Oreo 2.3

The brand positioning map where created by me based on the interviews. For the interviews I found 3 “snacks addicted” persons and ask them question from my questionner. Majority believe that Kraft produce high qualitied and expensive cookies. In addition, I gather data from the different databases about main Kraft competitors and also put them in my market positioning map.

Consumer perceptions of Oreo survey: https://docs.google.com/forms/d/e/1FAIpQLSciaviavYAwWq1-Tk54MZgS1EVPWibdvqJIYo3tZsKhx9lFVQ/viewform

Oreo 2.2

Oreo Segmenting markets   

Market segmentation defined as a process of dividing a market into distinct group of consumers who have common characteristics, needs or behavior to selecting one or more segment to target with a distinct marketing mix. (TrackMaven, 2016). Oreo have their own abilities to serve their target market and they putting much effort and attention on specific segment. First, geographic segmentation is dividing the market into different geographical units. For example, Malaysia has a good condition for the cookie industry. That is because coffee stands for cookie culture. Consequently, Malaysians can go through the coffee to know more about the cookie culture. Oreo had chosen to focus on psychographics, demographics lifestyle of consumer.

Psychographics is also referred as behavioral segmentation, it based on consumer's lifestyle, interests, activities, expectation and attitude, which mean what customer preferred, how they spent their time, and the most important is how they feels about issued and event. Oreo heavily involved and promoted in education, charity and the environment. They satisfied their customers Oreo provide some program where their customer can win some goods. Also, Oreo participates in charity activity. (Gavronski, 2015)

Demographics divided the market into groups based on age, gender, income, occupation, size of family, education, race, nationality and religion. Oreo target small children and teenagers 6 - 17 years. Their products are normally aimed in primary school, high school, and even college. The price for Oreo's product is affordable and fair. Even if people do not have a big income they still can buy Oreo products. (Milksfavouritecookie, 2014)

A company can enter one or more of these segments after they defined market segments. Market targeting involves breaking a market into segments, and then focused, selecting on one or more segments to enter. Oreo is focuses on kindergarten kids, primarily school students and family.

Oreo does not target adult directly, but they have some products like ice-cream, cake and pie. So, Oreo also suits for family. Nowadays, Oreo is trying to refine and improve their products to satisfy their customer more. (Gutierrez, 2012)

Position is arranging for product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. Company wants to develop a unique market position for its product. Therefore, Oreo products always have been perceived with a high-status image by their advertisement. With their high quality products, variety of tastes, customers are willing to pay for the products. Oreo is uses the emotional appeal here in to reinforce its product as a binding force between Parents and their children (‘Twist-lick-dunk’ game). It helps tap the small children who would pester their parents to buy them Oreo cookies. (Milksfavouritecookie, 2016)

References

Gavronski, M. (2015, Apri; 11). Oreo campaign analysis . Retrieved from Prezi: https://prezi.com/9vkkdr2dny45/copy-of-oreo-campaign-analysis/

Gutierrez, M. (2012, December 3). The Ethics of Social Media Marketing. Retrieved from The Huffington Post: http://www.huffingtonpost.com/mateo-gutierrez/social-media-marketing_b_2206357.html?

Milksfavouritecookie. (2014, September 12). MARKETING MIX ELEMENTS. Retrieved from The World of Oreo: https://milksfavouritecookie.wordpress.com/2014/09/12/marketing-mix-elements/

Milksfavouritecookie. (2016, November 22). Segmentation, Targeting, Positioning. Retrieved from The World of Oreo: https://milksfavouritecookie.wordpress.com/2014/09/21/segmentation-targeting-positioning/

TrackMaven. (2016, November 22). Market Segmentation. Retrieved from TrackMaven: http://trackmaven.com/marketing-dictionary/market-segmentation/

Oreo 2.1

Oreo attitude survey

In order research consumer attitudes towards Oreo the attitude survey where created by me. Unfortunately, it is impossible to make it good enough in Word so I used Google forms. You can look on it in original version by clicking on link below. The screenshots of survey are in appendix. (app.1)

https://docs.google.com/forms/d/e/1FAIpQLSe4cD4Wvy1SOW85JRK2HIJyjViaAZSNetSqj4RiqjBj7910ag/viewform

Nielsen retail panel

It is two marketing datasets

·        Consumer Panel Data

·        Retail Scanner Data

“Retail Scanner data consist of weekly pricing, volume, and store environment information generated by point-of-sale systems from more than 90 participating retail chains across all US markets.” (University of Chicago Booth School of Business, 2016)

For the Oreo it would be nice to have and they can buy information about:  participating stores report units, price, price multiplier, baseline units, baseline price, feature indicator, and display indicator of their competitors’ products. The benefit of this information is that Oreo would know how business of competitors going, they can see which new products they have, see how big is market share of each separate product, etc. After collecting all this information, it would be easy to understand in which aspects company have problems, or evaluate how everything going compared by previous year/planning for this year. In addition, it saves a lot of time for company staff because they do not need to do researcher by themselves.  

