STRATEGIC MARKETING AND BRAND MANAGEMENT

A Case Study Report on

Oreo in India – Launching and Establishing a Global Brand in India Using

Integrated Marketing Communications Effectively

Submitted

In The Partial Fulfilment of The Degree Of

Master Of Business Administration

Semester-IV

Submitted by:

Shah Bhakti HiteshKumar (22044311131)

Shah Tirth RajeshBhai (22044311136)

Submitted to:

Dr. Mihir Shah

(April 2024)
Case Analysis: Oreo in India – Launching and Establishing a Global Brand in
India Using Integrated Marketing Communications Effectively

Introduction:

• For most of its 100-year plus existence, Oreo was consistently America’s best loved cookie,
but today it is a well-established global brand. Mondelez International moved it into
emerging markets quickly learning the rules of success in these hitherto unfamiliar markets,
changing and refining the brands strategy and ultimately triumphed in winning over
consumers. This case demon- strate how Oreo brand’s successful entry into the Indian
market was well orchestrated using the Communication Mix elements such as Advertising,
Sales Promotion, Events and experiences and Public Relations to establish the brand during
the launch phase and subsequently stabilize and grow the brand in India.

Background and company profile:

• The “Oreo Biscuit” was first developed and produced by the National Biscuit Company
(today known as Nabisco) in 1912 at its Chelsea Manhattan factory in New York, US. This
factory was located on Ninth Avenue between 15th and 16th Streets. Today, this same
location of Ninth Avenue is known as “Oreo Way.” On March 6, 2012, the famous cookie
brand, Oreo, celebrated its 100th birthday. From humble beginnings in a Nabisco bakery
in New York City, Oreo has grown to become the bestselling cookie brand of the 21st
century generating $2 billion in global annual revenues. Currently owned by Mondelez
International, Oreo is one of the company’s dozen billion-dollar brands. (Source:
__https://www.warc.com/content/article/India_Twists,_Licks,_Dunks_ with Oreo/97608)
Until the mid-1990s, Oreo largely focused on the US market – as reflected in one of its
popular advertising slogans from the 1980s, “America’s Best Loved Cookie”. But limited
growth opportunities in the US Market spurred the company to turn to emerging markets
like China and India. Mondelez International, launched Cadbury Oreo in India in March
2011.
Market Background and Brand Strategy in India:

• Mondelez was present in India in the Chocolates, Beverages and Candy categories. The
company entered the Rs 17,000 crore, competitive India Biscuit market with their lead
brand Oreo in 2011. The Biscuits category was growing at 17% in India (Nielsen Survey,
2010). While the Oreo launch presented opportunities, it also posed great challenges. From
being a leader in the Chocolates category in India, Mondelez was now a challenger in the
Biscuits category. The challenge was to launch Oreo and peg it against three Biscuit
category titans – Parle (41%), Britannia (26%) and ITC (8%), who dominated the biscuit
market with a total of 75% market share. These players had been present in the market for
many years and had a strong portfolio of established household brands.

• And the Biscuit category was a very competitive market – only two brands (Parle-G and
Britannia Good Day) in a pool of about 1000 brands had garnered more than a 5% market
share. Even established brands like Hide and Seek, Monaco and Bourbon had less than 2%
market share. This shows the seemingly insurmountable task that a new brand had to
circumvent to establish its credentials in this category in India. (Ref Annexure 2) (Source:
Nielsen Survey 2010) Cream biscuits are primarily consumed by households with children.

• Cream being the central component and biscuit just the shell, the focus for a brand was
obvious and undisputable – Cream! It was also known that consumers did not find any
differentiation between brands. Therefore, the key challenge for Oreo was to decide on
how to get a firm foothold in a fiercely competitive category ruled by familiar household
brand names with firmly entrenched buying and consumption habits.

• Oreo was launched in India in March 2011. It entered the market as Cadbury Oreo because
Cadbury is a strong brand name in India, and initially focused on generating awareness and
rapid trials. The key objectives of the launch were:
1. Gain a 1% share of the Biscuit category in the first year.
2. Build awareness, 40% trials and 40% repeat purchase in priority markets.
The Marketing Mix: Oreo In India

• The product was fine-tuned to suit the Indian palate and Mondelez leveraged the retail
stores reach acquired with the Cadbury acquisition to build distribution. Oreo launched its
traditional chocolate cookie with vanilla cream centre at Rs 5 for a pack of three to drive
impulse purchase and trials, Rs 10 for a pack of seven and Rs 20 for a pack of 14 for heavy
consumption segment. The cookie design was the same as its international counterpart – a
part of the consistent brand imagery of Oreo. The company maintained the heritage of the
two decoratively embossed chocolate cookies filled with sweet vanilla cream to stand out
from me-too products and meet customer expectations of having the real Oreo.

