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Stargate Institute

Executive Summary
Nabisco is a company that has been in existence since 1898. During their 109 years in
existence, they have grown through natural growth, mergers, and acquisitions. This has
allowed Nabisco to be the leading snack maker in the world. The Oreo chocolate
sandwich cookie was first introduced in Hoboken, N.J. in 1911. Oreos today are far and
away the world’s most popular cookie. The Oreo family accounts for approximately 10
percent of all store cookie sales--a $3 billion market.
However in recent years Nabisco has been reluctant to adapt to current market trends.
The company was focusing on producing new versions of existing products to make them
more convenient.

Situation Analysis
In 1898, the New York Biscuit Company and the American Biscuit and Manufacturing
Company merged over 100 bakeries into the National Biscuit Company, later called
Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and the
company quickly rose to first place in the manufacturing and marketing of cookies and
crackers in America. To expand their global presence and to strengthen their position in
the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco
Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash
plus assumed $4 million in debt.
Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations.
And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars, Oreos,
Premium Crackers, Ritz Crackers, etc…..
Nabisco Arabia Company Ltd. (NAARCO) was formed in 1995 as a joint venture
between Nabisco International and The Olayan Group of Saudi Arabia.
In 2000, NAARCO made a major investment in a new plant to produce OREO, the
world’s most popular cookie. OREO cookies were launched in the Saudi market in March
2001 with a major TV campaign.


Internal Analysis
The $3 million plant upgrade included a whole new production line, new offices,
additional warehousing, and new mess rooms for the increased work force. Equipment
from Spain, Italy, India, France, and Austria went into the world-class facility, under the
supervision of Nabisco Technical Director Frank Willemsen and the Technical Services
Manager Anselmo Codina.
The people of Kraft have recognized that the business has an important role in society- a
responsibility that included understanding and meeting the public’s expectations, helping
to address important social, environmental and economic issues and making a difference
in local communities and the world. They firmly believe that “Our success will depend
importantly on our willingness and ability to listen, get feedback on what we’re doing
from those both inside and outside Kraft and act responsibly on issues of important
concern.”


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Market Analysis
Target Market:
The current target market for the original vanilla filling Oreo is children. The original
Oreo cookies have previously focused on and promoted the new colors for the crème
filling and change the round shaped cookies into rolls, which would generate new interest
amongst children, who would in turn convince their parents to buy the new cookie.

Geographic Factor:
This project is done and carried on in Riyadh, the capital and largest city of Saudi Arabia.
Riyadh belongs to the historical regions of Nejd and Al-Yamama.
The population of the city is 4,700,000 of which 60% are Saudis and 40 % are foreigners.
And the density is 3,024 km square.

Demographic Factor:
As Riyadh is known for its restrictions and being an Islamic country, the family life
cycles followed here are usually all family members. Young single people can not live
separately and independently, fearing for them young mature boys/girls will live under
their families until its time for them to start up their own families.
And generally Saudi people are well known by their family sizes. Most of the family
sizes are more then 6 or even far more than that. This is what makes the youth population
really high in the kingdom. And it is something obvious and general that Saudi people are
known for their wealth and considered as rich people and in return earn high incomes.

Behavioral Factor:
As Riyadh is developing, people now are becoming aware of various new brands which
are attracting them to explore and investigate things. Women here are obsessed about
shopping and show a favorable attitude and interest towards the different brands.
They are also considered as heavy users when it comes to brand loyalty.




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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 4
to 6 years old child with some nutrition food, can consider Oreo to feed her child with a
sip of milk.
*Oreo satisfies the imitation need example, kids watching the Oreo ad on TVs while the
other kids are enjoying twisting, licking and dunking the cookie into a glass of milk. This
forces the kids to want that cookie right away and imitate the same steps.
*Oreo also satisfies the fun need, and in this case not only kids will want to have fun and
enjoy Oreo even adults like to have fun once in a while individually or even with their
kids.

Market Trends
Various on-going and changing trends in the consumer market affect the business of an
organization. Some of those having an impact on Oreo chocolate sandwich biscuits are:

A 2004 TNS study amongst Saudis has found a trend towards smaller families. It
revealed that Saudis - realize the need for smaller families to provide a better quality of
life for their children.
Females have been given permission by the government to work which resulted in the
increase of purchasing power.
Driven by changing lifestyles and population growth the impact on the food market has
been positive. The market therefore witnessed rapid growth over the review period.
The consumers in Saudi market are seen as active switchers with a medium brand loyalty
level.
Lastly, a study was conducted by TNS in 2007 which showed that 99 per cent of Saudi
respondents in the study consumed chocolate "food" (chocolates, chocolate milk, biscuits,
etc.) in the last seven days, an increase from 95 per cent in 2004.




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Market Growth
Growth in the Saudi Arabian biscuit market is being driven mainly by two factors –
firstly, the marked increase in advertising spend by multinationals such as Nabisco,
Master Foods and Danone. Secondly, the popularity of emerging products such as
chocolate-coated biscuits and bread substitutes, which have recently been launched in the
market.
Researches have shown that biscuits, particularly sweet biscuits, are generally sold at low
prices, averaging between SR0.25 and SR2 (US $0.06 – US $0.53), for a single-serve
pack and enjoy excellent distribution in all outlets.
The biscuits sector is highly developed owing to the strength of the local industry in
Saudi Arabia, represented by large manufacturers such as United Food Industries.
Oreo sales showed a fluctuating result during the past 13 years. When Oreo initially was
launched into the market, sales increased to a high extent for about 3 years but then sales
decreased for a long period during 1997 to 2002. Oreo marketing managers became
aware of their loses and immediately went back to action and changed their marketing
mix and started to introduce several different new products. This effort resulted with high
sales in 2008. Sales were amounted to $4 billion and market share 41%.




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SWOT Analysis

               Strengths                                  Weaknesses
  1. Nabisco is ranked as the top cookie       1. Sales have slowly declined the past
      maker, selling nine of the top twenty       few decades.
      cookies worldwide, including Oreo,       2. They do not manufacture products
      the world’s largest selling cookie          that serve the health conscious
      brand.                                      society.
  2. Oreo recipes are confidential and         3. Poor advertisements and marketing
      not led to the public, that’s why they      promotions.
      stand out uniquely.                      4. Nutritional problems, high fat
  3. Over 491 billion Oreo cookies have           content and calories.
      been sold since they were first          5. Not all the varieties and flavors are
      introduced, making them the best            available everywhere.
      selling cookie (biscuit) of the 20th     6. Oreos all different products are not
      century.                                    available in the kingdom only in
  4. Oreos have been produced in many             Europe countries.
      different varieties since they were      7. limited ability to raise price due to
      first introduced.                           competitors’ low prices
  5. Oreo has formed acquisitions with         8. Not properly defined target market.
      Dominos Pizza, Mc Donalds, Cakes,
      and Baskin Robbins etc….
  6. Nabisco began a marketing program
      in 2008, advertising the use of Oreos
      in a game called DSRL, which
      stands for "Double Stuf Racing
      League."
  7. Every day more than 20.5 million
      Oreo cookies are consumed
      internationally.
  8. First purchase would look at
      packaging- blue color stands out the
      most.
  9. A well known Brand Name.
  10. Affordable products.
  11. Established distribution channel
      (retailers, supermarkets).
  12. More value added through
      packaging and distribution.
  13. Established customer relationships
  14. Stock of technology including
      patents, trademark and copyrights.
  15. Brand reputation.
  16. High quality product reputation.
  17. Reputation with inputs' suppliers,
      labor, etc.