GfK

GfK is a marketing research company, which can provide date related to: retail panel, consumer panel, cross-media panel, social media intelligence and ad-hoc market research data.

For the consumer panel GfK can provide information abouth who your consumers are, their attitudes and behaviors, across all channels. Moreover, data about: shopping behavior; where consumers go to find new products, how they research and compare products, how they use them and the factors that drive their decision making and path to purchase, also could be given. In addition, the GfK consumer panel also can provide data and strategy for became market leader but Oreo is already market leader and do not need this data. (Knaeble, 2016)

Therefore, for Oreo it would be great to know factors that drive product decision making of people in cookies market. Firstly, because of high competitor ratio. Secondly, to know how to attract new customers for the company. Of course all information provided by GfK consumer panel is important, however, Oreo already know a lot about attitudes and behaviors of their customers while factors of product decision making changing extremely fast.

 If you want to see appendix please contact me on bogdan.salij@gmail.com.

References

Knaeble, S. (2016, November 16). Consumer panels. Retrieved from GfK: http://www.gfk.com/solutions/consumer-panel/

University of Chicago Booth School of Business. (2016, November 16). Nielsen Datasets. Retrieved from ChicagoBooth: https://research.chicagobooth.edu/nielsen/datasets/#simple2

Oreo 1.6

Oreo international marketing

Oreo is an international brand. It has global marketing level of the international involvement of the manufacturer, because selling their cookies in more than 100 countries around the World. The biggest biscuit market is on India and Oreo are market leader with 1.2% of market share (app 2.1). Oreo used Sustainability marketing strategy. It is “a business strategy that drives long-term corporate growth and profitability by mandating the inclusion of environmental and social issues in their marketing efforts. Within business practices, sustainability is closely related to corporate social responsibility.” (Wordpress, 2014).

     Unfortunately, I didn’t find any data about impact of the recent international turmoil in Oreo. However, recently Oreo decide to close on factory at Chicago and fired 1,200 workers. This decision creates a lot of negative feedback from the Oreo lowers but they don’t change their decision. This situation might reduce number of Oreo customers but in general it will not have strong influence on Oreo. (Trotter, 2016)

     New international legal forces which have an impact on Oreo manufacturing.

1.     “Feed-in tariffs and feed-in premiums”

2.     “Limit on total funding obtained by RES installation”

3.     “Bid price caps”

All of them are related to energy consumption. Now the big factories have to use special energy saving equipment, price for electricity are growth. However, if the company spent less electricity that planted they will receive some money from special institute. (Hajduk, 2015)

 If you want to see appendix please contact me on bogdan.salij@gmail.com.

References

Hajduk, R. (2015, April 20). New renewables legislation. Retrieved from International Law Office: http://www.internationallawoffice.com/Newsletters/Energy-Natural-Resources/Poland/Norton-Rose-Fulbright-LLP/New-renewables-legislation

Trotter, G. (2016, February 20). As Oreo bakery layoffs loom, workers face hard decisions. Retrieved from ChicagoTribune: http://www.chicagotribune.com/business/ct-oreo-bakery-layoffs-impact-0221-biz-20160219-story.html

Wordpress. (2014, September 26). The World of Oreo. Retrieved from Milks Favourite Cookie: https://milksfavouritecookie.wordpress.com/

Oreo 1.5

Oreo environmental analysis

     Recently Oreo add a new video to his Facebook page in which a couple arguing and trying to decide which film they going to watch. So, each of them are take a half of Oreo cookie and first one who will eat all cream using only tong – win. It is new marketing campaign called “Lick Race” this come instead of “Twist, link, dunk”. Oreo force people to buy the Oreo cookies by creating new prizes as 1 year of free Oreo cookies for you. Moreover, it forces people to promote Oreo by putting a video in which you are lick the cream in social media with #OreoLickRace hashtag. (@Oreo, 2016)  

     From the Oreo annual report 2015 I can say that the most important external factors for Oreo is Economical and Demographical. Demographical because target groups are different in different countries, size of population play big role in amount of selling. While economical factor is important because it is demonstrating ability of people to buy the Oreo cookies. (Earn, 2015)

