oreo in china by chi t. le
TRANSCRIPT
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in China
Chi T. leCase Studies
Prof. Theresa Bauer
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CONTENT
• Introduction• The company• The product
• Challenges• Strategy• Solutions• Results• Conclusion
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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
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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
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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
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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 cookiesInnovation
Localized to drive relevance, Boost advertising & promotingAwareness
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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
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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
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“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
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Introduction The company The product
Challenges
Strategy
Solutions
Results
Conclusion
Awareness: Localized to drive relevance
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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!
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Commercial PowerAwareness: Boost advertising & promoting
Introduction The company The product
Challenges
Strategy
Solutions
Results
Conclusion
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“Twist, Lick, Dunk” – “???”Awareness: Boost advertising & promoting
Introduction The company The product
Challenges
Strategy
Solutions
Results
Conclusion
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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
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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
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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
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THANK YOU FOR YOUR ATTENTION!Any questions?