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            Opportunities                             Threats
  1. Kraft holds the number one share         1. Large market of biscuits exists in
     position in 21 of the top 25 country        KSA, which results with many
     categories internationally. This            competitors like Prince chocolate,
     advantage places Kraft in the               Ulker biscuits, etc….
     position to obtain a significant share   2. Low involvement product and
     of a category’s growth and profit,          consumers can easily switch.
     generating additional resources to       3. Growth of private label products.
     reinvest in marketing and                4. Threat of New Entrants
     innovation.                              5. No immediate advertising/marketing
  2. Invest in advertising/marketing             campaigns.
     campaigns.                               6. Rising commodity, packaging and
  3. Introduce health and nutritional            other input costs (sugar, cocoa).
     products (fat free Oreo) in KSA.         7. Changing preferences and demands
  4. Add more flavor fillings.                   of consumers.
                                              8. Lifestyle changes towards health and
                                                 nutrition.
                                              9. Declining fraction of income spent
                                                 on snack food by consumers.




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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:


Prince Chocolate Biscuit


Product               Strength              weakness              Taking advantage
                                                                  of their weakness
                      Strong brand name     Lack of varieties     Produce more
                      and image             and flavors           varieties with
                                                                  different appealing
                                                                  flavors




Americana

                      Strength              weakness              Taking advantage
Product                                                           of their weakness
                      The recipe of this    Weak promotional      A strong TV
                      unprecedented         media through TV      commercial that will
                      ascent to success     ads.                  attract existing, and
                      mainly came from                            new customers.
                      the deep
                      understanding for
                      Arab taste, strong
                      technical
                      capabilities and
                      experienced
                      manpower.




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Ulker

Product              Strength                     Weakness    Taking
                                                              advantage of
                                                              their weakness
                     Strong Packaging             Weak        A strong TV
                     Division Ülker Group is      promotional commercial that
                     one the world's leading      media       will attract
                     packaging materials          through TV existing, and new
                     manufacturer.                ads.        customers.
                     IT Division Ülker
                     Group has been active in
                     IT sector for a long time,
                     this division has several
                     companies in software
                     development, PC and
                     notebook
                     manufacturing, retail
                     chain, and a distribution
                     company.




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Digestive Dark Chocolate

Product              Strength              Weakness             Taking advantage
                                                                of their weakness
                     Introduced into the                        Maintain stable and
                     kingdom’s market                           lower prices to
                                             High prices.
                     “The Orginal Light                         attract more
                     Digestive” .                               customers




Product Offering

                                                                       Serving
   Product           Image                 Flavor           Size         per
                                                                      container
OREO
SANDWICH
COOKIES
OREO
                                           Vanilla          18 oz         15




OREO
SANDWICH
COOKIES
GOLDEN
ORIGINAL                                   Vanilla          18 oz         15




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OREO                                       8
SANDWICH
COOKIES
MINI BITE
SIZE SNAK             Vanilla     8 oz
SAKS



OREO
SANDWICH
COOKIES
CHOCOLATE
                                  2 oz
                     Chocolate                 6




OREO
SANDWICH
COOKIES
CHOCOLATE
SANDWICH              Vanilla    8.46 oz       7
WITH
ORGANIC
FLOUR &
SUGAR

OREO
SANDWICH
COOKIES
DUO VANILLA
&                     Vanilla,
                                 13.8 oz       11
CHOCOLATE            chocolate




OREO
SANDWICH
COOKIES
PURE WHITE
FUDGE                 Vanilla    8.5 oz        12
COVERED




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OREO                                                                      6
SANDWICH
COOKIES
PURE MILK
CHOCOLATE                                    Chocolate        7.5 oz
COVERED
MINT



OREO
SANDWICH
COOKIES
WINTER
WITH RED                                     Red cream        18 oz           18
CREME




OREO
SANDWICH
COOKIES
SPRING
PURPLE                                         Purple
                                                              18 oz           18
CREME                                          cream




OREO
SANDWICH
COOKIES
GOLDEN UH-
OH WITH                                      Chocolate        18 0z           15
CHOCOLATE
CREME




Stock Keeping Unit and Products Available

These products shown below are those of which exist in the kingdom’s market. And the
stock keeping unit chosen for this project is 66gram, SR 1.



      Name                 Weight                  Price
Oreo Sandwich         66 gram               SR 1
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Vanilla/chocolate
Oreo Sandwich          176 gram               SR 2.95
Vanilla/chocolate
Oreo Sandwich          792 gram               SR 11.50
Vanilla/chocolate




Nabisco Oreo Sandwiches, a brand that is older than the automobile assembly line. It is
estimated that an average of 4.3 billion sandwiches have been eaten each year over the
last 90 years.

Marketing Strategies
Mission Statement
“We want our consumers to regard us as their primary snack food. We want our
customers to know that we have their wants and needs in mind along with working to
create products that will cater to their health conscious lifestyles.”

Marketing Objectives:
    •   Maintain demand of customers
    •   Introduce new sandwiches
    •   Create Awareness through effective media
    •   Attract more customers
    •   Retain current customers
    •   Stay ahead of competitors
•       Reduction or elimination of other supply chain inefficiencies
•       To achieve superior consumer exposure
•       Establishment of regional marketing specialists
•       To reinforce and reaffirm the Oreo cookie brand position.

Tagline:
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“Twist, lick, dunk”

Positioning:
The Oreo has long been the best-selling sandwich in the whole world. Whenever the
name of Oreo comes into the minds of consumers, the 1st thing that jogs their memory is-
twisting it, licking the middle portion and dunking the chocolate sandwich into the milk.
Beside kids, it also emotionally attracts adults as their childhood memories are connected
to Oreo. Though couple of adults have a negative positioning about the Oreo sandwich
and the association but in the point of view of kids, Oreo is strongly and highly
positioned.




Current Strategies
Oreo, by observing its product lines and what it has been offering the past years, we can
realize that they are adopting the Product Development Strategy.
Product development means offering new or improved products for present markets. In
this manner Oreo can find different ways to satisfy the customers.




