Premium Essay

Market Research on Oreo

In: Business and Management

Submitted By felixL
Words 4728
Pages 19
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.

Similar Documents

Free Essay

Smart Cookie - Oreo

...Smart cookie - OREO Executive Summary: For most of its 100-year existence, Oreo was America's best loved cookie, but today it is a global brand. Faced with stagnation in the domestic market, Kraft Foods moved it into emerging markets where it made some mistakes, learnt from them and ultimately triumphed. This case study looks at the strategies used to win over customers in China and India. On March 6, 2012, the famous cookie brand, Oreo, celebrated its 100th birthday. From humble beginnings in a Nabisco bakery in New York City, Oreo has grown to become the bestselling cookie brand of the 21st century generating $1.5 billion in global annual revenues. Currently owned by Kraft Foods Inc, Oreo is one of the company's dozen billiondollar brands. Until the mid-1990s, Oreo largely focused on the US market - as reflected in one of its popular advertising slogans from the 1980s, "America's Best Loved Cookie". But the dominant position in the US limited growth opportunities and spurred Kraft to turn to international markets. With China and India representing possibly the jewels in the crown of international target markets due to their sheer size, Oreo was launched in China in 1996. The China launch was based on the implicit assumption that what made it successful in its home market would be a winning formula in any other market. However, after almost a decade in China, Oreo cookies were not a hit as anticipated, according to Lorna Davis, in charge of the global biscuit division...

Words: 1905 - Pages: 8

Premium Essay

Analyse Three Differences That Kraft Might Experience from Selling Oreos in International Markets Compared to Their Home Market

...there is a lot of potential to gain profit and explore untapped markets. For most businesses, expanding/moving into new markets is not an easy transition, especially international markets, as Oreos did. The differences that Kraft will have to face would most likely come from these five factors: cultural, social, political, economical and legal differences. When expanding into an international market, one of the very first things businesses will have to consider is the legal difference; different countries have different laws regarding the setting up of the business, how the business operates, marketing laws and much more. Of course, most businesses expand into new markets in hopes of succeeding thus they would need to consider their chances of being successful and a lot of that comes from the economics for the most part though also politics. The economic factor in this case would affect the pricing of the product; as did the prices of oreos in china → Kraft reduced the prices of Oreos and hence the packaging size as well. This leads us on to the next point; cultural difference. Following the example of Oreos expansion to China, Oreos had to reduce the size of packages sold in China, not only to reduce the price but also people in China generally have a smaller appetite than Americans. A lot of the things in America are supersized due to the fact that they generally are bigger, hence when Kraft brought Oreos to China, they had to reduced the size in order to appeal to Chinese...

Words: 497 - Pages: 2

Premium Essay

Marketing Plan Oreo Cookies in Poland

...Marketing Plan for Oreo Cookies in Poland TABLE OF CONTENT Executive Summary 4 Business Mission 4 External Marketing Audit 5 Macro-environment - PEST Analysis 5 The Market 6 Competition for Oreo in the Polish market 7 Internal Marketing Audit 8 Operating Results 8 Strategic Issue Analysis 8 Marketing Mix Effectiveness – 4 P’s 9 SWOT Analysis OREO 10 Marketing Objectives 11 Strategic Thrust 11 Strategic Objectives 11 Core Strategy 12 Target Markets 12 Competitor Targets 12 Competitive Advantage 12 Marketing Mix Decisions for Poland 13 Product 13 Promotion 13 Price 13 Place 13 Budget 14 Sales and breakeven 14 Promotion expenditure 14 Organisation 14 Implementation 15 Marketing control 15 Action plan (see excel) 15 Reviews 15 Bibliography 16 Executive Summary This report is the marketing plan for the proposed market development of Oreo brand to Poland. The purpose of the plan is to analysis the feasibility and profitability of introducing Oreo brand to Poland market. Oreo brand is one of our leading brands and it constitutes a substantial part of our revenue in the previous years. Oreo is the biggest selling cookies in china in 2006 and it sales reach $1 billion in US in six months. Oreo is a sweet, creamy chocolate with moderate amount of calories and also serve as complementary products. Well packaged and easy to unwrap. ...

