant. Oreo takes
care of the cultural aspect as it tries to position itself as a family brand and spreads the idea of
togetherness. Personal factors would include the taste and wants of its target segment. Here is
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also becomes important to understand what stimuli and response encourage the customer to buy
the cookie. Also the decision making model and purchase and post purchase behavior needs to be
analysed. Thus it is more like talking a look at a life in the day of your consumer and
understanding it to ingrain consumer insights.

BRANDING STRATEGY
It is a name, term, sign, symbol or a combination of all these which differentiate the
goods/services of one seller or group of sellers from those of competitors. Brand is a promise
that the product will perform as per customers expectations. Thus, Brands are what the
consumers buy, while products are what concern/companies make.
Brand name and connect Theres something neat about those Os in OREO. O at both ends,
even though most people arent conscious about that. Thus the brand name and the product you
are selling under it are important. Oreo uses the concept of togetherness, emotional connects to
tingle the soft corner of its customers. Moreover the idea of splitting the Oreo with your loved
ones and the adorable characters used in the ads makes the user fall for it. . Oreo builds the
feeling of togetherness, sharing and nostalgia into its marketing, and is quite successful in
establishing a brand by creating this emotional appeal.
Brand Positioning- Cadbury has positioned Oreo as a family brand. And thats why the
communication of the brand stresses on a special way of enjoying Oreo cookies Twist, Lick and
Dunk ritual as they call it.
Brand Equity-Brand Equity is the value, both tangible and intangible, that a brand adds to a
product/service. OREO The customer based brand equity focuses exclusively on the
relationship customers have with the brand. The market based brand equity aims at producing
measures in dollars, Euros or yen. Oreo has a positive Brand equity, as it has been able to capture
consumer preference and loyalty. Considering the facts that buying biscuit requires low
involvement and consumers display variety seeking behaviour and engage in brand switching
when buying cookies, Oreo has maintained its brand loyalty. For them vanilla crme between 2

cocoa sandwich meant only Oreo and this is the kind of Brand recall associated with the brand.
Oreo has a very strong brand whose brand personality are the kids enjoying Oreo moments
with their parents.
Brand Evangelism The basic positioning is that of a biscuit for good times with family. The
idea is to make them brand evangelists when they grow up, carrying the Twist, Lick and Dunk
tradition forward, when they bond with their kids.
Oreo logo The Oreo logo is easily identifiable as it is distinct and is also inscribed in the center
of the cookie. A brand like Oreo needs to have a strong brand recognition through logo and font.

Product Innovation is important from branding perspective. Constantly evolving the brand and
having fun with it is important. Oreo has a versatile range of products abroad but since its just 3
year old only the trademark sandwich Oreo cookie is available here. But it is astonishing to see
how this 3 year old has climbed up the pyramid and established itself as a premium cookie. It
because has been fuelling the innovation cycle in Indias robust eating out/snacking sector by
integrating itself into products like McFlurry, Oreo shake and donuts by strong brands like
McDonalds, Cafe Coffee Day and Mad over Donuts. For now, only the classic flavor has been
introduced in India, but considering it has a strong pipeline of international variations, the
potential for growth is exponential. Besides this, Oreo has a strong market internationally for use
as a basic ingredient in various sweet dishes and desserts abroad. Its availability here, gives
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opportunity for those market players (international fast food outlets, ice-cream chains,
restaurants) to expand into the lucrative Indian market.
Protect your brand Any brand like Oreo with a strong Brand Equity would register Intellectual
property to protect the brand and its business. If this would not happen, you would see Blackwhite knock off cluttered at the shelves of supermarket. Cadbury is leaving no loose ends and is
taking the fight out. It recently sued Britannia for trademark and copyright violations with its
Treat-O biscuits, and has sought an injunction to prevent it from manufacturing, selling,
marketing, or advertising any product with any distinctive element of Oreo cookies. It alleges
that the florets and other design etchings on the biscuit, or the Oreo cookie trade dress has been
copied, besides the use of the similar sounding name with a stress on O. They are also trying to
sue ITC for Sunfeast Dark Fantasy, but that may be tough, as although at a glimpse it looks like
Oreo (dark brown biscuit sandwich with white cream filling in blue packaging), on closer
inspection its quite different; the name being completely different, and the biscuit design also
being quite different, with a sun symbol in the centre and different floret designs on the side.
Branding Plan Oreo has successfully leveraged its brand to stand out in a crowded industry,
and in doing so laid a roadmap for businesses to follow to protect their own brand. Laying out a
branding plan is utmost important. Emotional ties are going to be what set your product apart
from the rest, and you need to be prepared to capitalize on those ties which oreo does very well.
Connect with your customers, protect your brand, and establish a solid reputation and managing
that tactfully in case of crisis is important to sustain the brand.