Market Research
Sample
The sample selected for the research is kids, youngsters and adults. The sample size
chosen for quantitative research is 30 and for qualitative 4 people of different ages.

Sampling Technique
To accomplish the market survey, hybrid research (qualitative and quantitative) has been
performed.
 ∙Qualitative research – in-depth interview (triad as well as diad) and ethnography have
been chosen.
 ∙ Quantitative research- questionnaires containing open and close ended questions have
been selected.


QUALITATIVE RESEARCH

Objectives:
   1. Whether people are aware of the brand Oreo
   2. Find out the time (weekends, monthly,etc.) when customers buy OREO
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   3. How often do people purchase and use Oreo products
   4. Find out whether customers are contented
   5. Will customers go for close substitutes of Oreo
   6. Find out what they think and see from the brand’s association “Twist, Lick,
      Dunk”
   7. The reason for purchasing this particular product
   8. Suggestions for new features (if any)
   9. Will customers remain loyal and profitable




   Summary:
   Name: Sana Saeed         Age: 7      Occupation: Student
   Name: Israa              Age: 10     Occupation: Student
   Name: Sami               Age: 15     Occupation: Student
   Name: Mrs. Tahseen       Age: 37      Occupation: Housewife



   Everyone is attentive towards the Oreo sandwich in the market. Kids reacted
   energetically when they saw Oreo sandwiches in TV ads and insisted their parents to
   buy one for them. Almost all the kids loved the tagline ( Twist,Lick,Dunk) but some
   of them disagree, “I love to dunk it only but don’t like to twist and lick it.” as said by
   Sana Saeed. Though teenagers and parents love Oreo too, but they consider the
   tagline as “kiddish”. For some people these steps remind them of their childhood
   memories. The grown ups purchase the sandwiches on occasions when it is their
   child’s birthday or any celebration. But young people buy immediately when they
   crave for it and satisfy their hunger drive.
   People purchase Oreo Sandwiches for different purposes.
   “Have fun eating chocolate biscuits, tastes good”said by Isra.
   “Because I love dark chocolate” as said by Mrs. Tahseen.
   Oreo is a low involvement product and due to this prospect customers can easily
   switch to the close substitutes. But still, brand loyal customers are devoted to their
   brands and won’t let go easily. When 7 year old Sana was asked if she went to the
   market and didn’t find any Oreo sandwich, she replied, “I will search in the next store
   and if I didn’t find there, I will wait for tomorrow and go to my school and purchase
   one there.”
   Finally, due to the different needs, wants, and tastes of the consumers, they all have
   suggested different recommendations.
   “Not to sell the chocolate filling Oreo” said by Sami.
   “Improve the present flavor to some extent” said by Israa


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Quantitative Research

Objectives:

   1. Identify the target customers
   2. Find out the level of brand awareness
   3. Find out the time (weekends, monthly,etc.) when customers buy OREO
   4 .Find the percentage of product usage among consumers
   5. Find out their level of satisfaction
   6. Find out the level of brand loyalty among customers
   7. Find out what they think and see from the brand’s association “Twist, Lick, Dunk”
   8. The reason for purchasing this particular product and suggestions for new features
   (if any)


Result Analysis




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                 Why do you like Oreo cookies?

             80.00%
             60.00%
             40.00%
             20.00%
             0.00%
                          Its shape   Love for dark   Like the
                                       chocolate chocolate/v anilla
                                                    combination




       70%

       60%

       50%

       40%

       30%

       20%

       10%

        0%
               Positive                        Negative




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The positive associations were “OK, GOOD, FUN, YUMMY, CATCHY,
LOVE TO WATCH MY KIDS DOING IT, DELICIOUS, TASTES BETTER, NICE,
And TASTY.”

The negative associations were “KIDISH, WHATS THAT, ONLY DUNKING,
CHANGE IT, DON’T LIKT IT.”



        How often do you purchase Oreo cookies?

      70.00%
      60.00%
      50.00%
      40.00%
      30.00%
      20.00%
      10.00%
       0.00%
                Weekly   Occasions   Whenever you
                                        desire




Table
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          Decision Making Process

                                                    Evaluation
   Need                    Information                                     Purchase              Cognitive
                                                        of
Recognition                  Search                                        Decision             Dissonance
                                                   alternatives


              When the customers recognize the various needs of hunger, nutrition, imitation and
              fun they enter the first step of decision making process.
              Now, they come across various cues of different products to satisfy those needs for
              example TV commercials, billboards, information from friends or relatives or their
              own previous experience.



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  In the next step, customers evaluate the various alternative ways and brands
  that can satisfy their specific needs. (Here customers also compare the different
  products and brands based on benefits, price, quantity, etc.)
  Finally, the customer decides on either purchase of OREO or rejection
  If the customer after consuming OREO sandwich feels dissatisfied then he is said to
  have entered cognitive dissonance.

Current Marketing mix
Product:
Oreo makes sandwiches with premium quality two thin chocolate which is enclosed with
white, rich cream filling. They associate their product with beautiful human emotions of
love and care. Oreo comes in a variety of flavors such as:




  Oreo Fudge Rings




                           Golden Oreo




Strawberry Oreo




Oreo also offers Reduced Fat Oreo, Golden Chocolate Cream Oreo, Oreo Wafer Stix,
Banana Split Cream Oreo etc. Oreo’s recognized for its beautiful product designing. Oreo
is best to be used for breakfast, snacks as well as party purposes.


Price:
“A product is only worth, when customers are ready to pay for it.” – keeping that in
mind, Oreo has developed a price range which is affordable by everyone. In times of
Ramadan season, Oreo gives special offerings and discounts.
Small size – SR 1
Medium size – SR 2.95
Large size – SR 11.50


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Place:
As being famous, Oreo sandwiches can be found everywhere. They can be easily
purchasable in any supermarkets such as Sunbulah, Al-Halwani Bros etc or even in the
well known malls like Granada center, Carrefour, Hyper Panda etc.

                         The distribution channel of Oreo is given below-

                 Producer                    Retailer                  Consumer




Promotion:
Promotion is the way a company shows what it does and what it can offer to the
customers. Oreo adapted an aggressive promotional campaign. Beside magazines, Oreo’s
doing promotional campaigns through television and their website too. Although it is the
most expensive form, it is also most effective. Among TV networks, one of the network
they chose is MBC (MBC 3) because it has the ability to reach the younger portion of
their target market. They also offer coupons on their website. Oreo aims at making their
customer’s life beautiful with their mouth watery products by filling those with the
beautiful colors of love and care.




Suggested Marketing Mix
Product:
   •     Develop new sandwiches which contain less calories, less fat, less cocoa powder
         and less salt.

