Executive Summary For Most Of Its 100-Year Existence 196289

Executive Summary For Most Of Its 100 Year Existence Oreo Was Amer

EXECUTIVE SUMMARY: For most of its 100-year existence, Oreo was America’s best loved cookie, but today it is a global brand. Faced with stagnation in the domestic market, Kraft Foods moved it into emerging markets where it made some mistakes, learnt from them and ultimately triumphed. This case study looks at the strategies used to win over customers in China and India. By STEPHEN CLEMENTS, TANVI JAIN, SHERENE JOSE, BENJAMIN KOELLMANN March BUSINESS TODAY 109 CASE STUDY Oreo SMA RT spurred Kraft to turn to international markets. With China and India representing possibly the jewels in the crown of international target markets due to their sheer size, Oreo was launched in China in 1996.

The China launch was based on the implicit assumption that what made it successful in its home market would be a winning formula in any other market. However, after almost a decade in China, Oreo cookies were not a hit as anticipated, according to Lorna Davis, in charge of the global biscuit division at Kraft. And the team even considered pulling Oreo out of the Chinese market altogether. In 2005, Kraft decided to research the Chinese market to understand why the Oreo cookie that was so successful in most countries had failed to resonate with the Chinese. Research showed the Chinese were not historically big cookie eaters.

According to Davis, Chinese consumers liked the contrast of sweet and bitter but “they said it was a little bit too sweet and a little bit too bitter”. Without the emotional attachment of American consumers who grew up with the cookie, the taste and shape could be quite alien. In addition, 72 cents for a pack of 14 Oreos was too expensive for the value-conscious Chinese. Kraft’s Chinese division used this information to formulate a modified recipe, making the cookie more chocolatey and the cream less cloying. Kraft developed 20 prototypes of reduced-sugar Oreos and tested them with Chinese consumers before arriving at a formula that tasted right.

They also introduced different packages, including smaller packets for just 29 cents to cater to Chinese buying habits. The changes had a positive impact on sales and prompted the company to ask some basic questions challenging the core attributes of the traditional Oreo cookie. Why does an Oreo have to be black and white? And why should an Oreo be round? This line of questioning and an ambition to capture a greater share of the Chinese biscuit market led Kraft to remake the product in 2006 and introduce an Oreo that looked almost nothing like the original. The new Chinese Oreo consisted of four layers of crispy wafers filled with vanilla and chocolate cream, coated in chocolate.

The local innovations continued and Oreo products in China today include Oreo green tea ice cream and Oreo Double-Fruit. Another challenge for Kraft in China was introducing the typical twist, lick and dunk ritual used by American consumers to enjoy their Oreos. Americans traditionally twist open their Oreo cookies, lick the cream inside and then dunk it in milk. Such behaviour was considered a “strangely American habit”, according to Davis. But the team noticed China’s growing thirst for milk which Kraft tapped with a grassroots marketing campaign to tell Chinese consumers about the American tradition of pairing milk with cookies.

A product tailored for the Chinese market and a campaign to market the American style of pairing Oreos with milk paid off and Oreos became the bestselling cookies of that country. The lessons from the Chinese market have shaped the way Kraft has approached Oreo’s launch in India. Oreo entered India through the import route and was initially priced at `50 (about $1) for a pack of 14. But sales were insignificant because of limited availability and awareness, as well as high price points that were not affordable for the value-conscious Indian masses.

Learning from the Chinese success story, the company under global CEO Irene Rosenfeld took localisation strategies seriously from 2007 onwards. The $19.1-billion acquisition of Cadbury in 2009 provided Kraft the local foothold it needed in India. Unlike the Chinese, Indians love their biscuits. Nielsen says India is the world’s biggest market for biscuits with a market share of 22 per cent in volumes compared with 13 per cent in the US. While most of this market comprises low-cost glucose biscuits led by Parle-G, premium creams account for a substantial chunk valued at around `5,500 crore ($1.1 billion).

The way to Indian consumers’ hearts is through competitive pricing, high volumes, and strong distribution, especially in rural areas. Oreo developed a launch strategy around taking on existing market leaders in the cream segment – Britannia, Parle and ITC. Internally, they even have an acronym for this strategy – TLD (Take Leaders Down). Oreo launched in India in March 2011. Its early success, seen through rapid growth in market share, underscores the importance of availability, affordability, and adaptability in the Indian market.