Conclusion:

• Oreo has been able to get a very firm foothold in the highly competitive biscuits market in
India by creating compelling differentiation at every level - in product offering, in-store in
the Traditional and Modern Trade channels, in leveraging a unique consumer insight, in
addressing consumers’ desires and in establishing a new ritual. This differentiation was
amplified and communicated to the target consumers using a plethora ofcherry-picked
integrated marketing communications tools and techniques- mass media advertising,
consumer contact programmes, radio, bill boards, POS material to generate trials and brand
conversion, social media networking sites, creating buzz through ambient media
communications, exploiting the brand’s website, Out-of Home media etc. All this has been
orchestrated to single-mindedly create differentiation at the consumer level for Oreo brand.
Thus, making Oreo a part of the consumers’ repertoire in a highly crowded and fiercely
competitive biscuit market in India.
 Questions & Answers

1. Analyse and discuss the competitive scenario in the Biscuit’s category in 2011. Do a SWOT
on the competing brands and Oreo.

• In 2011, the Indian biscuit market was highly competitive, with established players such as
Parle, Britannia, and ITC dominating the market with a combined 75% share. The market
was growing at a rapid rate of 17%, indicating significant potential for new entrants.
However, the challenge for new brands was the entrenched buying and consumption habits
of consumers, as well as the strong portfolio of established household brands held by the
existing players. The market was crowded, with about 1000 brands vying for a share, but
only two brands had managed to capture more than 59% of the market. This competitive
scenario presented a significant challenge for new brands to establish their credentials in
the biscuit category in India.

• The cream biscuit segment, which was the focus for Oreo's entry, was primarily consumed
by households with children. Mothers were the primary buyers, and the key challenge for
Oreo was to differentiate itself in a market where consumers did not perceive any
differentiation between brands. This competitive landscape required Oreo to develop a
strong communication strategy and leverage integrated marketing communications tools to
establish a unique position in the market.

• Overall, the competitive scenario in the biscuit category in 2011 was characterized by
established players with a strong market presence, a crowded market with numerous
brands, and a growing consumer demand, presenting both opportunities and challenges for
new entrants like Oreo.

SWOT Analysis on the competing brands

• Strengths:
Parle, Britannia, and ITC have a strong portfolio of established household brands in the
biscuit category, giving them a high level of brand recognition and consumer loyalty.
These established brands have been present in the market for many years and have a
significant market share, with Parle and Britannia alone holding a combined 67% of
the market. The biscuit category in India was growing at a rapid rate of 17%, indicating
a strong demand for these products.
 • Weaknesses:
The market was highly competitive, with about 1000 brands vying for a share, making
it challenging for new brands to establish themselves. The dominance of established
brands created a barrier for new entrants to gain market share and consumer acceptance.

• Opportunities:
The rapid growth of the biscuit category in India presented opportunities for new
entrants to capture a share of the expanding market. The lack of differentiation between
existing brands in the cream biscuit segment provided an opportunity for a new brand
to introduce unique offerings and establish a distinct position in the market.

• Threats:
The dominance of Parle, Britannia, and ITC in the market posed a significant threat to
new entrants like Oreo, as these brands had firmly entrenched buying and consumption
habits among consumers. The highly competitive nature of the market, with only two
brands holding more than 59% market share, posed a threat to the successful entry and
growth of a new brand like Oreo.

SWOT Analysis on the Oreo:

• Strengths:
Oreo had a strong global brand presence and recognition, leveraging its success in other
markets to establish itself as a challenger in the Indian biscuit market. The brand
leveraged the communication mix elements such as advertising, sales promotion,
events, and public relations to establish itself during the launch phase and subsequently
stabilize and grow in India. Oreo's successful entry into the Indian market was
attributed to its focus on building strong distribution and in-store presence, tailoring
the product to suit the Indian palate, and leveraging integrated marketing
communications tools to establish a unique position in the market.