   •     Customers have been complaining about the packaging for the past years. And in
         order to overcome this issue, the package should be given a new look to attract
         more customers.

   •     The labeling should be clear and nutritional information should be specific and
         not hypothetical such as “May contain milk protein”!!!

Price:

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   •   Maintain their current prices.

   •   Maintain a fixed price for all specific products overall the Riyadh market.

Place:
   •   Oreo should improve their market existence. Example: In Hail-Al-Wazarat, the
       cold stores “Bagalas” don’t have Oreo products.

   •   Nabisco Arabia Inc. should improve their Import/Export channels. They should
       also import the extra features of Oreo products ( Oreo cereal, cakes, and ice
       creams ) into the kingdom.

Promotion:
   •   Their promotions haven’t shown much about their organizations. TV commercials
       were for a short time and ever since they haven’t shown any other particular
       promotions.

   •   They should get in contact with Advertising Agencies for better improved
       commercials.

   •   Their websites provide less information about the whole organization ( Internal
       /External).

   •   Redesign the website ( http://www.nabiscoworld.com/oreo/) and provide more
       corporate information.

   •   Aim for different promotional medias such as Bill boards, Flyers, etc………




Production:
According to a statement from Kim McMiller, an Associate Director of Consumer
Relations, a two-stage process is used to make Oreo sandwiches. The base cake dough is
formed into the familiar round sandwiches by a rotary mold at the entrance of a 300-foot-
long oven. Much of current Oreo production is done at the Kraft/Nabisco factory in
Richmond, Virginia. Oreos for the Asian market are manufactured in Indonesia.
Australian Oreos are made in China. Oreo Kingdom sandwiches are manufactured by
Nabisco Arabia Inc.(NAARCO) which’s located in Dammam. These sandwiches are also
exported to Gulf areas.


Controls
Any branded product can’t be perfectly flawless.

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   •   Previously, Oreo sandwiches were made of animal fats which weren’t
       halal in the Islamic Law. This caused a huge problem for the organizations’
       products. Later on, when their sales were getting affected, they realized the
       concept and switched to the use of vegan fats.

   •   Customers complained of deceptive packages because they found that some of the
       packages were double sized than the contents. This leads to a negative positioning
       in customers’ mind and affects the brand image.

   •    Families are suffering from the obesity problem of their children due to the
       continuous consumption of Oreo sandwiches. The products should be amounted
       with less cholesterol and fats for a healthy life.

   •   Mothers are complaining about the bitterness of the Oreo sandwiches. Due to that
       they should lessen the amount of Cocoa powder.

   •   Kids getting frustrated about the sandwiches being cracked before they even
       implement the steps (Twist, Lick, and Dunk). This may be due to the hard fillings
       or the softness of the two layers.

Contingency Plan
           •   If their current marketing mix is resulting with unsatisfactory outputs they
               should consider the suggested marketing mix.

           •   “A future forecast plan” for the entrance of competitors into the market,
               price inflation, and changes in the external marketing environment.

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

           •   Oreo factory should have high density voltage stabilizer in case, anything
               goes wrong with the electricity.



           •   If current promotions through TV commercials are not giving them much
               satisfying sales, they should go for flyers pamphlets and maybe
               newspapers.


Recommendation
•       Oreo has targeted only kids as their main target customers. Our research has
shown that not only kids eat Oreo but also a large percentage of teenagers and adults
adore it too. So, Oreo must re-target their customers and include these segments.

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•       They should try to maintain a stable sales growth. Because too many
losses and sales fluctuations affects the company’s image and positioning.
•       Introduce other product features of Oreo into the kingdom's market, e.g. cereals,
different flavors and shapes.
•       Make people more aware of the nutritional facts.
•       They should get an expert web designer to redesign their site because instead of
useful information about their organization, it’s full of useless games.
    • Improve their marketing campaign by sponsoring bill boards. Because kids want
        to see their favorite Oreo in Bill board rather than TV ads.

   •    Oreo should introduce a zip lock package as it keeps the cookies fresh for a
       longer time.

   •   They should make sure all of their products are available in all the stores of KSA
       as well as the Gulf countries.




Conclusion:
For Over 90 years, the Oreo sandwich has remained as an icon. Millions of people can
recall childhood memories with dunking Oreos in milk, and spark that emotional
experience to life by hearing the famous jingle or watching a commercial.
Nabisco/Kraft Company enjoys brand loyalty and has stretched the brand to retain 28%
of the market maintaining strong sales within an oligopoly market like snack foods.
Oreo Sandwiches have touched people’s heart of different ages, lifestyles, and
characteristics in a way or another. Oreo was capable to show its customers that it is one
of a kind when it comes to taste, flavor and experience. Though the food industry is an
edgy market, but yet no competitors were capable to pinch the undisclosed ingredients of
Oreo Sandwich Cookies.


References
http://www.nabiscoworld.com/
http://www.nabiscoworld.com/Oreo/
http://74.125.77.132/search?
q=cache:UPbD7GT7HR8J:www.americasgreatestbrands.com/volume6/pdf/Oreos.pdf+m
arketing+plan+of+original+oreo&cd=3&hl=en&ct=clnk
http://www.nabiscoworld.com/Brands/ProductInformation.aspx?
BrandKey=oreo&Site=1&Product=4400000820



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Stargate Institute
http://www.nabiscoworld.com/BRANDS/BRANDLIST.ASPX?
SITEID=1&CATALOGTYPE=1&BRANDKEY=OREO&BRANDLINK=/OREO/MEM
ORIES/&BRANDID=78&PageNo=1
http://www.lotsofessays.com/viewpaper/1712722.html
http://eathalalfood.blogspot.com/2009/02/oreo-cookies-halal.html
http://www.brandchannel.com/features_webwatch.asp?ww_id=283
http://www.reuters.com/article/ousiv/idUSN0243513620080903?
pageNumber=2&virtualBrandChannel=10216&sp=true
http://en.wikipedia.org/wiki/Riyadh
http://www.olayangroup.com/group.asp?groupid=7
http://74.125.77.132/search?
q=cache:NnBSLVRlvJcJ:www.pilotinternational.org/media/docs/other/oreo.doc+what+c
ustomers+think+about+oreo%3F&cd=3&hl=en&ct=clnk
http://www.foodtimeline.org/foodcookies.html#oreos
http://asianfanatics.net/forum/index.php?
s=0b9981a40356d0f7dcf7819bcd04dd19&showtopic=541671&st=0&p=5183035&#entr
y5183035
http://www.ameinfo.com/123859.html
https://www.the-infoshop.com/cgi-bin/ssl/custom.cgi
http://info.emeraldinsight.com/learning/index.htm
http://209.85.129.132/search?q=cache:1Sm-
TMI4_0AJ:https://portfolio.du.edu/portfolio/getportfoliofile%3Ffiuid
%3D17905+SWOT+analysis+of+OREO&cd=7&hl=en&ct=clnk
http://www.economics.pomona.edu/jlikens/SeniorSeminars/pandora/reports/kraft.pdf
http://tigger.uic.edu/~rrago/internal_analysis.pdf
http://www.apmforum.com/emerald/qualitative-market-research.htm
http://www.marketresearchworld.net/index.php?
option=com_content&task=view&id=389&Itemid=53
http://www.marketresearchworld.net/index.php?
option=com_content&task=category&sectionid=9&id=56&Itemid=49
http://www.entrepreneur.com/tradejournals/article/169325389.html
http://www.internationalbusinessstrategies.com/
http://www.internationalbusinessstrategies.com/market-research-reports/saudi-arab.html?
gclid=COmJqMDQt5kCFRYTzAodTD_E8Q
http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Saudi-Arabia-
FUTURE-TRENDS.html




