Analysis of OREO Cookies - Evaluation Essay

Conclusion

The food industry is ever evolving particularly, the biscuits and cookies sector. The rapid change of lifestyles and technology advancement has made people to develop new patterns of eating. This has greatly challenged manufacturing Companies in coming up with their final products that have consumer's desires. Perhaps OREO cookies are amongst the products that are embraced by the younger generation, in particular, the children. Because children are widely believed to be in love with foods which are sugary, the need to have products satisfying their desires by the manufacturers is vital. This paper is purposefully to examine OREO's cookies background, market analysis, and Competitor analysis. Additionally, the paper analyzes the SWOT analysis, promotion analysis, and pricing analysis.

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Background of OREO Cookies

The "OREO Biscuit" was initially manufactured by the National Biscuit, which currently is known as Nabisco, at its Chelsea, Manhattan factory in the present Chelsea market complex situated on Ninth Avenue. The name OREO was first trademarked in 1914. Ideally, it was launched as an imitation of the Hydrox cookie produced by Sunshine Company (Britannica, 2019). OREO cookies have developed from a humble beginning into becoming amongst one of the recommendable best-selling cookie brands in the globe currently; have an estimated $1.5 billion in world yearly revenues. OREO cookies are presently being managed and owned by Kraft Foods Inc.,

OREO cookies are globally distributed through various marketing and sales mediums. OREO is considered as the world's best-selling cookie and are available in more than 100 distinct nations (Britannica, 2019). It is worth noting that OREO cookies in the US differ with OREO cookies in Britain, this is due to the various ingredients that were used to produce the products in the two countries. OREO biscuits are mainly made from sugar, soy lecithin, chocolate, salt, high-fructose corn syrup, cocoa, and high oleic canola oil. OREO comprises of products such as OREO chocolate candy bar, OREO cookies, creme chocolate candy bar, and OREO big crunch chocolate candy bar, (OREO, 2019).

Market Analysis

OREO mainly concentrated on the United States marketplace as noted in its common promotion mottos of "America's Best Loved Cookie." However, despite it enjoying the monopolistic powers in the US, the monopolistic powers significantly crippled its growth opportunities and compelled Kraft to consider international markets. The existing projected market for OREO cookies is mainly for the children population. OREO cookies have over the past concentrated on promoting the fresh colors and changing the round shaped cookies into rolls, and the creme filling purposefully to induce children and have their attention, in turn; persuade their parents to purchase the cookies (OREO, 2019).

OREO impact is widely realized by the massive trend of smaller families that like cookies (OREO, 2019). In essence, smaller families are believed to provide better good lives for their children. Thus, increasing the purchasing power as most youths and newly married people record a huge population record compared to the aged people in the US and the globe at large. More so, the wave of change of lifestyles and significant population growth has greatly been positive having a felt positive impact on food markets, particularly OREO cookies. It is imperative to note that the popularity of emerging goods, for instance, a chocolate-coated biscuit that has been launched in the market has a bearing impact on the pattern and bears positive purchasing power rates for OREO products. Researchers and scholars note that cookies are mostly sold at a relatively lower price ranging from US$0.05-US$0.06, for a single packet.

Promotion

OREO has experienced continued growth because of its ideal promotion tactics. In essence, the Company has embraced brand award-winning advertising as well as consumer promotions approach. The brand's tactic of engaging buyers is very significant in its setting: creating links through the common OREO as well as milk ceremonials making people have childlike moments together (OREO, 2019). OREO enhances everyday moments through dunking, licking, and licking products which are rarer to find in other brands (Britannica, 2019).

Over the years, OREO has managed the desirable milk and OREO milk partner through different innovative and advertising channels. For example, the panoramic elevator that dramatized the ancient OREO and milk association in a shopping room. The brand's slogan was changed from "America's Favorite Cookie" to "Milk's Favorite Cookie." due to the criticality of milk and OREO importance to the brand's establishment (Britannica, 2019).