• Weaknesses:
Oreo faced the challenge of pegging itself against established titans in the biscuit
category, such as Parle, Britannia, and ITC, who dominated the market with a total of
75% market share.
• Opportunities:
Oreo's successful entry into the Indian market demonstrated the opportunity for new
brands to establish themselves through differentiated marketing strategies and effective
communication, leveraging the rapid growth of the biscuit category in India.

• Threats:
The dominance of established brands in the market posed a significant threat to Oreo's
successful entry and growth in the highly competitive biscuit category in India.
2. Elaborate on the communications strategy developed for Oreo in India. Do you agree/disagree?
Why?

• The communication strategy developed for Oreo in India was a comprehensive and
integrated approach that leveraged various communication mix elements to establish
and grow the brand in the highly competitive Indian biscuit market. The strategy
focused on creating brand saliency, generating awareness, and fostering consumer
engagement through a mix of traditional and digital media, in-store presence, and
consumer activations.

• The brand's communication strategy was centered around the concept of

"togetherness," targeting mothers as the primary buyers of cream biscuits. Oreo
leveraged mass media advertising, consumer contact programs, radio, billboards, and
social media to generate trials and brand conversion. The TV campaign, launched in
March 2011, depicted everyday family bonding moments through the 'Twist, Lick,
Dunk' (TLD) ritual, eliciting childlike delight and creating a sense of togetherness.

• Oreo's communication strategy also extended to digital media, with the Oreo Facebook
page rapidly gaining fans and engaging consumers through online TLD games and
contests. The brand also created an "Oreo Togetherness Bus" that toured nine cities,
bringing alive the Oreo togetherness concept with consumers. Additionally, the brand
initiated a "Togetherness Movement" through activities like quizzes, surveys, and
pledges to encourage parents and kids to spend time together.

• In terms of in-store presence, Oreo focused on building strong distribution and

enhancing brand visibility at the point of purchase. The brand utilized a variety of point-
of-sale (POS) devices, including counter-top POS devices and branded counter-top
outers, to ensure that Oreo stood out in both traditional and modern trade stores. Oreo
also engaged families with fun games and TLD-based sampling in malls and modern
trade stores to drive consumer activations and trials.

• Overall, Oreo's communication strategy in India was designed to create compelling

differentiation at every level, including product offering, in-store presence, consumer
engagement, and brand messaging. The brand leveraged a plethora of integrated
marketing communications tools and techniques to establish itself in the crowded and
fiercely competitive biscuit market in India, ultimately achieving its target 1% share
 within the first six months of its launch and surpassing objectives for brand trials and
repeats.

• Yes, I agree with the communications strategy developed for Oreo in India. The strategy
was well-orchestrated and effectively leveraged integrated marketing communications
tools and techniques to establish and grow the brand in the highly competitive Indian
biscuit market. Oreo's communication strategy focused on creating compelling
differentiation at every level, including product offering, in-store presence, consumer
engagement, and brand messaging. The brand utilized a mix of traditional and digital
media, in-store presence, and consumer activations to generate trials and brand
conversion. Oreo's communication strategy also cantered around the concept of
"togetherness," targeting mothers as the primary buyers of cream biscuits, and
leveraging the "Twist, Lick, Dunk" ritual to create family bonding moments.

• The brand's successful entry into the Indian market, achieving its target 1% share within
the first six months of its launch, and surpassing objectives for brand trials and repeats,
demonstrates the effectiveness of the communication strategy. The strategy effectively
addressed the challenges of differentiating in a crowded and fiercely competitive
market, ultimately establishing Oreo as a significant player in the Indian biscuit
category. Therefore, the communications strategy developed for Oreo in India was
well-executed and contributed to the brand's successful establishment and growth in
the market.

• The brand utilized a mix of traditional and digital media, in-store presence, and
consumer activations to generate trials and brand conversion. Oreo's communication
strategy also cantered around the concept of "togetherness," targeting mothers as the
primary buyers of cream biscuits, and leveraging mass media advertising, consumer
contact programs, radio, billboards, and social media to generate trials and brand
conversion. The brand's successful entry into the Indian market, achieving its target 1%
share within the first six months of its launch, and surpassing objectives for brand trials
and repeats, demonstrates the effectiveness of the communication strategy in
establishing Oreo as a significant player in the Indian biscuit market.
3. Discuss the various elements of the Integrated Marketing Communications campaign
developed and executed for Oreo launch. Emphasis on the major focus on distribution and In-
store presence of Oreo prior to the launch of the TV Campaign?