                                                                                    24

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28443502 market-research-on-oreo

  • 1. Stargate Institute Executive Summary Nabisco is a company that has been in existence since 1898. During their 109 years in existence, they have grown through natural growth, mergers, and acquisitions. This has allowed Nabisco to be the leading snack maker in the world. The Oreo chocolate sandwich cookie was first introduced in Hoboken, N.J. in 1911. Oreos today are far and away the world’s most popular cookie. The Oreo family accounts for approximately 10 percent of all store cookie sales--a $3 billion market. However in recent years Nabisco has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient. Situation Analysis In 1898, the New York Biscuit Company and the American Biscuit and Manufacturing Company merged over 100 bakeries into the National Biscuit Company, later called Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and the company quickly rose to first place in the manufacturing and marketing of cookies and crackers in America. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations. And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars, Oreos, Premium Crackers, Ritz Crackers, etc….. Nabisco Arabia Company Ltd. (NAARCO) was formed in 1995 as a joint venture between Nabisco International and The Olayan Group of Saudi Arabia. In 2000, NAARCO made a major investment in a new plant to produce OREO, the world’s most popular cookie. OREO cookies were launched in the Saudi market in March 2001 with a major TV campaign. Internal Analysis The $3 million plant upgrade included a whole new production line, new offices, additional warehousing, and new mess rooms for the increased work force. Equipment from Spain, Italy, India, France, and Austria went into the world-class facility, under the supervision of Nabisco Technical Director Frank Willemsen and the Technical Services Manager Anselmo Codina. The people of Kraft have recognized that the business has an important role in society- a responsibility that included understanding and meeting the public’s expectations, helping to address important social, environmental and economic issues and making a difference in local communities and the world. They firmly believe that “Our success will depend importantly on our willingness and ability to listen, get feedback on what we’re doing from those both inside and outside Kraft and act responsibly on issues of important concern.” 1
  • 2. Stargate Institute Market Analysis Target Market: The current target market for the original vanilla filling Oreo is children. The original Oreo cookies have previously focused on and promoted the new colors for the crème filling and change the round shaped cookies into rolls, which would generate new interest amongst children, who would in turn convince their parents to buy the new cookie. Geographic Factor: This project is done and carried on in Riyadh, the capital and largest city of Saudi Arabia. Riyadh belongs to the historical regions of Nejd and Al-Yamama. The population of the city is 4,700,000 of which 60% are Saudis and 40 % are foreigners. And the density is 3,024 km square. Demographic Factor: As Riyadh is known for its restrictions and being an Islamic country, the family life cycles followed here are usually all family members. Young single people can not live separately and independently, fearing for them young mature boys/girls will live under their families until its time for them to start up their own families. And generally Saudi people are well known by their family sizes. Most of the family sizes are more then 6 or even far more than that. This is what makes the youth population really high in the kingdom. And it is something obvious and general that Saudi people are known for their wealth and considered as rich people and in return earn high incomes. Behavioral Factor: As Riyadh is developing, people now are becoming aware of various new brands which are attracting them to explore and investigate things. Women here are obsessed about shopping and show a favorable attitude and interest towards the different brands. They are also considered as heavy users when it comes to brand loyalty. 2
  • 3. Stargate Institute 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 4 to 6 years old child with some nutrition food, can consider Oreo to feed her child with a sip of milk. *Oreo satisfies the imitation need example, kids watching the Oreo ad on TVs while the other kids are enjoying twisting, licking and dunking the cookie into a glass of milk. This forces the kids to want that cookie right away and imitate the same steps. *Oreo also satisfies the fun need, and in this case not only kids will want to have fun and enjoy Oreo even adults like to have fun once in a while individually or even with their kids. Market Trends Various on-going and changing trends in the consumer market affect the business of an organization. Some of those having an impact on Oreo chocolate sandwich biscuits are: A 2004 TNS study amongst Saudis has found a trend towards smaller families. It revealed that Saudis - realize the need for smaller families to provide a better quality of life for their children. Females have been given permission by the government to work which resulted in the increase of purchasing power. Driven by changing lifestyles and population growth the impact on the food market has been positive. The market therefore witnessed rapid growth over the review period. The consumers in Saudi market are seen as active switchers with a medium brand loyalty level. Lastly, a study was conducted by TNS in 2007 which showed that 99 per cent of Saudi respondents in the study consumed chocolate "food" (chocolates, chocolate milk, biscuits, etc.) in the last seven days, an increase from 95 per cent in 2004. 3
  • 4. Stargate Institute Market Growth Growth in the Saudi Arabian biscuit market is being driven mainly by two factors – firstly, the marked increase in advertising spend by multinationals such as Nabisco, Master Foods and Danone. Secondly, the popularity of emerging products such as chocolate-coated biscuits and bread substitutes, which have recently been launched in the market. Researches have shown that biscuits, particularly sweet biscuits, are generally sold at low prices, averaging between SR0.25 and SR2 (US $0.06 – US $0.53), for a single-serve pack and enjoy excellent distribution in all outlets. The biscuits sector is highly developed owing to the strength of the local industry in Saudi Arabia, represented by large manufacturers such as United Food Industries. Oreo sales showed a fluctuating result during the past 13 years. When Oreo initially was launched into the market, sales increased to a high extent for about 3 years but then sales decreased for a long period during 1997 to 2002. Oreo marketing managers became aware of their loses and immediately went back to action and changed their marketing mix and started to introduce several different new products. This effort resulted with high sales in 2008. Sales were amounted to $4 billion and market share 41%. 4
