Chinese consumers generally have a preference for less sweet flavors compared to some Western consumers. This preference is influenced by cultural factors and traditional Chinese cuisine, which often balances flavors and emphasizes subtlety. As a result, Oreo adjusted the sweetness level of its cookies to align with the taste preferences of Chinese consumers. The reduced sweetness in Oreo cookies in China allows for a more balanced flavor profile, where the chocolate wafers and sweet creme filling are still enjoyable without being overpoweringly sweet. Besides, the company decided to introduce localized flavors to appeal to the Chinese palate. The localization strategy involved developing flavors that were familiar to Chinese consumers, such as green tea, red bean, mango, lychee and peanut butter, which are popular ingredients in Chinese desserts. These flavors have been carefully selected based on market research and consumer preferences. One of the key advantages of localization Oreos flavors was that it helped the company differentiate itself from local competitors. In a market saturated with local brands, offering unique flavors helped Oreo to stand out and capture the attention of Chinese consumers. Localizing its flavors also helped Oreo to overcome cultural barriers and build a stronger connection with Chinese consumers, who value products that cater to their tastes and preferences.
FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS -*** - MIDTERM ASSIGNMENT Subject: International Business | Subject code: KDOE307 Topic: CULTURAL ASPECTS INFLUENCING INTERNATIONAL BUSINESS ACTIVITIES: A CASE OF OREO IN CHINA Group: Group 11 - KDOE307(GD2-HK2-2021).2 Instructor: Ph.D Nguyen Hong Hanh No Full name Student’s ID Phan Bùi Minh Anh 2113550007 Trần Phương Anh 2112150023 Trần Tiến Dũng 2112530011 Trịnh Thị Minh Hạnh 2113150028 Phạm Mai Quỳnh 2113150062 Tạ Thúy Quỳnh 2113150595 TABLE OF CONTENT INTRODUCTION CHAPTER 1: OVERVIEW ABOUT OREO AND ITS ENTRY TO CHINA 1.1 General information of Oreo 1.1.1 History of formation and development a History of formation b History of development 1.1.2 International business activities of Oreo 1.2 Oreo's entry into China CHAPTER 2: THE INFLUENCE OF CULTURAL ENVIRONMENT ON BUSINESS ACTIVITIES OF OREO IN CHINA 2.1 China's cultural environment 2.1.1 Chinese culture factors that impact on Oreo’s business activities a Chinese eating habits b Chinese shopping habits c Chinese celebrity culture d Social media platforms e Traditional festivals f Symbolism 10 g Beliefs 10 2.1.2 Comparison of Chinese and Oreo’s local market culture 11 a Overview of Oreo's Local market Culture and Practices 11 b Comparison of key differences and similarities with Chinese culture 13 CHAPTER 3: CULTURAL ADAPTATION OF OREO IN CHINA 15 3.1 Oreo’s performance in China 15 3.1.1 Product adaptation 15 a Adjusted sweetness and localized flavors 15 b Innovative packaging 16 3.1.2 Marketing and branding adaptation 17 a Popularization of Oreo's iconic ritual: Twist, Lick and Dunk 17 b Use of Chinese celebrity endorsements 18 c Use of localized social media platforms 18 d Integration of traditional Chinese cultural elements into Oreo's commercials and campaigns 19 3.2 Evaluation of Oreo in the exploitation of Chinese culture 21 LESSON LEARNED FROM OREO’S SUCCESS IN CHINA 23 CONCLUSION 24 REFERENCE 25 INTRODUCTION Oreo, born in 1912, is a famous cookie brand, also a go-to snack for sweet lovers According to Statista, 71.26 Million Americans ate Oreos in 2020 In a 2020 national poll, the Oreo was ranked the 16th most popular biscuit in the UK With scrumptious flavor and its forever debate "twist or dunk", Oreo has made an indistinguishable name for itself on the cookie market worldwide and become an icon of 20th-century culture Ever since its globalization, people can see Oreo in more than 100 countries (Time magazine, 2012) Its expanding market through different sales and marketing channels entails its many new flavors invented so as to adapt to customers’ various tastes China, the most populous nation in the world, is conceived to be a potential market to increase sales and revenues Also, China has its own unique cultural values that are passed down from generations Understanding the potential of China’s market, as well as the importance of Chinese values, Oreo has invested effort learning about Chinese cultures Learning from previous failed entries from different Western brands, Oreo adapts its products for local tastes But they didn’t stop there More than anything else, it’s been Oreo’s willingness to alter its size, shape and flavor that led to its dominance of the Chinese cookie market From the case of Oreo, we see that cultural adaption is of utmost importance when businesses want to expand the market to make profitable revenues and sales The report, named “CULTURAL ASPECTS INFLUENCING INTERNATIONAL BUSINESS