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. 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. 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. 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
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. “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
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. Commercial Power
Awareness: Boost advertising & promoting
Introduction
The company
The product
Challenges
Strategy
Solutions
Results
Conclusion
13. “Twist, Lick, Dunk” – “???”
Awareness: Boost advertising & promoting
Introduction
The company
The product
Challenges
Strategy
Solutions
Results
Conclusion
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. 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. 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
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 implemented
Not a hit for almost a decade, almost pulled out of the market
2005, market research is implemented
So in 2006, Kraft launched the Oreo wafer stick with white crème of Oreo but in the form of a rectangle wafer and coated in chocolate. It was a home run, putting Oreo into the popular wafer category, extending its reach to consumers who before never gave it a glance. “It completely changed what an Oreo looked like,” says Warren. ”But it made the brand a lot more relevant to the Chinese market.”
http://www.canadianbusiness.com/business-news/industries/marketing-to-china-oreos-chinese-twist/
So in 2006, Kraft launched the Oreo wafer stick with white crème of Oreo but in the form of a rectangle wafer and coated in chocolate. It was a home run, putting Oreo into the popular wafer category, extending its reach to consumers who before never gave it a glance. “It completely changed what an Oreo looked like,” says Warren. ”But it made the brand a lot more relevant to the Chinese market.”
http://www.canadianbusiness.com/business-news/industries/marketing-to-china-oreos-chinese-twist/
