Week 1 (MKT)

Why We Buy a Product

MKT/421

Why We Buy a Product

Today’s world is made up of people, customers, or consumers who purchase goods and services based on not only needs and wants but what they see and or hear as well. Having an effective marketing strategy increases the desire for a particular product or service. According to Kerin & Hartley (2017), marketing is the “activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (pg. 5). Good marketing isn’t easy; however, it can provide satisfaction to both the consumer as well as the business. Satisfaction for both parties is accomplished by way of exchange or valuable trade between the buyer and seller (Kerin & Hartley, 2017). As consumers, we often stumble across items or goods we’ve purchased, and question why did I buy this? If this question is asked, it is likely that the item was well marketed as it increased the desire for the purchase.

Oreo Sandwich Cookies

One popular item which has been named the most wanted, most sold, and most desired cookie is the Oreo. Oreo sandwich cookies were created in 1912 by Nabisco when the idea of placing creamy filling between two chocolate flavored discs (circular wafers) came about (Rosenberg, 2018). Although the name of the sandwich cookie has changed many times, it is often referred to as “Oreo.” The Oreo cookie was unveiled four years after Hydrox, the “original chocolate sandwich cookie which is also two chocolate flavored discs filled with “sweet vanilla cream” (Parks, 2017). Although Oreo cookies were not successful in the beginning due to Nabisco replicating the Hydrox brand, the quality taste and good marketing have named the “milk’s favorite cookie” the king of cookies.

Nabisco was quite clever in their marketing with Oreo cookies by revamping the cookie design and using the reverse psychology strategy on consumers by increasing the price of the cookie to make its competitor Hydrox appear to be a low budget knock-off version the sandwich cookie. Hydrox slowly lost their creditably and was forced to be sold to the wholesale market to be used for off-brand ice cream (Parks, 2017). Eliminating the competition, Oreo has made a name for itself by appealing to multiple target markets with its many variations and uses.

Why Buy Oreo Cookies?

Although Oreo cookies are loved by all, the target market appears to be comfortable-lifestyle, outgoing individuals who are eager to try new things and don’t mind spending extra on brand-conscious snacks (milksfavoritecookie, 2014). This target market would make up the generation Y cohort. Being a part of the generation Y, Oreo cookies are appealing because they are a quick, easy to grab snack that can be taken on the go and have a quality delicious taste. As a “baby boomlet” according to Kerin & Hartley (2017), my lifestyle is rather hectic with a slightly uneven balance between work and life so easy to grab snacks are convenient. For “baby boomlets” who happen to have children, the “Moments” campaign portraying parents with children projects a parental bond. Considering most people’s first taste of the Oreo is as an adolescent, the representation of humor, imagination, socialness, and fun is appealing to consumers of all ages (Data Strategy Technology, 2014).

Oreo sandwich cookies fall in line with the four Ps of marketing which consists of product, price, place, and promotion. To cater to a wide range of consumers, Oreo provides many variations of cookie snacks that vary by size and flavor. The marketing mix (product) of the Oreo brand include the double stuff Oreo, the Golden Oreo, Oreo thins, Sugar-Free Oreo, reduced fat Oreo, Fudge covered Oreo, Jell-O Oreo, Oreo Chocolate Candy bar, as well a variety of flavors not limited to chocolate and sweet cream. (Mbaskool, 2011-2018). By meeting their competitor’s pricing strategy and keeping a lower price level, Oreo remains competitive. Having manufacturing facilities and product availability in each continent allows Oreo to meet the needs of consumers across the world. Having the right distribution strategy apart of its market mix provide avenues to stock the product in “mom and pop” stores, retail outlets, and shopping malls in both rural and urban areas (Mbaskool, 2011-2018). Like any other product, Oreo goes through supply chain management by flowing through facilities and activities to prepare for delivery. The process includes the “procurement of raw materials and the assembly of components to the storage and distribution” (Zhen, 2013, para 2). Lastly, Oreo’s market mix uses a variety of visual and social media, along with celebrity endorsements and distinguished packaging to promote the popular snack.

With much success, Oreo’s marketers continue to take risks as they promote the popular cookie. Being named “milks favorite cookie.” the most recent “Wonder-Filled “campaign broadens the message of twist, licking, and dunking the cookie into a glass of milk which appears to remain important to the Oreo brand (Ellett, 2014). In a world where society is more health and environment conscious, Oreo continues to stay within the trends offering healthier options to its consumers. To stay within the regulatory forces, branding must follow the FTC’s laws around advertising and remaining true to the product without being misleading.

Conclusion

Overall, Oreo remains to be consistent with their product, taste, and advertising. Having been introduced to Oreo’s a child, seeing the blue package takes me back to the days where I was given two to four Oreo’s while doing homework, watching tv, or just desired a snack. As an adult, Oreo continues to be a go-to snack or addition to a delicious dessert recipe.

References

Data.Strategy.Technology. (2014). Oreo is one smart cookie. Retrieved from https://www.dmnews.com/channel-marketing/social/news/13057259/oreo-is-one-smart-cookie

Ellett, J. (2014). How a risk-taking culture enables oreo’s marketing innovation. Forbes. Retrieved from https://www.forbes.com/sites/johnellett/2014/09/26/how-a-risk-taking-culture-enables-oreos-marketing-innovation/#52e5a56c4b0d

Kerin, Roger A. &Hartley, Steven W. (2017). Marketing (13th ed.). New York, New York: McGraw-Hill.

Mbaskool.com. (2011-2018). Oreo marketing mix (4Ps) strategy. Retrieved from https://www.mbaskool.com/marketing-mix/products/17326-oreo.html

Milksfavoritecookie. (2014). Segmentation, targeting, positioning. WordPress. Retrieved from https://milksfavouritecookie.wordpress.com/2014/09/21/segmentation-targeting-positioning/

Parks, S. (2017). How Oreos got their name: The rise of an American icon. Serious Eats. Retrieved from https://www.seriouseats.com/2017/08/history-of-oreos-bravetart-cookbook.html

Rosenberg, Jennifer (2017). A history of the Oreo cookie. ThoughtCo. Retrieved from https://www.thoughtco.com/history-of-the-oreo-cookie-1779206

Zhen, E. (2013). The supply chain: Who knew that every Oreo makes a journey. Retrieved from http://kwhs.wharton.upenn.edu/2013/10/the-supply-chain-who-knew-that-every-oreo-makes-a-journey/