Final

HO CHI MINH CITY OPEN UNIVERSITY School of Advanced Study Subject: Principals of Marketing FINAL PROJECT: MARKETING STRATEGY FOR OREO’S NEW PRODUCT Group: Ngô Diệp Anh Trần Tuệ Anh Nguyễn Th Quỳnh Phạm Thị Phương Thảo Tơ Tồn Trung Class: A7D2 Lecturer: Ms Nguyen Tran Cam Linh Table of Contents INTRODUCTION I Company 1.1 History of Oreo 1.2 Oreo in Vietnam Product 2.1 Current products 2.2 New product (Double O (Organic Oreo)) II MARKETING ENVIRONMENT 11 Micro 11 1.1 Supplier 11 1.2 Marketing intermediary 11 1.3 Customer 12 1.4 Competitor 12 Macro 12 2.1 Demographic 13 2.2 Cultural – Society 13 2.3 Technology 13 2.4 Environment 13 SWOT 14 3.1 Strengths: 14 3.2 Weaknesses: 15 3.3 Opportunities: 16 3.4 Threats: 17 STDP 18 4.1 Segmentation 18 4.2 Targeting 18 4.4 Positioning 19 The 4Ps (Marketing mix): 19 5.1 Product 19 5.2 Price 21 5.3 Place 23 5.4 Promotion 25 I INTRODUCTION (Writer: Nguyễn Thuý Quỳnh) Company 1.1 History of Oreo “Oreo” was first developed by Nabisco in 1912 Oreo’s name was first labeled in March 14th 1912.In 1931, it changed its name to "Oreo Sandwich," shortly after 1948, the name was changed into "Oreo Creme Sandwich Fast forward to the year 1973, it was renamed "Oreo Chocolate Sandwich Cookie," and that name is still be in used till this day Nabisco was bought by Phillip Morris Companies Inc (now is known as Altria Group, Inc) and Nabisco was merged with Kraft Foods In 2011, it divided into divisions, one is mainly focus on grocery and the other is primarily about snack Nabisco took part in the snack-food business and take the name Mondelēz International including Oreo, Cadbury and Nabisco The worldwide distribution of the Oreo cookies is executed through various distribution channels As their name continues to be known by the general public, so is the amount of distribution Oreo have change it packaging image for many years It took a lot time and changes to get to the iconic Oreo packaging that we all know and love Here are the Oreo packaging evolution 1912 - This is what you would have got Oreos, if you had bought them over 100 years ago 1915 - Oreo should transitioned from a big bulky box to this blue tin 1931 – After the invention of color printing, Oreo boxes were turned into red to show the Nabisco company, the real manufacturer of the cookies 1937 – the 1940’s advertisement prominently shown that women enjoying Oreos and the packaging was yellow until now 1951 – Oreo begun to arrange their cookies so that you would be able to see the stack through the transparent wrapper 1963 – After a couple of years later Oreo changed from boxes packaging into plastic packaging 1973 – The Oreo finally switched into the iconic blue color that we all know today 1998 – At this time, the logo that we all know too well finally emerge and to be used on the plastic packaging 2012 – At last, we reached to the modern and familiar design that we all know and love today Name Major Distribution Mondelez International Food Processing Worldwide Headquarter Chicago, Illinois, U.S CEO Dirk Van de Put (chairman and CEO) Revenue Profit Employees Website 25.9 billion (2019) 3.9 billion (2019) 80,000 (2019) mondelezinternational.com Headquarter: Chicago Illinois, USA Logo: CEO: Dirk Van de Put Products: 1.2 Oreo in Vietnam Currently, Oreo's main distributor in Vietnam is Mondelez Kinh Do Since July 2015, Mondelez Kinh Do has been an official representative of Mondelez International Group in Vietnam The company mainly sell various kind of snack, including biscuit (crackers, cookies, etc), candies and chocolate with various sweet products Mondelez Kinh Do have the ownership of top brands including: Mooncakes, Kinh Do Biscuits, Solite Sponge Cake, Cozy Biscuits, AFC Crackers, Oreo Cookies, Cakes LU cookies, Ritz crackers, Lu Petit Beurre Biscuits and Chocolate Cadbury Name Major Headquarter CEO Revenue Website Mondelez Kinh Do Food Processing Hai Ba Trung street, Ho Chi Minh city Stephane Gripon 1.174 billion (2019) mondelezkinhdo.com Headquarter: Ho Chi Minh city Manufacturer: 26th VSIP, street number 8, Thuan An city, Binh Duong province Logo: CEO: Stephane Gripon Products: Now, Mondelez Kinh Do has more than 300,000 stores across Vietnam, Mondelez Kinh Do claimed that the business is still have the vision to improve its business and receive more customers by supporting distributors and retailers’ outlets to bolster distribution network through strong set up Oreo has been well-known for its eye-catching design of chocolate chips cookie press together with a crème filling, which has made a perfect snack with or without any type of beverages Oreo is famous for there slogan "Twist, Lick, Dunk." This slogan was greatly utilized in the #OreoPeople campaign, which is a marketing campaign to give out the message "No manner who you are, no manner what types of music you listen, how old you are, Vietnamese or Foreigner, married or not, love to take every single