MARKETING PROJECT Presented By - Aashi , Bhavana

, Nanda
INTRODUCTION
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 the current-day Chelsea Market
complex, located on Ninth Avenue between 15th and 16th Streets. Today, this same location of
Ninth Avenue is known as “Oreo Way.” The name Oreo was first trademarked
on March 14, 1912. It was launched that time as an imitation of the Hydrox cookie
manufactured by Sunshine Company, introduced in 1908.
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 $1.5 billion in global annual revenues. Currently
owned by Kraft Foods Inc., Oreo is one of the company’s dozen billion dollar brands.
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 the dominant position
in the US limited growth opportunities and spurred Kraft to turn to international markets. With
China and India representing possibly the jewels in the crown of international target markets
due to their sheer size, Oreo was launched in China in 1996.
And after the launch of oreo in china in 1996 , Cadbury India Ltd.
launched Oreo in India in March 2011 . "The introduction (of Oreo)
marks the entry into a new category in India, with the aim to make
the world's favourite biscuit, Oreo, one of India's favourite
biscuits,"  Oreo is about 100 years old brand and currently
generates a revenue of $1 billion globally. In India, the company will
be launching the biscuit in dark chocolate flavour.
STP OF
OREO
SEGMETATION
Market segmentation is the process of dividing a market of potential
customers into groups, or segments, based on different characteristics

Segmentati
on variable

Geographi Behavioral
c Demograp Psychograp
hic hic
BUYERS PROFILES OF OREO
MARKET SEGMENT VARIABLES / BASES

Geographic 1. Urban area (North, west, east, south)

2. Semi urban area (North, west, east,
south)
Demographic 1. Age : (6-18) , (18-24) , (24-39)
2. Income : ( Upper ) ( Middle )
3. Education : literate

Psychographic 1. Outgoing
2. Readiness to try new products
3. Experimental by nature
4. Don’t mind spending a little extra on
snacking
5. Brand-conscious
6. Lifestyle is comfortable
TARGETING
Targeting is the second stage of the STP (Segmentation , Targeting
, Positioning). After the market has been separated into its
segments, the marketer will select a segment or series of segments
and ‘target’ it/them. Resources and effort will be targeted at the
segment.
 TARGETING OF OREO
The Target segment in India for Oreo split into two parts-
•Primary Target Segment
•Secondary Target segment
PRIMARY TARGET SEGMENT
The primary segment is the one for whom the product is
designed. Most revenue will come from the primary target market.
These customers share common characteristics and behaviours ,
account for the highest volume of sales and are most likely to buy
now.
CHILDREN & TEENAGERS & COLLEGE GOING
The positioning of Oreo as a Twist-lick-dunk cookie is very luring to the
kids and teenagers who are the highest consumers of milk.The Cookie
are moreover Creme cookies and generally consumed by children as
they like creme.The adorable ads that show children bonding with
their parents and siblings are admired by the small children.
SECONDARY TARGET
SEGMENT
The secondary market includes future primary buyers, those buying
at a high rate within a small segment and people who influence
primary buyers. Their characteristics and buying behaviours usually
differ from those of the primary market.
ADULTS, OFFICE GOING, PARENTS
The target segment for Oreo in India that is the  urban
professionals between 24 and 39 years old. Based on India census
data, this market consists of 32 million individuals. In addition,
Kraft‟s access to Cadbury‟s urban distribution network makes this
target market accessible and actionable.More importantly, this
segment is differentiable by its snacking habits. This target
customer has a rising income, fast-paced lifestyle, and irregular
work schedule, which leads to a greater likelihood of snacking.
POSITIONING
Market position refers to the consumer’s perception of a brand or
product in relation to competing brands or
products. Market positioning refers to the process of establishing
the image or identity of a brand or product so that consumers
perceive it in a certain way.
POSITIONING OF OREO
Oreo’s uses the emotional appeal here in to reinforce its product as
a binding force between Parents and their children. Oreo has used
its global positioning ‘ Twist-lick-dunk’ for the Indian market as well
but has manipulate with the price. It helps tap the small children
who would pester their  parents to buy them oreo cookies.
Indians smacking and eating out sector is huge and considering the
same Oreo has positioned itself as a tasty snaker or mid-
meal.Although snacking is a part of Indian culture, it has
traditionally been associated with leisurely consumption.However,
the purpose of snacking is changing as customers seek snacks that
are convenient, satiating, tasty, and easily portable for on-the-go
consumption. It has recently appointed young and zealous Ranbir
Kapoor as its Brand Ambassador is an attempt to to tap the young
and adult market in India.
SURV
EY
DO YOU LIKE CADBURY
OREO?
Sales
10.00%

