OREO- Its launch and Establishment in India

                OREO Cookie net worth in 2020 - YouTube Money Calculator

The “Oreo Biscuit” was first developed and produced in 1912 by National Biscuit Company (today known as Nabisco), in New York, US. Today it’s been more than 100 years and now it has become one of the bestselling cookie brand with $2 billion global annual revenues. Its advertising slogan, “America’s Best Loved Cookie” became popular, but limited his growth in US market only. Mondelez International later acquired the company and launched Oreo in India in March 2011.

BRAND STRATEGY IN INDIA:

There was 17% growth in biscuit category (in India) when Mondelez introduced Oreo. Since Mondelez was already a leader in chocolate category (Cadbury being one of its brand portfolio), so now it imposed challenges in Biscuits category also. The only challenge faced by Mondelez was to enter a market where the three biscuit category titans- Parle (41%), Britannia (26%) and ITC (8%) acquired total 75% of total market share. These companies ruled the market for years and have established a strong household in the market. If we observe closely only 2 brands, Parle-G and Britannia Good Day garnered more than 5% share in pool of 1000 brands. This made nearly impossible task for a new brand to create its presence in this category in India.

“Cream” was center of attraction of Oreo biscuits, which was consumed primarily by households with children so their main focus was on cream. To make their entrance in the market, they decided to launch their product under the brand of Cadbury, which was very well diversified in every part of India and they focused on creating awareness and conducting rapid trials. Following were the objectives of their launch:

1. Gain a market share of 1% in the Biscuit category.

2. To build awareness, 40% repeat purchase and 40% trials in priority markets.

THE MARKETING MIX IMPERATIVES:

Oreo launched its chocolate cookie with vanilla cream at Rs 5 per pack with 3 biscuits to drive impulsive purchase and trials, then pack of 7 for 10 Rs and pack of 14 for 20 Rs for heavy consumption segment. Even though the country changed but the design of cookie remained same throughout everywhere. To make Oreo stand out amongst its competitors, the company hosted unique Point of Purchase (POP) and Counter-Top POP devices in various retail stores. So basically they created virtual “Wall of Blue” effect in trade channel emphasizing the brands compelling presence. At the end all investments were made on increasing on-shelf presence.

Now talking about advertisement and communication, the company emphasized on “moments of togetherness” proposition in India. Television was main medium for spreading this proposition whereas Oreo Facebook page was even created where fans were added at rapid rate. The brand touch-points used for communication included TV, packaging, Radio spots, Digital website and social networking sites. Further advertising activities were conducted such as hoardings, at airport, billboards etc.

The company came up a new ritual to bring people together, which was “Twist, Lick and Dunk”. This became a platform to connect people beyond the product, and bring joyousness and family bonding. The message was to create:

1. A ritual of pleasure for children

2. A ritual of Emotion for parents, which sparks moment of togetherness between child and parent.

RESULTS:

Oreo completed its target of 1% market share within 6 months of launch, which was a great beginning. The brand trials and repeats exceeded targets with 4 months and its brand awareness beat other cream biscuit brand’s awareness. It was also listed among the top 30 brands of Facebook in India. So concluding the article, Oreo India launch story has been a success so far.

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