Wednesday, May 18, 2011

Case study -launch of Oreo cookies in India


                                                                                                                                                                                Cadbury India was launched Oreo cookies, a billion dollar brand owned by its US-based parent Kraft Foods, as it looks to gatecrash into the Rs 13,000-crore biscuits market dominated by Parle and Britannia. The locally-manufactured Oreo was  launched in April, almost a century after it was introduced in the US market. "Oreo is the No.1 biscuit brand in the world by value and enjoys leadership in several markets including the US and China," Anand Kripalu, president, Kraft Foods for South Asia & Indo-China , said in a media statement.Kraft has slashed its price tag to Rs 5 for 3 biscuits; Rs 10 for 7 biscuits; and Rs 20 for 14 biscuits so that it is within the reach of a wider consumer base. Yet it won't be easy for the world's largest selling biscuit to attract price-obsessed Indian consumers, feel industry experience.                                                                                                                                                                                               The  Oreo cookies have  focused on children, youth,women and should promote the new colors for the crème filling and change the round shaped cookies into rolls, which would generate new interest amongst children, who would in turn convince their parents to buy the new cookie.
The youth population really high in the metro and tier 1 cities.Women are reguarlly going in supermarket in cities with their children.As India is developing, people now are becoming aware of various new brands which are attracting them to explore and investigate things. Women here are obsessed about shopping and show a favorable attitude and interest towards the different brands.They are also considered as heavy users when it comes to brand loyalty.                                                                                                                                                                                   As Oreo is a biscuit, and biscuits are food, so the most important need the Oreo biscuits satisfy is Hunger.
But if we further narrow down the needs, Oreo can be satisfying more than just the drive (hunger).
*Oreo satisfies the nurturing need example, a mother having difficulties in feeding her 4 to 6 years old child with some nutrition food, can consider Oreo to feed her child with a sip of milk.
*Oreo satisfies the imitation need example, kids watching the Oreo ad on TVs while the other kids are enjoying twisting, licking and dunking the cookie into a glass of milk. This forces the kids to want that cookie right away and imitate the same steps.
*Oreo also satisfies the fun need, and in this case not only kids will want to have fun and enjoy Oreo even adults like to have fun once in a while individually or even with their kids.
Females have been given permission by the government to work which resulted in the increase of purchasing power.Driven by changing lifestyles and population growth the impact on the food market has been positive. The market therefore witnessed rapid growth over the review period.The consumers in India market are seen as active switchers with a medium brand loyalty level.The food industry in kingdom is really wide and the competitions exist at a high range. Biscuits, cookies or sandwiches have a large market which makes it a tensed environment for Oreo.There are a lot of competitors in the same industry providing the same products but the most competitive companies are:-parle,brtania,itcWhen the customers recognize the various needs of hunger, nutrition, imitation and fun they enter the first step of decision making process.Now, they come across various cues of different products to satisfy those needs for example TV commercials, billboards, information from friends or relatives or their own previous experience.In the next step, customers evaluate the various alternative ways and brands that can satisfy their specific needs. (Here customers also compare the different products and brands based on benefits, price, quantity, etc.)
Finally, the customer decides on either purchase of OREO or rejection
If the customer after consuming OREO sandwich feels dissatisfied then he is said to have entered cognitive dissonance.
Suggested Marketing Mix
Product:
  • Develop new sandwiches which contain less calories, less fat, less cocoa powder and less salt.
  •  package should be given a new look to attract more customers.
  • The labeling should be clear and nutritional information should be specific and not hypothetical such as “May contain milk protein”!!!
Price:
  • Lower down their current prices because competitor already kept lower price.
  • Maintain a fixed price for all specific products overall the India market.
Place:
  • Oreo should improve their market existence. Example: Malls,supermarket,Schoool1`s canteen,
  • Ensure availability of product in kirana shop in metro as well as tier 1 and tier 2 cities than expan its market in rural areas.
Promotion:
  • Promotions through TV commercials ,flyers pamphlets , newspapers now a days social media campign is very successful.So advertised it through Facebook,orkut,Myspace etc.
  • Improve their marketing campaign by sponsoring bill boards. Because kids want to see their favorite Oreo in Bill board rather than TV ads.
Contingency Plan
·          “A future forecast plan” for the entrance of competitors into the market, price inflation, and changes in the external marketing environment.

·         Technology plays a vital role and directly affects businesses. To increase sales and to provide quality products, Oreo may take the advantage of the latest equipment available.

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