90.00%

YES NO
FAVOURITE FLAVOUR OF
OREO
22.00%
34.00%

22.00%

22.00%

Oreo Vanilla Crème Oreo Choco Crème

Oreo Strawberry Crème All Of The Above
INTERESTED IN BUYING NEW
FLAVOURS OF OREO?
90

80

70

60

50

40

30

20

10

0
YES NO MAYBE
NEW FLAVOURS OF OREO,
ONE WOULD LIKE TO SEE?
Pistachio; 33.33% Mango; 33.33%

Orange; 33.33%

Mango Orange Pistachio

MARKETING MIX OF OREO
MARKETING MIX
4P’s are essential in “Putting the right product in the right place, at
the right price, at the right time”.
Till today the 4P’s hold a lot of relevance in the industry and
become an important framework of strategizing brands/products.
•Product
•Price
•Place
•Promotion
PRODUCT MIX
It is the total number of product lines that a company offers to its
customers. Product mix is a subset of the marketing mix and is an
important part of the business model of a company. The product
mix has the following dimensions.
Width - Number of Product Lines
Length -  Total Products
Depth - Product Variations
Consistency - Relationship
PRODUCT MIX OF OREO
Width Length
Oreo has on

Depth Consistency
PRICE MIX
Price is the actual amount which the consumer pays for the
product.  Price mix influence the positioning of the product among
competition as well as the customer’s perception of the product.
Hence businesses usually use one of these three strategies for
pricing –
• Penetration Pricing (low price kept to capture market share)
• Skimming Pricing (high price initially then lowering of price)
The price decides where will product stand among the competition.
 PRICE MIX OF OREO
Oreo
Cadbury India Ltd. launched Oreo in India in March 2011 as the delicious combination of dark
chocolate biscuit and vanilla cream and and thus the price were kept at a low assuming the
market is price sensitive. This was done to occupy a share in the market pie and get
the sales going and cash register ringing initially.
Rs.5 for a pack of 3 Oreos
Rs.10 for a pack of 7 Oreos
Rs.20 for a pack of 14 Oreos
After the successful inception and acceptance of the product and price, Oreo inflated its
market price slightly.
Rs 5 for a pack of 3 Oreos
Rs.15 for a pack of 7 Oreos
Rs.35 for a pack of 14 Oreos
STEPS IN SETTING
A PRICING POLICY
1.Selecting the Pricing Objective - Oreo is still setting its foothold on the market thus survival is
important for it. Given India is a price sensitive country , the prices of Oreo were kept minimal at the
launch. Oreo reduces its prices at the launch and ever since has increased only by a small margin.
This was in order to encourage people to buy this new brand and drive sales to gain a good market
share and become a market leader.
2.Determining Demand - Each price leads to a different level of demand. Demand curves capture the
inverse relation between price and demand. The higher the price, lower the demand and lower the
price, higher the demand. This is why Oreo has been keeping its price low in order to raise demand.
3.  Estimating Costs - The cost of production, raw materials, resources, distribution, marketing, selling
and other miscellaneous cost must be estimated well in order to select a price that would give back a
fair ROI and gets profits.
4.Analysing Competitors Costs, Prices and Offers - Competitors like Britannia and Sunfeast have
priced their creme biscuits at creme biscuits at Rs 30 and Rs. 15. For the same SKU Oreo has priced
its product at Rs. 15.
5. Selecting a Pricing Method-Mark-up Pricing, Target pricing, Perceived Vaue pricing ,Value Pricing, Going
rate pricing are some of the Pricing methods.
PLACE
Place is the element of the marketing mix that ensures that the
product is distributed and made conveniently available for the
consumer - at the right location at the right time. It is imperative
that, when the consumer comes into the store to purchase a
