Top Banner
Project on Consumer Behaviour Oreo - From inception to growth phase Sanjay Gupta (SIESCOMS : EMBA-Marketing Sem-3)
40
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Consumer Behaviour

Project on

Consumer Behaviour

Oreo - From inception to growth phase

Sanjay Gupta(SIESCOMS : EMBA-Marketing Sem-3)

Page 2: Consumer Behaviour

Presentation Agenda

My Presentation Topic

Life cycle of the brand – OREO From inception to growth phase

 1. Consumer Behaviour (Our Take ) - 4 Slides  (2 Min)

2. Brief About Biscuit Industry in India  - Existing players, competition to my brand (Oreo), market share, how has it progressed over the years -     7 slides (3 Min)           

3. Oreo – My Topic. Origins, what, when, how, where, why, How it became famous.

i. Life cycle of Oreo - From inception to Growth and current Phase

ii. Relevant promotions that made a difference to the brand Oreo in the eyes of the consumer.

iii. Will discuss ads by the marketer and status of the brand before and after the promotional activity plus how much it helped?            - 25 Slides - 10 Min

4. Q&A      - 1 min

5. Bibliography

Page 3: Consumer Behaviour

Consumer Behaviour - Introduction

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants.

It also tries to assess influences on the consumers from groups such as family, friends, reference groups, and society in general.

Page 4: Consumer Behaviour

Model of consumer behavior

Stimuli (marketer dominated, other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differences• resources• motivation & involvement• knowledge• attitudes• personality, values, lifestyle

Influences• culture• social class• family• Physiological• Business

Start

Page 5: Consumer Behaviour

SITUATIONS

ProblemRecognition

InformationSearch

Alternative Evaluationand Selection

Outlet Selectionand Purchases

Post-purchaseProcesses

SITUATIONS

EXTERNAL INFLUENCESCulture

SubcultureDemographicsSocial Status

Reference GroupsFamily

Marketing Activities

INTERNAL INFLUENCESPerceptionLearningMemoryMotives

PersonalityEmotionsAttitudes

SELF-CONCEPTand

LIFESTYLE

Desires

Experiences and Acquisitions

Experiences and Acquisitions

Needs

DECISION MAKING PROCESSES

Page 6: Consumer Behaviour

Brief About Biscuit Industry in India

1. Introduction

2. Market Share of Existing Players

3. Classification of Existing Players

4. Strategic Competition to my brand (Oreo),

5. How has it progressed over the years

6. SWOT Analysis

Page 7: Consumer Behaviour

Biscuit Industry

1. The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked).2. India Biscuits Industry is the largest among all the food industries in India. Turn over around Rs. 21000 CRORES! India is known to be

the second largest manufacturer of biscuits. Indian biscuit industry has occupied around 55-60 percept of the entire bakery production Biscuit industry Production

Organized Sector 60% & Unorganised Sector : 40% Rural-urban penetration of Biscuit:

Urban Market : 75% to 85% & Rural Market : 50% to 65%3. The major Brands of biscuits in organized sector are – Parle, Britannia& Sunfeast Others are Priya Gold, Marico, Elite, Cremica, Dukes,

Anupam, Horlicks, Craze, Nezone and Oreo4. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country.5. According to the NCAER Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in

both rural and urban areas with an average monthly income of Rs. 750.00. 6. Segmentation in the biscuit industry:

– Less than Rs. 100/kg: Economy segment– Rs. 100-125/kg: Middle segment– Rs. 125- 150/kg: Premium segment– More than Rs. 150/kg: Super-premium segment

7. Economy segment likely to grow at 15-18% annually while premium segment is to clock 30% growth

Page 8: Consumer Behaviour
Page 9: Consumer Behaviour

Biscuit Industry – Existing Players

1. The organized sector accounts for 80% and the unorganized sector accounts for 20% of the total industry volume.

2. The organized sector is valued at above Rs 8000 cores.3. In terms of volume biscuit production by the organized segment is estimated at 1.30 million tones4. The organized sector is dominated by Britannia, Parle which accounts for more than 70% of the

industry’s volume

Page 10: Consumer Behaviour

Classification of Market Players

Major Players Minor Players Emerging Players Foreign Niche Players

United Biscuits(Bitain)Danone (French food giant) NubiscoUnibic (tied up with Food Bazaar launched Tasty Treat

