HOLISTIC & SUSTAINABLE MARKETING

Sustainability marketing is a business strategy that drives long-term corporate growth and profitability by mandating the inclusion of environmental and social issues in their marketing efforts. Within business practices, sustainability is closely related to corporate social responsibility.

The two terms, SUSTAINABILITY and CSR might come across as completely synonymous and some might argue that they already are the same but there is a key difference. Unlike corporate social responsibility, which retroactively addresses issues, sustainability implies a forward trajectory. In other words, CSR looks to the past actions of a company while sustainability looks forward by changing the nature of the company, it acts more proactively. But an attempt to do Sustainable Marketing requires a lot of research in terms of integrating it to product values and being able to educate the customers. It is an attempt from the company to tell the customers that the products that they are using are environmental friendly which gives them a sense of price to be associated to that product/brand.

Oreo and its parent company has made an attempt to incorporate sustainable marketing through its efforts. 

1) ECO OREO- Oreo cookies are going “Eco.” At least, that’s the way Mondelez is spinning their most recent patent application for a new process to give Oreo’s their dark chocolaty color. ( Krafts Foods has been been renamed as Mondelez International which means “delicious world” ) “Mondelez has filed a patent for a method to give black cocoa powder its rich color using fewer environmentally damaging chemicals and no iron salts.

2) Employing energy efficient practices- The parent company of KRAFT FOODS wants to use less water, energy and packaging in the manufacture of its stable of well-known food products including Oreo. It aims at learning, improving and looking beyond the four walls for opportunities. Kraft also plans to reduce by 15 percent the energy used:-

  • • Energy-related carbon dioxide emissions in manufacturing plants • Water consumption in manufacturing plants • Manufacturing plant waste

Kraft coupled the news with results of its environmental performance, including a 16 percent dip in energy over the last five years. Above mentioned are some of the ways in which Oreo is doing its bit for a sustainable future and pass the message that it cares for the environment.

3) CADBURY which the brand under which OREO is growing in India is also involved in many CSR activities like plant cultivation, using better manufacturing practices that are eco-friendly in its factories

ANALYSING BUSINESS MARKETS

Analysing business markets-

India represents perhaps Kraft’s (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 and 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 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

BRANDING

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 customer’s expectations. Thus, Brands are “what the consumers buy”, while products are “what concern/companies make”.

Brand name and connect– There’s something neat about those O’s in OREO. O at both ends, even though most people aren’t 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 that’s 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 crème 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.

 

 

OREO LOGOOreos-Medium

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 India’s 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 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 Black-white 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.

 

Segmentation, Targeting, Positioning

SEGMENTATION- It defines the consumer.

Geographic: Urban and semi-urban areas ( North,south,east,west)

Tier 1 Cities & a bunch of Tier2+Tier3

Demographic-

Age- 6-18 , 18-24, 24-39

Education- literate

Income: Upper to middle income

SEC: A1, A2, B1,B2

Physchographics:- Outgoing, readiness to try new products, experimental by nature, dont mind spending a little extra on snacking, brand-conscious, lifestyle is comfortable

 

TARGET SEGMENT- It helps to select the consumer.

The Target segment in India for Oreo should be split into two parts-

1)Primary Target Segment

2) Secondary Target segment

PRIMARY BUYERS

The primary segment is the one for whom the product is designed. Most revenue will come from the primary target market. These customers share common characteristics and behaviors, account for the highest volume of sales and are most likely to buy now.

Here it is  CHILDREN & TEENAGERS & COLLEGE GOING

The positioning of Oreo as a Twist-lick-dunk cookie is very luring to the kids and teenagers who are the highest consumers of milk.The Cookie are moreover Creme cookies and generally consumed by children as they like creme.The adorable ads that show children bonding with their parents and siblings are admired by the small children.

 

SECONDARY BUYERS

The secondary market includes future primary buyers, those buying at a high rate within a small segment and people who influence primary buyers. Their characteristics and buying behaviors usually differ from those of the primary market.

