MKT 421 Week 1 (rewriting)

MKT/421

2019

Instructor X

Oreo was sold for the very first time in 1912 by the National Biscuit Company (known today as Nabisco), and is to this day, one of the most popular brands of cookies. Oreo cookies usually consist of two chocolate wafers with sweet crème filling and are marketed as a “Chocolate Sandwich Cookie”. However, over the years Oreo has developed a large number of varieties and limited-edition flavors. The main varieties in the United States are: Double Stuf Oreo, Football Oreo (football shaped), Big Stuf Oreo, Golden Oreo, Oreo Mini, Mega Stuf Oreo, Oreo Thins, Chocolate Oreo, Mint Oreo, and The Most Stuf Oreo. Some of the limited-edition flavors are: Birthday Cake Oreo, Lemon Twist Oreo, Watermelon Oreo, Cookie Dough Oreo, Red Velvet Oreo, S’mores Oreo, Easter Egg Oreo, and even a “Peeps” flavored Oreo (to name a few) (Wikipedia, 2019). This is probably what appeals to me the most about the Oreo brand of cookies. They are always coming up with new and interesting flavors. You will always find a flavor of Oreo that you have never seen/tasted before and it makes you want to try it out. The colorful packaging and bold lettering not only helps with attracting customers, but it also makes their products stand out from all of the other brands on the store shelves.

With such a large variety to choose from it’s no wonder that Oreo’s attract such a large customer base. The many varieties that are produced and the great taste of these cookies appeal to all sorts of people, both young and old, male and female, rich and poor. A survey done by “Ask Your Target Market”, said that 75% of respondents had a positive opinion of Oreo’s. Only 9% of respondents said that they did not like them, and 17% were neutral (Pilon, A., 2016). Oreo products are perceived to have a superior taste over their competitors, and the promotion of the “dunk and dip” cookie have further enhanced the brand.

As far as marketing, Oreo has strongly used visual media in terms of television and print media advertising over the years where the Oreo brand has become highly recognizable. Oreo targets teenagers and younger children alike with its concept of advertisement. They also use various social media platforms to reach their target market. Oreo is one of the very few products that launched a century ago but has gained prominence in the last few decades with aggressive changes in marketing strategy.

The price of Oreo products is kept fairly low in order to meet the competitor’s pricing strategy. There has been quite a bit of competition for the Oreo brand. That being said, they meet expectations in terms of value offerings, and they have succeeded in capturing the market share. At first, Oreo opted for a lower marketing price strategy in order to gain higher market share in countries such as India. But later, when Oreo’s popularity increased in newly entered markets, they increased the price of their products. The various package sizes that they offer (which are sold at different prices) also helped the brand gain more leverage in terms of volume around the country.

Oreo cookies are distributed worldwide through a number of sales and marketing channels. As the popularity of Oreo’s continues to grow, so does the amount of distribution that comes with it. Nabisco, a subsidiary of Mondelez, has gone through a huge overhaul in hopes of creating a more efficient and cost-effective supply chain. Nabisco defines their supply chain management as being the low-cost supplier to their customers, focusing on aligning the availability of materials/packaging supplies and production capability. They intend to make it most suitable for smaller quantities of orders which have less lead time in order to maximize customer satisfaction. With tighter linkages in their supply chain, their internal order cycle time will pretty much be a thing of the past, and thus also distribution centers as well, which would result in mostly in-transit inventory making use of economies of scale. Along with their changes in the supply chain, they are making sure that their practices are becoming more sustainable, as well as environmentally friendly (Mondelez International, 2014).

Over the years, Oreo has increased interaction with their current and potential customers particularly through social media platforms, such as, Twitter, Facebook, Instagram, and YouTube. Their activity on these platforms has increased my participation in the company’s activities, for example, sharing some of their posts involving new products. Their participation on social media has kept me more informed about the brand, and it gives me, and other consumers, the opportunity to give them feedback and ideas concerning new products and possible improvements on existing products.

The overall strategy for the Oreo brand is to use their products to promote unity in society as a whole, and to increase their competitiveness in the industry. To accomplish this, the company has developed enough strategies to meet the various needs of their customers, and to introduce related products which are taylored to their specific taste. This firm adheres to the “4 P’s” of marketing, which include product, price, promotion, and place. The target market has high expectations of the company, and they want to feel like a part of the team through their continued involvement and promotion of the company’s activities. Also, Oreo has adopted strategic pricing of their products due to a high level of competition in the market, as well as, providing various products for their customers to choose from. In order to increase the marketability of those goods, Oreo has employed unique promotional and locational mechanisms which allow easy access to their products.

Operating in the modern business environment, Oreo is affected by both external and internal forces. The being said, environmental, social, and regulatory are the most important external factors that should be considered by this firm. Therefore, the management of this firm should put certain measures in place that will help limit the risks brought on by these forces. For example, the firm should consider/pursue environmental elements, such as, a continued emphasis on adopting “greener” alternatives. Social influences, such as, health/lifestyle concerns, and regulatory forces, such as, minimum wage laws and local health regulations in the workplace.

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