Table of Contents

1. Introduction:.......................................................................................................................................5
2. Findings:.............................................................................................................................................5
2.1 Marketing Mix of Oreo:.................................................................................................................5
2.2 Segmentation, Targeting and Positioning of Oreo:..................................................................7
3 Conclusion and Recommendation:.................................................................................................8
4. Swot Analysis of Oreo:.....................................................................................................................9
References..............................................................................................................................................10

Marketing mix and STP of Oreo:

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 1. Introduction:

Source: https://www.pngegg.com/en/search?q=oreo+Logo

Oreo is a sandwich cookie owned by the Mondelez International and Cadbury Milka. It
was developed by the National Biscuit Company in New York in 1912. And was
launched in India in the year 2011 by Cadbury India with the aim to make world favorite
biscuits Oreo to make India’s favorite (BusinessToday.In, 2011). It is the cookie
consisting of rich creme filling with different flavors like chocolate, creme, strawberry
between the taste of two chocolate wafers.

2. Findings:

2.1 Marketing Mix of Oreo:

Marketing mix is the combinations of factors that can be controlled by an organization to
impact their customers to purchase their products. Marketing strategy of Oreo helps to
analyze the manufacturer with the advertising combine framework which includes 4Ps
(product, price place, promotion). Oreo advertising approach helps the brand to role
itself completely in the market and accumulate its industrial corporation wishes. Now
marketing mix of Oreo to understand its pricing, product, place and promotion are:

1. Product Strategy:

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Source: https://www.istockphoto.com/photos/oreo-cookie

It is the leading brand which has its existence globally. The principal product of Oreo is
the two chocolate wafers separated via creme fillings with different flavours known as
cookie sandwich. They range in shape, flavour and some of them are one of a kind of
sandwich cookies. Since form the beginning it was a huge hit with more than 500 billion
Oreos sold globally and there is more than 85+ varieties of Oreo however not all the
varieties are available in different locations (IIIDE, n.d.). Some famous Oreo products
are:

 Double stiffed Oreo

 Golden Oreo
 Oreo thins
 Flavours: lemon, vanilla, strawberry, chocolate, green tea
 Oreo sandwich ice-cream, Oreo stick ice-cream, Oreo tub ice-cream, Oreo
doughnuts

They are experimenting with different flavours in India, lately they have launched
mango, orange, red velvet, and chocolate flavour cookies and are working on more
varieties. The main factor is the design and varieties of products which have attracted
huge number of consumer foundation for the product. On the other hand, the packaging
of the Oreo products has played a remarkable role in growing the reputation of the
product.

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 1. Place Strategy:

Source: https://www.istockphoto.com/photos/oreohttps://www.istockphoto.com/
photos/oreo

Oreo uses network of Mondelez for the availability of products to its customers and has
manufacturing facilities available in each continent for the products meeting the demand
of the customers (mba SKOOL, 2021). It was mainly launched to occupy the urban
market share and is doing excellent work in urban market in comparison to rural market.
It follows traditional method of distribution where products are shifted from
manufacturing units to distributors through agents and then to retailers. In India, the
medium through which the products are sold covers shopping malls, centers, retail
outlet.

2. Price Strategy:

As Oreo offers quality products and price of those products are mid- priced therefore it
uses medium premium pricing policy to help retain loyal consumers. In India it initially
picked lower price strategy to acquire higher market share, but afterward when the
popularity heightened, they increased the price and as Oreo also wanted to open new
markets and therefore, they choose the penetration price policy in order to win new
customers (IIIDE, n.d.). By doing so Oreo generated high income because urbans
prefer high quality products and are willing to pay more for these products.

3. Promotion Strategy:

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The brand is mainly recognized as dip and dunk cookies with rich creme in between two
chocolate wafers bursting with flavours. The association of Oreo- Cadbury has launched
extreme marketing through showcasing campaigns showing inventive and innovative
concepts with distinctive activities to build connections with consumers and has take off
the enduring impact on them (mba SKOOL, 2021). Oreo mainly focuses on youths and
children similar with its concepts of advertisement. And strongly promotes on TV and
social media and utilizes every advertising tool such as print, visual, digital media
respectively.

The unique packaging in terms of design helps consumers to identify the brand easily.
“Milks favorite cookie” is one of the famous punch lines of Oreo. Moreover, company
also participates and organizes diverse occasions to connect directly with consumers
and believes in community activities.

2.2 Segmentation, Targeting and Positioning of Oreo:

1. Segmentation:

Market segmentation is the process by which brands can divide the large market into
smaller segments based on different needs, characteristics and consumers behavior.
There are six bases of market segmentation geographic, demographic, psychographic,
socioeconomic, behavioral and benefits.

 Geographic: it mainly occupies urban and semi- urban areas.

