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Project on 
Consumer Behaviour 
Oreo - From inception to growth phase 
Sanjay Gupta 
(SIESCOMS : EMBA-Marketing Sem-3)
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
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.
Model of consumer behavior 
Stimuli 
(marketer 
dominated, 
other) 
External 
search 
Memory 
Internal 
search 
Exposure 
Attention 
Comprehension 
Acceptance 
Retention 
Need recognition 
Search 
Alternative 
evaluation 
Purchase 
Outcomes 
Dissatisfaction Satisfaction 
Influences 
• culture 
• social class 
• family 
•Physiological 
• Business 
Individual 
differences 
• resources 
• motivation & 
involvement 
• knowledge 
• attitudes 
• personality, 
values, lifestyle 
Start
SITUATIONS 
Problem 
Recognition 
Information 
Search 
Alternative Evaluation 
and Selection 
Outlet Selection 
and Purchases 
Post-purchase 
Processes 
SITUATIONS 
DECISION MAKING PROCESSES 
EXTERNAL INFLUENCES 
Culture 
Subculture 
Demographics 
Social Status 
Reference Groups 
Family 
Marketing Activities 
INTERNAL INFLUENCES 
Perception 
Learning 
Memory 
Motives 
Personality 
Emotions 
Attitudes 
Experiences and Acquisitions 
SELF-CONCEPT 
and 
LIFESTYLE 
Desires 
Needs 
Experiences and Acquisitions
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
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 Oreo 
4. 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
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 tones 
4. The organized sector is dominated by Britannia, Parle which accounts for more than 70% of the 
industry’s volume
Classification of Market Players 
Major Players Minor Players Emerging Players Foreign Niche Players 
United Biscuits(Bitain) 
Danone (French food 
giant) 
Nubisco 
Unibic (tied up with 
Food Bazaar launched 
Tasty Treat 
Parle 
Britannia 
ITC 
Surya Biscuits Pvt. Ltd. 
priyaGold 
Anmol 
Kraft’s Cadbury Oreo 
PepsiCo : "protein-rich “ 
Aliva launched 2009
Strategic comparison
Industry Metrics 
17.44 
20% 
18% 
16% 
14% 
12% 
10% 
8% 
Annual Growth 
Annual Growth 
20 
18 
16 
14 
12 
10 
8 
6 
4 
2 
0 
11 
12.54 
14.29 
16.14 
16.57 
18.25 
19.6 
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 
Annual Production in Lakh Metric 
Tonnes
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.
Oreo – From Inception to Growth Phase… 
1. Oreo in India 
2. Cadbury India (Mondelez India Foods Limited) – Brief Introduction 
3. Oreo – Introduction 
A. 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
Oreo in India
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.
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)
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.
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.
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’
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
Some Facts and Figures
Oreo – Consumer perception 
Value Proposition 
Functional 
1. satisfies hunger as food 
2. can be diversified into variety of sweets such as drinks, candies, pies, cakes, etc. 
3. satisfies late nigh hunger served as a night snack 
4. Easy to bring small package together 
Emotional 
1. satisfies the fun need for not only kids also for adults want to have fun. 
2. happy and delicious when eating Oreo 
Self-Expressive 
1. satisfies nurturing by feeding children nutritionally balanced cookies 
2. satisfies the imitation need that kids watching the Oreo ads on TVs while the 
3. other kids are enjoying " Twist, lick, Dunk "
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 85.47 
Gums 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 
Bgs 0 100 2,59,71,738 0 
Wafer/Confec 
Confectionery- Hard Boiled Bgs 0 100 91,47,562 0 
Confectionery- Hard Boiled Jar 0 100 26,72,444 0 
Gums Out 0 100 58,61,552 0 
Malt 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 
Gums 
Cocoa powder 
(Tin/Bags/Jars) 
Chocolates/Coated 
Wafer/Confec
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 
% of Stock 
73.1 
19 
1.8 
3.4 2.3 
0.3 
0 
0 
0 
Chocolates/Coated 
Wafer/Confec 
Malted Foods 
Biscuits 
Confectionery- Hard 
Boiled 
Gums 
Cocoa Powder 
Source – http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793
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 
% of Stock 
75.9 
15.1 
1.2 
2.3 
5 
0.3 
0.2 
0 
Chocolates/Coated 
Wafer/Confec 
Malted Foods 
Biscuits 
Confectionery- Hard 
Boiled 
Gums 
Cocoa Powder 
Source - http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793
Market Analysis and Need 
Market Analysis 
1. The Oreo cookies have focused on children, youth, women and should promote the new colours for the crème filling and 
change the 
2. 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 Need 
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 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.