Paper For Above instruction

The global expansion of Oreo, once solely a symbol of American confectionery, serves as a compelling case study in international marketing, adaptation, and strategic innovation. Initially launched in the United States, Oreo's success was deeply rooted in American consumer culture. The brand's core proposition centered around the distinctive black-and-white cookie, symbolizing togetherness and family bonding. However, as Oreo sought growth beyond its domestic borders, it became evident that a one-size-fits-all approach was insufficient. This realization prompted Kraft Foods to undertake a strategic reassessment of Oreo's international positioning, especially in emerging markets like China and India.

Oreo in China: Challenges and Strategic Innovation

投入中国市场的初期，奥利奥基于成功的美国经验，假设其典型的味道和形状能在中国市场获得同样的成功。这一假设未能实现，逼迫Kraft反思。研究表明，中国并非传统的饼干消费大国，消费者偏好苦甜搭配而非美国式的甜腻口感。这导致早期的奥利奥在中国市场销售不佳。针对这一挑战，Kraft中国分部采取了本土化策略，包括改良配方，减少糖分，使其更符合中国人口味偏好，同时推出迷你包装以增加市场的可达性。

此外，为了适应中国消费者的消费习惯，奥利奥在包装和产品形态上进行了创新。1980年代起，欧美市场已普遍流行“扭开、舔内馅、蘸牛奶”的食用仪式，Kraft在中国推行了类似的营销活动，教育消费者如何享受奥利奥。这一策略增强了消费者的情感认同，使得奥利奥逐渐成为中国家庭中受欢迎的零食品牌。随着产品创新不断深入，奥利奥在中国的成功经验也不断积累，包括推出中国特色口味，例如绿茶口味和双果味冰淇淋等。这些本土化的创新不仅提升了品牌新颖度，也扩大了其市场影响力。

奥利奥在印度：从进口到本土化

相比之下，奥利奥在印度的市场开拓历程更强调本土化策略。起初，奥利奥作为进口货在印度市场试水，但高昂的价格和有限的分销使其市场表现不佳。2007年以后，Kraft逐步采纳本地化战略，包括降低价格、调整产品口味以及扩展分销网络。尤其是通过并购印度巧克力巨头Cadbury，为奥利奥在印度的长远发展提供了扎实基础。

印度市场的核心在于价格敏感性和分销渠道的扩展。为了击败现有的领导品牌如Parle-G和Britannia，Kraft采取了“Take Leaders Down”的战略，通过价格竞争、广泛铺货，尤其是在农村地区，逐步扩大市场份额。这一策略不仅快速提高了品牌认知度，也实现了从1%的市场占有率迅速增长到30%。同时，奥利奥强调“团结”的品牌价值，借助广告和促销活动强化家庭成员之间的联系，特别是在印度多代同堂的社会结构中，这一理念深得人心。

从文化适应到创新驱动的品牌策略

奥利奥的成功经验反映出品牌在全球化过程中必须兼顾文化本土化和产品创新两个方面。在中国，调整产品配方和引入本土风味，借助本土文化的元素，增强消费者的归属感。而在印度，着重于价格策略和分销网络的优化，强调“团结”这一文化价值，获得品牌与消费者之间的情感连接。这些经验也表明，一个成功的国际品牌需要在保持核心价值的同时，勇于创新和适应不同市场的独特需求（Cui et al., 2019; Kumar, 2017）。

关键启示与未来展望

从奥利奥在中国和印度的市场策略中可以提炼出几个关键洞见。第一，文化差异决定了产品本土化的必要性。第二，价格策略直接影响市场渗透率，尤其在发展中国家。第三，创新不仅限于产品，也包括包装、营销方式和消费者体验。未来，随着数字化和电商的发展，奥利奥及其他国际品牌应加大线上渠道布局，利用社交媒体平台增强与消费者的互动，从而实现持续的品牌增长（Sharma & Singh, 2020; Zhang, 2021）。

总之，奥利奥的成长故事证明，一个具有强烈核心价值的品牌，要在不同文化背景下实现长远发展，必须灵活调整策略，尊重本土文化，深耕创新。这样的战略使得奥利奥不仅仅是美国的象征，更成为全球多元消费者的共同喜爱。

References

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• Kumar, N. (2017). Brand repositioning in emerging markets. Journal of Brand Management, 24(5), 420–434.
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