ParleBritannia

ITC

Surya Biscuits Pvt. Ltd.priyaGold

Anmol

Kraft’s Cadbury OreoPepsiCo : "protein-rich “ Aliva launched 2009

Page 11: Consumer Behaviour

Strategic comparison

Page 12: Consumer Behaviour

Industry Metrics

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

8%10%12%14%16%18%20%

Annual Growth

Annual Growth

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-110

2

4

6

8

10

12

14

16

18

20

1112.54

14.2916.14

17.4416.57

18.2519.6

Annual Production in Lakh Metric Tonnes

Page 13: Consumer Behaviour

Rivalry in the Industry: High• A few major players dominate the

market• High competition

• Big players have deep pockets and unorganized players cannot

compete in budgets

Threat of New Entrants: Medium• Small players cannot enter as

high entry of barriers in terms of capital intensive production etc.

• Some other big player might enter

Threat of Substitutes: High• Many variants in the Packaged

Mass Consumption Goods segment

• Traditional home-made snacks making a come back

Bargaining Power of Customers: High

• Availability of many variants in all prices, quality, tastes etc.

• Medium brand loyalty

Bargaining Power of Suppliers: Low

• Manufacturers are big players and suppliers are small players and

unorganized• Ingredients are basic commodities

like wheat, sugar etc.

Page 14: Consumer Behaviour

Oreo – From Inception to Growth Phase…

1. Oreo in India

2. Cadbury India (Mondelez India Foods Limited) – Brief Introduction

3. Oreo – IntroductionA. What, when, how, where, why?

B. Cultural Mission (Togetherness

C. How has Cadbury Oreo’s journey been in India since its launch? – (Some Facts and Figures)

D. Life cycle of Oreo - From inception to Growth and current Phase -- (Financial Data)

E. Market Analysis and Need

F. Geographic, demographic and behavior Factor

G. Competition

H. Positioning & Target Consumer

I. Promotion - Relevant promotions that made a difference to the brand Oreo in the eyes of the consumer. Will discuss ads by the marketer and status of the brand before and after the promotional activity plus how much it helped?

J. Pricing & Placement

K. SWOT Analysis

L. Recommendations

4. Q&A     

5. Bibliography

Page 15: Consumer Behaviour

Oreo in India

Page 16: Consumer Behaviour

Cadbury India (Mondelez India Foods Limited)1. Cadbury India Ltd - ( BSE: 500793 | NSE: CADBURY | ISIN: INE184A01014 Market Cap: [Rs.Cr.] 1,504 | Face Value: [Rs.] 10 Industry: Food -

Processing – MNC. 2. Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a leading global confectionery company with an outstanding portfolio of

chocolate, gum, candy brands and now confectionery business too.3. The corporate office is in Mumbai. The company has manufacturing facilities at Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh,

Bangalore in Karnataka and Baddi in Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai. 4. The company operates in five categories namely, Chocolate Confectionery, Milk Food Drinks, Candy, Gum category and Biscuit. 5. Cadbury India Ltd was incorporated in the year 1948 as a private limited company with the name Cadbury Fry (India) Pvt Ltd. The company

began their operations in India by importing chocolates. In the year 1950s, the company started the manufacture of Chocolate and Bournvita. The name of the company was changed from Cadbury Fry (India) Pvt Ltd to Cadbury India Ltd. In the year 1980s, the company was converted into a public limited company.

6. Acquisition by Kraft Foods - In 2009, US food company Kraft Foods launched a hostile bid for Cadbury, the UK-listed chocolate maker. As became clear almost exactly two years later in August 2011, Cadbury was the final acquisition necessary to allow Kraft to be restructured and indeed split into two companies by the end of 2012: a grocery business worth approximately $16bn; and a $32bn global snacks business. Kraft needed Cadbury to provide scale for the snacks business, especially in emerging markets such as India.

7. On 4 August 2011, Kraft Foods announced they would be splitting into two companies beginning on 1 October 2012. The confectionery business of Kraft became Mondelēz International, of which Cadbury is a subsidiary.

8. Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited.