COMPETITORS
1. Britannia Bourbon
Parent Company

Britannia

Category

Biscuits

Sector

Food Products

USP

Thick, rich and delicious chocolate packed between

two crunchy chocolate biscuits
STP

Segment

Quality conscious children and adults

Target Group

All age groups middle and upper class people

Positioning

The biscuit you can carry when you hangout on any

occasion
SWOT Analysis

Strength

1. Price is an advantage as its reasonable for

people for spontaneous buying
2. Good advertising and popularity specially
amongst children and youth
3. Nano packs, party packs, gift packs

Weakness

1. Limited target audience

2. Global presence is limited.

Opportunity

1. Tie-up with corporates/hotel chains

2. Launch various flavours for the cream
3. Have more distribution in rural areas as well
as global markets

1. Similar biscuit categories e.g. Sandwich

Biscuits
3. Chocolates

Threats

2. Sunfeast Dark Fantasy

Parent Company

ITC

Category

Biscuits

Sector

Food Products

USP

Thick, rich and delicious chocolate packed between two crunchy chocolate
biscuits
STP

Segment

Quality conscious children and adults

Target Group

Youth from middle and upper class people

Positioning

Its a luxurious mix of aromatic cocoa and vanilla.

SWOT Analysis
1. Low cost

Strength

2.Good advertising and visibility

3.Good product quality and packaging

Weakness

1. Limited target audience i.e. people who prefer chocolate

Opportunity

1. Tie-up with corporates/hotel chains

Threats

1. Severe threat from wafer and salted snacks segment

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2.Similar biscuit categories

3.Chocolates

3. Parle Hide & Seek

Parent Company

Parle

Category

Biscuits

Sector

Food Products

USP

Chocolate Chip Biscuits

STP

Segment

Quality conscious children and adults

Target Group

All age groups middle and upper class people

Positioning

Worlds best molded chocolate chip cookies

SWOT Analysis
1.Low cost

Strength

2.Good advertising and visibility

3.Good product quality and packaging
4.Three Different flavors

Weakness

1.Limited target audience i.e. people who prefer chocolate

2.No Sugar Free version

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1.Tie-up with corporate/hotel chains

Opportunity

2.Sugar Free Version

1.Severe threat from wafer and salted snacks segment

Threats

2.Similar biscuit categories

3.Chocolates

PROMOTIONS/INTEGRATED MARKETING
COMMUNICATIONS
Marketing Communication Mix
Through the years, Oreo brand advertising and promotions continue to be world-class. With
integrated marketing plans, each and every Oreo communication is built around a key consumer
insight: that Oreo offers everyday moments of connection that are unmatched by other cookie
brands. With significant spending behind promotions and public relations, the Oreo brand has
forged strong, lasting connections with customers and consumers. In India OREO employs all
tools of marketing communications in order to spread awareness about the product. Below are
some of the tools of IMC and how they have been advertised in India and abroad.
The Oreo ritual also seems in sync with the Indian habit of dunking biscuits in tea and milk and
thats what Oreo is looking to capitalize on, while vying to capturing the mindshare of families in
this highly competitive market. The company has used a mix of TVCs, outdoor campaigns, onground activation and digital outreach for its launch, however the major thrust has been on TV.
The TVC of Oreo was launched during Cricket world cup 2011 to grab maximum eyeballs. The
TVC played on all major channels in Hindi, Bengali, Marathi, Tamil, Kannada, Telugu and
Malayalam. Market reports suggest that Cadbury has allocated one of its largest marketing
spends on Oreo in India.

Advertising

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The advertisements of OREO portray the positioning of Oreo as a twist-lick-dunk biscuit very
well. Their brand icons were traditionally small children but now ads are being created that
showcases popular actors and teenagers. Oreo commercials show the idea of fun frolic and the
joy of splitting an Oreo with your family/loves ones.
Advertising thought print media ( newspapers, magazines), broadcast (radio, TV), network media
(telephone, cable, satellite, wireless) , electronic media (web pages, videos, audios), and display
media (billboards, signs, posters). The brand OREO blends the current trends in the world and
uses it to create a buzz.