Here it is ADULTS, OFFICE GOING, PARENTS

 

The target segment for Oreo in India that is the  urban professionals between 24 and 39 years old. Based on India census data, this market consists of 32 million individuals. In addition, Kraft‟s access to Cadbury‟s urban distribution network makes this target market accessible and actionable.More importantly, this segment is differentiable by its snacking habits. This target customer has a rising income, fast-paced lifestyle, and irregular work schedule, which leads to a greater likelihood of snacking.

 

 POSITIONING- It helps to tap the consumer.

Oreo’s uses the emotional appeal here in to reinforce its product as a binding force between Parents and their children. Oreo has used its global positioning ‘ Twist-lick-dunk’ for the Indian market as well but has manipulate with the price ans SKU. It helps tap the small children who would pester their  parents to buy them oreo cookies.

Indians smacking and eating out sector is huge and considering the same Oreo has positioned itself as a tasty snaker or mid-meal.Although snacking is a part of Indian culture, it has traditionally been associated with leisurely consumption.However, the purpose of snacking is changing as customers seek snacks that are convenient, satiating, tasty, and easily portable for on-the-go consumption. It has recently appointed young and zealous Ranbir Kapoor as its Brand Ambassador is an attempt to to tap the young and adult market in India.

stp1

INTEGRATED MARKETING COMMUNICATIONS / PROMOTIONS

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 tool 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 that’s what Oreo is looking to capitalise on, while vying to capturing the mindshare of families in this highly competitive market. The company has used a mix of TVCs, outdoor campaigns, on-ground 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.

Developing effective COMMUNICATIONS is a process which involves Determining objectives – Designing Communications – Selecting Channels – Budget – Deciding on Media Mix – Measuring Results – Managing the Integrated MARKETING COMMUNICATIONS.

ADVERTISING– 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 (webpages, 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.

oreoindia_1307016829_85  Oreo_India_LOC_ad  0

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.

77fa6c07f347224ac1fbe43489cd34ca77426fbc   oooohh     ooh

POINT OF PURCHASE DISPLAYS- The POP’s 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.

d8c4c3531a5fb8a6d8d9b57af807da62 oreo_598px4 oreo_promotion_madrid_may13

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.

Oreo-activation-333       Oreo-activation-2

PR CAMPAIGN-The 100th birthday  pf 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 million of fans the brand has from all across the world played and integral role to viral its PR.

BTL

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 yesterday with Cadbury India’s 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 Oreo’s much-loved ritual of ‘Twist-Lick and Dunk’.

bus bus3

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 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.

oreo fb

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.

i love indai oreo modaksuperbowl

Oreo’s Daily Dunk:

The brand should be considered an example in the way it used Facebook to spread interesting content. Oreo India’s Facebook page has taken its cue from Amul’s 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).

june21

What’s Unique About Oreo India’s 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 brand’s 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 Doctor’s Day. The use of these varied hashtags has acted well to amplify its reach.

Tetris-released                  doxtor

DISTRIBUTION & SALES

Oreo Distribution Channel-

Oreo is also relying on strong distribution push to make its presence felt in India under Cabbury. The brand is focusing both on modern and retail trade.  As we know that the various levels of marketing Channels for any product which can be zero, one, two, three depending upon how the product flows from manufacturer to consumer.

Oreo in this case uses a hybrid of  level 1 and  3 for consumer marketing channels.

PRODUCER —–> RETAILER —-> CONSUMER    (LEVEL1)

PRODUCER —–>DISTRIBUTOR—-> RETAILER —-> CONSUMER (LEVEL3)

Cadbury the manufacturer of Oreo in India, produces it and then directly send it to the retailers like the Supermarts, departmental stores etc. Also in places where there is heavy distributorship, Cadbury involves two level channel system which goes through a wholesaler and a retailer. This is the most commonly used in consumer markets. Like for example Oreo will send its stock to a wholeseller in Chennai who will in turn sell it to a retailer lets say Big bazaar, Hypercity or a departmental store.