• The Integrated Marketing Communications (IMC) campaign developed and executed

for the launch of Oreo in India was a comprehensive and well-orchestrated strategy that
leveraged various communication mix elements to establish and grow the brand in the
highly competitive Indian biscuit market. The campaign encompassed a range of
traditional and digital media, in-store presence, consumer activations, and brand
messaging to create compelling differentiation and establish Oreo as a significant
player in the market.

• Advertising: Oreo's communication and advertising strategy focused on using the

"moments of togetherness" proposition, targeting mothers as the primary buyers of
cream biscuits. The brand utilized television as the main medium of communication,
with consistent messaging across various media platforms. The TV campaign depicted
everyday family bonding moments through the 'Twist, Lick, Dunk' (TLD) ritual,
eliciting childlike delight and creating a sense of togetherness.

• Digital Engagement: Oreo had a strong presence in digital media, with the Oreo
Facebook page rapidly gaining fans and engaging consumers through online TLD
games and contests. The brand also created an "Oreo Togetherness Bus" that toured
nine cities, bringing alive the Oreo togetherness concept with consumers.

• In-Store Presence: The brand focused on building strong distribution and in-store
presence, with a strong emphasis on point-of-purchase sales and in-store consumer
activations to generate trials and build consumer preference for the brand. The brand
utilized a variety of point-of-sale (POS) devices, including counter-top POS devices
and branded counter-top outers, to ensure that Oreo stood out in both traditional and
modern trade stores.

• Outdoor Advertising: Oreo utilized billboards, bus wraps, seat backs and handles,
backlit boards inside malls, and train wraps to create brand saliency and enhance
visibility. The brand also employed ambient innovation, such as the "Twist, Lick,
Dunk" ritual on mobile vans, to bring the Oreo cookie to life and engage consumers.
• Communication Strategy: The brand leveraged a unique consumer insight, addressing
consumers' desires, and establishing a new ritual to create compelling differentiation at
every level. The communication strategy focused on creating simple, everyday family
bonding moments, emphasizing the joy of consumption and enhancing the bonding
between child and parent.

• Overall, the IMC campaign for Oreo's launch in India effectively utilized a mix of
traditional and digital media, in-store presence, consumer activations, and brand
messaging to establish the brand, generate trials, and build consumer preference in the
highly competitive biscuit market. The campaign's success was evident in achieving
the target 1% share within the first six months of its launch and surpassing objectives
for brand trials and repeats.

• The major focus on distribution and in-store presence of Oreo prior to the launch of the
TV campaign was a strategic imperative to ensure a strong market entry and visibility
for the brand. The document highlights that the early launch focus was on building
strong distribution and adequate availability in both Traditional Trade and Modern
Trade channels. This emphasis on distribution was crucial to ensure that Oreo had a
significant presence at the point of purchase, particularly in the highly cluttered and
fiercely competitive biscuit category in India.

• In Traditional Trade, Oreo utilized unique Point of Purchase (POS) devices to ensure
that the brand stood out within the category. Additionally, the brand executed POS
devices that brought Oreo outside the category into the front-of-store, a novel approach
in traditional trade stores. This strategic move aimed to enhance the brand's visibility
and ensure that it was easily spotted by shoppers. Furthermore, in Modern Trade stores,
Oreo implemented best-in-class presence using various display units, standees, and
other visual merchandising elements to capture consumer attention.

• The document also underscores that the primary focus during the in-trade launch was
on building the presence of the Oreo brand, with no promotions for trade or consumer
executed in the launch phase. All trade investments were directed towards improving
the on-shelf presence for Oreo, indicating a deliberate strategy to establish a strong in-
store presence before initiating promotional activities.
• This strategic emphasis on distribution and in-store presence prior to the TV campaign
was aimed at creating a compelling presence for Oreo at the point of purchase, ensuring
that the brand stood out in a highly competitive market, and laying the groundwork for
successful brand trials and consumer preference. By focusing on distribution and in-
store visibility, Oreo aimed to create a strong foundation for the subsequent TV
campaign, which further amplified the brand's presence and generated enhanced brand
trials, ultimately leading to the achievement of the target 1% share within the first six
months of its launch.
4. According to you what has been the most critical factor(s) that contributed to the brand’s
success during the launch phase in India?