Out of Home (OOH)

The launch of the commercial is backed by OOH (Out-Of-Home) media in major cities
(Mumbai, Chennai, Bangalore, Hyderabad, Delhi and Kolkata), setups in malls, amusement
parks, multiplexes and retail outlets to engage with families, specifically the children.

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Point of Purchase Displays

The POPs and the placement of product on the shelves of the supermarkets play an important
role sales promotion and helps attract customer attention. Often these POPs have salesmen
around them for personal selling.

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Events & Experiential

Events and sponsored activities by the company that are designed to create interactions with the
consumers and let them experience the brand first hand. Experiential marketing involves the
consumer highly and engages him totally. These could be sports, arts, entertainment, fashion
shows, social cause events, awareness drives, gaming etc.

PR Campaign
The 100th birthday of OREO was huge PR program where games and interesting activities were
designed for the people. Huge space of newspapers, supplements, social media were full of
stories about OREO. The millions of fans the brand has from all across the world played an
integral role to viral its PR.
Below The Line

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Cadbury is spending one third of its marketing budgets on below the ground activities and trade
outlet promotions. Commenting on other initiatives being taken by Cadbury to strengthen the
brand in its category, Chandramouli says, We are investing a lot on in-store visibility of the
brand as well. Biscuits are usually cluttered in one place in large store formats, so we have
created special Oreo panels to make the brand visible, it is called the wall of blue.
Candid Marketing is executing the Oreotogetherness bus activity for the brand-Cadbury India
has launched Oreo-Time initiative, as a part of which a fully branded Oreotogetherness Bus
will travel across nine cities including New Delhi, Mumbai, Bangalore, Ahmedabad, Pune,
Lucknow, Hyderabad, Kolkata and Mysore. The campaign was launched in the capital with
Cadbury Indias Director Snacking & Strategy, Chandramouli Venkatesan flagging off the bus.
Bringing the Oreo-Time movement to life are the special activities planned in and around the
bus. Parents will be encouraged to take the Oreo Pledge, which stands for a promise to spend
more time with the children. Making the zone even more fun for families are various interactive
activities based on Oreos much-loved ritual of Twist-Lick and Dunk.

Social Media Oreo takes it content marketing very seriously to achieve a

high degree of engagement
Oreo India has started taking content seriously. For the 101 year old brand, which came to India
only in March 2011, Facebook has become a medium to engage, entertain, and inspire its
audience with the kind of content which only Amul had created earlier.
Social media Strategy
Oreo boasts an effective social media strategy. Oreo know that teenagers and the youth that they
target are on social media. With enormous fan following on social media, Oreo enjoys seeing the
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numbers growing: 34 Millions + fans on Facebook, 161 K+ followers on Twitter, 20 Million +

views on YouTube, 95K+ followers on Instagram, 3K+ followers on Pinterest. Most of the Oreo
followers on Facebook are teenagers.

In order to achieve such a great success, Oreo must have clearly defined how to listen and talk to
the groundswell: humorously, consistently and smartly. Oreo not only listens to what the
customers are saying about the brand, but especially keeps an eye on the bigger environment and
targets the trendiest topics that the customers would be interested in. The idea to interject a
business marketing message into a current news story in order to gain additional attention from
both customers and the media works perfectly well for Oreo.
For example Superbowl, the festival of modaks with the Oreo brand but also promoted this with
its fan base on Facebook.
Oreos Daily Dunk:
The brand should be considered an example in the way it used Facebook to spread interesting
content. Oreo Indias Facebook page has taken its cue from Amuls print campaign and created
content units which connect the brand with an important event of the day on which the post is
made.
For example, on June 21, it posted a visual update reminding people that it was the longest day
of the year, an obvious fact that seems to pass the grownups, and to connect it with the brand, it
used a stretched pack of Oreo biscuits as the graphics (see the image below).

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Whats Unique About Oreo Indias Campaign?

The first thing you notice about the posts is the use of the product and its packaging as a visual
device to explain the event that it talks about in the post. For example, in the following image,
posted on June 06 when Tetris (the famous video game) was released, an Oreo biscuit has been
broken into small pieces to resemble Tetris blocks.
Another thing that you will notice in the posts is the use of hash tags. The brands hashtag,
#DailyDunks, is not the only one being used, but it is also piggybacked on the hashtag relevant
for the days. For example, it has used the hashtag #DoctorsDay on July 01 with a relevant image
to celebrate Doctors Day. The use of these varied hashtags has acted well to amplify its reach.