Oreo’s reach since its been only 3 years in the Indian market has been found to be low when compared to that of its competitors and these gaps found in the process of distribution of Oreo need to be identified. Oreo distribution can be increased and bring it in-par to its competitors and thus increase the sales of Oreo by identifying potential areas and store types especially in the Tier2 and Tier3 cities.

tanner_2.0-fig08_005               oreo distribution

SALES

A SALE is the pinnacle activity involved in selling products or services in return for money or other
compensation. It is an act of completion of a commercial activity.

Sales management is attainment of an organization’s sales goals in an effective & efficient manner through planning, staffing, training, leading & controlling organizational resources. Revenue, sales, and sources of funds fuel organizations and the management.

Cadbury India’s sales grew 40%, thanks to the successful launch of world’s largest selling cookie Oreo in March as well as double digit growth of most existing Cadbury brands. Sales of its peers including HUL, ITC, BRITANNIA have grown between 15%-20% during the same period. The SALES depends upon the pricing stratedy the marketing communications efforts, product, brand and the Distribution network which CADBURY has all in place and have elevated the sales to a high.

PRICING

Indian Biscuit Industry is the largest among all the food industries and is known to be the second largest manufacturer of biscuits. The sale of premium biscuits is on a constant rise. This shows that cookies and sandwich biscuits will continue to perform well in future. Cadbury India Ltd. launched Oreo in India in March 2011 as the delicious combination of dark chocolate biscuit and vanilla cream which was launched at Rs 5 for a pack of three to drive impulse purchases and trials, Rs 10 for a pack of seven and Rs 20 for a pack of 14 for heavy usage.

oreo-marketshare_030913031726                  oreobiscuitmarket_030913031726 value-decoder

Setting the pricing objective depends on the offerings and a combination of many factors.

Growth and survival– Initially in 2011 when Oreo entered the market the objective was to induct the market and people about its entry and thus the price were kept at a low assuming the market is price sensitive. This was done to occupy a share in the market pie and get the sales going and cash register ringing initially.

Rs.5 for a pack of 3 Oreos

Rs.10 for a pack of 7 Oreos

Rs.20 for a pack of 14 Oreos

After the successful inception and acceptance of the product and price, Oreo inflated its market price slightly.

Rs 5 for a pack of 3 Oreos

Rs.15 for a pack of 7 Oreos

Rs.35 for a pack of 14 Oreos

VPC equation– The value, price, and cost equation has to be kept in mind while deciding the price. When Oreo makes itself available for 5 rupees, it’s offering more value for less cost and this we call the customer surplus. It wants people in India who are not aware about the brand to try out its smallest single SKU first and then become a repeat customer.

SKU advantage– These SKUs will help Oreo cater to the different needs of different set of consumers. It is the right way to approach the market and will help the brand to reach out a wider audience. Small SKUs will help Oreo tap on-the-go consumption. With the small pack priced at Rs 5, the brand is aiming to lure consumers that generally buy quick snacks to be consumed on the move. To achieve this affordable pricing, Oreo is being manufactured locally. These low priced SKUs (of Rs 5 and Rs 10) are also helping the trial purchase of the biscuit. Clearly, Oreo is looking at a volume driven growth in the country and the low priced small packs may help the brand achieve that objective.

Competitor Viewpoint– The two major competitors in the Indian biscuit market are local companies Parle and Britannia. Parle has nearly a 40% market share in the Indian biscuits segment and Britannia has 38%. Sunfeast also acquires some part of the pie. Depending upon how impactful each brand is in the market and their price point, Oreo had to compare the central tendencies for price to decide its appropriate price. Also the time and condition of your brand vis-a-vis others is important. Your business objectives at a certain point where you stand in the market are different from others. Kraft‟s international competitors are also moving into India. In the last year, the British company United Biscuits entered the Indian market and PepsiCo launched a savoury biscuit specifically for the Indian   consumer. Thus all direct and indirect competition has an impact on the brand and would affect the pricing strategy.  Where you stand on the PLC will also make a difference to the pricing.

Brand Value– The brand value and price equation has to be maintained. Oreo entered India under the Cadbury brand which has a strong foothold in the Indian market. This helps Oreo leverage the price and keep it at an appropriate level. Oreo being an international brand its premium quality has to be maintained. Keeping a very low price can also harm the brand value in the long run and this is something that Oreo has a prestigious brand should take care about.