  • 5. Stargate Institute SWOT Analysis Strengths Weaknesses 1. Nabisco is ranked as the top cookie 1. Sales have slowly declined the past maker, selling nine of the top twenty few decades. cookies worldwide, including Oreo, 2. They do not manufacture products the world’s largest selling cookie that serve the health conscious brand. society. 2. Oreo recipes are confidential and 3. Poor advertisements and marketing not led to the public, that’s why they promotions. stand out uniquely. 4. Nutritional problems, high fat 3. Over 491 billion Oreo cookies have content and calories. been sold since they were first 5. Not all the varieties and flavors are introduced, making them the best available everywhere. selling cookie (biscuit) of the 20th 6. Oreos all different products are not century. available in the kingdom only in 4. Oreos have been produced in many Europe countries. different varieties since they were 7. limited ability to raise price due to first introduced. competitors’ low prices 5. Oreo has formed acquisitions with 8. Not properly defined target market. Dominos Pizza, Mc Donalds, Cakes, and Baskin Robbins etc…. 6. Nabisco began a marketing program in 2008, advertising the use of Oreos in a game called DSRL, which stands for "Double Stuf Racing League." 7. Every day more than 20.5 million Oreo cookies are consumed internationally. 8. First purchase would look at packaging- blue color stands out the most. 9. A well known Brand Name. 10. Affordable products. 11. Established distribution channel (retailers, supermarkets). 12. More value added through packaging and distribution. 13. Established customer relationships 14. Stock of technology including patents, trademark and copyrights. 15. Brand reputation. 16. High quality product reputation. 17. Reputation with inputs' suppliers, labor, etc. 5
  • 6. Stargate Institute Opportunities Threats 1. Kraft holds the number one share 1. Large market of biscuits exists in position in 21 of the top 25 country KSA, which results with many categories internationally. This competitors like Prince chocolate, advantage places Kraft in the Ulker biscuits, etc…. position to obtain a significant share 2. Low involvement product and of a category’s growth and profit, consumers can easily switch. generating additional resources to 3. Growth of private label products. reinvest in marketing and 4. Threat of New Entrants innovation. 5. No immediate advertising/marketing 2. Invest in advertising/marketing campaigns. campaigns. 6. Rising commodity, packaging and 3. Introduce health and nutritional other input costs (sugar, cocoa). products (fat free Oreo) in KSA. 7. Changing preferences and demands 4. Add more flavor fillings. of consumers. 8. Lifestyle changes towards health and nutrition. 9. Declining fraction of income spent on snack food by consumers. 6
  • 7. Stargate Institute 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: Prince Chocolate Biscuit Product Strength weakness Taking advantage of their weakness Strong brand name Lack of varieties Produce more and image and flavors varieties with different appealing flavors Americana Strength weakness Taking advantage Product of their weakness The recipe of this Weak promotional A strong TV unprecedented media through TV commercial that will ascent to success ads. attract existing, and mainly came from new customers. the deep understanding for Arab taste, strong technical capabilities and experienced manpower. 7
  • 8. Stargate Institute Ulker Product Strength Weakness Taking advantage of their weakness Strong Packaging Weak A strong TV Division Ülker Group is promotional commercial that one the world's leading media will attract packaging materials through TV existing, and new manufacturer. ads. customers. IT Division Ülker Group has been active in IT sector for a long time, this division has several companies in software development, PC and notebook manufacturing, retail chain, and a distribution company. 8
  • 9. Stargate Institute Digestive Dark Chocolate Product Strength Weakness Taking advantage of their weakness Introduced into the Maintain stable and kingdom’s market lower prices to High prices. “The Orginal Light attract more Digestive” . customers Product Offering Serving Product Image Flavor Size per container OREO SANDWICH COOKIES OREO Vanilla 18 oz 15 OREO SANDWICH COOKIES GOLDEN ORIGINAL Vanilla 18 oz 15 9
  • 10. Stargate Institute OREO 8 SANDWICH COOKIES MINI BITE SIZE SNAK Vanilla 8 oz SAKS OREO SANDWICH COOKIES CHOCOLATE 2 oz Chocolate 6 OREO SANDWICH COOKIES CHOCOLATE SANDWICH Vanilla 8.46 oz 7 WITH ORGANIC FLOUR & SUGAR OREO SANDWICH COOKIES DUO VANILLA & Vanilla, 13.8 oz 11 CHOCOLATE chocolate OREO SANDWICH COOKIES PURE WHITE FUDGE Vanilla 8.5 oz 12 COVERED 10
  • 11. Stargate Institute OREO 6 SANDWICH COOKIES PURE MILK CHOCOLATE Chocolate 7.5 oz COVERED MINT OREO SANDWICH COOKIES WINTER WITH RED Red cream 18 oz 18 CREME OREO SANDWICH COOKIES SPRING PURPLE Purple 18 oz 18 CREME cream OREO SANDWICH COOKIES GOLDEN UH- OH WITH Chocolate 18 0z 15 CHOCOLATE CREME Stock Keeping Unit and Products Available These products shown below are those of which exist in the kingdom’s market. And the stock keeping unit chosen for this project is 66gram, SR 1. Name Weight Price Oreo Sandwich 66 gram SR 1 11
  • 12. Stargate Institute Vanilla/chocolate Oreo Sandwich 176 gram SR 2.95 Vanilla/chocolate Oreo Sandwich 792 gram SR 11.50 Vanilla/chocolate Nabisco Oreo Sandwiches, a brand that is older than the automobile assembly line. It is estimated that an average of 4.3 billion sandwiches have been eaten each year over the last 90 years. Marketing Strategies Mission Statement “We want our consumers to regard us as their primary snack food. We want our customers to know that we have their wants and needs in mind along with working to create products that will cater to their health conscious lifestyles.” Marketing Objectives: • Maintain demand of customers • Introduce new sandwiches • Create Awareness through effective media • Attract more customers • Retain current customers • Stay ahead of competitors • Reduction or elimination of other supply chain inefficiencies • To achieve superior consumer exposure • Establishment of regional marketing specialists • To reinforce and reaffirm the Oreo cookie brand position. Tagline: 12
  • 13. Stargate Institute “Twist, lick, dunk” Positioning: The Oreo has long been the best-selling sandwich in the whole world. Whenever the name of Oreo comes into the minds of consumers, the 1st thing that jogs their memory is- twisting it, licking the middle portion and dunking the chocolate sandwich into the milk. Beside kids, it also emotionally attracts adults as their childhood memories are connected to Oreo. Though couple of adults have a negative positioning about the Oreo sandwich and the association but in the point of view of kids, Oreo is strongly and highly positioned. Current Strategies Oreo, by observing its product lines and what it has been offering the past years, we can realize that they are adopting the Product Development Strategy. Product development means offering new or improved products for present markets. In this manner Oreo can find different ways to satisfy the customers. Market Research Sample The sample selected for the research is kids, youngsters and adults. The sample size chosen for quantitative research is 30 and for qualitative 4 people of different ages. Sampling Technique To accomplish the market survey, hybrid research (qualitative and quantitative) has been performed. ∙Qualitative research – in-depth interview (triad as well as diad) and ethnography have been chosen. ∙ Quantitative research- questionnaires containing open and close ended questions have been selected. QUALITATIVE RESEARCH Objectives: 1. Whether people are aware of the brand Oreo 2. Find out the time (weekends, monthly,etc.) when customers buy OREO 13