Page 17: Consumer Behaviour
Page 18: Consumer Behaviour

Oreo - Introduction

1. The origin of the name Oreo is unknown, but there are many theories, including derivations from the French word 'Or', meaning gold (as early packaging was gold), or the Greek word 'Oreo', meaning beautiful, nice or well done.

2. Oreo is a sandwich cookie consisting of two chocolate disks with a sweet cream filling in between. The "Oreo Biscuit" was first developed and produced by the National Biscuit Company (today known as Nabisco) in 1912

3. The Oreo Biscuit was renamed in 1921, to "Oreo Sandwich.In 1948, the Oreo Sandwich was renamed the "Oreo Creme Sandwich"; it was changed in 1974 to the Oreo Chocolate Sandwich Cookie.

4. In the mid-1990s, health concerns prompted Nabisco to replace the lard in the filling with partially hydrogenated vegetable oil

5. Starting in January 2006, Oreo cookies replaced the trans fat in the cookie with non-hydrogenated vegetable oil

6. In April 2011, Oreo announced its special edition Oreo cookies with blue cream in promotion of the 2011 3D computer animated film Rio.

7. Around 33,000,000 Oreo biscuits are eaten every day around the world! 8. Globally Oreo generates revenues of more than $1 billion annually 9. China is the world‘s second largest market for Oreo, since its launch in 1996. It is today China‘s #1 biscuit.

Cadbury India introduces iconic Oreo biscuit brand in India (Aims to Twist, Lick and Dunk its way into Indian Hearts)

Page 19: Consumer Behaviour
Page 20: Consumer Behaviour

Oreo – What & When?

What - Cadbury Oreo? Most people may be confused since globally its Kraft Oreo, and its no wonder since its one of the largest and the most popular biscuit/cookie brand worldwide and has market leadership in the US and China. But just like its Christie Oreo in Canada, well, its Cadbury Oreo in India, and marks Cadbury’s entry into the estimated Rs 21,000 crores biscuits market here.

Oreo was launched in its classic flavor – dark chocolate biscuit with smooth vanilla crème. Local manufacturing has made competitive pricing possible, with Rs 5 (11 cents) for a 3 biscuit pack, Rs 10 (22 cents) for a 7-pack, and Rs 20 (44 cents) for a 14-pack. Smaller pack sizes make the brand more inviting to consumers for sampling. This also enables it to reach a wider consumer base and make full use of the distribution network, right up to the village level, although initially it will be available only in urban and semi-urban India. Considering that an imported 14-pack Oreo cost Rs. 50 ($1.10) and was selling like hot cakes, it looks like competitors are in for tough times ahead. When - Mumbai, March 3, 2011: Cadbury India, as part of the Kraft Foods Group, today announced the introduction of the iconic power brand, Oreo biscuits, in India The introduction 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 - leveraging the combined strength of Kraft Foods‘ global scale and expertise and Cadbury‘s strong track record in India.

Page 21: Consumer Behaviour

Oreo – Why and How?

Why - The launch of Oreo is part of the company‘s long-term strategy in India to gradually expand the business‘ operation from a pure play confectionary company to a more broader foods company that will leverage the global scale and expertise of Kraft Foods to win in India.

How 1. Cadbury India‘s sales approach, robust sales infrastructure and extensive consumer insights enables the

company to introduce new Kraft Foods ‘Oreo’ as it enters new categories and transforms its local business. 2. Cadbury which has a stronger presence in India and has a superior marketing and distribution network

here, which has been built over decades. This network is deep, reaching into villages in the crevasses of the country. The brand associations that Cadbury brings to the table; chocolate, delicious, family bonding, traditions, sweet taste, the blue colour, etc. also reinforce Oreo, and give it a strong base for its introduction, and guarantee a successful launch.

3. The brand is targeted towards families, with a specific consumption focus on the next generation. Advertising for Cadbury Oreo follows the global script. The television commercial shows a father and his son connecting & bonding over the ‘Twist, Lick and Dunk’ ritual, which is an integral part of the.