Steps in setting a PRICING POLICY

1) Selecting the Pricing Objective- Oreo is still setting its foothold on the market thus survival is important for it. Given India is a price sensitive country , the prices of Oreo were kept minimal at the launch.

Maximum Market share- Oreo reduces its prices at the launch and ever since has increased only by a small margin. This was in order to encourage people to buy this new brand and drive sales to gain a good market share and become a market leader.

2) Determining Demand- Each price leads to a different level of demand. Demand curves capture the inverse relation between price and demand. The higher the price, lower the demand and lower the price, higher the demand. This is why Oreo has been keeping its price low in order to raise demand.

3) Estimating Costs- The cost of production, raw materials, resources, distribution, marketing, selling and other miscellaneous cost must be estimated well in order to select a price that would give back a fair ROI and gets profits.

4) Analyzing Competitors Costs, Prices and Offers- Competitors like Britannia and Sunfeast have priced their creme biscuits at creme biscuits at Rs 30 and Rs. 15. For the same SKU Oreo has priced its product at Rs. 15.

5) Selecting a Pricing Method-Mark-up Pricing, Target pricing, Perceived Vaue pricing,Value Pricing, Going rate pricing are some of the Pricing methods.

PRODUCT

PRODUCT ATTRIBUTES

1) Sandwich creme cookie

2) Gives Nutrition

3) Premium cookie/ Good quality

4) Good taste

5) Consumable with milk

5) Attractive Packaging

6) International Brand/ Good Brand image

7) Apt Pricing

images (2) download (1)

 

 

 OREO BRAND TALKS OF-

1)OLD AND TRUSTWORTHY

2)GLOBAL ORGANIZATION

3)CUSTOMER LOYALTY

PRODUCT-Merely after 3 years of its launch in India, Americas best selling cookie has climbed the pyramid and established itself as a premium cookie. Oreo constantly keeps fuelling its innovation cycle to become popular in India’s robust eating out sector. Oreo recipe of success is that it realizes that if it wants to be in different markets it needs to be much more than just a cookie. It is a part of the ingredient list of QSR’s – Quick service restaurants. For example- ice-cream shakes, donuts, coffee shakes, Oreo is constantly lending itself to new innovations in India. 2,50,000 crore eating out market is dominated by fast food joints and cafes.

 

PRODUCT HIERARCHY

Need familyThe most basic and important requirement for Oreo biscuits is HUNGER.

But there can be other driving factors for buying OREO.

For example it satisfies the nurturing requirement for a mother/parent. A mother having difficulties in feeding her child with nutrition food will consider buying Oreo to feed her child biscuits with milk. This is how Oreo is solving a problem of the customer.

It also satisfies the fun requirement for kids who enjoy their milk and Oreo while twisting licking and dunking into it.

Category /Product family– All product classes that satisfy a core need with reasonable effectiveness. Here- Food/snacks

Sub Category/Product class– A group of products within the product family having functional coherence. Here- Biscuits

Brand/Product Line– A group of products within the class closely related because of their same functionality, consumer groups, channels,  price ranges.

Here- Oreo, Sun feast crème, Britannia Pure magic

Brand Variant/ Product Type– Oreo has many types and variants.

1) Oreo sandwich cookie (variety of flavours, twin flavours)

2) Oreo Fudges

3) Oreo cakes

4) Oreo triple Doubles

5) Oreo wafer sticks

..And many more. India since the inception of Oreo is biting only on the trademark Oreo sandwich Cookies in classic vanilla, strawberry chocolate and orange flavour.

Item/SKU (Stock Keeping Unit)- For the Indian Market

Size Quantity (no. of cookies) Price Appearance Variety
Small pack 6 15 same all
Large pack 13 30 same all

 

Product levels

Core Benefit- The benefit the customer is buying with OREO is hunger satisfaction. It fulfils his taste buds. Also helps in the consumption of milk.

Basic Product- Oreo becomes a crème-filled cookie which comes in various flavours.