Words: 3886 - Pages: 16

Premium Essay

Student

...production industry. In the following paragraphs, dissecting the suppliers, buyers, substitutes, potential entrants, and how they combining together inter-playing with the industry competitors that determines the profitability of food production industry that Mondelez is in would be devoted to business. First of all, as for potential entrants, the start up company has always been the main force in potential entrants, since the existing company in other industry seldom choose food production but high profitability industry like real estate etc.. Besides, the existing companies’ former image may hurt the attractiveness to customer. However, though food production needs economies of scales, which considered as a high barrier to entry, in Chinese market, there are over 10% of rate of gross profit, together...

Words: 3187 - Pages: 13

Premium Essay

Psychology and Food

...PDF file of the presentation on Psychology and Food Group Name: Dendrite Group Members: Talha Bin Islam Mahmudul Islam Farhan Nadim Md. Mahmudur Rahman • The psychological influences behind purchasing food: Everyone has to eat food to live. Different types of people like different food according to their culture and country. Children, teenager and adult take food what they prefer. When we go to purchase food product there are a number of factors that influence the decision made by consumers on a day to day basis whit regard to product packaging. Psychologically when purchase food shape, color, design and brand are all essential. While food stores do not normally hire marketing psychologists they use basic psychology monitoring people behaviors and buying habits and figure out the best course of action including store design for the highest rate of profit possible. • Shape of Food Packaging: Interesting packaging shapes are one way to attract the interest of a customer. Square packaging is considered conventional, but it also makes the product easier to arrange and present on shelves. Ultimately, all of these factors are linked. If the colors make the product look attractive a consumer will pick up the product. If the consumer...

Words: 993 - Pages: 4

Free Essay

Nabisco

...and cracker manufacturing in the United States. The first chairman of the new company was Adolphus Green. Green was a Chicago lawyer and businessman who had negotiated the American Biscuit Company merger during the first 20 years of its existence. N.B.C. developed products that could be nationally identified with the company. All of its merchandise was marked with the company’s distinctive emblem: an oval topped by a cross with two bars, which represented the triumph of good over evil. The National Biscuit Company built its reputation on customer loyalty to recognized brands. In the early years of the 20th century, the company concentrated on expanding its line of cookies and crackers. Some successful products were Oreos, Fig Newtons, and Premium saltines. In 1902 N.B.C. introduced Barnum’s Animal crackers in a decorative box resembling a circus cage...

Words: 2233 - Pages: 9

Premium Essay

Market Aspect

...MARKET ASPECT CHAPTER 1 MARKET STUDY I. MARKET DESCRIPTION Foss Coffee will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee shop and on sophisticated teenagers. Since coffee consumption is universal across different income categories and proximity to the University Belt campuses will provide access to the targeted customer audience. It will also cater to people who want to get their daily cup of great-tasting coffee. Such customers vary in ages, the location of our proposed business is at Upper ground floor of SM City Manila near Pizza Hut. The lease contract has an option of renewal for three years at a fixed rate that Foss Coffee will execute depending on the financial strength of its business, although the location is close to the University campus means that most of its clientele will be college students and faculty members. Our market study shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students are pulling off all nighters for their exams and they need caffeine to keep them awake and this will provide a unique possibility for building a loyal client base. II. DEMAND The demand is based on the population of the university students, faculty members and office workers in the vicinity of Ermita, Manila in the National Capital Region. This is for a five (5) year period beginning 2010 to 2014. YEAR | HISTORICAL...

