International Marketing Case # 2

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International marketing
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case study #2
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Student name: Haitham Aly Elshazly

Student ID : 1095
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Oreo Case Study
Oreo sandwich cookie is available in over 100 countries
all over the world. It is produced by Nabisco, a division
of Mondelez International. This is attributed to the ability
of the brand to adapt to different markets with variable
customer preferences.
Oreo not only achieves robust sales in USA but also
could achieve more than double of these sales outside
USA.
Oreo has many success stories in product adaptation; one
of these great stories was in Chinese market where they
did the following:
1) Market research was done adjust the right mix to
local tastes, they found that Chinese want a cookie
that is not too sweet and smaller.
2) Introducing new flavors like green tea ice cream and
double fruit Oreo. Ex: blueberry-raspberry and
orange-mango cream.
3) Introducing new appearance of the product like
Oreo with four tiers of crispy wafers and other
wafer forms.
4) Marketing campaigns to promote pairing of Oreo
with milk to exploit huge milk consumption among
Chinese.
5) Marketing campaigns focusing on children which
are the center of Chinese family.
Another success story was done in India where Oreo
did the following:
1) Exploiting Cadbury brand success in India and
changing the brand name to be Cadbury Oreos.
2) Changing the product form to be dipped in
smooth Cadbury chocolate.
3) Strong distribution through Cadbury's retail
stores.
4) Package with "Made in India" label to promote
awareness of low price.

Case focus Area (Problem Statement):


Oreo had applied a creative adaptation strategy
for all components of product model including
core, packaging and support services components
to achieve a great success in both Chinese and
Indian markets.
Based on this success we are trying to suggest
adaptation strategy to South Africa market.

Adaptation strategy in South Africa


South Africa is one of the top 3 economies in Africa
with a huge number of population reaching about 60
million, while it is an upper middle income economy it is
also considered as one of the most promising emerging
markets in Africa with slightly high purchasing power
especially in its 5 big cities: Johannesburg, Cape
town, Durban, Pretoria and Port Elizabeth.
All these factors had encouraged Oreo to enter the
South African market since 1999 and set a number
of product adaptation strategies as the following
examples:
1) Introducing new forms as low-sugar Oreo biscuit
to attract healthy consumers that follow diet
trends whose percentage is increasing specially
in urban regions.
2)Introducing new flavors as OREO chocolate
crème in 2016 to adapt to local customers
preferences.
3)Launching the marketing campaign of Oreo
dunk challenge, despite of being a global
marketing campaign, it sounds well in
South Africa where dunking with rusks is a
part of South African cuisine culture and it
motivates people to imitate this action with
Oreo.
These marvelous actions were done by Oreo and
from my point of view I suggest also, for the
upcoming period, the following tactics:

1) Price adjustment to increase competency


with private label brands which has gained
increased market share in 2020 due to its
lower prices.
2) Extensive product innovation though
market research to offer more attractive
customized local flavors.
3) More focus on the giant local retailers as
Shoprite; Pick n Pay, Spar, Woolworths and
Walmart’s Cambridge Foods because they
represent more than 50% of the total market size.

Conclusion
Companies that apply a creative product adaptation
strategy to match the local market requirements have the
ability to globalize their brands successfully and this was
done in a professional manner by Oreo marketing teams.

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