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Oreo's Market Strategy in India

This document discusses Kraft Foods' Oreo cookies and their marketing strategies in different markets. It summarizes how Kraft customized Oreos for the Chinese and Indian markets based on local tastes, leading to success. It outlines the 4Ps of Oreo's marketing mix - modifying products for different cultures, extensive distribution including rural areas, consistent promotion of togetherness while tailoring campaigns, and affordable pricing. The document also analyzes Oreo's growth stage in India and investment stance as a star product in China and India requiring high investment for innovation, advertising and market development. It praises Oreo's agile communication strategies across platforms to stay engaged with consumers globally.

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0% found this document useful (0 votes)
26 views6 pages

Oreo's Market Strategy in India

This document discusses Kraft Foods' Oreo cookies and their marketing strategies in different markets. It summarizes how Kraft customized Oreos for the Chinese and Indian markets based on local tastes, leading to success. It outlines the 4Ps of Oreo's marketing mix - modifying products for different cultures, extensive distribution including rural areas, consistent promotion of togetherness while tailoring campaigns, and affordable pricing. The document also analyzes Oreo's growth stage in India and investment stance as a star product in China and India requiring high investment for innovation, advertising and market development. It praises Oreo's agile communication strategies across platforms to stay engaged with consumers globally.

Uploaded by

Urban legend
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Symbiosis Institute of Media & Communication (PG), Pune

Symbiosis International University

Submitted by:
Akshat Rai Angurala
Batch: 2016-18
PRN: 16050143008
MBA(CM) Public Relations
Q1 Who are our customers and how do we serve them?
For this Case, Oreo cookies are not restricted to any age group of consumers. These can be
consumed by anyone who loves to eat cookies. Appropriate for kids from the age of 4 to
grown-ups who are 65+, all consume Oreo. Kraft Foods has gone the additional mile to
demonstrate that they are customer oriented by modifying Oreo cookies as per the market
it is catering to. They went past the thoughts of Oreo cookies being dark and white and
round. Not only were the changes made to the physical attributes of the product, as for the
market it was serving, some changes were made even in evaluating of the cookies in India to
make sure that it appeals to Indian people. The Cookies were valued Competitively, with
high volumes, and with intense/strong distribution to reach the very core of the target
market. In China, Kraft Foods comprehended the significance of customer’s taste and
culturally inclined notions towards biscuits. They led broad research to discover how to
make Oreo a success in China. Following which, changed and revised recipes, had an
exceptionally positive effect on the sales of Oreo cookies in the Chinese market. there is no
segment of individuals who are a specific target to the brand, Oreo cookies promotes the
unity in people, especially families and this drives the brand home to the audience.

Q2 How do we define our market?


Anybody and everybody who consumes Cookies define the market for Oreo cookies in India.
India is a huge market when it comes to biscuits consumption. Biscuits and cookies are used
in daily basis, for different occasions, and for different age groups as well. People
throughout the country, in urban as well as rural areas, consume biscuits. Oreo cookies,
have a huge scope of consumption in India. The main consumer to be targeted, as the brand
positions itself, is a bunch of people who want to stay together. All over the world, Oreo has
always maintained an image of spreading the thought of togetherness. Oreo targets a
person who consumes biscuits and cookies at different times through the day. The
communication has also always promoted and encouraged togetherness, which promotes
unity.

Q3 Which market segment do we serve?


Oreo cookies do not serve a specific market segment as they cater to customers with varied
interests. This broad segment includes customers who are outgoing and are ready to try
new products. The segment has a comfortable lifestyle and thus does not mind spending a
little extra on snacking. Oreo cookies are for everyone ranging from grownups to children
and therefore Kraft foods customized their cookies according to the needs of the market
they were targeting. They decreased the sweetness of the cookies sold in China and
increased it of those sold in India. This indicates that Oreo cookies do not have a narrowly
defined market segment.

Q4 What is the marketing mix?


Oreo launched in India with the vision to take over the existing market leaders in the
biscuits segment. The strategy focused on rapid brand awareness and extensive distribution.
Oreo’s success in these markets was mainly due to its understanding about customer
preferences, tailor made products by modifying recipes, competitive pricing, high volumes
and strong distribution in both urban and rural areas.
Following are the 4 P’s of its marketing mix:

 Product - Oreo launched its biscuits in the Chinese and Indian market basis on the
consumption and buying habits of the people. For Indian market, the product was
sweetened to suit the Indian palate whereas for Chinese market, the product was
made less sweet and multiple SKU’s of the product was launched to cater to the
buying habits.