ACTIVITIES: A CASE OF OREO IN CHINA”, investigates Oreo’s strategies and business activities so as to make its products appealing to Chinese people The influence of the cultural environment on the business activities of Oreo in China and Cultural adaptation of Oreo in this market will be further explained Therefore, businesses can learn Oreo’s strategies to make good implementation to internationalize its company CHAPTER 1: OVERVIEW ABOUT OREO AND ITS ENTRY TO CHINA 1.1 General information of Oreo 1.1.1 History of formation and development a History of formation In April 12, 1898, several baking companies merged to form the National Biscuit Company, also called Nabisco This was the beginning of the corporation that would create the Oreo cookie The company is a subsidiary of Illinois-based Mondelēz International In 1912, Nabisco - an American manufacturer of cookies and snacks headquartered in East Hanover, New Jersey, had an idea for a new cookie However it wasn't exactly its own - two chocolate disks with a creme filling in between had been done already by the Sunshine Biscuits company in 1908, whose name is Hydrox Despite its potentially suspicious origination, the Oreo made a name for itself and quickly outshined its competitor Nabisco made sure to file for a trademark on the new cookie soon after its creation on March 14, 1912 Oreos, a sandwich cookie consisting of two chocolate wafers with a sweet creme filling in between, have brought joy all around the world for over 100 years Oreo is reported to be found in more than 100 countries b History of development Oreo has become the best-selling cookie of the 20th century since its introduction in 1912 (as Oreo Biscuit) with more than 491 billion Oreo cookies sold to date worldwide (Biscuit People, 2022) The United States, China, Venezuela, Canada, and Indonesia are the top five countries in terms of sales During its lifetime, Oreo has gone through many versions, several listed as below: - September 23, 1976: Nabisco's Football Oreos were introduced in the fall of 1976 They were a great way to watch the big game - April 23, 1987: Nabisco introduced their fudge covered oreos, which is just an oreo covered in fudge - April 17, 1991: Nabisco introduced mini oreo They are a quarter of the size of the original cookie and come in an oz resealable bag - April 17, 1995: In the mid 1990s Nabisco replaced lard with trans fat in the creme filling due to health concerns - April 23, 2011: Oreo Triple doubles are like the original oreo except there are three crackers instead of two and creme filling between all three crackers Also, the brand has gone through changes in name The Oreo Biscuit was renamed to Oreo Sandwich in 1921, then to Oreo Creme' Sandwich in 1948 and finally it became Oreo Chocolate Sandwich Cookie in 1974 - April 12, 1921: Nabisco changed the name of Oreo Cookies to Oreo Sandwiches - April 12, 1948: Oreo changes its name again: Oreos Changed its name again to Oreo ''Creme'' Sandwiches 1.1.2 International business activities of Oreo While most consumers know Oreo sandwich cookies as two round chocolate biscuits with a vanilla crème filling in between, we can see many versions of Oreo in different countries According to Mondelez, the biggest markets of Oreo outside the United States are: Argentina, The United Kingdom, The Caribbean, Central America, Spain, Mexico, Indonesia, Canada, Venezuela and China Just like other companies that ventured overseas, Oreo had its share of triumphs and losses But it learned its lessons and now the company determines how far it will go to localize its brand It demonstrates how Oreo adapts around the world and to the different tastes and preferences of local markets worldwide For examples: ● In Indian Market, they introduced the product as Cadbury Oreos ● In the Chinese Market, they came up with an Oreo with four tiers of crispy wafers They changed the packaging as well, introducing smaller packages that cost less 1.2 Oreo's entry into China Until the 1980s, the United States was the main market for Oreo when the brand was owned by Kraft This was reflected in the advertising slogan of those years - "America's Best Loved Cookie" By the 1990s, the company had focused on the international market 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 However, the company discovered that over the last 10 years, their Oreo cookies were not as favorable in China as in the United States The Chinese were not big cookie eaters The market for biscuits in fiscal 2007 was just $1.3 billion, compared with $3.5 billion in the U.S at food retailers excluding Wal-Mart Stores Inc More importantly, Chinese's preferences for taste, flavor or packaging were much different from the Americans To win over Chinese customers, Kraft realized that even a global corporation must transform itself, letting local managers make decisions based on their