Oreo- Market Segmentation

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Market segmentation can be referred to a process by which the potential target market can be
divided into smaller groups. The process of market segmentation has a great importance in
businesses which are discussed below:

Customers needs and wants can be known deeply through appropriate segmentation into
groups.
The resources of the firm can be allocated appropriately and there is the optimum
utilization of resources.
The marketing results can be improved by the application of market segmentation
technique.
The objectives of marketing can be decided accurately.

The company Oreo is a leading brand of biscuits; the brand entered the China market but could
not make its marketplace by its original Oreo biscuit. The managers of the company, researched
about the tastes and preferences of the local custoners of china and found out the biscuit was not
very popular in the market. The biscuits were made with more of sugar which was not preferred
by the Chinese consumers. In the American market, the same product was very popular because
marketers of Oreo, marketed the product, in the same manner in the way the Americans wants to
eat the biscuits. The company also introduces another variety of biscuit with less sugar. The
implementation of both these marketing strategies increased the profitability of the business by
48%. This also provided a competitive advantage to the business over the other leading Chinese
brands. The company decided to produce a new range of biscuits which has multiple layers of
wafers and double cream with the flavours vanilla and chocolate.

For the further development of the market, Oreo decided to introduce a new range of product
globally. The business decided to manufacture the biscuits with dark chocolate for the European
market.

Oreo also wants to capture the market share of China as China is the largest country by
population and every leading company wants to capture a larger market share in China.

The era of the internet and technology has changed the market patterns all around the world. If
the example of the automobile company Toyota is taken. Toyota was preferred by all the
customers in the world. The company has the capability to satisfy all the needs an demands of
the target market. The company produced cars for each class of customers ranging from low to
upper class of the European market. The innovation and the raising process of gas, petrol, and
diesel, has led the customers to make a move from traditional cars to hybrid electric cars. This
change created difficulties for the brand. The company successfully handled the situation by
introducing an electric car for the market of Europe. The company will soon manufacture such
cares for the other markets as well.

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