• The most critical factors that contributed to Oreo's success during the launch phase in
India were the brand's strategic focus on distribution and in-store presence, coupled
with a compelling communication strategy that resonated with the target audience.

• Distribution and In-Store Presence: Oreo's early launch focus was on building strong
distribution and ensuring adequate availability in both Traditional Trade and Modern
Trade channels. The brand emphasized the need for an emphatic presence at the point
of purchase to break through the highly cluttered and fiercely competitive biscuit
category. Oreo utilized unique Point of Purchase (POS) devices to ensure the brand
stood out within the category, and for the first time, executed POS devices that brought
Oreo outside the category into the front-of-store in Traditional Trade stores. This
strategic emphasis on distribution and in-store presence laid the groundwork for
successful brand trials and consumer preference.

• Communication Strategy: Oreo's communication strategy was centered around the

concept of "togetherness," targeting mothers as the primary buyers of cream biscuits.
The brand leveraged mass media advertising, consumer contact programs, radio,
billboards, and social media to generate trials and brand conversion. Oreo's
communication strategy also extended to digital media, with the Oreo Facebook page
rapidly gaining fans and engaging consumers through online TLD games and contests.
The brand also initiated a "Togetherness Movement" through activities like quizzes,
surveys, and pledges to encourage parents and kids to spend time together. This
differentiated communication strategy effectively resonated with the target audience,
creating brand saliency and driving point-of-purchase sales.

• In conclusion, Oreo's success during the launch phase in India can be attributed to its
strategic focus on distribution and in-store presence, combined with a compelling
communication strategy that effectively connected with consumers and generated
brand preference. These critical factors played a pivotal role in establishing Oreo as a
significant player in the highly competitive Indian biscuit market.
5. Develop and discuss the next phase of the Brand’s Integrated Marketing Communication
programme.

• The next phase of the brand's Integrated Marketing Communication (IMC) program
should focus on further strengthening Oreo's presence in the Indian market and
continuing to build brand awareness, trials, and consumer preference. This can be
achieved through a multi-faceted approach that leverages various communication
channels and strategies.

• India's next integrated marketing plans for companies should focus on leveraging a mix
of traditional and digital media to reach a diverse and tech-savvy consumer base. With
the increasing penetration of smartphones and internet connectivity, digital marketing
channels such as social media, online advertising, and influencer marketing should be
prioritized to engage with the tech-savvy Indian consumers.

• Firstly, Oreo should continue to emphasize its communication strategy targeting

mothers as the primary buyers, as well as the "Twist, Lick, Dunk" (TLD) ritual as a
platform to bring families together. This messaging has proven effective in creating a
strong emotional connection with the target audience and should be further reinforced
in the next phase of the IMC program.

• In terms of advertising and communication, Oreo should maintain consistency across

various media platforms, with a continued focus on television as the main medium of
communication. Additionally, the brand should continue to leverage digital media,
particularly social networking sites, to engage with consumers and build a strong online
presence. The success of the Oreo India Facebook page, which rapidly gained a large
number of fans, demonstrates the potential of digital engagement and should be further
capitalized upon.

• Furthermore, Oreo should consider expanding its "Oreo Togetherness Movement" and
digital engagement activities to create more opportunities for parents and kids to bond
over the brand. This could include organizing more events, quizzes, surveys, and
interactive games that promote family togetherness and further strengthen the brand's
positioning as a catalyst for creating joyful family moments.
• In terms of in-store presence and point-of-sale activities, Oreo should continue to focus
on building strong distribution and enhancing on-shelf visibility. This could involve
developing unique point-of-purchase (POS) devices and shopper activation initiatives
to ensure that Oreo stands out in both traditional and modern trade channels.

• Overall, the next phase of Oreo's IMC program should build upon the successful
strategies implemented during the brand's launch phase, with a continued emphasis on
differentiation, emotional connection, and creating compelling family bonding
moments. By leveraging a mix of traditional and digital media, as well as in-store
activations, Oreo can further solidify its position in the highly competitive Indian
biscuit market and continue to drive brand growth and consumer preference.