understanding of the market The vision for Oreo was adjusted from the number one sandwich biscuit to the number one sweet snack in China This paved the way for improved product innovation that catered to local preferences These efforts have paid off In 2006, Oreo wafer sticks became the best-selling biscuit in China, and the new Oreos were also outselling traditional round Oreos in China From 2006 to 2008, Kraft doubled its Oreo revenue in China, and with the help of those sales, that revenue topped $1 billion world-wide for the first time last year CHAPTER 2: THE INFLUENCE OF CULTURAL ENVIRONMENT ON BUSINESS ACTIVITIES OF OREO IN CHINA 2.1 China's cultural environment 2.1.1 Chinese culture factors that impact on Oreo’s business activities China has a rich cultural history that spans thousands of years and continues to influence the lives and behaviors of its citizens today As a company, Oreo needs to understand Chinese culture's influence on consumer behavior to resonate with its audience and make a meaningful impact a Chinese eating habits Chinese consumers generally not have a preference for sweet food It seems that the biggest compliment a Chinese person can give to a cake, pudding, or dessert is that “It’s not too sweet” Even while Western style sweets are becoming much more trendy, savoury cuisines and dishes still tend to be more popular Traditional Chinese desserts frequently combine savory and sweet flavors Sticky cake - A Chinese balance between sweet and savory dessert Therefore, when the business launched the American version there in 1996 with the sweet and slightly chocolaty taste, sales turned out to be lackluster The Oreo introduction in China did not give enough attention to the local market while being too centered on the global market The Chinese market enjoyed the contrast between the bitter cookie and the sweet cream filling, however, the taste was slightly too sugary and slightly too bitter for their liking First version of Oreo in China (1996) Along with sweetness, Chinese consumers enjoy a wide range of flavors, including fruit flavors and green tea or red bean flavors These are popular in China and have been well received by Chinese consumers Besides the taste, people care much about how it looks and its texture A significant portion of the cookie industry in China consists of wafer cookies, which are highly adored by the Chinese population Thus if Oreo only launches vanilla and chocolate cookies, they may find it difficult to attract and retain Chinese customers since it does not fit with the local culture and preferences b Chinese shopping habits Oreo wants their products to be affordable and suitable for everyone, every class in the society But the main target audience for Oreo is children and youth, the one who still could not make much money, and if they want to have Oreo snacks, they will have to ask money from their parents Like many other Asian people, the Chinese parents are saving people They will not buy an expensive product that they consider not educational In 1996, one of the reasons for the failure of Oreo in China was that Chinese consumers were value conscious and considered the Oreo packets to be expensive c Chinese celebrity culture The idol culture in China is highly developed and becoming increasingly popular Famous people are seen as role models for fans to learn from and follow This culture can have an impact on Oreo as a global brand, as it affects consumer behavior and preferences in the country Many idols and celebrities in China have a large fan base If a celebrity promotes or endorses Oreo, it may increase the brand's appeal and sales among their fan base Therefore, Oreo needs to be aware of this trend and adjust their marketing strategies and products accordingly to meet the preferences and demands of Chinese consumers who are influenced by the culture of idol worship in the country d Social media platforms Although Facebook, Instagram, and Twitter are all widely used social media networks around the world, these platforms are banned in China Chinese people typically utilize alternative platforms like Weibo and Douyin Weibo is a microblogging platform similar to Twitter, while Douyin is a short-video sharing app similar to TikTok Chinese people and businesses alike frequently use these platforms for social networking, information sharing, and product marketing Weibo - a popular social media platform in China If Oreo enters the Chinese market and they only focus on advertising through the familiar social media platforms like Facebook and Instagram, they cannot reach the local consumers and the people here cannot get much information and messages from Oreo too e Traditional festivals In China, traditional events are a pivotal aspect of Chinese culture These events are deeply rooted in history and provide an opportunity for Chinese people to connect with