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Cadbury Oreo kick starts the Play with OREO campaign

nationally
Cities across India get lively and playful with Play with OREO Graffiti and Pop-Art

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Mumbai, June 3, 2015: Cadbury Oreo has launched its Play with OREO campaign in India to
inspire consumers to get playful and enjoy the small moments of life. The brand is on a mission
to unleash imagination and playfulness, not only by the means of creative fun with the iconic
Oreo cookie, but also in consumers' everyday lives. Oreo is running a 360 degree marketing
campaign nationally, to spread this message of playfulness amongst its fans.
In addition to an exciting new TVC, Play with OREO will be seen on a wide array of media
platforms like innovative Graffiti wall art, Outdoor, Radio, along with a prominent presence on
digital and social media. With the Play with Oreo campaign, Oreo has managed to do what few
brands can retain its authenticity while staying contemporary and relevant.
Speaking on the brand philosophy of playfulness, Pandyan, Associate Director, Biscuits India
and Kids Fuel AP, Mondelz International said, The Play with OREO campaign will encourage
people of all ages to tap into their imagination and incorporate a little more play into their daily
routines. Further, we wanted to offer consumers an experiential platform to celebrate
playfulness which is an integral part of Oreos brands philosophy. We have a wide range of
initiatives in this campaign including an exciting collaboration with renowned graffiti artists for
an innovative Oreo wall art project across the country expressing & celebrating the idea of play.
He added, All of us could do with some more play and fun in our hectic, busy lives. Through
this campaign we seek to inspire people and bring in a little more Play in their lives.
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As a part of the Play with OREO campaign, interesting Graffiti art installations expressing
play through the unique lens of Oreo have been put up at prominent locations in the cities of
Mumbai (at Bandra Reclamation), Delhi (at Moolchand Flyover) and Bangalore (at Richmond
Flyover). Renowned graffiti artists like YANTR, Harshvardhan Kadam and Ranjit Dahiya have
used the city street walls as their canvas and created their own versions of Oreo art.
The Outdoor hoardings across the country comprise of Oreo pop art having exciting graphics and
cheerful colours that radiate liveliness with attention-grabbing messaging. Thus, breaking from
the clutter of typical outdoor hoardings and making it a visual treat for passersby.
Playfulness has also got an interesting creative twist through new-age creative art forms like
doodle art. One can visit the Play with OREO website to indulge their creative side and create
OREO cookie characters or just have a good laugh at the creativity inspired globally by the
popular, much loved brand. The response so far, has been wonderful. Fans across the globe have
shared their wonderful moments and creative art associated with their favorite OREO cookie.
The fan art comprise of imaginative Oreo doodle and pop art, photographs of unconventionally
styled dishes made from Oreo Cookie, creative videos and much more!
As part of the digital campaign, Oreo will also run a series of web-films on YouTube, and
Facebook dedicated to the Play with Oreo theme.
The graffiti idea will extend to social media with the #DoodleIt activity where fans can create
interesting and creative doodle art around the Oreo Cookie and post their works of art on the
brands social media pages on Facebook, Twitter, Pinterest, YouTube and Instagram. All these
creations will then find their home on www.playwithoreo.com which is a global platform for
Oreo fans to connect and share their love for the much loved cookie.

MARKETING AGENCIES

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The Brand Activation agencies are Candid Marketing and OOH agency is Madison. The
animated TVC created by the Global agency FCB features customized Indian lyrics and
regional singers. The creative agency for Mondelez India is Interface Communications.

AWARDS
1. Oreo Daily Twist Campaign Wins The 2nd Annual Facebook Studio Blue Award
Facebooks Creative Council evaluated hundreds of Facebook ad campaigns submitted by brands
and agencies from across the globe to select winners for the 2013 Facebook Studio Awards. The
winner was Oreo, taking home the Blue Award for the Oreo Daily Twist Campaign, a social
program that marked Oreos 100th Birthday Celebration by posting 100 pieces of social content
referencing culturally-relevant events in 100 days.
2. "OREO." 2015 REGGIE Awards Silver Winner Shopper Marketing Campaigns.

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