Symbiosis Institute of Media & Communication (PG), Pune

Symbiosis International University

Submitted by:
Akshat Rai Angurala
Batch: 2016-18
PRN: 16050143008
MBA(CM) Public Relations
Q1 Who are our customers and how do we serve them?
For this Case, Oreo cookies are not restricted to any age group of consumers. These can be
consumed by anyone who loves to eat cookies. Appropriate for kids from the age of 4 to
grown-ups who are 65+, all consume Oreo. Kraft Foods has gone the additional mile to
demonstrate that they are customer oriented by modifying Oreo cookies as per the market
it is catering to. They went past the thoughts of Oreo cookies being dark and white and
round. Not only were the changes made to the physical attributes of the product, as for the
market it was serving, some changes were made even in evaluating of the cookies in India to
make sure that it appeals to Indian people. The Cookies were valued Competitively, with
high volumes, and with intense/strong distribution to reach the very core of the target
market. In China, Kraft Foods comprehended the significance of customer’s taste and
culturally inclined notions towards biscuits. They led broad research to discover how to
make Oreo a success in China. Following which, changed and revised recipes, had an
exceptionally positive effect on the sales of Oreo cookies in the Chinese market. there is no
segment of individuals who are a specific target to the brand, Oreo cookies promotes the
unity in people, especially families and this drives the brand home to the audience.

Q2 How do we define our market?

Anybody and everybody who consumes Cookies define the market for Oreo cookies in India.
India is a huge market when it comes to biscuits consumption. Biscuits and cookies are used
in daily basis, for different occasions, and for different age groups as well. People
throughout the country, in urban as well as rural areas, consume biscuits. Oreo cookies,
have a huge scope of consumption in India. The main consumer to be targeted, as the brand
positions itself, is a bunch of people who want to stay together. All over the world, Oreo has
always maintained an image of spreading the thought of togetherness. Oreo targets a
person who consumes biscuits and cookies at different times through the day. The
communication has also always promoted and encouraged togetherness, which promotes
unity.

Q3 Which market segment do we serve?

Oreo cookies do not serve a specific market segment as they cater to customers with varied
interests. This broad segment includes customers who are outgoing and are ready to try
new products. The segment has a comfortable lifestyle and thus does not mind spending a
little extra on snacking. Oreo cookies are for everyone ranging from grownups to children
and therefore Kraft foods customized their cookies according to the needs of the market
they were targeting. They decreased the sweetness of the cookies sold in China and
increased it of those sold in India. This indicates that Oreo cookies do not have a narrowly
defined market segment.

Q4 What is the marketing mix?

Oreo launched in India with the vision to take over the existing market leaders in the
biscuits segment. The strategy focused on rapid brand awareness and extensive distribution.
Oreo’s success in these markets was mainly due to its understanding about customer
preferences, tailor made products by modifying recipes, competitive pricing, high volumes
and strong distribution in both urban and rural areas.
Following are the 4 P’s of its marketing mix:

 Product - Oreo launched its biscuits in the Chinese and Indian market basis on the
consumption and buying habits of the people. For Indian market, the product was
sweetened to suit the Indian palate whereas for Chinese market, the product was
made less sweet and multiple SKU’s of the product was launched to cater to the
buying habits.

 Place - It has been available in remotest parts in India by collaborating with Cadbury
and using their distribution channel as a leverage in India. Other than distribution,
they’re adding value by adapting to the local cultures China and India. In India, they
have their product at wholesale stores, kirana stores and modern stores.

 Promotion - Communication and advertising have been consistent across the world
as the core customer remains the same. The company focused on using the
togetherness concept to sell Oreos in India, with television forming the main
medium of communication along with other Medias. It used social media to make
engagements with other brands and events and promote Oreo through them, for
this it used its all channels on various platforms of social media. Oreo also used
transit OOH for branding in India in both urban and rural areas.
  Price - Another factor that played an important part in the marketing strategy was
the affordability. They have recreated products and packaging to cater to the value
conscious masses in India as well as China. Their consumer centric approach has
helped them increase the market share in their category. In India, Oreo launched its
traditional chocolate cookie with vanilla cream 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.

Q5 What is the lifecycle of the products?

In India, the life cycle stage of Oreo is assumed to be in the growth stage. Being such a
diverse and large market, the consumption for biscuits will always be consistent & demand
for the same will almost never die out. The brand hence, has always been innovating and
introducing Oreo variants to suit the taste of the Indian palette. The differentiating factor
here is their competitive pricing, product differentiation, extensive distribution & unique
taste of Oreo are a few of the differentiating factors that make Oreo stand out from the rest
of the market leaders in the biscuits & cookies industry. Oreo stresses a lot upon
engagement with its target customers, which in turn makes it a love brand. There is still a
long way to go for the brand to reach the maturity stage or the decline stage.

Q6. What is our leverage relative to the price-cost position?

With the market being cluttered with similar product, Oreo made sure that it has a leverage
point over others. While its packaging appears premium the pricing has been standard
throughout. This gave the product mass consumption and created an opening in the market
for them. Its successful customizations and marketing schemes have helped the stand their
ground in the cluttered market of FMCG products.

Q7 What is our investment stance in our product?

The investment stance is varying in each market (country) due to various factors such as:-

 Launch Date
 Market Development
 Innovation
 Change in Strategy

Three countries we should analyse America, China and India based on the case study.
America – Cash Cow Initially launched in this market and designed specifically for this
market the product saw immense success throughout the years, and has currently come to
a point where the American masses need less stimulation for them to buy this product, they
are already present and being talked about by people all over the country.
China- Star Product Although the brand struggled in its initial years, after the management
realized their mistake and adopted localization strategies to their product development they
managed to become a top seller in this market. The constant innovation and advertising
does take up a lot of investment but it also draws in sufficient revenues.
India – Star Product After having learned from its mistakes in the Chinese markets, Oreo
was all set to take over the Indian market, formulating strategies to overthrow the top
sellers such as Parle-G, Brittania etc.
Now they are increasing their market share but at high investment in the form of advertising
and product development

Q8 Analyse the communication strategies followed by Kraft's Foods

for Oreo in this case.
Oreo, as a brand should be considered as an example in the way it uses its marketing
strategies. It considers, modifies and changes with the market trends and preferences. It can
be shown with the following parameters:
Communication and advertising have been consistent across the world as the core customer
remains the same. The company focused on using the togetherness concept to sell Oreos in
India, with television forming the main medium of communication along with other Medias.
It used social media to make engagements with other brands and events and promote Oreo
through them, for this it used its all channels on various platforms of social media. Oreo also
used transit OOH for branding in India in both urban and rural areas.
Oreo’s communication has been consistent across the world since they promote on various
platforms ranging from ATL, BTL and TTL. Other than just creating content banks and pegs
for the regular communications, they have been agile and tried to stick to real time
advertising. They’re known to play content for the multiple screens that the consumers are
on. The best example for this is the Super Bowl contest in America
Into India, they’ve been dunking voguish communal media what a sense on the way to
communicate. Oreo India has the principal agitate station being compared near the
supplementary biscuit brands. They’ve slowly stirred as of commune house toward the
public date for example they’ve fashioned a score fashionable the market. They’ve formed
gist units, which join the kind by way of an chief upshot of the day of the week happening
which the marker is made. Meant for promotion here cups the touring company solitary
the subtitled American ads clothed in good turn of a focus going on kids, who are by the side
of the foundation of the Chinese family, afterward family spokespeople approximating ex-
NBA star Yao Ming. They’ve worn emotional plea here India while perfectly in the function
of fine china when it hysterics the background of in cooperation the societies.