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MKT345 Assignment (Oreo)

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Company background Mondelez International, Inc. is an American multinational confectionery, food and beverage conglomerate, employing around 107,000 people around the world. It comprises the global snack and food brands of the former Kraft Foods Inc. The Mondelez name, adopted in 2012, came from the input of Kraft Foods employees at the time, a combination of the words for "world" and "delicious" in Romance languages. Mondelēz International manages snack brands around the globe, including cookies and crackers (Oreo, Chips Ahoy!, TUC,Belvita, Triscuit, Club Social, Barni, Peek Freans), chocolate (Milka, Côte d'Or, Toblerone, Cadbury Dairy Milk, Lacta), and gum and candy (Trident, Dentyne, Chiclets, Halls, Stride, Cadbury Dairy Milk Eclairs). The company is headquartered in Deerfield, Illinois, a Chicago suburb, and is a manufacturer of chocolate, biscuits, gum, confectionery, coffee, and powdered beverages. The company consists of the global snacking and food brands of the former Kraft Foods Inc. following the spin-off of its North American grocery operations in October 2012. Mondelēz International's portfolio includes several billion-dollar brands such as Cadbury (acquired through a buy out of Cadbury in 2010) and Milka chocolate, Jacobs coffee, Toblerone,Nabisco
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Page 1: MKT345 Assignment (Oreo)

Company background

Mondelez International, Inc. is an American multinational confectionery, food and

beverage conglomerate, employing around 107,000 people around the world. It comprises the

global snack and food brands of the former Kraft Foods Inc. The Mondelez name, adopted in

2012, came from the input of Kraft Foods employees at the time, a combination of the words for

"world" and "delicious" in Romance languages.

Mondelēz International manages snack brands around the globe, including cookies and

crackers (Oreo, Chips Ahoy!, TUC,Belvita, Triscuit, Club Social, Barni, Peek Freans), chocolate

(Milka, Côte d'Or, Toblerone, Cadbury Dairy Milk, Lacta), and gum and candy

(Trident, Dentyne, Chiclets, Halls, Stride, Cadbury Dairy Milk Eclairs).

The company is headquartered in Deerfield, Illinois, a Chicago suburb, and is a

manufacturer of chocolate, biscuits, gum, confectionery, coffee, and powdered beverages. The

company consists of the global snacking and food brands of the former Kraft Foods Inc.

following the spin-off of its North American grocery operations in October 2012. Mondelēz

International's portfolio includes several billion-dollar brands such as Cadbury (acquired through

a buy out of Cadbury in 2010) and Milka chocolate, Jacobs coffee, Toblerone,Nabisco

and Oreo cookies, LU, Tangpowdered beverages, and Trident gums. Mondelēz International has

annual revenue of approximately $36 billion and operations in more than 80 countries.

Its begin with Kraft

Born in Stevensville, Ontario, Canada in 1874, James L. Kraft emigrated to the United

States in 1903 and started a wholesale door-to-door cheese  business in Chicago; its first year of

operations was "dismal", losing US$3,000 and a horse. However, the business took hold and

Kraft was joined by his four brothers to form J.L. Kraft and Bros. Company in 1909. As early as

1911, circulars and advertisements were used by the company.

Page 2: MKT345 Assignment (Oreo)

In 1912, the company established its New York City, New York, headquarters to prepare

for its international expansion. By 1914, 31 varieties of cheeses were being sold around the US

because of heavy product development, expansion by marketing, and opening a

wholly cheese factory in Illinois.

In 1915, the company had invented pasteurized processed cheese that did not

need refrigeration, thus giving a longer shelf life than conventional cheese. The process was

patented in 1916 and about 6 million pounds of the product were sold to the U.S. Army for

military rations during World War I.

In 1916, the company began national advertising and had made its first acquisition—a

Canadian cheese company.

In the current years.

In August 2011, Kraft Foods Inc announced plans to split into two publicly traded

companies—a snack food company and a grocery company.  In October 2012, Kraft Foods Inc

changed its name to Mondelēz International, which specializes in snack foods. A second

company, Kraft Foods Group, was split off. It specializes in grocery items. Kraft Foods Group

later merged with the Heinz to become Kraft Heinz Company.

Page 3: MKT345 Assignment (Oreo)

Company Mision

“We want our consumers to regard us as their primary snack food. We want our customers to

know that we have their wants and needs in mind along with working to create products that will

cater to their health conscious lifestyles.”

Company Objectives

Maintain demand of customers

Introduce new sandwiches

Create awareness through effective media

Attract more customers

Retain current customers

Stay ahead of competitors

Reduction or elimination of other supply chain inefficiencies

To achieve superior consumer exposure

Establishment of regional marketing specialists

To reinforce and reaffirm the Oreo cookie brand position

The Company Logo

Page 4: MKT345 Assignment (Oreo)

The origin of the name from French word, meaning gold (as early packaging was gold).