  • 14. Stargate Institute 3. How often do people purchase and use Oreo products 4. Find out whether customers are contented 5. Will customers go for close substitutes of Oreo 6. Find out what they think and see from the brand’s association “Twist, Lick, Dunk” 7. The reason for purchasing this particular product 8. Suggestions for new features (if any) 9. Will customers remain loyal and profitable Summary: Name: Sana Saeed Age: 7 Occupation: Student Name: Israa Age: 10 Occupation: Student Name: Sami Age: 15 Occupation: Student Name: Mrs. Tahseen Age: 37 Occupation: Housewife Everyone is attentive towards the Oreo sandwich in the market. Kids reacted energetically when they saw Oreo sandwiches in TV ads and insisted their parents to buy one for them. Almost all the kids loved the tagline ( Twist,Lick,Dunk) but some of them disagree, “I love to dunk it only but don’t like to twist and lick it.” as said by Sana Saeed. Though teenagers and parents love Oreo too, but they consider the tagline as “kiddish”. For some people these steps remind them of their childhood memories. The grown ups purchase the sandwiches on occasions when it is their child’s birthday or any celebration. But young people buy immediately when they crave for it and satisfy their hunger drive. People purchase Oreo Sandwiches for different purposes. “Have fun eating chocolate biscuits, tastes good”said by Isra. “Because I love dark chocolate” as said by Mrs. Tahseen. Oreo is a low involvement product and due to this prospect customers can easily switch to the close substitutes. But still, brand loyal customers are devoted to their brands and won’t let go easily. When 7 year old Sana was asked if she went to the market and didn’t find any Oreo sandwich, she replied, “I will search in the next store and if I didn’t find there, I will wait for tomorrow and go to my school and purchase one there.” Finally, due to the different needs, wants, and tastes of the consumers, they all have suggested different recommendations. “Not to sell the chocolate filling Oreo” said by Sami. “Improve the present flavor to some extent” said by Israa 14
  • 15. Stargate Institute Quantitative Research Objectives: 1. Identify the target customers 2. Find out the level of brand awareness 3. Find out the time (weekends, monthly,etc.) when customers buy OREO 4 .Find the percentage of product usage among consumers 5. Find out their level of satisfaction 6. Find out the level of brand loyalty among customers 7. Find out what they think and see from the brand’s association “Twist, Lick, Dunk” 8. The reason for purchasing this particular product and suggestions for new features (if any) Result Analysis 15
  • 16. Stargate Institute Why do you like Oreo cookies? 80.00% 60.00% 40.00% 20.00% 0.00% Its shape Love for dark Like the chocolate chocolate/v anilla combination 70% 60% 50% 40% 30% 20% 10% 0% Positive Negative 16
  • 17. Stargate Institute The positive associations were “OK, GOOD, FUN, YUMMY, CATCHY, LOVE TO WATCH MY KIDS DOING IT, DELICIOUS, TASTES BETTER, NICE, And TASTY.” The negative associations were “KIDISH, WHATS THAT, ONLY DUNKING, CHANGE IT, DON’T LIKT IT.” How often do you purchase Oreo cookies? 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Weekly Occasions Whenever you desire Table 17
  • 18. Stargate Institute Decision Making Process Evaluation Need Information Purchase Cognitive of Recognition Search Decision Dissonance alternatives When the customers recognize the various needs of hunger, nutrition, imitation and fun they enter the first step of decision making process. Now, they come across various cues of different products to satisfy those needs for example TV commercials, billboards, information from friends or relatives or their own previous experience. 18
  • 19. Stargate Institute In the next step, customers evaluate the various alternative ways and brands that can satisfy their specific needs. (Here customers also compare the different products and brands based on benefits, price, quantity, etc.) Finally, the customer decides on either purchase of OREO or rejection If the customer after consuming OREO sandwich feels dissatisfied then he is said to have entered cognitive dissonance. Current Marketing mix Product: Oreo makes sandwiches with premium quality two thin chocolate which is enclosed with white, rich cream filling. They associate their product with beautiful human emotions of love and care. Oreo comes in a variety of flavors such as: Oreo Fudge Rings Golden Oreo Strawberry Oreo Oreo also offers Reduced Fat Oreo, Golden Chocolate Cream Oreo, Oreo Wafer Stix, Banana Split Cream Oreo etc. Oreo’s recognized for its beautiful product designing. Oreo is best to be used for breakfast, snacks as well as party purposes. Price: “A product is only worth, when customers are ready to pay for it.” – keeping that in mind, Oreo has developed a price range which is affordable by everyone. In times of Ramadan season, Oreo gives special offerings and discounts. Small size – SR 1 Medium size – SR 2.95 Large size – SR 11.50 19
  • 20. Stargate Institute Place: As being famous, Oreo sandwiches can be found everywhere. They can be easily purchasable in any supermarkets such as Sunbulah, Al-Halwani Bros etc or even in the well known malls like Granada center, Carrefour, Hyper Panda etc. The distribution channel of Oreo is given below- Producer Retailer Consumer Promotion: Promotion is the way a company shows what it does and what it can offer to the customers. Oreo adapted an aggressive promotional campaign. Beside magazines, Oreo’s doing promotional campaigns through television and their website too. Although it is the most expensive form, it is also most effective. Among TV networks, one of the network they chose is MBC (MBC 3) because it has the ability to reach the younger portion of their target market. They also offer coupons on their website. Oreo aims at making their customer’s life beautiful with their mouth watery products by filling those with the beautiful colors of love and care. Suggested Marketing Mix Product: • Develop new sandwiches which contain less calories, less fat, less cocoa powder and less salt. • Customers have been complaining about the packaging for the past years. And in order to overcome this issue, the package should be given a new look to attract more customers. • The labeling should be clear and nutritional information should be specific and not hypothetical such as “May contain milk protein”!!! Price: 20