Page 22: Consumer Behaviour

Cultural Mission (Togetherness)

Oreo’s cultural mission is to liberate the spirit of childhood and believes that people connect deeply when they share something together.1. Oreo ‘Family Togetherness Campaign’ – To make Oreo a catalyst for family togetherness and create a space for

the brand in India, a phase-wise campaign titled “Oreo Family Togetherness” was conceptualized that included:2. Oreo Togetherness Quotient: To establish credibility for Oreo to become a catalyst for the parent and child bond,

a survey was commissioned for proprietary insights on today‘s parent and child relationship and the impact on society. The objective of the survey is to raise awareness of the issue and create the need for bonding

3. Oreo Togetherness Bus: A nation-wide movement that provided parents a platform to bond with their children. The Blue Oreo Togetherness Bus traveled across the country promoting the importance of spending quality time with family

4. Oreo Togetherness Pledge: A solution that encouraged parents to take the first step towards making a difference through a pledge

5. Oreo Togetherness Mela: We took the Oreo Togetherness Bus campaign to the next level with the Oreo Togetherness Mela. A blue Oreo branded van traveled across more than 600 towns, hosting fun activities and interactive games, based on Oreo’s much-loved ritual of ‘Twist, Lick and Dunk’

Page 23: Consumer Behaviour

How has Cadbury Oreo’s journey been in India since its launch?

1. A very successful journey since the launch in February 2011 2. A great consumer response and a strong equity share. 3. Cadbury launched the brand with classic Vanilla flavor and over the last two years introduced two more exciting

variants – Choco Crème (2012) and Strawberry (2013) 4. The product was sweetened to suit the Indian palate (Indian taste)

5. Oreo India is growing into an Rs 300 crore brand with a market share of 30 per cent in premium cream cookies . 6. From ice-creams shakes to doughnuts and frappes at coffee outlets, it is constantly lending itself to new

innovations in the country’s Rs 250,000 crore eating out market. 7. "Oreo doughnuts are very popular; they contribute 20 percent to our sales today. It was introduced briefly but

now made a permanent fixture of menu", says Tarak Bhattacharya, COO, Mad Over Donuts. 8. From ice-creams shakes to doughnuts and frappes at coffee outlets, it is constantly lending itself to new

innovations in the country’s Rs 250,000 crore eating out market.

http://www.moneycontrol.com/news/cnbc-tv18-comments/oreo-bakes-new-ways-to-retain-top-spotindian-cookie-mkt_903326.html

Page 24: Consumer Behaviour

Some Facts and Figures

Page 25: Consumer Behaviour

Oreo – Consumer perception

Value Proposition Functional1. satisfies hunger as food2. can be diversified into variety of sweets such as drinks, candies, pies, cakes, etc.3. satisfies late nigh hunger served as a night snack4. Easy to bring small package together

Emotional5. satisfies the fun need for not only kids also for adults want to have fun.6. happy and delicious when eating Oreo

Self-Expressive7. satisfies nurturing by feeding children nutritionally balanced cookies8. satisfies the imitation need that kids watching the Oreo ads on TVs while the9. other kids are enjoying " Twist, lick, Dunk "

Page 26: Consumer Behaviour

Cadbury Sales (FY 2010-2011)

FY 2010-11

Product Name Unit% of

Stock% Cap.

Util.Prodn Sales (Cr.)

Chocolates/Coated Wafer/Confec

Jar 72.3 100 75,00,609 1,864.20

Malt Foods (Jar/Bag/Sachet) Pcs 18.8 100 7,95,68,194 492.18

Confectionery- Hard Boiled Out 3.3 0 0 85.47Gums Jar 2.1 100 37,80,072 55.02

Cocoa powder (Tin/Bags/Jars) Ten 0.2 100 1,30,541 6.37

Chocolates/Coated Wafer/Confec

Bgs 0 100 2,59,71,738 0

Confectionery- Hard Boiled Bgs 0 100 91,47,562 0Confectionery- Hard Boiled Jar 0 100 26,72,444 0Gums Out 0 100 58,61,552 0Malt Foods (Jar/Refill/Tin) Ten 0 100 5,91,396 0

** No Biscuit Sales in FY10-11

Chocolates/Coated Wafer/Confec

Malt Foods (Jar/Bag/Sachet)

Confectionery- Hard Boiled GumsCocoa powder (Tin/Bags/Jars)

Chocolates/Coated Wafer/Confec

Confectionery- Hard Boiled Confectionery- Hard BoiledGums Malt Foods (Jar/Refill/Tin)

Page 27: Consumer Behaviour

Cadbury Sales (FY 2011-2012)

FY 2011-12

Product Name Unit% of

Stock% Cap.

