During my consumer behavior class, we examined the global
marketing strategy of Oreos. Surprisingly, America’s favorite cookie didn’t
focus outside of USA’s market until the mid 1990s. Oreo first decided to move
into the Chinese market, but realized it had to dramatically change its
strategy to succeed outside of USA.
Oreo had to change its packaging, pricing and product to
capture sales in China. Based on consumer research, Oreo decided to introduce
smaller packages in the Chinese market. Instead of the rather large packages in
USA, China’s packaging only holds seven Oreos. This is because Chinese people
have less pantry space, stores have less shelf space and consumers shop on a
more frequent basis than Americans.
Oreo also learned that Chinese citizens are extremely
conscious of cost, so the company decided to sell the cookies in packs of seven
for only 29 cents. That’s a pretty big difference compared to the packs of 30
that cost $3 to $4 in USA. Next time I buy a pack of Oreos, I’ll go to China
for the best deal.
The most dramatic change Oreo made, was changing its product
altogether to capture the Chinese market. Oreo decided to introduce fruit
flavors in the cookie to satisfy the taste preferences of the market. The
company also created wafers covered in chocolate instead of the classic round
cookie.
After its move into China, Oreo focused on consumer research
before launching its products in other countries. The business now has Oreos in
over 100 countries, and no cookie is sold in the same way. Maybe one day Oreo
will be the world’s favorite cookie.
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