BMK308/03 Strategic Marketing

BMK308/05
Strategic Marketing

Assignment 2
(40%)

Submission Date:
2 MARCH 2024

Due to the limitation of Turnitin, students may request their course lead or tutor to assist to to
passage their Assignments to the Turnitin system before submission, to encourage honest
academic writing and it is not mandatory except for Project course.

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Assignment 2
Instructions

1. Assignment 1 contains 2 areas of discussion.

2. Assignment 1 carries 40% of your final total marks

3. The assignment should be typed using Times New Roman, font size 12

and double spaced, approximately 2,500 words.

Oreo fans claim company is skimping on creme filling in latest

‘shrinkflation’ scam
By Social Links for Shannon Thaler
Published Nov. 13, 2023, 12:38 p.m. ET

Oreo fans believe they’ve uncovered the latest and biggest scandal yet in
“shrinkflation” across consumer goods — claiming that the crucial creme-to-cookie
ratio has been quietly shrinking in their favorite snack.

Louisiana resident Shane Ransonet told The Wall Street Journal that he and his wife,
Christine, recently bought a package of Oreos and noticed that the twin wafer cookies
were sandwiched with just a thin smear of creme.

Suspicious, the couple decided to test Double Stuf Oreos — which they usually skip
for having far too much filling — only to see a familiar-looking cookie when they opened
the package, according to Ransonet.

“Here we go, that’s the regular Oreo,” Ransonet, 47, told his wife, according to The
Journal.

Sixty-year-old Nebraska resident Beverly Cooper, also noticed that the creme filling in
the Double Stuf Oreos was downsized, she told The Journal.

“It’s a sign of the times,” Cooper said. “This is the way of the world now.”

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Oreo fans claim that the creme-to-cookie ratio, above, has been quietly shrinking in their favorite snack.
Brian Zak/NY Post

6
Oreo cookies from 2012 AFP via Getty Images

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Mondelez — the Chicago-based maker of the popular cookie sandwich — told The
Journal that it’s tried a number of strategies recently to offset the rising costs of cocoa
and sugar, such as offering fewer discounts and shrinking package sizes. But the
company denied skimping on the creme filling.

“We would be shooting ourselves in the foot if we would start to play around with the
quality,” Mondelez CEO Dirk Van de Put told The Journal, also blaming possible
irregularities on manufacturing at individual cookie plants.

Users on social media are skeptical. A forum on Reddit, r/shrinkflation, has amassed
more than 100,000 users who gripe about favorite products they claim have been
skimping as prices have either stayed the same or ticked higher.

Among the top topics of conversation: Oreos.

“Oreos have way less cream now?” one user queried alongside a video opening a
package of Oreos and splitting a cookie sandwich in half to expose a thin layer of
creme described as “kinda lame.”

“Yes, less cream. The company should be fined for false advertising. The package
photo no longer bears any resemblance to the product inside,” another Oreo fan
commented on the video.

Another post on r/shrinkflation posted by user Blue_Osiris1 pointed to how much the
Family Size Double Stuf Oreo packages have literally shrunk.

The older, larger box of the beloved cookies says its net weight is 566 grams, while
the newer, smaller package is only 530 grams, per the photo shared to the forum.

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Another Reddit user aimed to prove that Oreos are the latest victim of shrinkflation with this photo
comparing Family Size Double Stuf Oreo packages. The one purchased more recently is smaller,
though allegedly cost the same price. Reddit/r/shrinkflation

“It’s bad enough all these companies raise prices way above their increased
production costs and blame inflation but now they’re selling us even less for the same
already inflated prices,” the user wrote.

“Didn’t the cream cover nearly the whole Oreo before?” another asked alongside a
photo of an Oreo cookie where a circular blob of creme does not fill the entire biscuit.
On X, someone called the Oreo shrinkflation scandal “Cookiegate.”

“Regular Oreos have filling equal to what would be in the Thin Oreos and Double Stuff
have filling equal to what used to be in regular Oreos. RIP OFF! Don’t buy Oreos until
they fix it,” another furious user posted to the social media site.