 Place - It has been available in remotest parts in India by collaborating with Cadbury
and using their distribution channel as a leverage in India. Other than distribution,
they’re adding value by adapting to the local cultures China and India. In India, they
have their product at wholesale stores, kirana stores and modern stores.

 Promotion - Communication and advertising have been consistent across the world
as the core customer remains the same. The company focused on using the
togetherness concept to sell Oreos in India, with television forming the main
medium of communication along with other Medias. It used social media to make
engagements with other brands and events and promote Oreo through them, for
this it used its all channels on various platforms of social media. Oreo also used
transit OOH for branding in India in both urban and rural areas.
 Price - Another factor that played an important part in the marketing strategy was
the affordability. They have recreated products and packaging to cater to the value
conscious masses in India as well as China. Their consumer centric approach has
helped them increase the market share in their category. In India, 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.

Q5 What is the lifecycle of the products?


In India, the life cycle stage of Oreo is assumed to be in the growth stage. Being such a
diverse and large market, the consumption for biscuits will always be consistent & demand
for the same will almost never die out. The brand hence, has always been innovating and
introducing Oreo variants to suit the taste of the Indian palette. The differentiating factor
here is their competitive pricing, product differentiation, extensive distribution & unique
taste of Oreo are a few of the differentiating factors that make Oreo stand out from the rest
of the market leaders in the biscuits & cookies industry. Oreo stresses a lot upon
engagement with its target customers, which in turn makes it a love brand. There is still a
long way to go for the brand to reach the maturity stage or the decline stage.

Q6. What is our leverage relative to the price-cost position?


With the market being cluttered with similar product, Oreo made sure that it has a leverage
point over others. While its packaging appears premium the pricing has been standard
throughout. This gave the product mass consumption and created an opening in the market
for them. Its successful customizations and marketing schemes have helped the stand their
ground in the cluttered market of FMCG products.

Q7 What is our investment stance in our product?


The investment stance is varying in each market (country) due to various factors such as:-

 Launch Date
 Market Development
 Innovation
 Change in Strategy

Three countries we should analyse America, China and India based on the case study.
America – Cash Cow Initially launched in this market and designed specifically for this
market the product saw immense success throughout the years, and has currently come to
a point where the American masses need less stimulation for them to buy this product, they
are already present and being talked about by people all over the country.
China- Star Product Although the brand struggled in its initial years, after the management
realized their mistake and adopted localization strategies to their product development they
managed to become a top seller in this market. The constant innovation and advertising
does take up a lot of investment but it also draws in sufficient revenues.
India – Star Product After having learned from its mistakes in the Chinese markets, Oreo
was all set to take over the Indian market, formulating strategies to overthrow the top
sellers such as Parle-G, Brittania etc.
Now they are increasing their market share but at high investment in the form of advertising
and product development

Q8 Analyse the communication strategies followed by Kraft's Foods


for Oreo in this case.
Oreo, as a brand should be considered as an example in the way it uses its marketing
strategies. It considers, modifies and changes with the market trends and preferences. It can
be shown with the following parameters:
Communication and advertising have been consistent across the world as the core customer
remains the same. The company focused on using the togetherness concept to sell Oreos in
India, with television forming the main medium of communication along with other Medias.
It used social media to make engagements with other brands and events and promote Oreo
through them, for this it used its all channels on various platforms of social media. Oreo also
used transit OOH for branding in India in both urban and rural areas.
Oreo’s communication has been consistent across the world since they promote on various
platforms ranging from ATL, BTL and TTL. Other than just creating content banks and pegs
for the regular communications, they have been agile and tried to stick to real time
advertising. They’re known to play content for the multiple screens that the consumers are
on. The best example for this is the Super Bowl contest in America
Into India, they’ve been dunking voguish communal media what a sense on the way to
communicate. Oreo India has the principal agitate station being compared near the
supplementary biscuit brands. They’ve slowly stirred as of commune house toward the
public date for example they’ve fashioned a score fashionable the market. They’ve formed
gist units, which join the kind by way of an chief upshot of the day of the week happening
which the marker is made. Meant for promotion here cups the touring company solitary
the subtitled American ads clothed in good turn of a focus going on kids, who are by the side
of the foundation of the Chinese family, afterward family spokespeople approximating ex-
NBA star Yao Ming. They’ve worn emotional plea here India while perfectly in the function
of fine china when it hysterics the background of in cooperation the societies.

Common questions

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Innovation plays a pivotal role in Oreo’s strategy to expand in emerging markets such as India and China. Recognizing the diverse consumer preferences, Oreo has continuously innovated its product line to suit local tastes, such as tweaking sweetness levels and introducing various SKUs tailored to local consumption habits . This product innovation is coupled with strategic marketing innovations, using culturally relevant themes and figures in advertisements to enhance local appeal . Furthermore, adaptive pricing and packaging innovations have enabled Oreo to penetrate different segments within these vast markets, ensuring comprehensive coverage and sustained growth .

