Chi T.

le
Case Studies
Prof. Theresa Bauer

in China
CONTENT
• Introduction
• The company
• The product
• Challenges
• Strategy
• Solutions
• Results
• Conclusion
 NABISCO & KRAFT FOODS Introduction
The company
The product

Challenges

Strategy

• In 1898, Nabisco founded - America cookies & snacks Solutions

manufacturer
Results
• In 1912, announced The ‘Trio’: Mother Goose Biscuits,
Veronese Biscuits and Oreo Biscuits Conclusion

• In 1980s, merged with Kraft Foods by Philip Morris

Companies, Inc.
• In 2000, whole Nabisco is merged with Kraft
OREO Introduction
The company
The product
• Born on March 6th, 1912  100-year
existence Challenges

• “Two beautifully embossed chocolate- Strategy

flavored wafers with a rich cream fillling at
30 cents per pound” Solutions
• “America’s best loved cookie”, now Global
Results
brand
• "Oreo Biscuit” (1913)." "Oreo Sandwich" Conclusion
(1921) and "Oreo Creme Sandwich” (1948)
• Launched in China in 1996  2005 failed 
market research implemented…
OREO’s Problems in CHINA Introduction
The company
The product
• China: Not cookie eaters but WAFER EATERS Challenges
• Oreo:
Strategy
• A little bit too sweet and a liitle bit too bitter  alien taste
• 72cents/14 oreos = expensive Solutions
• Company:
Results
• Kraft Food paid little attention to Chinese consumers (Tastes according to
producers, not to consumers) Conclusion
• US centric-mindset and approach:
• Existing US product
• US formulation & specifications
• US-inspired advertising
Strategy Introduction
The company
The product

Challenges
Vision Become #1 Sweet Snack brand in China
Strategy
Quality Formulate for Chinese consumers Solutions

Channels Appeal to different purchase occasions

Results

Conclusion
Innovation Reframe to be more than just sandwich cookies
Localized to drive relevance, Boost advertising &
Awareness promoting
Quality: Formulate for Chinese consumers

Different flavours Introduction

The company
The product

Challenges
 Cooling Oreo
Strategy

Solutions

Results
 Double fruits
Oreo Conclusion

 Smaller package
Lower price
Wider customer range
 Channels: Appeal to different purchase occasions

Introduction
New price points and channels The company
The product

Challenges
Lunar New Year Package Strategy

Solutions

Results
Christmas Package
Conclusion
 Innovation: Reframe to be more than just sandwich cookies

“OREOless” Introduction
The company
The product

Challenges

Strategy

Solutions

Results

Conclusion

Oreo Wafer Oreo Straw-shaped Wafer

Awareness: Localized to drive relevance

Introduction
The company
The product

Challenges

Strategy

Solutions

Results

Conclusion
 Awareness: Localized to drive relevance

OREO Interactive “Twist, Lick, Dunk” Introduction

rocks! The company
The product

Challenges

Strategy

Solutions
YaoMing as Representative
Results

Conclusion

Lottery Prizes
Awareness: Boost advertising & promoting

Commercial Power Introduction

The company
The product

Challenges

Strategy

Solutions

Results

Conclusion
Awareness: Boost advertising & promoting

“Twist, Lick, Dunk” – “???” Introduction

The company
The product

Challenges

Strategy

Solutions

Results

Conclusion
Results Introduction
The company
The product

• Oreo’s sales doubled in China, then doubled again, and Challenges

again.
Strategy
• 2011 became the best-selling cookie in China.
• Market share grew by 10 times over the past five years. Solutions

• Oreo model in China has become the company’s model Results

for all its other products.
Conclusion
• “Fantastic beef stew” and “very spicy chicken” Ritz crackers
• different formulation for Chips Ahoy cookies which has been
tripled over the last few years
• Most important lesson!
“Any foreign company that comes to China and says, ‘There’s Introduction
1 1/2 billion people here, goody goody, and I only need 1 The company
The product
percent of that’ … [is] going to get into trouble. You have to
understand how the consumer operates at a really detailed Challenges
level.”
Strategy

Lorna Davis, head of the global biscuit division at Kraft Solutions

Results

Understand how cultural Conclusion

differences influence your

business
 References
• S. Clements, T. Jain, S. Jose, B. Koellmann. (March 31, 2013). Smart cookie.
http://businesstoday.intoday.in/story/how-kraft-foods-won-over-customers-in-china-and-
india/1/193162.html

• Jeff Beer. (Nov 22, 2012). Marketing to China: Oreo’s Chinese twist.
http://www.canadianbusiness.com/business-news/industries/marketing-to-china-oreos-chinese-
twist/

• R. Smith. (January 27, 2012). Rethinking The Oreo For Chinese Consumers.
http://www.npr.org/blogs/money/2012/01/27/145918343/rethinking-the-oreo-for-chinese-
consumers

• Wikipedia, Google Image & Google Translate

THANK YOU FOR YOUR ATTENTION!
Any questions?