Util.Prodn Sales (Cr.)

Chocolates/Coated Wafer/Confec Jar 73.1 100 90,35,796 2,573.27

Malted Foods Ton 19 0 0 669.57

Biscuits Pcs 3.4 100 103179655 119.87

Confectionery- Hard Boiled Out 2.3 0 0 80.56

Gums Jar 1.8 100 73,42,127 63.17

Cocoa Powder Ton 0.3 0 0 10.26

Cocoa powder (Tin/Bags/Jars) Ten 0 100 136090 0

Chocolates/Coated Wafer/Confec Bgs 0 100 2,95,90,902 0

Biscuits Ton 0 0 0 0

73.1193.4

2.3 1.80.3

% of Stock

Chocolates/Coated Wafer/Confec

Malted Foods

Biscuits Confectionery- Hard BoiledGums Cocoa PowderCocoa powder (Tin/Bags/Jars)

Chocolates/Coated Wafer/Confec

Biscuits

Source – http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793

Page 28: Consumer Behaviour

Cadbury Sales (FY 2012-2013)

FY 2012-13

Product Name Unit% of

Stock% Cap.

Util.Prodn Sales (Cr.)

Chocolates/Coated Wafer/Confec Jar 75.9 0 0 3242.71

Malted Foods Ton 15.1 0 0 642.74

Biscuits Pcs 5 0 0 212.63

Confectionery- Hard Boiled Jar 2.3 0 0 98.27

Gums Jar 1.2 0 0 51.29

Cocoa Powder Ton 0.3 0 0 14.62

Other Operating Revenues NA 0.2 0 0 9.35

Excise duty NA 0 0 0 0

75.9

15.1 52.3 1.2 0.3 0.2

% of Stock

Chocolates/Coated Wafer/ConfecMalted FoodsBiscuitsConfectionery- Hard BoiledGumsCocoa PowderOther Operating RevenuesExcise duty

Source - http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793

Page 29: Consumer Behaviour

Market Analysis and NeedMarket Analysis 1. The Oreo cookies have focused on children, youth, women and should promote the new colours for the crème filling and

change the2. round shaped cookies into rolls, which would generate new interest amongst children, who would in turn convince their

parents to buy the new cookie.

Marketing NeedAs 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 2 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.

Page 30: Consumer Behaviour

Geographic, demographic and behavior Factor

Geographic Factor: This product should be available in all metro cities as well as tier 1 and tier 2 cities because income level of middle class is increasing Demographic Factor: The youth population really high in the metro and tier 1 cities. Women are regularly going in supermarket in cities with their children.

Behavioural Factor - 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 favourable attitude and interest towards the different brands. They are also considered as heavy users when it comes to brand loyalty.

Page 31: Consumer Behaviour

Competition

• 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, britania,itc

Page 32: Consumer Behaviour

Positioning & Target Consumer

Positioning - For Kids and urban Indian professionals who want a snack, Oreo is a biscuit that is sweet, tasty, and provides energy to get through the day.

Target Consumer (Kids, Youth, women and working professional)1. Focused on children age, youth, women & Professional Workers in Urban Areas 2. Demographic Population > 32 Million3. Existing Snacking Habits4. Increasing Frequency of Snacking

Segmentationkids between the ages of 3-14 & youth between the ages of 15-30

Page 33: Consumer Behaviour

Promotion

1. Product Attribute-Focused 2. Prominently Target Segment Snacking3. Use TV, Print, and Social Media4. Samples to Induce Trial5. Empower Local 6. Managers

Promotion Scheme 7. Buy 2 (125 gms) packs of any new Oreo flavour & get 1 free.8. Buy 3 Triple Oreo packs for just Rs. 909. Distribute free ‘Oreo For Two’ packs on special Occasions

Video:OREO_New TVChttp://link.brightcove.com/services/player/bcpid85331224001?bckey=AQ~~,AAAAEgOwNXk~,XF75431nFgYc_v3OL2HpcpiTx9XUQ2Rf&bclid=0&bctid=2890906432001

Page 34: Consumer Behaviour

Pricing & Placement

Pricing1. Smaller Packages2. Lower Entry Level Price Points 3. PRICING4. In India - Pack and introductory pricing: Rs 5 for 3 biscuits; Rs 10 for 7 biscuits; and

Rs 20 for 14 biscuits covering impulse, family sharing and heavy usage.