  • 21. Stargate Institute • Maintain their current prices. • Maintain a fixed price for all specific products overall the Riyadh market. Place: • Oreo should improve their market existence. Example: In Hail-Al-Wazarat, the cold stores “Bagalas” don’t have Oreo products. • Nabisco Arabia Inc. should improve their Import/Export channels. They should also import the extra features of Oreo products ( Oreo cereal, cakes, and ice creams ) into the kingdom. Promotion: • Their promotions haven’t shown much about their organizations. TV commercials were for a short time and ever since they haven’t shown any other particular promotions. • They should get in contact with Advertising Agencies for better improved commercials. • Their websites provide less information about the whole organization ( Internal /External). • Redesign the website ( http://www.nabiscoworld.com/oreo/) and provide more corporate information. • Aim for different promotional medias such as Bill boards, Flyers, etc……… Production: According to a statement from Kim McMiller, an Associate Director of Consumer Relations, a two-stage process is used to make Oreo sandwiches. The base cake dough is formed into the familiar round sandwiches by a rotary mold at the entrance of a 300-foot- long oven. Much of current Oreo production is done at the Kraft/Nabisco factory in Richmond, Virginia. Oreos for the Asian market are manufactured in Indonesia. Australian Oreos are made in China. Oreo Kingdom sandwiches are manufactured by Nabisco Arabia Inc.(NAARCO) which’s located in Dammam. These sandwiches are also exported to Gulf areas. Controls Any branded product can’t be perfectly flawless. 21
  • 22. Stargate Institute • Previously, Oreo sandwiches were made of animal fats which weren’t halal in the Islamic Law. This caused a huge problem for the organizations’ products. Later on, when their sales were getting affected, they realized the concept and switched to the use of vegan fats. • Customers complained of deceptive packages because they found that some of the packages were double sized than the contents. This leads to a negative positioning in customers’ mind and affects the brand image. • Families are suffering from the obesity problem of their children due to the continuous consumption of Oreo sandwiches. The products should be amounted with less cholesterol and fats for a healthy life. • Mothers are complaining about the bitterness of the Oreo sandwiches. Due to that they should lessen the amount of Cocoa powder. • Kids getting frustrated about the sandwiches being cracked before they even implement the steps (Twist, Lick, and Dunk). This may be due to the hard fillings or the softness of the two layers. Contingency Plan • If their current marketing mix is resulting with unsatisfactory outputs they should consider the suggested marketing mix. • “A future forecast plan” for the entrance of competitors into the market, price inflation, and changes in the external marketing environment. • Technology plays a vital role and directly affects businesses. To increase sales and to provide quality products, Oreo may take the advantage of the latest equipments available. • Oreo factory should have high density voltage stabilizer in case, anything goes wrong with the electricity. • If current promotions through TV commercials are not giving them much satisfying sales, they should go for flyers pamphlets and maybe newspapers. Recommendation • Oreo has targeted only kids as their main target customers. Our research has shown that not only kids eat Oreo but also a large percentage of teenagers and adults adore it too. So, Oreo must re-target their customers and include these segments. 22
  • 23. Stargate Institute • They should try to maintain a stable sales growth. Because too many losses and sales fluctuations affects the company’s image and positioning. • Introduce other product features of Oreo into the kingdom's market, e.g. cereals, different flavors and shapes. • Make people more aware of the nutritional facts. • They should get an expert web designer to redesign their site because instead of useful information about their organization, it’s full of useless games. • Improve their marketing campaign by sponsoring bill boards. Because kids want to see their favorite Oreo in Bill board rather than TV ads. • Oreo should introduce a zip lock package as it keeps the cookies fresh for a longer time. • They should make sure all of their products are available in all the stores of KSA as well as the Gulf countries. Conclusion: For Over 90 years, the Oreo sandwich has remained as an icon. Millions of people can recall childhood memories with dunking Oreos in milk, and spark that emotional experience to life by hearing the famous jingle or watching a commercial. Nabisco/Kraft Company enjoys brand loyalty and has stretched the brand to retain 28% of the market maintaining strong sales within an oligopoly market like snack foods. Oreo Sandwiches have touched people’s heart of different ages, lifestyles, and characteristics in a way or another. Oreo was capable to show its customers that it is one of a kind when it comes to taste, flavor and experience. Though the food industry is an edgy market, but yet no competitors were capable to pinch the undisclosed ingredients of Oreo Sandwich Cookies. References http://www.nabiscoworld.com/ http://www.nabiscoworld.com/Oreo/ http://74.125.77.132/search? q=cache:UPbD7GT7HR8J:www.americasgreatestbrands.com/volume6/pdf/Oreos.pdf+m arketing+plan+of+original+oreo&cd=3&hl=en&ct=clnk http://www.nabiscoworld.com/Brands/ProductInformation.aspx? BrandKey=oreo&Site=1&Product=4400000820 23
  • 24. Stargate Institute http://www.nabiscoworld.com/BRANDS/BRANDLIST.ASPX? SITEID=1&CATALOGTYPE=1&BRANDKEY=OREO&BRANDLINK=/OREO/MEM ORIES/&BRANDID=78&PageNo=1 http://www.lotsofessays.com/viewpaper/1712722.html http://eathalalfood.blogspot.com/2009/02/oreo-cookies-halal.html http://www.brandchannel.com/features_webwatch.asp?ww_id=283 http://www.reuters.com/article/ousiv/idUSN0243513620080903? pageNumber=2&virtualBrandChannel=10216&sp=true http://en.wikipedia.org/wiki/Riyadh http://www.olayangroup.com/group.asp?groupid=7 http://74.125.77.132/search? q=cache:NnBSLVRlvJcJ:www.pilotinternational.org/media/docs/other/oreo.doc+what+c ustomers+think+about+oreo%3F&cd=3&hl=en&ct=clnk http://www.foodtimeline.org/foodcookies.html#oreos http://asianfanatics.net/forum/index.php? s=0b9981a40356d0f7dcf7819bcd04dd19&showtopic=541671&st=0&p=5183035&#entr y5183035 http://www.ameinfo.com/123859.html https://www.the-infoshop.com/cgi-bin/ssl/custom.cgi http://info.emeraldinsight.com/learning/index.htm http://209.85.129.132/search?q=cache:1Sm- TMI4_0AJ:https://portfolio.du.edu/portfolio/getportfoliofile%3Ffiuid %3D17905+SWOT+analysis+of+OREO&cd=7&hl=en&ct=clnk http://www.economics.pomona.edu/jlikens/SeniorSeminars/pandora/reports/kraft.pdf http://tigger.uic.edu/~rrago/internal_analysis.pdf http://www.apmforum.com/emerald/qualitative-market-research.htm http://www.marketresearchworld.net/index.php? option=com_content&task=view&id=389&Itemid=53 http://www.marketresearchworld.net/index.php? option=com_content&task=category&sectionid=9&id=56&Itemid=49 http://www.entrepreneur.com/tradejournals/article/169325389.html http://www.internationalbusinessstrategies.com/ http://www.internationalbusinessstrategies.com/market-research-reports/saudi-arab.html? gclid=COmJqMDQt5kCFRYTzAodTD_E8Q http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Saudi-Arabia- FUTURE-TRENDS.html 24