The Post has sought comment from Mondelez, the snacking giant that’s also behind
Chips Ahoy, Ritz crackers, Swedish Fish and Sour Patch Kids.

Though the company has denied tampering with Oreos’ ratios in recent years, a New
York high school math teacher spearheaded an Oreo filling-measuring effort in his
classroom to crack the code of how regular, Double and Mega Stuf Oreos’ creme
varied back in 2013.

His students found that Double Stuf Oreos did not have two times the amount of creme
filling, according to The Journal, but rather just 1.86 times the amount of creme found
in a regular Oreo.

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Corporate giants such as McDonald’s and Chipotle have hiked prices to offset higher
expenses – particularly for expensive items such as chicken and beef. Others, such
as Domino’s and Burger King, have cut down on portions for some popular items.

Shrinkflation has also affected other household staples. Kleenex has cut down on the
number of tissues included in its tissue boxes, while Chobani Flips yogurts dropped
from 5.3 ounces to 4.5 ounces per container.

“Didn’t the cream cover nearly the whole Oreo before?” a Reddit user asked on the forum r/shrinkflation
alongside this photo of an Oreo cookie where a circular blob of creme does not fill the entire biscuit.
Reddit/r/shrinkflation

Inflation peaked at 9.1% in June 2022 — its fastest pace of increase since 1981,
according to Consumer Price Index data. It’s since cooled to 3.7% in September,
though the rate remains nearly double the Federal Reserve’s 2% target.

Meanwhile, October’s job report clocked 150,000 payroll gains, and a surprisingly
resilient labor market has some worried that inflation could be more stubborn.

As for Oreos, while Mondelez has denied that the cookie’s creme filling has gotten
skimpier in recent months, it has confirmed some of the other changes Oreo has
undergone in its 111-year history.

In the 1990s, for example, Nabisco, which is now owned by Mondelez, removed lard
from Oreo’s ingredient list and added vegetable oil in its place — a move that made
the cookies kosher, according to The Journal.

And in the 2000s, Nabisco’s then-owner Kraft Foods removed trans fats from Oreos,
which involved reformulating their creme, per the outlet.

Source:https://nypost.com/2023/11/13/business/oreo-fans-think-company-is-skimping-out-on-creme-filling/

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Task

Based on the case above, prepare a one-year strategic marketing plan for Oreo to
overcome the “shrinkflation” scam and grow their unmet potential. The one-year
strategic marketing plan for Oreo will include the following: -

i) The situation summary

ii) Market Target (s) Description
iii) Marketing research
iv) Forecasts & budgets

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Strategic Marketing Planning

Developing the Strategic Plan for Each Business

Strategic analysis is conducted to: (1) diagnose business units’ strengths and
limitations, and (2) select strategies for maintaining or improving performance.
Management decides what priority to place on each business regarding resource
allocation and implements a strategy to meet the objectives for the SBU. The strategic
plan indicates the action agenda for the business.

The strategic analysis guides establishing the SBU’s mission, setting objectives, and
determining the strategy to use to meet these objectives. The SBU’s strategy indicates
market target priorities, available resources, financial constraints, and other strategic
guidelines needed to develop marketing plans. Depending on the size and diversity of
the SBU, marketing plans may either be included in the SBU plan or developed
separately. If combined, the marketing portion of the business plan will represent half
or more of the business plan. In a small business (e.g., retail store, restaurant, etc.),
the marketing portion of the plan may account for most of the plan. Plans may be
developed to obtain financial support for a new venture, or to spell out internal
business and marketing strategies.

Preparing the Marketing Plan

Marketing plans vary widely in scope and detail. Nevertheless, all plans need to be
based on analyses of the product-market and segments, industry and competitive
structure, and the organization’s value proposition. We look at several important
planning issues that provide a checklist for plan preparation.

