Tag: strategy

OREO — GLOBAL BRAND

OREO IN INDIA- LAUNCHING AND ESTABLISHING A GLOBAL BRAND IN INDIA USING INTEGRATED MARKETING COMMUNICATIONS EFFECTIVELY

INTRODUCTION

For most of its 100 years existence, Oreo was consistently America’s best loved cookie, but today it is a well established global brand. Mondelez International moved it into emerging markets quickly learning the rules of success in these unfamiliar markets, changing and refining the brand strategy and ultimately triumphed in winning over customers. This is the case demonstration how Oreo brand’s successful entry into the Indian market was well orchestrated using the Communication Mix elements such as Advertising, Sales Promotion, Events and experiences and Public relations to establish the brand during the launch phase and subsequently stabilizing the brand in India.

MARKET BACKGROUND AND BRAND STRATEGY

Market was present in India by chocolates, beverages and candy categories. The company entered into Rs. 17,000 crore as a competitive India Biscuit with their lead brand Oreo in 2011. It entered into the Cadbury brand in India as it is the strongest brand in India, and initially focusing on awareness and rapid trials. The key objectives of the launch were

  • Gain a 1% share of the Biscuit category in the first year.
  • Build awareness, 40% trials and 40% repeat purchase in priority markets.

OREO BRAND ADVERTISING AND COMMUNICATION

Communication and advertising have been consistent across many markets as the customer and the brand truths remain the same. The company focused on the “moments of togetherness” proposition for Oreo in India, with the television forming the main medium of communication. In addition, other media platforms were tapped as well. It also presented with the digital media as well as with the Facebook page,adding fans at a rapid rate. It created “oreo togetherness bus” which toured cities and made togetherness concept. It made a strategy with the consumer preferences with the brand.

ADERTISING THEME: BRINGING PEOPLE TOGETHER THROUGH THE OREO RITUAL OF TWIST, LICK AND DUNK -‘TLD’

Rituals play an important role in the lives of Indians, and they follow them with zeal and enthusiasm. Rituals also help in bringing people together. So, this created an opportunity for Oreo to bring familiar in the families together. The twist, lick and dunk became a platform to concept with the people beyond the product, and bring about taste, joyousness and family bonding.

Oreo’s communication message focused on creating,

1. A RITUAL OF PLEASURE for the child, centered on the joy of consumption

2. A RITUAL OF EMOTION for the parent, that sparks these slowed messages of togetherness and enhances the bonding between child and parent.

HOW THEY ABLE TO DO THIS?

COMMUNICATION STRATEGY 

 We would see in the ice cream biscuit segment, mothers are the buyers. Kids are the majority of the consumption. It warms the mother’s heart by seeing the joyous moment in their kids eyes.

Unlike the mother, father spends less time with their kids and so the twist, lick and dunk concept grasped the opportunity around the people. The Oreo dunked into the Indian hearts. 

THEY WON THE HEARTS

Oreo has been able to get a vey firm foothold in the highly competitive biscuits market in India by creating compelling differentiation at every level- in product offering in store in the tradtional and Modern trade channels by leveraging a unique consumer insight, addressing desires of them and establishing a new ritual. Marketing is all about creating differentiation and they won the hearts of the people by doing that and they are now the highly crowded and fiercely competitive biscuit market in India.

FUNCTIONAL ASPECTS OF BUSINESS

Marketing

Marketing is a broad term. It is the activity, set of instructions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

In Management, there are 2 types of Strategies that are Push Strategy and Pull Strategy. In early times, even today at some extent it is believed that a person/individual or a company that can sale anything is a good at marketing. But it is not truth.

Do you know why?

Marketing is based on the concept of Pull Strategy and not Push Strategy. Pull Strategy focuses on understanding the demand and requirements of customer, manufacturing or innovating a commodity so that customer receives a product which adds to the value of customer. This helps in creating a strong a loyal customer base. Its not that the customer is compelled to purchase a commodity, not considering whether the customer requires that product or not. (Push Strategy) in which the customer will buy the product once but will not show any demand in future.

Human Resource (HR)

Human Resources (HR) is the division of a business that is charged with finding, screening, recruiting, and training job applicants, and administering employee-benefit programs. Human resources responsibilities also include compensation and benefits, recruitment, firing, and keeping up to date with any laws that may affect the company and its employees.

Many companies have moved away from traditional in-house human resources (HR) administrative duties and outsourced tasks like payroll and benefits to outside vendors.

Topic 1: Introduction to Human Resources Management | The Borgen Project

Finance

“Finance” is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments.

Basically, finance represents money management and the process of acquiring needed funds. Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems

A guide to take your business international

As Globalisation takes over the world, more and more businesses are expanding and opening their manufacturing units, branches, outlets, offices all over the globe. While some grow exponentially and expand their market, sales and customer base, some fail to get any response and incur huge promotional, travel, administration and financial costs.

This is why it is extremely crucial to form an entry strategy that suits the organisation. It is also important to assess the financial position and capacity of the organisation and to understand that International business gives delayed returns as spreading awareness, competing with the competitor’s product and building an International customer base takes time and incurs promotional costs.

Once the business is ready to enter the international market, there are several factors to be considered.

  1. Firstly, the organisation needs to conduct market research and choose the country and the specific locations where there is demand for their product/service.
  2. Secondly, assessing the culture, language of the country and city is also very important. The organisation can make the necessary changes (if any) to its product/service and its packaging and labelling accordingly.
  3. The last step is to form an entry strategy that suits the organisation and the market and implement the stategy.

Ways of entering an International Market

There are several ways to enter a market depending on the product/service reach preferred by the organisation and the financial capacity of the organisation.

  • Direct Exporting- In this method, the organisation directly sends its products, transfers its employees and workers to the location chosen. It involves huge setup, transportation and transfer costs. Therefore, this method is only used when the product that is being exported has a lot of demand in the new market and will definitely get a response from the target audience. For example, exporting machines to developing countries where there’s no manufacturing of such machines but a huge demand for the same.
  • Through a distributor- In this method, products are sold to distributors who are wholesale buyers. The distributor uses his own selling and pricing strategies to sell the product in the market.
  • Licensing- Through licensing, the organisation can share its technology, method and basic know how with local companies. However, through this method, the product is sold under the local companies’ name and brand so there is no scope of building an international brand and consumer base.
  • Contract Manufacturing– Through this method, the company pays a local manufacturing unit to manufacture their products by sharing their technology and design. It saves the cost of exporting or setting up a manufacturing unit abroad and is ideal for products that require large scale production.
  • Strategic Alliance- This method includes Mergers, Acquisitions and Joint Ventures. In Joint Ventures, two companies form another company to work as partners. For example, Hero Honda. In Mergers and Acquisitions, one company merges with or acquires another company. There is no formation of third company or new identity in this case. For example, Walmart acquired Flipkart.
  • Through an Overseas agent- Using this method, the company hires a local agent to make business relationships on behalf of the company. The agent acts as a sales representative who sells the products on behalf of the company and has no direct relationship with the customers. The agent gets commission on his sales. This is an effective method to save costs in case the organisation wants to test out the response of the foreign potential consumers or distribute their products on small scale without incurring huge costs.