Case Study: How Oreo Launched and Established in India

Priya Bawa

She has started her career as a Content Writer and writes on blogs related to career.

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Oreo was continuously America's favorite cookie throughout most of its 100-year history, but it is now a well-established global brand. Mondelez International entered new countries swiftly, understanding the laws of success in these previously unknown regions, altering and refining the brand's approach, and finally triumphing in winning over customers. This case shows how the Oreo brand's successful entry into the Indian market was well orchestrated by utilizing Communication Mix elements such as Advertising, Sales Promotion, Events and Experiences, and Public Relations to establish the brand during the launch phase and then stabilize and grow the brand in India. Boost your Skills by learning: Digital Marketing
 
Table of Content:
1) Background and Company Information
2) Problems encountered while entering Emerging Markets
3) In India, the following strategy is used
4) Oreo Brand Communication and Advertising


Background and Company Information:
The National Biscuit Company (now known as Nabisco) invented and manufactured the "Oreo Biscuit" in 1912 at its Chelsea Manhattan facility in New York, US. This factory was located between 15th and 16th Streets on Ninth Avenue. This section of Ninth Avenue is currently known as "Oreo Way." Oreo, the iconic cookie brand, celebrates its 100th birthday on March 6, 2012.

Source: Safalta

Oreo grew from humble origins in a Nabisco bakery in New York City to become the bestselling cookie brand of the twenty-first century, garnering $2 billion in global yearly revenue. Mondelez International now owns Oreo, one of the company's twelve billion-dollar brands. Oreo was primarily concentrated on the US market until the mid-1990s, as seen by one of its iconic advertising slogans from the 1980s, "America's Best Loved Cookie." However, due to restricted growth potential in the US market, the corporation turned to emerging markets such as China and India. Cadbury Oreo was introduced in India by Mondelez International in March 2011.
 
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Problems encountered while entering Emerging Markets:
Oreos haven't always been renowned outside of the United States. Kraft, for example, battled for years in China following its introduction and considered abandoning the market multiple times. Sanjay Khosla, Kraft's president of new markets, once stated that the cookie was dramatically failing. One issue was that Kraft provided Chinese consumers with the identical sort of Oreos that it marketed in the United States. Kraft thought that what was good for the United States was also beneficial for the rest of the globe. After research revealed that Chinese customers thought Oreos were overly sugary, Kraft tasked Andrade with developing a new formula to better suit local preferences. Kraft ran into the opposite difficulty in India: Indians complained that the American-style cookie was excessively bitter. According to Andrade, adjusting for local preferences entails more than just deleting one element. It's all about getting the tastes right. You almost have to rebuild the product.
 

In India, the following strategy is used:
Kraft applied what they had learned in Chinese markets when they entered Indian markets. Initially, Oreo was exclusively accessible in India as an imported product. As a result, it was priced at Rs 50 for a 14-pack. Sales were relatively low due to the exorbitant price combined with a lack of awareness. At this point, worldwide CEO Irene Rosenfeld has opted to pursue a localization strategy similar to that utilized in China. This was aided in part by Cadbury's takeover in 2009. Indians, unlike the Chinese, enjoy biscuits. India is the world's largest biscuit market. However, low-cost glucose biscuits dominate the market, with luxury cream biscuits accounting for a minor percentage. As a result, competitive price and good distribution were critical components in capturing the Indian market. Oreo devised a plan to compete with current market giants like as Britannia, ITC, and Parle. This tactic was internally referred to as TLD (Take Leaders Down). Its concentration was on the 10 million homes that consumed 70% of the cream biscuits. It was introduced to the Indian market as Cadbury Oreos since Cadbury had a higher brand identification among Indian consumers than Kraft. It has targeted tiny villages and Kirana stores, as well as sophisticated retailers in major cities. As a result of this strategy, its market share has increased from 1% when it was launched to 30% now.
 
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Oreo Brand Communication and Advertising:
Communication and advertising have remained similar across numerous markets because the underlying consumer and brand facts have not changed. In India, the firm emphasized on the "moments of togetherness" concept for Oreo, with television serving as the primary channel of communication. In addition, various media outlets were used. Oreo was also prominent in digital media, with the Oreo Facebook page rapidly gaining popularity. The business also constructed a "Oreo Togetherness Bus" that toured nine cities, bringing the Oreo togetherness concept to life for customers. In smaller towns, a similar campaign was launched with Vans. To generate trial and sales, Oreo's objective was to boost point-of-purchase sales through retail displays and in-store customer activations. Packaging, TV (spots and program sponsorships), radio spots (including radio program content), digital website and social networking sites, and a variety of Out-of-Home advertising activities such as hoardings, at airports, in transit communication, and billboards were among the brand touch points used for communication. To generate excitement around the brand introduction, merchandising, POP, sales promotion, retailtainment, and ambient marketing were employed.
 
Oreo was America's favorite cookie for most of its 100-year history, but it is now a well-known global brand. Mondelez International quickly entered new nations, learning the rules of success in these previously unknown places, changing and refining the brand's strategy, and ultimately triumphing in winning over customers. This case demonstrates how the successful entry of the Oreo brand into the Indian market was well orchestrated by utilizing Communication Mix elements such as Advertising, Sales Promotion, Events and Experiences, and Public Relations to establish the brand during the launch phase and then stabilize and grow the brand in India.

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Why is Oreo being relaunched in India?

Here's the situation: OREO first appeared in 2011. In 2011, India won the Cup! As a result, OREO is reenacting the events of 2011 in order to assist replicate Team India's memorable triumph in 2011.
 

What was the marketing plan for the Oreo's introduction in the Indian market, and who was the target market?

When the cookie was first introduced to the market, the price was cheap in order to attract the target demographic, but as it got more recognizable and popular, the price was raised, and it is now regarded one of the world's branded cookies.
 

What is the executive summary for Oreo?

Brief Synopsis: Oreo was America's favorite cookie for the most of its 100-year history, but it is now a worldwide brand. Faced with domestic market stagnation, Kraft Foods expanded into new nations, where it made some mistakes, learned from them, and ultimately won.
 

In India, what is the Oreo slogan?

Oreo's tagline 'twist, lick, dunk' has become a tradition and has been at the center of many happy family moments.
 

Why is Oreo so popular?

Oreo's global popularity stems from its global adaption. The cream filling is usually customized in most markets. The Mexican cream is cocoa-flavored and created with three different varieties of chocolate, whereas Argentinians consume their Oreos with dulce de leche inside.
 

What is the goal of Oreo?

Their goal was to make Oreo relevant to young adults on social media, rather than children and their mothers. Oreo moved beyond their brand and product to the world in which their consumers lived to target a market group who likely felt they had outgrown the product.
 

Was Oreo a hit when it first debuted in China?

Oreo had a successful initial introduction in China and had built a strong footing within three years, by 1999. Following Kraft's acquisition of Nabisco, the united firm, with its enlarged product line, had become China's largest biscuit maker, with a 10% market share in the category.

 

Who is Oreo's intended audience?

To communicate with consumers and build a deep link with them, the Oreo brand has created several inventive and creative marketing campaigns with various activities. Because the brand's target consumers are young people and children, Oreo often runs its advertisements on social media and on television.
 

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