bite or swallow a whole cookie if you can't resist the taste of Oreo cookies, then you are a member of Oreo People." This campaign boosted its popularity, even more, when they pick MTP Son Tung as their official brand ambassador, as Son Tung is the most well know V-pop idol in Vietnam, and his influence for youth has greatly increased during the campaign Product 2.1 Current products Currently, Oreo has about 13 types of cookies available on the international market, such as Double Stuf Oreo, Football Oreo, Oreo Thins, Mega Stuf Oreo, etc Not only Oreo has various type of cookies for the general public to choose from, but they also have more than 90 flavors, for instance: Supreme Oreos, Dark Chocolate, Strawberry Milkshake Oreo cookies, ice cream, etc 2.2 New product (Double O (Organic Oreo)) We have come up with a brand new and original for the company that we have chosen, which is called Double O, a brand-new flavor and will have a great impact on the consumer who chooses to buy our new and innovative products The product does not only serve as a tasty snack for all ages but also is a great diet for those who want to eat healthily and get fit The name “ Double O” stands for Organic Oreo and is made with natural organic ingredients containing various tasteful flavors and colors as oats, red rice, and black rice that help the consumer keep track of their diet and health 2.2.1 Ingredients: Unsweetened chocolate could be a wealthy source of antioxidants and minerals, and it typically contains less sugar than the milk one Some people suggests that unsweetened chocolate chocolate may help lower the chance of heart disease, cut back inflammation and insulin resistance, and improve brain Red Rice contains a special sort of vitamins and irons, that along facilitate the production of red blood cells (red blood corpuscles) in our body, which is considered a vital part to improve skin health The antioxidants in the rice could help in fighting free radicals, that keep our skin from premature aging Black Rice has three grams of fiber per 0.5 cup serving This made fiber content helps regulate the intestine movements, prevent constipation, diarrhea, and bloating The fiber helps bind the toxins and waste within the gastrointestinal tract and fail all out of the system on completion of the cycle of digestion Black rice helps the liver (one of the foremost important detoxifiers of the body) eliminate unwanted substances through its inhibitor activity Oats are among the most beneficial grains on earth that are a non-gluten and grain and a fantastic supply of important nutrients, minerals, fiber, and cancer prevention agents Oatmeal has numerous of medical advantages to help individual reduce weight, lower blood glucose levels, and a diminished danger of heart disease 2.2.2 Packaging: 10 Not only Oreo has good revenue and a good reputation among the snack brands They also have good marketing tactics For example: Moment Marketing, also known as Real-time marketing, is an advertising tactic used by Oreo to increase engagement and bring the brand image closer to customers Very few businesses can use Moment Marketing as smart as Oreo Can examples be found at the company's "Power out? No problem" tweet event on the night of February 2013's Super Bowl, or the 100-day Daily Twist campaign All of which had a huge effect after that, and even during the campaign, Oreo generated millions of engagements as well as a 110% increase in customer engagement on social media The cookies are made from organic ingredients, it is not harmful to the health of consumers like other snacks In addition, the safety of organic ingredients is almost absolute so that customers can be assured of this product Today’s environmental protection issue is also an issue of concern, so Double O products with paper packaging both outside and inside the product can win customers' sympathy 3.2 Weaknesses: 15 The main ingredient of the product is simply a crust filled with oatmeal, red rice and black rice cream so that it may be quite picky for some customers Since most of Oreo’s consumers probably would not prefer diet cookies over the regular ones The cookie is made from organic ingredients and does not use preservatives, so it is difficult to keep for a long time and difficult to preserve during transportation to keep the nutrition and quality of the cookies Many consumers are still not fully and accurately aware of this type of organic ingredient, some have never even heard of organic food, so maybe Double O will be limited to customers The organic baking ingredient is quite expensive, so the cost of the product will also be higher, including the cost of ingredients, packaging, and storage It will make it difficult to compete with competitors in the market on the same product 3.3 Opportunities: 16 With packaging from paper and manufacturing from organic materials, it will cause less harm to the