Planning Relationships and Frequency

Marketing plans are developed, implemented, evaluated, and adjusted to keep the
strategy on target. Since the marketing strategy normally extends beyond one year, it
is useful to develop a three-year strategic plan and an annual plan to manage
marketing activities during the year. Budgets for marketing activities (e.g., advertising)
are set annually. Planning is really a series of annual plans guided by the marketing
strategic plan.

The frequency of planning activities varies by company and marketing activity. Market
targeting and positioning strategies are not changed significantly during
the year. Tactical changes in product, distribution, price, and promotion strategies may
be included in the annual plan. For example, the aggressive response
of competitors to Healthy Choice’s successful market entry required changes in Con
Agra’s pricing and promotion tactics for the frozen food line.

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Planning Considerations

Suppose that you need to develop a plan for a new product to be introduced into the
national market next year. The plan for the introduction should include the expected
results (objectives), market targets, actions, responsibilities, schedules, and dates.

The plan indicates details and deadlines, product plans, a market introduction
program, advertising and sales promotion actions, employee training, and other
information necessary to launching the product. The plan needs to answer a series of
questions—what, when, where, who, how, and why—for each action targeted for
completion during the planning period.

Responsibility for Preparing Plans

A marketing executive or team is responsible for preparing the marketing plan. Some
companies combine the business plan and the marketing plan into a single planning
activity. Regardless of the format used, the marketing plan is developed in close
coordination with the strategic plan for the business. There is also much greater
emphasis today to involve all business functions in the marketing planning process.

A product or marketing manager may draft the formal plan for his/ her area of
responsibility, coordinating and receiving inputs from advertising, marketing research,
sales, and other marketing specialists. Coordination and involvement with other
business functions (R&D, finance, operations) is also essential.

Planning Unit

The choice of the planning unit may vary due to the product-market portfolio of the
organization. Some firms plan and manage by individual products or brands. Others
work with product lines, markets, or specific customers. The planning unit may reflect
how marketing activities and responsibilities are organized.

The market target is a useful focus for planning regardless of how the plan is
aggregated. Using the target as the basis for planning helps to place the customer in

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the centre of the planning process and keeps the positioning strategy linked to the
market target.

Preparing the Marketing Plan

Format and content depend on the size of the organization, managerial responsibility
for planning, product and market scope, and other situational factors. An outline
for a typical marketing plan is shown in Exhibit 1A-1 . We take a brief look at the major
parts of the planning outline to illustrate the nature and scope of the planning
process. In this discussion the market target serves as the planning unit.

Outline for Preparing an Annual Marketing Plan

The Situation Summary

This part of the plan describes the market and its important characteristics, size
estimates, and growth projections. Market segment analysis indicates the segments
to be targeted and their relative importance. The competitor analysis indicates the key
competitors (actual and potential), their strengths and weaknesses, probable future
actions, and the organization’s competitive advantage(s) in each segment of interest.
The summary should be very brief. Supporting detailed information for the summary
can be placed in an appendix or in a separate analysis.

Describe the Market Target

A description of each market target, size and growth rate, end-users’ characteristics,
positioning strategy guidelines, and other available information useful in planning and
implementation are essential parts of the plan. When two or more targets are involved,
it is helpful to indicate priorities for guiding resource allocation.

Objectives for the Market Target(s)

Here we spell out what the marketing strategy is expected to accomplish during the
planning period. Objectives are needed for each market target, indicating financial
performance, sales, market position, customer satisfaction, and other desired results.
Objectives are also usually included for each marketing program component.

Forecasting and Budgeting

Financial planning includes forecasting revenues and profits and estimating the costs
necessary to carry out the marketing plan. The people responsible for market target,
product, geographical area, or other units should prepare the forecasts and budgets.
Comparative data on sales, profits, and expenses for prior years is useful to link the
plan to previous results.

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Marketing Program Positioning Strategy

The positioning statement indicates how management wants the targeted customers
and prospects to perceive the brand. Specific strategies and tactics for product,
distribution, price, and promotion are explained in this part of the plan. Actions to be
taken, responsibilities, time schedules, and other implementation information are
included at this point in the plan.