Expected Product- These are the expectations or rather the perceived value the consumers have when they purchase the product. The customers/consumers expect that Oreo is a premium cookie which is very good to taste. Also it can be consumed with milk as it complements the taste.

Augmented Product- An augmented product is one that exceeds customer satisfaction. Oreo realizes that if it wants to be in different markets it needs to be much more than just a cookie.  This is also why Oreo keeps re-innovating itself and is part of the ingredient mix of many products like McFlurry, Oreo shake at CCD, donuts ay mad over donuts.

Potential Product- Oreo bundles together all the augmentations and transformations that the cookie might undergo in the future. Like every brand Oreo too wants to keep pace in transformation and also like to be the first mover in some innovation. In the Potential Product that companies look forward to extend value and constantly keep distinguishing their product offerings.

Philp-Kotlers-Five-Product-Levels-Animated-original (1)
  • Customer- core benefit/expected product
  • Competitors-basic product/augmented product/ potential product
  • Company-basic product/augmented product/ potential product

PRODUCT MIX- A Product mix has certain Length, width, depth and consistency.

Oreo has many evolved versions of its product abroad like the cookie, cake, donut in the consumables category. Although in India the only product oreo has is its classic OREO SANDWICH COOKIE.( in a variety of flavors)

 

 

 

 

MARKETING MIX ELEMENTS

OREO-MARKETING MIX

McCarthy’s 4P’s are essential in “Putting the right product in the right place, at the right price, at the right time”. This is how marketing definition was treated in the early 90’s. Till today the 4P’s hold a lot of relevance in the industry and become an important framework of strategising brands/products.

  • Product
  • Price
  • Place
  • Promotion

Product:

  • Sandwiches cookie with Creme filling
  • Value
  • Brand name
  • Design
  • Attractive Packaging
  • Tasty
  • Great snacker
  • Dunk and dip cookie
  • Nutritional value

Price:

  • Current price is kept lower, affordable.
  • Competitor prices at par.
  • Price advantage in a price sensitive country like India will establish the brand strongly here.

Place:

  • Good distribution network because of CADBURY’S highly branched out network.
  • Ensure availability of products in malls, supermarkets, departmental stores , kirana shops, in Tier 1, 2 ,3 cities.
  • Oreo’s target customer traditionally purchases snacks through these channels, which are highly accessible and already permeated by Cadbury.
  • The traditional channels for fast-moving consumer goods (FMCG) include general stores, convenience stores, supermarts, malls ,hand cart vendors, and kirana. Of the 12 million retail food outlets in India, 7.3 million sell FMCG and 41% are in urban areas. Through Cadbury, Kraft has obtained access to more than 1.2 million of these outlets.

Promotion:

  • Promotions through TV commercials ,events, social media mostly,OOH with sample trying.
  • Good mix of marketing communications is employed.

But now the concept of Marketing mix have evolved to the 7P’s where the 3 new additions are Physical environment, process and people.

 

PHYSICAL ENVIRONMENT- This implies the comfort and the facilities the purchase of Oreo provides.

PUBLIC- This would include the relation with the customers, the employees and the culture of the brand.

PROCESS- Process would be more significant in service sector where process ans services relevant to the industry are followed.

7psfgdg-marketing1

 

PLC & ILC

  • PRODUCT LIFE CYCLE-OREO

OREO ever since its inception has been winning over market share in almost all countries it finds presence today. It is an evaluation of the the product and the Brand.

OREO is slowing entering in the low maturity state in India.

1) It has an increasing customer base.

2)Market share is increasing steadily and now it has emerged as a market leader and is competing with the top creme biscuits in the country.

.PLC

 

INDUSTRY LIFE-CYCLE:

Industry life cycle gives a bigger picture than the Product life cycle because it takes into account the the competitors in the same space , market leader, representation of their market share, where your product stand with respect to theirs, the product-innovation cycle, how well it is doing with respect to its last version. An ILc depicts multiple life cycles going on at the same time. Oreo as previously mentioned individually is at a low maturity stage and is picking up very fast. Its  had risen the market share of its Parent brand, Cadbury in India. Its competing with ITC SUNFEAST DARK FANTASY, BRITANNIA TREAT O in the same space.