Placement5. Maximize Distribution in Kirana and Convenience Stores6. Utilize Cadbury’s Distribution & Network

Page 35: Consumer Behaviour

SWOTOPPORTUNITY1. Kraft holds the number one share position in 21 of the top 25

country categories internationally. This advantage places Kraft in the position to obtain a significant share of a category’s growth and profit, generating additional resources to reinvest in marketing and innovation.

2. Invest in advertising/marketing campaign3. Introduce health and nutritional products (fat free Oreo) in

India.4. add more flavour fillings

STRENGTHS1. Low cost - Affordable products.2. A well-known Brand Name.3. Perceived as the world's number one biscuit4. Good product quality and packaging5. Leadership in world for sandwich category6. First purchase would look at packaging- blue colour stands out the

most.7. Established customer relationships, reputation8. Stock of technology including patents, trademark and copyrights.9. Reputation with inputs' suppliers, labor, etc.

WEAKNESS1. They do not manufacture products that serve the

health2. Nutritional problems, high fat content and calories.3. Not all the varieties and flavours are available

everywhere.4. limited ability to raise price due to competitors’ low

prices

THREAT

1. Large market of biscuits exists in INDIA, which results with many competitors like Britania ,Parle etc….

2. Low involvement product and consumers can easily switch.3. Growth of private label products4. No immediate advertising/marketing campaigns.5. Rising commodity, packaging and other input costs (sugar,6. Changing preferences and demands of consumers.7. Lifestyle changes towards health and nutrition.

Oreo - SWOT Analysis

Page 36: Consumer Behaviour

RecommendationsProduct:

1. Develop new sandwiches which contain less calories, less fat, less cocoa powder and less salt.

2. Package should be given a new look to attract more customers.

3. The labelling should be clear and nutritional information should be specific and not hypothetical such as “May contain milk protein”!!!

Price:

4. Lower down their current prices because competitor already kept lower price.

5. Maintain a fixed price for all specific products overall the India market.

Place:

6. Oreo should improve their market existence. Example: Malls,supermarket,Schoool1`s canteen,

7. Ensure availability of product in kirana shop in metro as well as tier 1 and tier 2 cities than expand its market in rural areas.

Promotion:

8. Promotions through TV commercials ,flyers pamphlets , newspapers now a days social media campaign is very successful. So adverrtised it through Facebook, Myspace etc.

9. Improve the marketing campaign by sponsoring bill boards. Because kids want to see their favourite Oreo in Bill board rather than TV ads.

 

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.

 

We live in a creative society people are moving beyond products and services that merely satisfy their needs.

Page 37: Consumer Behaviour

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.

1. Oreo launched in India in March 2011. It entered the market as Cadbury Oreos.2. 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.

3. 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.

4. 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.

5. The product was sweetened to suit the Indian palate and Kraft exploited Cadbury's network of 1.2 million stores.6. 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.

7. Oreo India's Facebook page is one of the fastest growing in the world. 8. 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.9. With a strategy focused on rapid brand awareness and extensive distribution, the Oreo India launch story has been a success so far. 10. Its market share has grown from a little over one per cent after its debut to a massive 30 per cent of the cream biscuit market.

Page 38: Consumer Behaviour

Queries??

Page 39: Consumer Behaviour

References

1. www.indiainfoline.com/

2. www.oreo.in

3. www.mondelezindiafoods.com/

4. www.moneycontrol.com › News

5. CARE Research's industry updates: April 2013

6. http://everythingexperiential.com/how-oreo-taught-indians-to-twist-lick-and-dunk-chella-pandyan-associate-vp-biscuits-cadbury-india-ltd/#sthash.JjwYULDu.dpuf

7. www.slideshare.net

8. Google.co.in (For studying various article)

9. Launch of OREO cookies in India – http://www.flickr.com/

Page 40: Consumer Behaviour

Sanjay Gupta – Roll no - 20(SIESCOMS : EMBA-Marketing Sem-3)