To establish a strong base OREO incorporated social media in their operations. This was mainly to ascertain its weakness and strengths for the products they produced. More so, it was a tactic of identifying itself with its customers to make customers have a sense of inclusion (OREO, 2019). Twitter, Facebook, and YouTube are some of the social media channels that OREO settled on. The social media has played a pivotal role in enhancing OREO's success worldwide as the Company can communicate and draw recommendations from the social media networks and hence, use them to make their products more appealing and more importantly satisfying the customer desires. Seemingly, social media networks are used primarily by the Company to build its brand by having award-winning advertisements, public relation campaigns, and unique promotions.

Pricing

Pricing is an integral aspect of any business. It can either break or make business. Hence, it should be set rightly, and more importantly, the consumer should be the most considered aspect in the matrix. OREO pricing is well aligned with the marketing truism. A product is only useful if a customer is ready to pay for it. This implies that Nabisco has set a price range, which has the inclusion of the customer's budget, thus, making it affordable to most buyers.

Additionally, double stuff OREO follows a target pricing approach. Ideally, Nabisco prices are anchored on the previous set markup prices by retailers such as WALMART, TARGET, and with food retailers around the globe (Britannica, 2019). Nabisco needs to consider price estimation to be guaranteed of profit on the cookie putting into consideration the various prices set by retailers. Producers intentionally change the features of a product to achieve the target price for buyers.

Competitor Analysis

According to Fleisher & Bensoussan, (2015) competition is a healthy aspect in business as it compels business in coming up with innovative and tactical ideas for them to survive in the competitive market. More so, competition guarantees product and service quality because every Company strives in maintaining their brand through product quality. OREO has faced stiff competition from its closest rivals such as GOOD DAY, PARLE G, and BRITANIA. The competitors compete with OREO through market segmentation (OREO, 2019). For instance, Britannia's Treat-O and pure magic dominates the space. In this case, OREO finds it uneasy about differentiating itself from these goods. OREO majorly concentrates on its worldwide proposition having the notion that its success in the globe is pegged to local buyer's insights. Also, the competitor had an inclusion of wafer and salted snacks segment that tends to sell significantly thus; lowering OREO sales and market share control.

SWOT Analysis

Strength

• High brand equity
• Firm association with chocolate
• Widespread distribution
• Worldwide market
• Strong communication

Weakness

• The high cost of raw materials
• Internal competition
• Overemphasis on chocolates
• High prices of differentiation

Opportunities

• Growing demand for biscuits
• Steep growth potential in emerging economies

Threats

• Stiff competition from competitors such as GOOD DAY, PARLE G, and BRITANIA
• The severe threat from the wafer and salted snacks segment Bhasin (2018)

Conclusion

Conclusively, the paper has examined OREO cookies analyzing its background, market analysis, promotion analysis, competitor analysis, SWOT analysis, and Pricing analysis. It can be inferred from the paper that OREO cookies mainly target children population. The article has also noted that pricing plays an essential role in a business and customer's desires need to be given priority. Currently, OREO is a distinguishable worldwide brand. Its presence is felt in more than 100 countries. Pricing and promotion are appropriately aligned as the market needs. It can be drawn from the article that OREO faces stiff competition from Companies such as Britannia thus, compelling the Company to re-strategize and perhaps OREO should consider market segmentation to continue enjoying the market control and boost their sales.

References

Bhasin. H . (2018). Swot-Analysis-Cadburys-Oreo. Retrieved from: https://www.marketing91.com/swot-analysis-cadburys-oreo/

Britannica. (2019). Kraft Foods. Retrieved from: https://www.britannica.com/topic/Kraft-Foods-IncFleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: Effective application of new and classic methods.

OREO. (2019). Chocolate-Candy? Retrieved from: https://www.oreo.com/chocolate-candy?sc_lang=en-US