In the growth stage of its lifecycle in India, Oreo faces challenges such as fierce competition from established local brands like Parle-G and Britannia, which necessitate constant innovation and effective marketing strategies . The opportunities include tapping into the increasing demand for biscuits due to the growing middle class and expanding distribution channels to reach a broader consumer base, both urban and rural . Oreo's investments in understanding consumer preferences and customizing products accordingly give it the ability to capitalize on these opportunities, although it must navigate pricing challenges in a price-sensitive market .

Oreo creates value for Indian consumers by integrating pricing, product, and distribution strategies to enhance accessibility and meet consumer preferences. Through competitive pricing, Oreo offers affordable packages that encourage trial and repeat purchases, aligning with value-conscious customer expectations . The product strategy involves customizing the sweetness level of cookies to cater to local tastes, while introducing various SKUs to suit different consumer segments . Distribution efforts utilize Cadbury's extensive network to ensure product availability across both urban and rural areas, maximising reach and boosting convenience for consumers .

Oreo's marketing mix has been crucial to its success in the Indian market through a strategic combination of product adaptation, comprehensive distribution, effective promotion, and competitive pricing. The product was sweetened specifically to appeal to the Indian taste, and numerous SKUs were launched to cater to various buying habits . Distribution leveraged Cadbury's extensive network, ensuring availability even in remote areas . Promotions consistently employed the concept of togetherness, extensively using television and social media, while pricing strategies offered affordability to drive impulse purchases . Together, these elements created a robust market position for Oreo in India.

Oreo's communication strategy has been highly effective in maintaining brand consistency across global markets by focusing on universal themes like togetherness and adapting its message to fit local contexts. Consistent use of the togetherness theme in advertising has allowed Oreo to unify its brand message, whether by leveraging television in India or engaging users through social media globally . Moreover, Oreo adapts its content and promotions to resonate with local traditions and cultural nuances, such as using popular local figures like Yao Ming in China, ensuring the brand maintains global coherence while still appealing to regional audiences .

Oreo has customized its products to suit local tastes in different international markets by altering the sweetness level and other ingredients. For instance, in China, Oreo reduced the sweetness of its cookies to align with local preferences, as consumers there prefer less sweet biscuits. Conversely, in India, the sweetness was increased to cater to the Indian palate, which favors sweeter confections . Additionally, Oreo introduced multiple product variants and adapted its marketing strategies to suit each market's cultural preferences, demonstrating an understanding of local consumer behavior .

Oreo has embraced cultural elements in its advertising campaigns in China by tailoring its marketing messages to fit local customs and consumer behavior. This includes leveraging figures loved and respected in Chinese culture, such as former NBA star Yao Ming, in advertisement campaigns, which helps to appeal emotionally to consumers and strengthens brand affiliation . This cultural integration is significant as it portrays Oreo as a brand that respects and understands local traditions, thereby enhancing trust and loyalty among consumers, and overcoming initial brand hesitancies to boost market penetration and sales .

Oreo's investment strategies vary by market maturity and the competitive landscape. In the United States, where Oreo is a well-established brand, the market position is maintained with limited investment needed for consumer stimulation, as it is a cash cow . In China, Oreo is considered a star product, requiring significant investment in localization and ongoing innovation to sustain and grow market presence, reflecting a need for continued brand building . Similarly, in India, substantial investments are directed towards advertising, product development, and adapting local distribution channels to increase market share in a competitive environment dominated by local brands like Parle-G .

Oreo employs a variety of communication techniques in India, utilizing television as the primary advertising medium to reach a wide audience and reinforce the theme of togetherness . Additionally, Oreo extensively uses social media engagements to interact with consumers and other brands, creating a dynamic online presence across Twitter, Facebook, and Instagram. Transit Out-of-Home (OOH) advertising extends Oreo's reach into both urban and rural spheres, complemented by promotions like the use of voguish content on social media for real-time customers' interaction . These integrated communication efforts maximize brand visibility and engagement.

Oreo's pricing strategy enhances its competitive advantage by setting prices that encourage mass consumption while maintaining a perception of premium quality. In India, for example, Oreo introduced competitively priced packages to attract impulse purchases, with small packs costing as little as Rs 5. This approach helps Oreo penetrate both urban and rural markets by making the product affordable for the value-conscious populace. Such strategic pricing allows Oreo to maintain a strong market presence even amidst intense competition in the FMCG sector .

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