Planning and implementation responsibilities often involve more than one person or
department. One approach is to assign a planning team the responsibility for each
market target and marketing mix component.

Product and geographical responsibilities are sometimes allocated to individuals or

teams. The responsibilities and coordination requirements need to be indicated for
marketing units and other business functions. Importantly, the planning process should
encourage participation from all of the areas responsible for implementing the plan.
Contingency plans may be included in the plan. The contingencies consider possible
actions if the anticipated planning environment is different from what actually occurs.

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Marketing Plan Marking Rubric
INDICATOR INDICATOR
Very strong evidence
of skill present
10–8 points
Description of product / client (10%)
Description of The plan contains details
product/client of the products/services;
status (10%) from the customer’s point
of view, and identifies key
competitors and how the
product/service is
positioned to compete.
Market Analysis (60%)
Client’s status in Information is thoroughly
current market and clearly reported,
(10%) including such things as
the type of product/
service, current marketing
efforts, current
knowledge about
customers and
competitors, etc.
Industry trends Describes how major
(10%) trends and information
helped identify
immediate opportunity.
Buyer profile Describes in-depth the
and behaviour (10%) buyer in the customer
profiles buying roles,
buying behavior, and
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INDICATOR INDICATOR Points earned
Moderate evidence Strong evidence
of skill present of skill not present
7–4 points 3–0 points
The plan describes the Little to no information
products/services; is provided on the
however, detail on the product /service, its
features, benefits, and features and benefits,
competitors is lacking. or its competitors
Information is for the Information is provided,
most part, thoroughly but there is a great deal
and clearly reported. But of potentially important
some information that information missing.
may be critical to the
marketing plan is
missing
Describes major trends Gives a brief history of
that could impact this the industry, but does
industry in the near not demonstrate
future understanding of
trends
Briefly describes the The buyer profile
buyer in the customer section is incomplete.
profiles buying roles,
buying behavior, and
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buyer decision making buyer decision making

process. process.
Competition’s A thorough SWOT SWOT analysis is SWOT analysis is
SWOT analysis (10%) analysis is provided, and provided, but there are provided, but there are
reasoning for each item in some missing points and missing points and
the SWOT is provided reasoning for each item there is no reasoning
and logical. is not always thoroughly provided for the items.
provided and/or logical.
Product/client’s A thorough SWOT SWOT analysis is SWOT analysis is
SWOT analysis (10%) analysis is provided, and provided, but there are provided, but there are
reasoning for each item in some missing points and missing points and
the SWOT is provided reasoning for each item there is no reasoning
and logical. is not always thoroughly provided for the items.
provided and/or logical.
Primary Excellent plan for Adequate data Data collection plan is
Research results collection of data justified collection plan justified unorganized and not
(survey, focus with many facts from with a few facts from supported by business
groups, interviews) current business business environment. environment.
(10%) environment.
Budget ( income statement, costs, returns, accuracy) (10%)
Income statement is Income statement is Income statement is
complete and complete and not complete and
demonstrates a demonstrates a demonstrates an
reasonable return on questionable return on unreasonable return on
investment (ROI); all investment (ROI); most investment (ROI); most
calculations are accurate calculations are accurate calculations are
and accurately and accurately inaccurate and
categorized. categorized. inaccurately
categorized.
Evaluation (10%)
Evaluates data or criteria Evaluates data or criteria Has difficulty
in a way that reflects an in a way that reflects evaluating important
some basic data or criteria, which

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in-depth understanding understanding of the demonstrate a lack of

of the product/service. product/service. understanding of the
product/service
Business Writing (10%)
The plan contains no The plan contains more The plan has many
more than five spelling or than five spelling or spelling or grammatical
grammatical errors. If any grammatical errors. errors. No citations
sources have been Citations, if needed, have been provided.
referenced, proper have been cited The plan has not been
citations have been used. correctly. The plan is formatted
The plan is formatted formatted appropriately appropriately.
appropriately.
Total 100

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