Documente Academic
Documente Profesional
Documente Cultură
OREO
by
MMA22
Submitted to:
Ms. Nikka Abigail M. Natividad
I. SITUATION ANALYSIS
Overview
Oreos were first produced by the National Biscuit Company (presently named as
Nabisco), a division of Mondelez International, in New York at its Chelsea, Manhattan factory in
the current-day Chelsea Market Complex, located on Ninth Avenue between 15th and 16th
Streets. Today, this same location of Ninth Avenue is known as “Oreo Way.” The name Oreo
was first trademarkedon March 14, 1912.Oreos were developed as an imitation of Hydrox
cookies, which were first marketed by the Sunshine Company four years earlier in 1908.
Through better marketing, and arguably a much more appealing name, Oreo has become the
brand most consumers think of when they want a cream-filled chocolate sandwich.
Interestingly, the origin of the name of the cookie is unknown, though theories abound.While it
introduced new flavors for its filling, such as lemon crème, the only version that was retained is
the original white crème filling. Oreo is also popular with vegans because no animal products
were used to make its filling.
It is the best-selling cookie brand of the 21st century with global annual revenues of up
to $2.9 billion.Its largest markets are in the US, followed by China and Indonesia. More than 40
billion Oreos are produced every year in 18 countries to meet global demand.Recently sales
have been slowing down in the global snack industry, due to economic factors andthe
introduction of many new competitors. However, the company tackled this challenge by cost
cutting, which in turn result in a lift in profits by 0.9% this year. In a product life cycle, Oreo has
definitely attained maturity. This is as a strong brand name and loyal customers have absolutely
secured a large market share. Besides, it has also gone through a significant growth stage and
have had consistent sales increases.
From five to three years ago the company had a constant sales and growth. They had
balance sales, but during the 1999 to present there was a decline. There was decline due to the
Asian crisis making the company change its plans and its factory been transferred to Thailand.
Due to the high wage rate in the Philippines, The Company also removes some of its employees.
The company also changes its primary or sole distributorship in the Philippines. Transferring the
distributorship from Zuellig distributor to JDH PHIL, resulting in great changes in the whole
marketing plans. If the Asian crisis will continue the company will remain stagnant in its growth.
The company will also expand try to expand its product lines to guarantee the customer
satisfaction for the company and their products and also have to go on cost cutting plans.
Now, although Oreo isn’t as leading compared to its siblings like Tang and Eden, it is still
among the fastest growing in sales in the market. For them to sustain this growth, they make
sure that they cater what their target market looks for and expects on the product.By doing so,
the classic Oreo cookie has been diversified into many snack productssuch as their Oreo Thins,
Double Stuff, Oreo Minis, etc. with each carrying the same brand colors and is consistent in
primary design.
SWOT
STRENGTHS WEAKNESSES
Well established brand and customers More expensive compared to other
Existing channels of distribution, cookies
extremely accessible everywhere Not the healthiest option
Strong collaborations with celebrities Small amount of cookies in package
There’s no other well-known brands Because it is “milks favorite cookie”
for chocolate sandwich cookies they are leaving out lactose intolerant
Constantly putting out new campaigns Website is lacking in attractiveness and
for new products vibrance
Owned by a strong and reputable Not taking on a large enough presence
company in social media
Not attractive to chocolate-haters
OPPORTUNITIES THREATS
International brand Competitors offer a more cost-friendly
Younger audience to market product
Untapped TV market The “health” trend
Primarily sold as a dessert not enough Severe threat from wafer and salted
as a snack snacks segment
Similar biscuit categories e.g. Sandwich
Biscuits
Chocolates
Existing Ad Materials
Keebler is a US company making cookiesand crackers. Keebler biscuits were first made
in 1853. They also offer a wide variety of biscuits and has more than 75,000 outlets in US and
abroad, thus making them a tough and direct competitor of Oreo. Their main market strategy is
the usage of the brand with characters across all categories. With a community of elves as their
advertising mascots, it definitely helped establish their branding and brand identity. They also
create animated commercial ads and even campaign ads; however, it tends to lack in
innovation and they only have a few ads in social media and focuses mainly on print ads that is
less likely to be effective for its consumers.
Gamesa
With the brand reaching global recognition, Oreo has turned to segment its market
using various methods. Primarily beginning with geographic segments, the company has
identified its consumers according to where they reside, that they may cater consumers by
adopting, reflecting and integrating local cultures of the specific segment to their product. An
example would be Oreo’s expansion of flavors such as Green Tea Ice Cream, Grape, and Orange
& Mango for Chinese consumers, Blueberry Ice Cream for Indonesians, and Oreo Alfajor for
consumers in Argentina. As it is connected with the segments’ consumer behaviour, the
company also place their products on the country’s usual method of purchase. In Malaysia,
where retails stores are lacking, instead of placing products in far convenience stores, they
reach further down to rural areas in hopes of giving near catering access to consumers. This has
also been the case for the Philippine segment aside from groceries and malls.
In their early years, they segment their consumers into different demographics such as
parents & kids, adjusting the company’s marketing strategy to include parent-child playful
relationships in commercials and other ads. But with recent reports, Mondelez Ph plans to tap
on other demographics. This may have already been started with their global ad campaign
“OREO PEOPLE” where short commercial and animated films feature potential consumers of all
ages, gender, lifestyle etc.
Kids
Snack-Loving Taste-Conscious
Adolescents
Rural Residents
Urban Residents With source of
income
Treat-Giving Parents/Adults Price-Conscious
Consumer Decision Process
(External Factors)
Variety of
Oreo Price Options
Quality
Overall Buy/Patronize
Consumer
Satisfaction Product
(Internal Factors)
TargetAudience
Oreo targets mainly on children and young adult, age of range around 6 to 18 years old. Their
products are normally aimed in primary school, high school, and even college.Oreo focuses on
kindergarten kids, primarily school students and family on a global scale.
Oreo does not target adult directly, but they do offer ice-cream, cake and pie. Thus, Oreo also
suits for family.Oreo is trying their best to refine and improve their products to satisfy their customer
and creating harmony for family.
PositioningStrategy
Oreo is a cookie brand that gives consumers distinctive flavors for their taste buds. As Oreo
globally rose, it gradually developed an international rate of flavors, somehow making consumers think
that they’ve strayed too far from their identity. Before, Oreo was a sandwich cookie known for having
two wafers with a sweet crème feeling, but as of today, Oreo now has different flavors for different
kinds of people, leaving their consumers with a number of varieties to choose from.
Oreo is also known for having many taglines, one of them is “Milk's favourite Cookie”, this labels
Oreo that their cookie is best partnered with Milk, thus creating a window for their identity. With Oreo’s
tagline developing over decades, it showed their perseverance towards delivering a original distinctive
taste for their consumers. Their taglines used include Oh!, Oh! Oreo!,For the Kid in All of Us, America's
Best Loved Cookie, The One and Only, Who's The Kid with the Oreo Cookie?, Oreo, The Original Twister,
and with the latest tagline Milk's Favorite Cookie.
Oreo takes pride with its quality tasting cookies matched with an affordable price for kids, young
adults, teenagers, and families to enjoy.