product, that product is readily available without any issue.
Whenever consumers are faced with issues involving the
availability of a product, it's almost certain that they will take their
business somewhere else. This is why it is so important the product
makes it to the right place at the right time.
PLACE MIX OF OREO
Oreo Distribution Channel
Oreo is also relying on strong distribution push to make its presence
felt in India under Cabbury. The brand is focusing both on modern
and retail trade.  As we know that the various levels of marketing
Channels for any product which can be zero, one, two, three
depending upon how the product flows from manufacturer to
consumer.
Oreo in this case uses a hybrid of  level 1 and  3 for consumer
marketing channels.
PRODUCER —–> RETAILER —-> CONSUMER    (LEVEL1)
PRODUCER —–>DISTRIBUTOR—-> RETAILER —-> CONSUMER
(LEVEL2)
Cadbury the manufacturer of Oreo in India, produces it and then
directly send it to the retailers like the Supermarts, departmental
stores etc. Also in places where there is heavy distributorship,
Cadbury involves two level channel system which goes through a
wholesaler and a retailer. This is the most commonly used in
consumer markets. Like for example Oreo will send its stock to a
wholeseller in Chennai who will in turn sell it to a retailer lets say
Big bazaar, Hypercity or a departmental store.
PROMOTION MIX
Promotion Mix focuses on creating the awareness and persuading
the customers to initiate the purchase. Promotion Mix is the
integration of Advertising, Personal Selling, Sales Promotion, Public
Relations and Direct Marketing. 
Elemen
ts of
Promoti
on Mix

Sales Direct
Advertisi Personal Promotio Public
ng Selling Marketin
n Relation
g
PROMOTION MIX OF OREO
Advertising - The advertisements of OREO portray the positioning
of Oreo as a twist-lick-dunk biscuit very well. Their brand icons
were traditionally small children but now ads are being created that
showcases popular actors and teenagers. Oreo commercials show
the idea of fun frolic and the joy of splitting an Oreo with your
family/loves ones.
 CONCLUSION
Indians love their biscuits. Nielsen says India is the world's biggest market for biscuits with a market share of 22 per cent in
volumes compared with 13 per cent in the US. Premium creams account for a substantial chunk valued at around Rs 5,500
crore.

Oreo launched in India in March 2011. It entered the market as Cadbury Oreos.

The way to the Indian consumer's stomach is through competitive pricing, high volumes and strong distribution, especially in
rural areas. Oreo developed a launch strategy around taking on existing market leaders in the cream segment - Britannia,
Parle and ITC. Internally, they even have an acronym for this strategy - TLD (Take Leaders Down). The focus was to target the
top 10 million households which account for 70 per cent of cream biscuit consumption.

The company focused on using the togetherness concept to sell Oreos in India, with television forming the main medium of
communication although other media are also being tapped.

The company also went on a bus tour to push the concept of togetherness among families across nine cities and it used a
smaller vehicle for a similar campaign across 450 small towns.

The product was sweetened to suit the Indian palate and Kraft exploited Cadbury's network of 1.2 million stores.

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. The cookie looks the same as its international
counterpart with a motif of 12 florets and 12 dashes.

Oreo India's Facebook page is one of the fastest growing in the world.

Oreo is driving point-of purchase sales with store displays and in-store promotions in a bid to overtake market leader
Britannia Good Day's distribution.
BRAND EXTENTION