their cultural heritage By understanding the importance of traditional events in Chinese culture and incorporating them into their campaigns in a sensible way, Oreo can engage with Chinese consumers in a more meaningful way Celebrity collaborations/ partnerships Working with celebrities to promote the image of both brands and influencers is not a new marketing strategy To compete in the US market, Oreo has collaborated with many renowned celebrities such as Lady Gaga, Baltimore Ravens football team and the New York Yankees baseball team and famous brands, for example Google ZOO These campaigns have helped Oreo to reach the community of such celebrities' fans and created a dynamic image for the brand as well b Comparison of key differences and similarities with Chinese culture There are visible similarities between American and Chinese people when it comes to consuming Oreo products In both markets, Oreo cookies are popular sweets being used as a kind of treat or snack In China, people also use cookies with milk And such consumers are also influenced by the eating habits and preferences of KOLs or celebrities However, the cultural differences between the two markets are much more significant Different taste preference: The very first difference between the US and Chinese culture is the taste of the majority of Chinese people is that they are not into high proportions of sugar or sweetary components in their food This habit also leads to the fact that the size of sweet products served for Chinese consumers tend to be smaller, which means the packaging of them will not be kept the same size as those sold in the US market Different regional and local ingredients: The second difference to be mentioned is that Chinese people are not familiar with ingredients widely used in the US like peanut butter Their preferences are relatively representative of Eastern culture such as green tea and tropical fruits This point stems from the common cultural differences between Eastern and Western regions Different willingness and demand towards expensive goods: Chinese consumers, as other Asian consumers, have a tendency not to pay a large amount of money for snacks or treat foods In the US, the price of a pack of Oreo Raspberry Blueberry 97g is approximately $7.00, while in China, it costs just $1.20 Chinese people can buy expensive meat and vegetables which are nutritious and good for their health As sweets like Oreos are not that nutritious, they are not something Chinese people will invest a lot in 13 Different ways to eat Oreo cookies: In America, it is customary to split the two chocolate cookies in half, lick the cream filling, and then consume the cookies one at a time, which is the process suggested through Oreo's iconic ritual "Twist, Lick and Dunk" Both kids and adults now find this to be a humorous and entertaining way to eat Oreos Oreos, however, are frequently consumed whole and dipped in hot water or milk in China This is so that they can increase the flavor and texture of the cookies, according to Chinese culture A testament to the significance of food and eating customs in Chinese society, this unusual cultural tradition has been handed down through the years One more reason is that the promotion of "licking" is considered not suitable for the Chinese market Different ways to consume or utilize the products: In America, especially for children, Oreos are typically eaten as a snack or dessert, frequently with milk Many Americans have happy and unforgettable memories of dipping Oreos in milk as children, continuing a long-standing custom This characteristic is easily understood because Oreo was born in this country and its products have been associated with almost every Americans' childhood On the other hand, in China, besides being used as a snack that can be found at many convenience and groceries stores, Oreos are frequently given as gifts and are regarded as a luxury good in China They are regarded as a high-end treat and are frequently exchanged at holidays and other special events The packaging also reflects this cultural variation in how Oreos are regarded As the cultural differences between Chinese and American consumers are visible and significant, Oreo has always been in need of adapting to and integrating local culture into global strategy The company should take advantage of Chinese unique eating habits to modify the characteristics of their cookies, from flavors to sizes, shapes and packaging; and appropriate marketing campaigns 14 CHAPTER 3: CULTURAL ADAPTATION OF OREO IN CHINA 3.1 Oreo’s performance in China 3.1.1 Product adaptation a Adjusted sweetness and localized flavors Chinese consumers generally have a preference for less sweet flavors compared to some Western consumers This preference is influenced by cultural factors and traditional Chinese cuisine, which often balances flavors and emphasizes