environment, thereby conveying the message of environmental protection to customers, raising awareness about health Many consumers in Vietnam buy products based on brand recognition, so they can give more consideration to products from Oreo even though Double O is a new product Compared to major competitors in the market today, such as Biscafun, Pham Nguyen, or Lotte, Orion, Oreo's Double O has an advantage Rarely are there any snack products on the market today made entirely from organic foods, generally quite suitable for the taste of both snacking and weight loss like Vietnamese consumers Double O's entirely paper-based packaging also brings sympathy to consumers concerned with protecting the environment 3.4 Threats: Double O is a new and somewhat strange idea in today's confectionery market, so it is possible to plagiarize the idea or even upgrade a product based on this idea It means that Oreo can compete with businesses with similar products not only from domestic competitors (backed by the protection of the Government of Vietnam) but also from foreign countries Since Vietnam's accession to WTO, the business environment has been expanded, with foreign investors having the advantage of large capital sources, making it easier for them to produce higher quality products but at more reasonable prices, and have more experience market segments of leading corporations in the international trade industry While the internal economy is weak, it is now more and more difficult due to the raging COVID epidemic, so consumers tend to cut down on spending, they only need the necessary products for their needs rather than indulgent products such as gifts and cakes Even customers who don't know organic ingredients yet may choose a different type of weight-loss cake instead of a cake made from ingredients they've never heard of ( for instance a type of weight-loss cake from Lotte) 17 STDP (Writer: Ngô Diệp Anh) 4.1 Segmentation 4.1.1 Geographic In Vietnam’s territory, Oreo is now distributed and produced by Mondelez Kinh Do which is one of the biggest confectionery, food, holding and beverage companies in Vietnam and all over the world For the purpose of supplying more and more Oreo for every single person in Vietnam, this company has been upgrading two tremendous factories in Binh Duong and Hung Yen provinces, which cans be contributed to the stabilization of product-supplying products all around the country from the North to the South and Pacific area to satisfy customer’s desires without any shortage Besides that, with various distributors and diversified kind of sales channels such as ecommerce, direct marketing, wholesale, personal selling,… Even though customers are not in big cities such as Ho Chi Minh, Ha Noi, Hai Phong,…they are still able to get a pack of Oreo in the most convenient way whenever they want However, Oreo still gravitate toward two fruitful cities which are Ho Chi Minh and Ha Noi There are over 18 millions people in these cities, which becomes a big opportunity for Oreo to profit by selling their well-known cookies 4.1.2 Demographic • 3-10: Being quite into snacks and candies They eat an abundance of snacks around the year • 11-18: Eating snack regularly instead of whole-grain foods They are keen on sweet flavor and buttery taste • >18: Concentrating on what they consume more with the purpose of getting clean, achieving the top body shape 4.2 Targeting Double O is going to concentrate on children, especially for those who are obesity and on a diet The paramount clients who consume most of this brand-new product is children 4.3.Differentiation 4.3.1 Product: This product's taste is the same as the original one, which is synonymous with Oreo's reputation But the main factor here is isolating calories and unhealthy fat, which used to be contained in the original Oreo, so Double O will be the healthy cookies for children and also vegetarians to consume because it is made from organic ingredients The cream of Double O is basically the grinded slowly digested carbohydrate ingredients such as brown rice, oat, black rice which supply enough energy for our bodies and prevent hypoglycemia when we are nearly getting fatigued Launching this new product base on the three R's – reduce, reuse and recycle – with the purpose of cutting down on the amount of waste human beings throw away Garbage is one of the well-known factors which is contributed to the deterioration of the Earth So not only the cookies themselves but also the package is eco-friendly 18 4.3.2 Image: Healthy diet cookies for kids - the best replacement of junk snacks Since there were a large amount of kids love to eat Oreo because they play with their food, Double O can utilize the Twist, Lick, Dunk eating method to help kids to have a better taste 4.3.3 Service: - Giving detailed nutrition facts: For helping consumers, especially parents who wants their kids to have a healthy and balance