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Oreo In China by Chi T. Le

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Oreo In China by Chi T. Le

  1. 1. in China Chi T. le Case Studies Prof. Theresa Bauer
  2. 2. CONTENT • Introduction • The company • The product • Challenges • Strategy • Solutions • Results • Conclusion
  3. 3. NABISCO & KRAFT FOODS • In 1898, Nabisco founded - America cookies & snacks manufacturer • In 1912, announced The ‘Trio’: Mother Goose Biscuits, Veronese Biscuits and Oreo Biscuits • In 1980s, merged with Kraft Foods by Philip Morris Companies, Inc. • In 2000, whole Nabisco is merged with Kraft Introduction The company The product Challenges Strategy Solutions Results Conclusion
  4. 4. OREO • Born on March 6th, 1912  100-year existence • “Two beautifully embossed chocolate- flavored wafers with a rich cream fillling at 30 cents per pound” • “America’s best loved cookie”, now Global brand • "Oreo Biscuit” (1913)." "Oreo Sandwich" (1921) and "Oreo Creme Sandwich” (1948) • Launched in China in 1996  2005 failed  market research implemented… Introduction The company The product Challenges Strategy Solutions Results Conclusion
  5. 5. OREO’s Problems in CHINA • China: Not cookie eaters but WAFER EATERS • Oreo: • A little bit too sweet and a liitle bit too bitter  alien taste • 72cents/14 oreos = expensive • Company: • Kraft Food paid little attention to Chinese consumers (Tastes according to producers, not to consumers) • US centric-mindset and approach: • Existing US product • US formulation & specifications • US-inspired advertising Introduction The company The product Challenges Strategy Solutions Results Conclusion
  6. 6. Strategy Introduction The company The product Challenges Strategy Solutions Results Conclusion Become #1 Sweet Snack brand in China Vision Formulate for Chinese consumers Quality Appeal to different purchase occasions Channels Reframe to be more than just sandwich cookies Innovation Localized to drive relevance, Boost advertising & promoting Awareness
  7. 7. Introduction The company The product Challenges Strategy Solutions Results Conclusion Quality: Formulate for Chinese consumers  Smaller package Lower price Wider customer range  Cooling Oreo Double fruits Oreo Different flavours
  8. 8. New price points and channels Christmas Package Introduction The company The product Challenges Strategy Solutions Results Conclusion Lunar New Year Package Channels: Appeal to different purchase occasions
  9. 9. “OREOless” Introduction The company The product Challenges Strategy Solutions Results Conclusion Innovation: Reframe to be more than just sandwich cookies Oreo Wafer Oreo Straw-shaped Wafer
  10. 10. Introduction The company The product Challenges Strategy Solutions Results Conclusion Awareness: Localized to drive relevance
  11. 11. Interactive “Twist, Lick, Dunk” Lottery Prizes YaoMing as Representative Introduction The company The product Challenges Strategy Solutions Results Conclusion Awareness: Localized to drive relevance OREO rocks!
  12. 12. Commercial Power Awareness: Boost advertising & promoting Introduction The company The product Challenges Strategy Solutions Results Conclusion
  13. 13. “Twist, Lick, Dunk” – “???” Awareness: Boost advertising & promoting Introduction The company The product Challenges Strategy Solutions Results Conclusion
  14. 14. Results • Oreo’s sales doubled in China, then doubled again, and again. • 2011 became the best-selling cookie in China. • Market share grew by 10 times over the past five years. • Oreo model in China has become the company’s model for all its other products. • “Fantastic beef stew” and “very spicy chicken” Ritz crackers • different formulation for Chips Ahoy cookies which has been tripled over the last few years • Most important lesson! Introduction The company The product Challenges Strategy Solutions Results Conclusion
  15. 15. Understand how cultural differences influence your business “Any foreign company that comes to China and says, ‘There’s 1 1/2 billion people here, goody goody, and I only need 1 percent of that’ … [is] going to get into trouble. You have to understand how the consumer operates at a really detailed level.” Lorna Davis, head of the global biscuit division at Kraft Introduction The company The product Challenges Strategy Solutions Results Conclusion
  16. 16. References • S. Clements, T. Jain, S. Jose, B. Koellmann. (March 31, 2013). Smart cookie. http://businesstoday.intoday.in/story/how-kraft-foods-won-over-customers-in-china-and- india/1/193162.html • Jeff Beer. (Nov 22, 2012). Marketing to China: Oreo’s Chinese twist. http://www.canadianbusiness.com/business-news/industries/marketing-to-china-oreos-chinese- twist/ • R. Smith. (January 27, 2012). Rethinking The Oreo For Chinese Consumers. http://www.npr.org/blogs/money/2012/01/27/145918343/rethinking-the-oreo-for-chinese- consumers • Wikipedia, Google Image & Google Translate
  17. 17. THANK YOU FOR YOUR ATTENTION! Any questions?

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