 Demographic: it mainly targets children, youths and adults age range of 6-18, 18-
24, 24-39. The products are mainly focused on high schoolers, primary schoolers
and families.
 Psychographic: Oreo segments people who are outgoing, ready to try new
products, experimental, who don’t bother paying extra and peoples who are
brand conscious (milksfavouritecookies, 2014).
 Socio-economic: Oreo segments market in upper to lower income. The price of
product is affordable and fair. Even if they do not include upper income everyone
can buy and enjoy a packet of Oreo.

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 2. Targeting:

Source:
https://encryptedtbn0.gstatic.com/images?q=tbn:ANd9GcQgGjcEVgks-
UM4J3faguPnhuFJtS_itRKVCg&usqp=CAU

It is the next step of the segmentation process where the brand significantly targets the
segments which will be most effective and efficient to achieve their goals. the target
segmentation of Oreo can be splitted in to two parts: primary buyers and secondary
buyers.

 Primary buyers: they are one for whom the products are designed such as kinder
garden kids, primary and high schoolers. Most of the revenue will come from the
primary buyers. These consumers share common feature and behaviours,
accounted for the most noteworthy volume of deals and they are most likely to
purchase the product presently.
 Secondary buyers: they are the future essential buyers such as adults, parents
and office going. Those buying at high rate inside a little segment and individuals
who impacts primary buyers. Their characteristics and buying behaviours as a
rule differ from the primary buyers.

3. Positioning:

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 Source:
https://encryptedtbn0.gstatic.com/images?
q=tbn:ANd9GcTTQzT65MRQL_Eyl7DrY2cu3JVIhWEFQ6buKw&usqp=CAU

The final step of STP regarding the market decision is the positioning. Oreo has
positioned its brand as the world favourite biscuit providing high quality products. It has
used its positioning “twist-lick-dunk” for Indian market to operate with the price. Which
has helped to tap small children who would force their parents to buy them.

The Indian snaking and eating out is massive and Oreo have capitalized this market by
positioning them as a delightful snacker. Snaking is an important element in every
culture but in Indian culture it is much more important and yet Oreo has long been
linked with hurried consumption (milksfavouritecookies, 2014). As the market is evolving
customers are seeking snacks that are convenient, pleasant and easily available for the
go to consumption hence the purpose of snaking is also evolving. Therefore, Oreo has
positioned its products as per the customers needs and by analyzing the market.

3 Conclusion and Recommendation:

Oreo is the well-known sandwich cookie brand with its location all over the world. It has
a good relationship with its clients and operates practically in every country. They
always aim to attract its customers attention with different types of advertisements and
sometimes they also combine it with different popular trends. From decades they have
always been in the spotlight and have employed most effective digital technique to rise
to top of the market and sell its products. But Oreo should update its product variant and

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launch something big and new to its customers. Only then it will be easy from the brand
to deal with new competitors.

4. Swot Analysis of Oreo:

Source:
https://encryptedtbn0.gstatic.com/images?
q=tbn:ANd9GcTimEV8mEnF3FNC3mI93Ce9a-GNjz1whO8Viw&usqp=CAU

It is a strategic planning and strategic management technique used to help an

organization identify strengths, weakness, opportunities and threats related to business
competition or project planning.

1. Strengths:
 quality product and packaging.
 leading brand in the related industry.
 easily available.
 wide distribution channel.
2. Weakness:
 limited targeted audience (primary schoolers, high schoolers who eats
only creme biscuits).
 many competitors.
3. Opportunities:
 coming up with different customized flavours.
 Oreo can start collaboration with different hotels, schools, and corporation.
 After collaboration with schools, they can target parents.

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 4. Threats:
 Competition in pricing.
 High competition with wafers, cookie, sandwich and biscuits segment.

By the above-mentioned analysis, we can conclude that if Oreo keeps its promotion
plan on schedule and by collaborating with various organization it will do more better
and be market leader surpassing its competitors.

References

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BusinessToday.In. (2011, march 3). Retrieved december 22, 2021, from Cadbury enters
Indian biscuit market- BusinessToday :
https://www.businesstoday.in/latest/corporate/story/cadbury-enters-indian-biscuit-
market-launches-oreo-brand-19148-2011-03-03

iide.co. (n.d.). Retrieved december 31, 2021, from IIDE:

https://iide.co/case-studies/marketing-strategy-of-oreo/

mbaskool.com. (2021, August 9). Retrieved december 31, 2021, from mba SKOOL:
https://www.mbaskool.com/marketing-mix/products/17326-oreo.html

milksfavouritecookie. (2014, september 21). Retrieved december 31, 2021, from

milksfavouritecookie.wordpress.com:
https://milksfavouritecookie.wordpress.com/2014/09/21/segmentation-targeting-
positioning/

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