Words: 2484 - Pages: 10

Premium Essay

Product Innovation at Bank of America

...BANKING STRATEGIES Case Study: Product Innovation at Bank of America By Cindy Murray What financial institutions can learn from inventions and innovations in other industries. owhere is innovation more essential to survival than in the banking industry. In the payments domain, for example, nonbank competitors less constrained by bank regulations and therefore more agile are changing the banking industry’s grip on the public perception of banks as the only trusted brand for holding and moving money. However, innovation is challenging for banks. Many products, like payments, are a commodity. A vast number of products and a complex infrastructure require continual upgrades to keep apace with technology advancements and comply with evolving regulations and security requirements. This article describes how Bank of America fosters a culture of innovation. Pivotal to an innovative culture is the direct engagement of clients in the innovation process. We highlight some of the ways that Bank of America achieves this. But first we’ll look at the role of innovation process in building brand loyalty. N Build Brand Equity Through Progressive Transformation Change can occur by redefining a problem or redefining a solution. According to Robert Sternberg, a leading creativity expert,1 creativity is the ability to redefine a problem. Innovation can be viewed as the ability to redefine a solution. Successful innovation is a process over time—one that typically happens in increments rather...

Words: 2981 - Pages: 12

Premium Essay

Cadbury

...CONFECTIONERY MARKET A BRIEF HISTORY Cadbury India Ltd. is a part of the Kraft Foods Group and was formed on 1905. Cadbury India operates in five categories - Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. Their core purpose "make today delicious" captures the spirit of what they are trying to achieve as a business. In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category, Halls is the undisputed leader. They recently entered the biscuits category with the launch of the Worlds no 1 biscuit brand, Oreo in India...

Words: 600 - Pages: 3

Premium Essay

Course Project Marketing 320

...Marketing Plan Marketing Plan for BUSN319 Student Marketing Plan for Walmart Supercenter A Marketing Plan Presented by: Mission Statement "We save people money so they can live better." Is the mission statement for Walmart supercenter stores internationally, as is their slogan of “Save Money. Live Better” generally supporting one another. Goals Financial: 1. Financially be stable in the first five years to continue growing. 2. Provide the city of Kerman with jobs. 3. Rise to the same level of success as all other Walmarts in the Central Valley. Nonfinancial: 1. Provide the community with savings and jobs. 2. When meeting financial goals give back to the community. 3. Provide necessary materials for schooling. 4. Within 5 years provide the Kerman athletics with state of the art athletic facilities. 5. Give the community of Kerman and others around recreational areas for growing kids. Competitive Advantage Walmart has a competitive advantage over all other stores in the world hands down. It has the lowest prices guaranteed, providing the community of 20,000 with a Walmart will be a great move for the town. Walmart Supercenter’s advantage is that there are no others around in a 40 mile radius. Kerman is indeed the “Gateway to the Westside” to go to other town or communities you must pass through Kerman, there is no other option. The closest Walmart Supercenter is 40+ miles away in the well known city of Clovis...

Words: 4571 - Pages: 19

Premium Essay

Business

...Kraft and is one of the largest packaging food and beverage companies in Northern America. In 2006 Kraft acquired the European business of Biscuits and the rights to Nabisco, trademarks in Europe, Middle East and Africa to include Oreo, Ritz and Chips Ahoy. Kraft is also one of the largest worldwide known with net revenues of $18.3 billion, and $2.5 billion from operations prior to taxes for last year. Kraft employs approximately 90,000 employees throughout the world. The competition in the food and beverage industry is very intense and competitive. Producing many well-known brands has enabled Kraft Foods to sustain quality growth and profitability. Kraft Foods is wide spread across 72 countries and their products have reached more than 155 countries. This SWOT analysis will determine if the company is strong or has serious weaknesses. . SWOT Analysis for Kraft Foods Strengths: a. The extensive and wide geographical presence of the company throughout the world creates a diversified portfolio of the investment and reduces the overall risk of the company. b. The Company has a strong market position due to its strong market presence in the food industry. The presence at the global level makes it easier for the company to market an international brand. The history of quality service provider makes the company one of the most wanted brands among food lovers. c. The financial data shows the performance of the company sales for the last 5 years has shown...