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.
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
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 Million 
3. Existing Snacking Habits 
4. Increasing Frequency of Snacking 
Segmentation 
kids between the ages of 3-14 & youth between the ages of 15-30
Promotion 
1. Product Attribute-Focused 
2. Prominently Target Segment Snacking 
3. Use TV, Print, and Social Media 
4. Samples to Induce Trial 
5. Empower Local 
6. Managers 
Promotion Scheme 
1. Buy 2 (125 gms) packs of any new Oreo flavour & get 1 free. 
2. Buy 3 Triple Oreo packs for just Rs. 90 
3. Distribute free ‘Oreo For Two’ packs on special 
Occasions 
Video: 
OREO_New TVC 
http://link.brightcove.com/services/player/bcpid85331224001?bckey=AQ~~,AAAAEgOwNXk~,XF754 
31nFgYc_v3OL2HpcpiTx9XUQ2Rf&bclid=0&bctid=2890906432001
Pricing & Placement 
Pricing 
1. Smaller Packages 
2. Lower Entry Level Price Points 
3. PRICING 
4. 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. 
Placement 
1. Maximize Distribution in Kirana and Convenience Stores 
2. Utilize Cadbury’s Distribution & Network
STRENGTHS 
1. Low cost - Affordable products. 
2. A well-known Brand Name. 
3. Perceived as the world's number one biscuit 
4. Good product quality and packaging 
5. Leadership in world for sandwich category 
6. First purchase would look at packaging- blue colour stands out the 
7. Established customer relationships, reputation 
8. Stock of technology including patents, trademark and copyrights. 
9. Reputation with inputs' suppliers, labor, etc. 
SWOT 
most. 
OPPORTUNITY 
1. 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 campaign 
3. Introduce health and nutritional products (fat free Oreo) in 
India. 
4. add more flavour fillings 
WEAKNESS 
1. They do not manufacture products that serve the 
health 
2. 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 products 
4. 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
Recommendations 
Product: 
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: 
1. Lower down their current prices because competitor already kept lower price. 
2. Maintain a fixed price for all specific products overall the India market. 
Place: 
1. Oreo should improve their market existence. Example: Malls,supermarket,Schoool1`s canteen, 
2. 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: 
1. Promotions through TV commercials ,flyers pamphlets , newspapers now a days social media campaign is very successful. So 
adverrtised it through Facebook, Myspace etc. 
2. 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.
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.
Queries??
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/
Sanjay Gupta – Roll no - 20 
(SIESCOMS : EMBA-Marketing Sem-3)

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Consumer Behaviour

  • 1. Project on Consumer Behaviour Oreo - From inception to growth phase Sanjay Gupta (SIESCOMS : EMBA-Marketing Sem-3)
  • 2. 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
  • 3. 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.
  • 4. Model of consumer behavior Stimuli (marketer dominated, other) External search Memory Internal search Exposure Attention Comprehension Acceptance Retention Need recognition Search Alternative evaluation Purchase Outcomes Dissatisfaction Satisfaction Influences • culture • social class • family •Physiological • Business Individual differences • resources • motivation & involvement • knowledge • attitudes • personality, values, lifestyle Start
  • 5. SITUATIONS Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Post-purchase Processes SITUATIONS DECISION MAKING PROCESSES EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes Experiences and Acquisitions SELF-CONCEPT and LIFESTYLE Desires Needs Experiences and Acquisitions
  • 6. 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
  • 7. 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 Oreo 4. 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
  • 8.
  • 9. 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 tones 4. The organized sector is dominated by Britannia, Parle which accounts for more than 70% of the industry’s volume
  • 10. Classification of Market Players Major Players Minor Players Emerging Players Foreign Niche Players United Biscuits(Bitain) Danone (French food giant) Nubisco Unibic (tied up with Food Bazaar launched Tasty Treat Parle Britannia ITC Surya Biscuits Pvt. Ltd. priyaGold Anmol Kraft’s Cadbury Oreo PepsiCo : "protein-rich “ Aliva launched 2009
  • 12. Industry Metrics 17.44 20% 18% 16% 14% 12% 10% 8% Annual Growth Annual Growth 20 18 16 14 12 10 8 6 4 2 0 11 12.54 14.29 16.14 16.57 18.25 19.6 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Annual Production in Lakh Metric Tonnes
  • 13. 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.
