2011

Krafting Oreo for Cadbury in India Marketing Strategy

Sheena Anand RollNo: B68
12/2/2011

........................ 5 Page | 2 Narsee Monjee Institute Of Management Studies ................................................... 4 Promotion Mix.................................................................................................................................................................................................................................... 3 Pricing Strategy...............Table of Contents Industry .................................................................................................................................................................. 3 Product...................................... 3 Company ..................................................................................................................................................................................................................................................................................................................................................................................................................................... 3 Target Segment .... 3 Distribution Network ................................................................................................................................................................................................................. 4 Conclusion .................................................................. 3 Positioning............................................

Launch of biscuit is a part of long term strategy in India to gradually expand business operation from Confectionery Company to a broader foods company.12000crore Indian biscuit market through the launch of Oreo brand from the global portfolio of its parent Kraft Foods in 2011. 5star. Company Confectionery [Cadbury chocolate. Cadbury will be launching the biscuit in Dark Chocolate flavor with Smooth Vanilla crème. Positioning Oreo has repositioned the brand from one being of upper middle class [Kraft Foods] to a family brand.5 for 3 biscuits : Page | 3 Impulse Narsee Monjee Institute Of Management Studies .Perk. with cream biscuits leading the overall growth. The introduction of Oreo marks the entry into a new category for biscuits in India. Pricing Strategy Oreo is playing a multiple price point game b keeping different stock keeping units (SKUs). robust sales infrastructure and extensive consumer insights which are helping Cadbury to enter new segments and transform the local business.6 billion. Product Oreo is around 100 years old brand generating revenue of about $1 billion globally. Competition is quite intense with each of them being strongly present in the Sandwich Biscuit category. In India. The Sandwich biscuit market which is about Rs. Bournvita] maker Cadbury India entered the Rs. Target Segment 10 million households who are the heavy consumers of biscuits and make about 70% of cream biscuit sales. After Kraft Foods acquired Cadbury globally last year for $19.  Rs.Industry Indian biscuit industry is the largest among all the food industries with India being the second largest producer of biscuits after USA. The major players in this segment are Parle. The rest 30% is consumed by other households which are not heavy consumers of biscuits. Oreo is second product after orange drink Tang that Cadbury is has launched in India from Kraft s portfolio. The competitive advantage Cadbury has is its sales approach. Indian biscuit market grew 17% in 2010[AC Nielson]. The category it belongs to is Sandwich biscuit [As stated by Cadbury]. Oreo enjoys the contribution of upper middle class segment which had been buying the biscuit from imported stores under Kraft brand. Britannia. Also. ITC and Priya Gold. it has been looking to expand product offerings in India.1500Cr has been growing faster than overall biscuit market and is expected to grow in future. This category is not under the current lenses of Oreo.

5. the brand is aiming to lure the customers to buy and try out a quick snack on the move. Its focusing on  Modern Trade  Retail Trade The company decided to sell the product throughout the country with manufacturing done locally in India. Rs. At Rs. But a school of thought also says that there is a risk Oreo might lose its premium image due to low price packs [SKUs] and Oreo might end up being negatively affected by this strategy. The ideas have been focused to reaching out to millions of Indian families. consisted of launching a bus full of Oreo cookies inside to grab consumer attention by having a freaking time together. Promotion Mix Kraft is trying every possible trick to make a dent in Indian cookies market. Also Oreo is aiming at volume driven growth.20 for 14 biscuits: Family Sharing Heavy Usage This SKU is helping them to cater to varying needs of different target segments. the communication stresses on a different way of enjoying Page | 4 Narsee Monjee Institute Of Management Studies . Some strategies followed by Cadbury Oreo till date:  Togetherness Initiative symbolizing moments of family togetherness. The product is on the shelves of hundreds of thousands of retails outlets across urban and semiurban markets. Promotion campaign becomes an integral part for a company whose products have been targeted earlier at an upper middle class who have been buying Oreo from imported food stores.10 for 7 biscuits:  Rs. The positioning being family brand. Distribution Network Oreo is relying on a strong combination of Distribution Push & Advertising Pull to make its presence felt. The decision to manufacture the biscuits locally was heavily dependent on the decision to keep varying SKUS with smaller ones for On-The-Go consumption. Now it needed to break the strangle hold of players like Parle. The low priced SKUs are helping the trial purchase of the product. which is achievable through the smaller SKUs. therefore prices needed to be kept affordable which required local manufacturing.  Oreo off late has been focusing on households where the consumption of biscuits is maximum. Britannia and ITC. Small SKU s will definitely help Oreo to tap On-The-Go consumption. Oreo Togetherness Bus will travel across the country as part of a movement that will provide parents with a platform to bond and will encourage them to spend more time with their families.

Bengali. The launch of commercial Father & Son teaching the consumption of Oreo is backed by OOH media in major cities. Conclusion Going forward. Most teens are aware of Oreo through Social Media Networking sites Face book and Twitter. outdoor campaigns. English. in order o gain volumes. Marathi. retail outlets to engage with families. Also. This is with an aim to engage Indian parents and kids with child like delight. on-ground activation.     Oreo cookies.Twist. Page | 5 Narsee Monjee Institute Of Management Studies . amusement parks. Telugu and Malayalam. setup in malls. they need to penetrate deeper into Tier II and Tier III cities. however the major thrust has been on TVCs. The TVCs were launched on major channels in Hindi. the biggest challenge for Oreo is to convert trial purchases to repeat purchase. digital outreach for its launch. Lick and Dunk ritual [An Indian way of enjoying biscuits]. The TVCs were launched during Cricket World Cup 2011 to grab maximum attention. specially children. multiplexes. The company has used a mix of TCSs. Tamil.