Words: 1666 - Pages: 7

Premium Essay

Kraft Food

...Name: Course: Tutor: Date: Strategic Analysis of the Kraft Foods Group Executive Summary This writing focuses on evaluating the market analysis for Kraft Food Group which is a leading producer of foods and beverages in the United States of America. The paper lays emphasis on SWOT analysis strategy adopted by the company (Böhm, 2009). From the discussions, differentiation strategy is identified as the main generic strategy behind the organization’s success. However, it is ascertained that some of the strategic decisions taken by the company do not align with the adopted generic strategy. In this regard, a critique of how the strategic choices should be altered in order to align with the generic strategy is given at this stage. The analysis finally ends with a conclusion. Current Environment Company overview Kraft Foods Group is known to be the leading Food and Beverages Company in the US. It operates in approximately 70 countries worldwide with about 98000 employees. Moreover, the company sells its finished products to more than 150 states in Europe, Middle East, Latin America, Africa, and Asian Pacific through its subsidiaries namely; Kraft North America Inc and Kraft Foods International Inc (Allen & Albala, 2007). The Company processes, manufactures and sells packaged food products such as; confectionery, cookies, coffee, cheese products, powdered beverages, juices, desserts, ready-to-cereals, processed meats, and convenient meals. All the above mentioned products...

Words: 1383 - Pages: 6

Premium Essay

Case

...Marketing a n d t h e Disclosure of Information 339 CASE 5. Kraft Foods Inc.: The Cost of Advertising on Children's Waistlines The room fell silent as Dr. Ellen Wartella, Dean of the College of Communications at the Univeristy of Texas at Austin, gave Kraft executives her opinions on a presentation they had just made regarding Kraft and advertising to children. Wartella characterized Kraft's online marketing as "indefensible" and concluded that Kraft's claim that it was not advertising to children under the age of six was "at best disingenuous and at worst a downright lie."1 The executives in the room were visibly shaken by her comments. In late 2003, Kraft formed the Worldwide Health & Wellness Advisory Council, comprising 10 nutritionists and media experts, including Wartella, to investigate allegations that Kraft had been knowingly advertising unhealthy foods and to help address the rise in obesity, among other health issues. The pressure for Kraft to review its advertising policies came amidst increasing criticism from congressional panels, parent groups and other concerned citizens, that food corporations, such as Kraft Foods and McDonald's Corporation, have been knowingly targeting young children (up to age 12) in their advertising campaigns. The concern surrounding childhood obesity stems from statistics showing a 200 percent increase in childhood obesity since the 1980s. Between the 1960s and the 1980s, the percentage of overweight children hovered around 6 percent...

Words: 4252 - Pages: 18

Premium Essay

Cadbury

...exposure to Chocolate confectionery, Beverages, Biscuits, Gum and Candy in India which is one of the most promising segments in India today. We studied the strategies employed by Cadbury India Limited that makes it the market leader and suggested few recommendations of our own. INTRODUCTION Cadbury India Ltd. is now a part of Kraft Foods.Chicago-headquartered Kraft Foods acquired Cadbury last January for $18.9 billion. Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. Their core purpose "make today delicious" captures the spirit of what they are trying to achieve as a business. In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh), Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. Cadbury India enjoys a value market share of over 70 percent in the chocolate category and their brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian...

Words: 3503 - Pages: 15

Premium Essay

Assignment 4: Internet Technology, Marketing, and Security

...BUS 508 - Contemporary Business Ardell Simmons Dr. Daniel Sersland Assignment 4: Internet Technology, Marketing, and Security December 1, 2013 Internet Technology, Marketing, and Security Introduction Social media is a good way for a business to market their products to current customers and also to gain the business of new customers. More and more consumers are using the internet and social media websites to make purchases. Some businesses don’t even advertise in the newspaper anymore or use circulars. It is cheaper for them to go to the internet and use social media websites and they also reach more people. This is definitely the future for businesses. With the success that Pepsi had, I can see more and more businesses doing this in the near future. Reasons social media marketing has become exceedingly popular among businesses More than 66% of small businesses plan to invest as much or more in digital marketing, such as websites, social media and online advertisements, as they did last year. These results were from the 2013 AT&T Small Business Technology Poll, with 1,000 businesses replying to this poll (Eddy, 2013). As we can see from this poll, there is definitely a strong interest from businesses in using this type of avenue for advertisement purposes. I think businesses see that through these social media websites, they can be successful. When you go to the Facebook website, you see advertisements for different businesses. There is also LinkedIn...

Words: 2980 - Pages: 12