     The Central Bureau of Statistic articles were checked by me in order to understood which relevant data about the external environment might influence Oreo. It is Nederland’s CBOS so all data related to the Nederland and possible changes for Oreo also related only to the Nederland market.  I found two interesting articles, first one named “Household population are growing” in which you can find some figures that proves that nowadays at the Nederland amount of families are growing. (Centraal Bureau voor de Statistiek , 2016) One of the main target group for  Oreo is families and children so it is high possibilities that amount of Oreo cookies sales in the Nederland also will increase. Moreover, the situation represented in second article “Economic situation is improving” make the Nederland even better for selling Oreo. It is important to notes that people are thinking that economical situation is improving so they can afford more. And people who like but didn’t buy Oreo because of saving money, now can rethink about it. (Centraal Bureau voor de Statistiek , 2016)

     In the Nederland people more eat sandwiches as snacks, so Oreo might not be in each children school rucksack like it is in America. Also people in the Nederland very careful to money, they better will do everything by themselves instead of buying ready product, in order to reduce expenditure.

References

@Oreo. (2016, October 10). Oreo. Retrieved from Facebook: https://www.facebook.com/oreo

Centraal Bureau voor de Statistiek . (2016, September 23). Economic situation is improving. Retrieved from CBS: https://www.cbs.nl/en-gb/news/2016/38/economic-situation-is-improving

Centraal Bureau voor de Statistiek . (06 September 2016 г.). Household population are growing. Получено из Centraal Bureau voor de Statistiek : https://www.cbs.nl/en-gb/news/2016/36/household-population-growing-in-and-around-major-cities

Earn, C. (2015, July 25). OREO Annual Report 2015. Retrieved from Behance: https://www.behance.net/gallery/27412923/OREO-Annual-Report-2015

Oreo 1.4

Oreo is not b2b orientated company. However, it has some deals (for sailing cookies) to others companies in business market. For example, in my home country Ukraine, Oreo officially don’t sell its cookies but you can easily found it at the supermarkets or make an order from the Internet. It is become question how it possible? The answer would be that some companies in Ukraine contact Oreo and make a deal with them – Oreo sealing their goods for lower price while Ukrainian companies baying a lot. From the webpage of one of this companies: “Our company is not an official representative of the company Mondelez International. Our online store is engaged in retail sales of confectionery products different import brands in Ukraine, based on private entrepreneurship.” (Rigez Agency , 2016)

     This example clearly demonstrates straight rebuy purchase model when routine repurchase of the same products under approximately the same terms of sale. First of all, companies recognise a problem in our case it is willing to make a money. Then, the development product speciation stage where peculiarities that product has to contained are claimed by CEO of the company. Next, principals look for the product which suit needs and after founding all possible products it is become evaluation phase after which CEO decide which product to buy. After first transaction and some feedback company decide to continue b2b relationship or not.

References

Rigez Agency . (2016, September 28). Печенье OREO в Украине. Retrieved from Oreo in Ukraine : http://oreo.com.ua/

Oreo 1.3

As I mentioned in mine previous works, the main Oreo target group is children. Because Oreo sell its cookies all over the world, the behavior, social environment and decision taken process are different in each region. I would like to take as example Arabic countries because the quantity of sold Oreo cookies at that region is the highest in proportion cookies/population.

     To begin with, in general in Arabic countries is Islamic countries which means that family life cycles are followed hear are usually all family members. Moreover, usually youth don’t live separately and independently until it’s become time for them to build their own families. In addition, in general Arabic people like to eat sweet food and snacks. They like to watch TV and they are more influenced by promotion. This environment creates for Oreo almost perfect condition, however, the price of the Oreo is not affordable for some groups of people if the countries.  

     The best stages of the family life cycle for Oreo is Parenting and Launching because as I mentioned beyond, Oreo target group is children. However, it does not mean that in other stages it is no sold cookies, especially in Arabic region. Oreo is convenience good, customers prefer to bought it at the shop or supermarket, it is traditional shopping. It is important that the Arabic people very loyal to brand which they are chose. When the customer realizes that he wants fast and sweet food it is his first step in decision making process. Next, he is trying to remember what he saw at the TV, internet, etc. advertisement for satisfying his needs. In the next step, customer evaluate varieties of brand which might sweet him. And then choose rather Oreo or not. If client choose Oreo and fells dissatisfied, he would probably have cognitive dissonance. (Samreen, 2016)

      If you want to see the attitude scale for measuring consumer attitudes towards Oreo cookies please contact me on bogdan.salij@gmail.com.

References

Samreen, D. (2016, September 21). Market research on Oreo. Retrieved from Scribd : https://ru.scribd.com/doc/28443502/Market-research-on-Oreo