Oreo: Company’s Marketing Strategies

Introduction

Why do we buy things? Marketing! A company’s marketing strategies are a huge part of why we are drawn to certain products. Marketing is defined as, “ the process or technique of promoting, selling, and distributing a product or service.” Marketing. Marketing is everywhere from your TV to magazines, from billboards to social media, it is always there. Marketers tend to find what appeals to the consumers and play off of those feelings. They know if they can make something that is appealing to a certain demographic they will make a nice profit.

Product Appeal

The product I chose was the Oreo cookie. First and foremost, I enjoy the taste of the Oreo cookie and have since I was very young. Everyone’s personal experience is different with an Oreo cookie. For example, my mom likes to twist her cookie and I like to dunk my cookie in milk. I think that’s another reason why this product appeals to so many different people because there are different ways to experience the cookie. Even though it was something I ate when I was younger I still find myself buying the cookie for myself and my family now that I’m older. According to InfoScout, their records show that the consumers of the Oreo cookie, while you may think are young children, are actually those of very high income, Hispanics, and the upper-middle ages. Nabisco Oreo Consumer Insights and Demographics. 

Strategic Planning

Nabisco’s marketing for Oreo is very strategic. The most common type of marketing they do is commercials. These commercials, they are showing the different ways to consume the cookies. This goes back to how everyone has a different experience and eats there Oreos differently. They also use the strategy of showing celebrities eating the cookie as well and the way that they personally eat the cookies. The next way they market that makes a huge impact is through social media. Oreos' Facebook page alone has 41 million likes. Out of the top 10 brands on Facebook, Oreo lands the number 6 spot. Oreo Little-Known Facts. They also do not only market to America but to 100 different countries around the world. Clements, S., Jain, T., Jose, S., & Koellmann, B.

Pricing

After conducting some research I found that the brand pricing per average basket of a shopper is $2.99. Nabisco Oreo Consumer Insights and Demographics. However, there are different size packages that do cost different prices and they are all affordable. For example, I personally enjoy shopping at Stop & Shop. When I shop there I always get the family-size pack of Oreos two for six dollars. I usually do not ever see Oreos that aren’t on promotion. This is another good marketing strategy being affordable and always on a promotion makes the customer wants to buy your items.

Supply Chain

I’ve done some research and I have found the supply chain order for Nabisco. The very first step is Nabisco headquarters, from there it goes to Nabisco Brazil office, off to the United States of America shipping port. Once at the port the next step is the Nistevo truck, from the truck goes to the Nabisco factory. From the Nabisco factory, it goes to a service craft truck which then goes to a service craft warehouse. From the service craft warehouse then goes to another service craft truck which then goes to the retailer market for our consumption. Taha, A. 

Promotional Activities

We already spoke about how Oreo has promotions constantly running in supermarkets and retailers however the biggest promotional activity they have is how many cookie types and flavors they create. Across the entire brand of Oreos, they have 61 cookie types and flavors that appeal to many different audiences including the one hundred countries around the world that they service. Oreo Little-Known Facts. From their newest cookie which is thin to the mega stuffed Oreo, from original to golden to red velvet, and every flavor and size in between Oreo has not created a cookie that disappoints. They have something for everyone and this is what keeps them America’s favorite cookie.

4 P’s of Marketing

The 4 P’s of Marketing are crucial in determining what a product to offer to customers. The 4 P’s represent product, price, place, and promotion. The product in this case would be the Oreo cookie itself with its variety of flavors. The promotion would be all the marketing through TV and social media. Price is the affordability of the cookies being that they are an average price of $2.99. Lastly, the place would be the retailers with supermarkets being the front runners.

Competition

Keebler is Nabisco’s biggest competitor. According to the Washington Post, $1 out of every $5 spent in the US is spent on Oreo cookies. Keebler makes half the profits that Oreo does. Since 2005 Oreo has consistently increased themselves by 60%. The loyalty from their customers is the main reason why their products sell so well. They consistently think outside of the box. For example, fried Oreos and ice cream toppings. You do not hear about deep-fried Keebler cookies. Why Oreos might as well exist in their own cookie stratosphere. 

Conclusion

Oreo has consistently shown up and showed out for the last 100 years of production. They made their mark and continue to excel in all aspects of their business. From marketing to taste, they are always thinking of ways to be better than their competitors and make their customers happy in, any way they can. They do their research and make things happen for themselves.

References

1. Z. (n.d.). 4 Ps of Marketing (Product Mix) Definition | Marketing Dictionary. Retrieved from https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/6778-4-ps-of-marketing.html
2. Choice and Cookies: Why are Oreos so popular? - Journal - Steve's HR Technology. (n.d.). Retrieved from http://steveboese.squarespace.com/journal/2012/3/8/choice-and-cookies-why-are-oreos-so-popular.html
3. Clements, S., Jain, T., Jose, S., & Koellmann, B. (2013, April 02). How Kraft Foods made Oreo a global brand. Retrieved from https://m.businesstoday.in/story/how-kraft-foods-won-over-customers-in-china-and-india/1/193162.html
4. Marketing. (n.d.). Retrieved from https://www.merriam-webster.com/dictionary/marketing
5. Nabisco Oreo Consumer Insights and Demographics. (n.d.). Retrieved from https://infoscout.co/brand/nabisco_oreo
6. Oreo Little-Known Facts. (n.d.). Retrieved from https://www.mondelezinternational.com/newsroom/our-stories/oreo-little-known-facts
7. Taha, A. (2013, October 19). Nabisco Supply Chain Evolution. Retrieved from https://www.slideshare.net/mobile/ahmdalitaha/nabisco-supply-chain-evolution
8. Why Oreos might as well exist in their own cookie stratosphere. (2015, July 07). Retrieved from https://www.washingtonpost.com/news/wonk/wp/2015/07/07/why-oreos-might-as-well-exist-in-their-own-cookie-stratosphere/?noredirect=on&utm_term=.e80c7680faa3