subtlety As a result, Oreo adjusted the sweetness level of its cookies to align with the taste preferences of Chinese consumers The reduced sweetness in Oreo cookies in China allows for a more balanced flavor profile, where the chocolate wafers and sweet creme filling are still enjoyable without being overpoweringly sweet Besides, the company decided to introduce localized flavors to appeal to the Chinese palate The localization strategy involved developing flavors that were familiar to Chinese consumers, such as green tea, red bean, mango, lychee and peanut butter, which are popular ingredients in Chinese desserts These flavors have been carefully selected based on market research and consumer preferences One of the key advantages of localization Oreos flavors was that it helped the company differentiate itself from local competitors In a market saturated with local brands, offering unique flavors helped Oreo to stand out and capture the attention of Chinese consumers Localizing its flavors also helped Oreo to overcome cultural barriers and build a stronger connection with Chinese consumers, who value products that cater to their tastes and preferences Oreo’s localized flavours 15 b Innovative packaging The packaging of Oreo cookies in China features Chinese characters and designs that are attractive to the local market For example, the brand name "Oreo" is translated into Chinese characters, which not only makes the packaging more accessible to Chinese consumers who may not be familiar with the Latin alphabet but also creates a stronger brand identity in China Additionally, the packaging often features images of Chinese landmarks or cultural icons to further appeal to Chinese consumers Another important aspect of the packaging is the use of smaller sizes In China, it is common for consumers to purchase snacks in smaller portions, and Oreo has adapted to this trend by offering smaller packs of cookies for just 29 cents to cater to Chinese buying habits (Navneeta N, 2013) This allows consumers to try different flavors and share them with friends and family Additionally, smaller packs are more convenient for on-the-go consumption, which is important in a fast-paced urban environment like China Oreo’s small pack in China Oreo has also introduced limited-edition packaging for special occasions such as Chinese New Year or the Mid-Autumn Festival These limited-edition packages often feature traditional Chinese designs and colors that are associated with the holiday This strategy has proven to be successful in creating excitement around the brand during these special occasions 16 c Introduction of new product types Oreo realized the sales opportunities in the enormous wafer market in China, and consequently launched chocolate - coated wafer bars with a length of a finger index and wafer rolls which can be used as a straw to cater to their target customers' interest According to Oreo, Oreo's wafer is the product that made a history for the brand not only because it was completely different in shape from the original product but the product developed in the Chinese market also came as a hit in other countries such as Canada, Korea and Australia Oreo’s wafer bar Oreo’s wafer roll 3.1.2 Marketing and branding adaptation a Popularization of Oreo's iconic ritual: Twist, Lick and Dunk Oreo's "Twist, Lick, Dunk" campaign in China was launched in 2013 and focused on promoting the classic American way of eating Oreos The campaign included TV commercials featuring cute children teaching adults how to eat Oreos in the American style, as well as billboards and social media posts encouraging consumers to try the "Twist, Lick, Dunk" ritual 17 The campaign was successful in creating a buzz and generating interest among Chinese consumers, especially younger generations The emotional appeal of the advertisements, combined with the fun and interactive nature of the "Twist, Lick, Dunk" ritual, resonated with consumers and helped to establish Oreo as a fun and playful brand in China Oreo also introduced a Chinese twist on the "Twist, Lick, Dunk" ritual by encouraging consumers to dip their Oreos in hot water or milk, a popular practice in Chinese culture This adaptation helped to bridge the cultural gap and make Oreos more appealing to Chinese consumers b Use of Chinese celebrity endorsements Oreo has effectively leveraged celebrity culture in China for marketing purposes, capitalizing on the popularity and influence of idols such as Lu Han, TF Boys and Yang Mi to connect with consumers Through the endorsements, Oreo could increase the visibility of the brand among the target audience When a popular celebrity endorses a product like Oreo, it creates widespread awareness and exposure This heightened visibility can lead to increased consumer interest and consideration of Oreo products, ultimately driving sales One of Oreo’s notable