  • 14. Oreo – From Inception to Growth Phase… 1. Oreo in India 2. Cadbury India (Mondelez India Foods Limited) – Brief Introduction 3. Oreo – Introduction A. 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
  • 16. 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.
  • 17.
  • 18. 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)
  • 19.
  • 20. 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.
  • 21. 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.
  • 22. 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’
  • 23. 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
  • 24. Some Facts and Figures
  • 25. Oreo – Consumer perception Value Proposition Functional 1. satisfies hunger as food 2. can be diversified into variety of sweets such as drinks, candies, pies, cakes, etc. 3. satisfies late nigh hunger served as a night snack 4. Easy to bring small package together Emotional 1. satisfies the fun need for not only kids also for adults want to have fun. 2. happy and delicious when eating Oreo Self-Expressive 1. satisfies nurturing by feeding children nutritionally balanced cookies 2. satisfies the imitation need that kids watching the Oreo ads on TVs while the 3. other kids are enjoying " Twist, lick, Dunk "
  • 26. 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 85.47 Gums 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 Bgs 0 100 2,59,71,738 0 Wafer/Confec Confectionery- Hard Boiled Bgs 0 100 91,47,562 0 Confectionery- Hard Boiled Jar 0 100 26,72,444 0 Gums Out 0 100 58,61,552 0 Malt 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 Gums Cocoa powder (Tin/Bags/Jars) Chocolates/Coated Wafer/Confec
  • 27. 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 % of Stock 73.1 19 1.8 3.4 2.3 0.3 0 0 0 Chocolates/Coated Wafer/Confec Malted Foods Biscuits Confectionery- Hard Boiled Gums Cocoa Powder Source – http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793
  • 28. 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 % of Stock 75.9 15.1 1.2 2.3 5 0.3 0.2 0 Chocolates/Coated Wafer/Confec Malted Foods Biscuits Confectionery- Hard Boiled Gums Cocoa Powder Source - http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Cadbury-India-Ltd/500793
  • 29. Market Analysis and Need Market Analysis 1. The Oreo cookies have focused on children, youth, women and should promote the new colours for the crème filling and change the 2. 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 Need 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 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.
  • 30. 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.
  • 31. 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
  • 32. 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 Million 3. Existing Snacking Habits 4. Increasing Frequency of Snacking Segmentation kids between the ages of 3-14 & youth between the ages of 15-30
  • 33. Promotion 1. Product Attribute-Focused 2. Prominently Target Segment Snacking 3. Use TV, Print, and Social Media 4. Samples to Induce Trial 5. Empower Local 6. Managers Promotion Scheme 1. Buy 2 (125 gms) packs of any new Oreo flavour & get 1 free. 2. Buy 3 Triple Oreo packs for just Rs. 90 3. Distribute free ‘Oreo For Two’ packs on special Occasions Video: OREO_New TVC http://link.brightcove.com/services/player/bcpid85331224001?bckey=AQ~~,AAAAEgOwNXk~,XF754 31nFgYc_v3OL2HpcpiTx9XUQ2Rf&bclid=0&bctid=2890906432001
  • 34. Pricing & Placement Pricing 1. Smaller Packages 2. Lower Entry Level Price Points 3. PRICING 4. 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. Placement 1. Maximize Distribution in Kirana and Convenience Stores 2. Utilize Cadbury’s Distribution & Network
  • 35. STRENGTHS 1. Low cost - Affordable products. 2. A well-known Brand Name. 3. Perceived as the world's number one biscuit 4. Good product quality and packaging 5. Leadership in world for sandwich category 6. First purchase would look at packaging- blue colour stands out the 7. Established customer relationships, reputation 8. Stock of technology including patents, trademark and copyrights. 9. Reputation with inputs' suppliers, labor, etc. SWOT most. OPPORTUNITY 1. 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 campaign 3. Introduce health and nutritional products (fat free Oreo) in India. 4. add more flavour fillings WEAKNESS 1. They do not manufacture products that serve the health 2. 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 products 4. 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
  • 36. Recommendations Product: 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: 1. Lower down their current prices because competitor already kept lower price. 2. Maintain a fixed price for all specific products overall the India market. Place: 1. Oreo should improve their market existence. Example: Malls,supermarket,Schoool1`s canteen, 2. 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: 1. Promotions through TV commercials ,flyers pamphlets , newspapers now a days social media campaign is very successful. So adverrtised it through Facebook, Myspace etc. 2. 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.
  • 37. 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.
  • 39. 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/
  • 40. Sanjay Gupta – Roll no - 20 (SIESCOMS : EMBA-Marketing Sem-3)