This document discusses Kraft Foods' strategy to successfully launch Oreo cookies in China after initial failures. It describes how Oreo was not initially appealing to Chinese consumers due to its taste being too sweet/bitter and price being too high. Kraft Foods revised their strategy to formulate Oreo with local tastes in mind by making it smaller, less sweet, and cheaper. They also expanded distribution channels and introduced new flavors. These changes led to dramatically increased sales and market share for Oreo in China over five years, demonstrating the importance of understanding local consumer preferences for foreign companies operating in China.

1. in China
Chi T. le
Case Studies
Prof. Theresa Bauer

2. CONTENT
• Introduction
• The company
• The product
• Challenges
• Strategy
• Solutions
• Results
• Conclusion

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

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. 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

10. Introduction
The company
The product
Challenges
Strategy
Solutions
Results
Conclusion
Awareness: Localized to drive relevance

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

17. THANK YOU FOR YOUR ATTENTION!
Any questions?