campaigns is the collaboration with Jay Chou On October 15th, Oreo, together with its brand ambassador Jay Chou, released a music video titled “Laugh proudly at the world, keep a heart of innocence” The brand's sandwich cookies are made up of black wafers and white filling, matching the color scheme of classic Chinese art of ink painting, which is made up of only black ink and white space Oreo recognized this feature and wisely used traditional Chinese ink throughout the entire video to subtly connect the brand with Chinese culture The inclusion of Jay Chou, a famous Chinese singer with a large fan base, also contributed to the success of the campaign Oreo and Jay Chou’s ink art blockbuster landed Oreo’s official Weibo page with over 40,000 retweets (Sherri Zhang, 2021) c Use of localized social media platforms Oreo has been successful in using localized social media platforms to connect with consumers in China and create a strong brand presence in the market Oreo has a strong presence on Weibo.Oreo uses Weibo to share product information, launch new products, and engage with fans through interactive campaigns and contests For example, Oreo 18 executed an engaging campaign on WeChat, aimed at parents who desired to strengthen their bond with their children WeChat account holders were encouraged to snap pictures of themselves and their kids and incorporate them into customized emojis Users were then able to share the emojis with their friends and family via a range of animated templates During the initiative, customers who purchased Oreo products were provided with a code that enabled them to access exclusive personalized stickers on the app The campaign was a major success, with sales surging by 50% within the first five weeks of launch Moreover, the campaign generated over 99 million stickers in just 11 weeks (China Social Media Marketing, n.d) Oreo also has a dedicated account on Douyin Oreo creates snack-related content and challenges to engage with users on the platform Oreo also partners with popular Douyin creators to feature their products in their videos, increasing brand awareness and exposure Up to now, Oreo’s Douyin account has attracted about 1.5 million followers d Integration of traditional Chinese cultural elements into Oreo's commercials and campaigns Oreo has wisely integrated traditional Chinese cultural elements into its commercials and campaigns in order to resonate with Chinese consumers and create a strong emotional connection with the brand ● Symbolism Oreo has incorporated Chinese symbolism into its marketing strategies to appeal to Chinese consumers and align with their cultural beliefs For example, during their Mid – autumn festival campaign, Oreo introduced Oreo mooncakes and designed their packaging with specific features of the Mid-Autumn Festival The package wisely used the Oreo cookies to recreate the moon phases showing a transformation from a "Crescent Moon" to a "Full Moon" providing an interesting holiday gift 19 Oreo’s Mid - Autumn Festival special packaging During the campaign for the Year of the Tiger, Oreo introduced Red Oreo as the New Year’s protagonist In Chinese culture, red color has a significant cultural importance in Chinese traditions as it signifies good luck, prosperity, and happiness Therefore, Oreo introduced a new product during the Spring Festival marketing which incorporated red color and printed blessings for the Year of the Tiger Red Oreo - New Year’s Protagonist 20 ● Beliefs In Chinese culture, balance and harmony are important values, with certain numbers considered lucky, such as and Mondelez, the company that produces Oreo cookies, conducted research and found that the original 14-pack size and price point were not well received in the Chinese market In response, they adjusted the package size to and packs, which are considered lucky numbers in Chinese culture, symbolizing eternity and respect for those in higher positions Additionally, Oreo incorporated the concept of Yin and Yang, represented by the black and white colors of the cookie, which are also believed to bring harmony and balance to the home during the Lunar New Year holiday 3.2 Evaluation of Oreo in the exploitation of Chinese culture Focusing on China is a smart move for any multinational company seeking to tap into a handsome demand for goods The same pattern is applied to the Chinese F&B industry, where the market for biscuits and cookies hit $10.2 billion in 2016 (Mintel, 2016) Nevertheless, figuring out the Chinese retail market, which posted 44 trillion yuan ($6.4 trillion) in total sales in the latest reported year, 2022, is far from a piece of cake for international corporations With these reforms, it is safe to say that Oreo has successfully captured the Chinese market Despite stagnating at $20 million in 2005, sales in the Chinese market increased to more than $400 million by 