diet, roughly understand about the ingredients in every Double O cookie Otherwise, Double O can be the key ingredients of smoothies, a premeal for people who is going to cardio exercises and need the efficient energy for the rest of those exercises - Giving instruction to consumers: Still keeping the traditional and well-known slogan of Oreo: “Twist, Lick, Dunk”), which is the minimalist way to enjoy Oreo cookies Double O can be utilized to replace the main meals of the day because it supplies enough calories for a day based on the daily nutritional requirements (8,400kJ/2,000kcal per day) 4.4 Positioning Double O is an organic cookie, a healthy snack, and suitable for not only children but also vegetarians, vegans, and slimmers The 4Ps (Marketing mix): 5.1.Product (Writer: Tô Tồn Trung) With the slogan “Hương vị mới, lịng phơi phới”, Double O is going to be synonymous with the original Oreo's sandwich cookie visuality However, it is going to have different colorful cream, which will be unequivocally attracted to children Instead of using food coloring to decorate and make Double O more attractive, Double O's cream is made of a variety of organic ingredients containing various tasteful flavors such as oats, red rice, and black rice The packaging of Double O ensures freshness, prevents damage, and stands all on its own The Double O can is an affordable container made from a paperboard tube with a stainless aluminum bottom and top cap In addition, protecting the environment is highly focused during the whole production process, so that is the reason why all of the containers are completely made from eco-friendly materials and Double O can be considered as a product that follows the “Green Marketing” strategy The tube lets them keep their iconic shape, allows for more cookies to be placed inside the container, and thanks to their consistent form, they can be stacked evenly and can allow for minimal breakage of the cookies 19 On the top of the can is the brand name DoubleO which can be easily recognized by the customers Right below that is the famous Oreo brand name, followed by the product's distinctive feature: this is a no preservative products, so consumers no need to be afraid of its harmful effects The image of three cookies are skipping which familiar with children, and when it comes to Oreo, we can't help but mention the slogan: "Twist-Lick-Dunk"-the milk is an important factor to make our cookies have a better taste when dunking it into milk As mention before, DoubleO is made with natural organic ingredients so it will be a best cookie for your health Last but not least, at the bottom of the can is net weight and the number of cookies contained in it 20 Three levels of products Easy to be found and bought Oreo High quality Free gifts with purchase Organic ingredients Consumers can enjoy a healthy cookie Bright colors to attract children Containers are made from ecofriendly materials No preservatives Instruction for usage 5.2.Price (Writer: Tơ Tồn Trung) The price of Double O has a reasonable and affordable for everyone with different levels of income, especially for children from – 14 years old Types (tube) Prices (vnd) Small Big 25.000 34.000 Small combo 45.000 Big combo 62.000 Special combo 53.000 21 Small tube Big tube Small combo 22 Big combo Special combo 5.3 Place (Writer: Trần Tuệ Anh) Mondelez, the manufacturer of Oreo in Vietnam, produces the new cookies and then directly sends it to many distribution channels like supermarkets, convenience stores, online websites, grocery stores… 23 o Wholesaler and manufacturer: Mondelez Kinh Do Vietnam o Retailer: Supermarkets (Co.op Mart, Lotte Mart, Big C, Bach Hoa Xanh…), convenience stores ( Family Mart, Ministop, Cheers, Circle K,…), online websites (Tiki, Lazada, Shopee, GrabMart…), canteens at campuses, amusement parks, and grocery stores will be great and beneficial to maximize the profit of this kind of product because around thousands of kids come to those places with their parents every day 24 Oreo, in this case, uses level or level of marketing channels for consumer marketing channels MANUFACTURER RETAILER CONSUMER (LEVEL 1) MANUFACTURER WHOLESALER 2) RETAILER CONSUMER (LEVEL 5.4.Promotion (Writer: Trần Tuệ Anh) 5.4.1 Advertising: - Double O will be introduced broadly and various ways such as TV commercials; social media (Facebook, Instagram, Youtube…); Google ads; posters in elevators; billboards on the streets - Moreover, the famous actress Thu Trang and her son Andy are will be invited to be the KOLs for Double O cookies during the 4-month campaign § The first months (From August to October): This is the “Back to school” season so the main them for this phase is “Năm học mới, hương vị mới” 25 ... plastic packaging 1973 – The Oreo finally switched into the iconic blue color that we all know today 1998 – At this time, the logo that we all know too well finally emerge and to be used on the