Oreos cookies marketing strategy

Oreos cookies marketing strategy
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Introduction
This paper evaluates marketing strategic management of Oreo products. The history of product has been highlighted as well as an overview of product positioning and marketing strategies. Reasons for its sustainability in global markets and marketing strategies used in penetrating the Japanese markets have also been discussed.
History of Oreos Cookies
Oreo product was born on 6th march 1912 and has significantly developed its brand name to become the top selling cookie in the world today. Enjoyed in more 100 countries, Oreo is milk cookie biscuit which have been innovated into local flavors of to different regions and markets they are consumed in, (Company Overview, n. d).
Oreo was first sold in Hoboken, New Jersey, where the product was packaged in bulk tins and sold in weight. The original Oreo was made at Nabisco library and has a street named after it, Oreo way in the in New York. It is the most favorite and best selling cookie brand in the world, generating global annual revenue of over 1.5 billion dollars for the Kraft foods company as at 2010 statistics.
In 1913, Oreo cookie was registered as a Nabisco trademark and changed its name from ‘Oreo Biscuit ‘to Oreo sandwich in 1921 and later to ‘Oreo crème sandwich‘ in 1937. Two years later, the product was first advertised on Trolley cars and was first exported to Spanish speaking nations of central and Latin America. Global moments campaigns for the product were launched in 1998 and a variety of its brands were introduced into different countries.
Kraft Company is the custodian of Oreo products which are found in more 100 countries worldwide. Its biggest markets are in the US, China, Venezuela, Canada, Indonesia, Mexico, Spain, UK, Central America, Argentina and the Caribbean. Oreos are made in 21 bakeries of Kraft foods spread across the world. The product has over 23 million facebook lovers representing more than 200 plus countries of different languages and is ranked among the top five facebook pages in the world today.
Porter’s competitive strategy analysis in Oreo brands
Threat of entry: the threat of new entrants into food industry is generally high and this extends to the snacks, biscuits and other similar brands. This is because of low initial capital required to establish a food processing factory. The increasing demand for food items due to the swelling world population has made the industry attractive to potential investors. However, established brand names of Oreo have scared away new entrants into markets where Oreo brands are highly recognized like China, Canada, US, Indonesia, Japan and Mexico among other locations.
Power of suppliers: The suppliers of raw materials and labor are diversified; this has drastically reduced their power. Raw materials can be easily obtained, an example is milk and sugar whose supply is not only high but also readily available and can be obtained from various sources. Inputs are highly differentiated especially in the production of Oreo chocolates and biscuits, and supplier size is relatively big which gives the company more independency to choose the best supplier hence reducing their powers. The switching cost from one supplier to another is almost zero and there exists a variety of substitute inputs for the production of Oreo products.
Power of Buyers: The power of buyers is very high because of very low switching costs in the food industry. Consumers of food products are generally sensitive to price changes which make buyers to influence prices of products. They can easily switch to competitor products hence the need to develop brand name and build consumer loyalty. However, large size of buyers of Oreo brands and market segmentation has helped in reducing the power of buyers.
Substitutes: Oreo products have a variety of cheap substitutes, ranging from milk powder, snacks and biscuits. This is complemented by low switching cost to substitute products. Building Oreo brand name and consumer loyalty is necessary to maintain high performance of the products
Competitive rivalry is relatively high, main competitors being Keeler, which is the second largest in the US, whose sales have been increasing significantly and is also engaged in massive product innovations and diversification. Competitive rivalry is high in this industry which is attributed to easiness of entry by investors. However, brand recognition and product differentiation has sustained the performance of Oreo brands in the global market. Low installation costs, growing demands for food products and low exit rate from the industry have increased competition in the industry.
Overview of Oreo strategy
Kraft Company employs various strategies to survive in the global competitive markets. This includes both marketing mix and marketing analysis strategies.
Market target strategies involve expanding into fast growing demographics and economic segments. Oreo products have been extended in Asian markets which have experienced economic growths, Canada and America. The growing population in target markets offered a wide market for the Oreo branded products, (Company Overview, n. d).
Market segme...