2012 This makes China the world’s largest Oreo market outside the United States, with 41.9% growth in measured consumption over the year 2009 (ACNielsen, 2010) In other words, Chinese consumers ate about 42% more Oreo cookies during the survey period than in the previous year One of the main reasons for Oreo’s success in China is its ability to understand and cater to its Chinese customers In the past decade, Oreo has introduced various flavors that are specifically tailored to the Chinese market and resonate with Chinese taste buds, such as milk tea and matcha green tea-flavored cookies These flavors are increasingly popular in China and have helped Oreo establish itself as a market leader in the Chinese cookie market What is more, Oreo uses customized marketing campaigns to reach Chinese consumers, with a focus on Chinese social media platforms and influencers 21 In addition to its marketing and product offerings, Oreo's brand equity also played a significant role in its success in China The cookie was marketed as a familiar and trustworthy brand, which helped mitigate consumer resistance to foreign products The brand's positive reputation, combined with its innovative and culturally sensitive marketing strategies, made it an attractive option for Chinese consumers On the other hand, it is important to note that Oreo’s approach to China has been met with controversy Some argue that Oreo’s adoption of Chinese culture is a form of cultural appropriation, which involves the adoption of elements of one culture by members of another culture without appropriate respect, credit, or acknowledgment of the cultural origins of the adopted elements In the case of Oreo, the use of Chinese characters or Chinese symbols in its packaging and advertising, the introduction of specifically-tailored flavors can be seen as cultural appropriation, as it involves the adoption of elements of Chinese culture for commercial gain by a non-Chinese company without a clear understanding of Chinese culture However, it is important to note that cultural appropriation can be complex issues that involve a range of factors, including historical context, and cultural sensitivity 22 LESSON LEARNED FROM OREO’S SUCCESS IN CHINA In recent years, Oreo has successfully expanded its presence into the Chinese market This accomplishment was not without challenges, however, through careful planning and adaptation, Oreo has managed to achieve remarkable success in China The lessons learned from Oreo's culture adaptation to China can serve as valuable insights for other businesses aiming to expand into foreign markets Understanding the target audience: By recognizing the difference in taste preferences and dietary habits of Chinese people compared to those in the US, Oreo adjusted its product offerings to cater to the Chinese consumers The original Oreo cookie recipe was changed, new flavors were introduced to suit the preferences of the local audience and thus, to win their trust and loyalty Also, smaller-sized packaging appearing only in the Chinese market is another demonstration of Oreo's commitment to understanding the local market and meeting the needs of its consumers Localization strategy: Oreo recognized the need to incorporate local elements into its branding and marketing campaigns to resonate better with the Chinese audience Through various tactics, such as using local celebrities in its advertisements, adopting Chinese slogans, and introducing Chinese New Year-themed packaging, Oreo successfully positioned itself as a brand that understands and values Chinese culture Adaptation in the distribution strategy: When Oreo recognized that the Chinese retail landscape is vastly different from that of the United States, they forged partnerships with local retailers and e-commerce platforms such as Alibaba and JD.com to reach a wider audience Furthermore, Oreo leveraged China's extensive social media platforms, such as WeChat and Weibo, to connect with consumers and build brand awareness To summarize, Oreo's cultural adaptation to China offers useful lessons for companies looking to enter international markets The key to Oreo's success is its capacity to recognize and meet the specific requirements and preferences of the regional market Oreo has effectively positioned itself as a brand that honors and respects Chinese culture by adjusting its product offers, marketing methods, branding strategies and distribution channels Moreover, the introduction of Oreo in China is evidence of how crucial it is to localize goods and services to satisfy target customers Businesses who can adapt and succeed in global markets will have a competitive advantage as the world grows more interconnected 23 CONCLUSION Oreo has communicated effectively with local consumers, accurately delivering its intended messages The 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