Besides, the Greek word ‘Oreo’, meaning beautiful, nice or well done. The word of Oreo also

means black on the outside, white on the inside which our sandwich cookie consisting of two

chocolate wafers with a sweet cream filling in between and are marketed as "Chocolate

Sandwich Cookies" on the package they are held in. Therefore, we believe that the cookie was

named Oreo since it was short and easy to pronounce.

Target Market

Page 5: MKT345 Assignment (Oreo)

A target market is a group of customers or clients that we decided to aim them to buy our

products. Target markets are groups of individuals that are separated by distinguishable and

noticeable aspects. With a better target market, we can know which type of people we want them

to buy our products. Business need to focus their marketing activities toward certain group of

customer chosen based on the business ability to satisfy their needs and wants.

Our main target market is to the customers out there who maintains a healthy lifestyle.

We also targeted any age to buy our product because our product, Fancy Oreo Milk’s Favourite

Cookies is a very high in vitamin and nutritious cookies. So this product is not only for children

but also for older people that really concern about their healthy lifestyle. Every gender also

suitable to buy our product.

We also targeted our product to be sold to many students at school and university. This is

because students will more likely to buy this kind of cookies. Students and also younger people

likes to eat sweet cookies so we targeted their age to buy our product more than the older aged

people. Besides our product is packed with high vitamin and nutrition that is needed by the

younger people especially students. So when they take our product, they can increase the fitness

of their body.

Product

Page 6: MKT345 Assignment (Oreo)

Branding

We use Oreo for our product brand because we want to make our product easy to attract people

attention because Oreo is the most popular brand than others. By using Oreo, we will introduce

people about the product that we are selling in the market that is Oreo in cup. For our latest

product is Fancy Oreo. This method aid for branding is defining the brand image that the product

help to refreshment, to generate energy and it is made for high quality. So for the new product, it

will effect to market instead it is a new enhancement in the market to people.

Trademark

We use a slogan for our product of the advertisement is the Oreo slogan “Milk’s Favourite

Cookie”. The use of slogan link name of brand name to our product for something memorable

and the inherent properties of the slogan provide a retrieval cue for the brand name. In the case,

the slogan is link closely to brand name and the desire of quality of the product. So, it will easy

to promote the product to the customer. This method is very important to ensure that customer

will recall the brand name of Oreo first other than competitor to think of others. Beside that our

customer is easy to recall back our brand. This will earn more advantage to Oreo to compete with

other brands.

Labeling

Page 7: MKT345 Assignment (Oreo)

This is labelling for our company product. It can help to our customer to make their selection.

Customer can buy our product without any force. In this labelling, it contain many information

about our product such as how to keep this product, ingredient in the product, expired date and

the most important things is the HALAL logo. So, labelling is one the most important part to

attract the customer to buy our product.

Packaging

This is our packaging for our new product, Fancy Oreo. Our packaging are very likely by our

consumers for it function. It is easy to open and close. The size of our packaging is standard with

the other Oreo in cup product in Mondelez International, Inc. Besides that, the packaging of this

Oreo can be contain, protect, promote and facilitate of product and easy to use in our product

packaging.

Market Segmentation

Page 8: MKT345 Assignment (Oreo)

Segmentation - It defines the consumer.

MARKET SEGMENTATION VARIABLE / BASES

1. Geographic i) Urban area (North, west, east, south)

ii) Semi urban area (North, west, east, south)

2. Demographic i) Age : (6-18) (18-24) (24-39)

ii) Education : (Literate)

iii) Income : ( Upper ) ( Middle )

3. Psychographic i) Outgoing

ii) Readiness to try new products

iii) Experimental by nature

iv) Do not mind spending a little extra on snacking

v) Brand-concious

vi) Lifestyle is comfortable

Places Strategy

Page 9: MKT345 Assignment (Oreo)

We are using retailer to sell our product, Fancy Mini Oreo Milk’s Favourite Cookies, as

retailer is a channel intermediary that sells directly to consumers. Our product is available to buy

in most of the best retailers in Malaysia such as Jusco, Tesco, Giant and many more. These types

of retailers will help in making our product well-known to the consumers plus maintaining the

sales of our product because they have a lot of branches at many different places. Our level of

distribution intensity is intensive. It is a form of distribution aimed for having a product

availability in every outlet.

Promotion Strategy

ProducerRetailerConsumer

Page 10: MKT345 Assignment (Oreo)

We’re using advertising and sales promotion as the way to promote this new product.

Advertising is any firm of impersonal (one-way) paid communication in which the sponsor or

company is identified. Sales promotion is generally a short-run tool used to stimulate immediate

increases in demand.

Medium of advertising that we use are newspapers, magazines and television. By

newspapers, we can gain many types of advantage in advertising or product. Such as,

newspapers got short lead time, short-term advertiser commitments and news value and

immediacy. For example:

The other medium is magazine. By using magazine as a medium of advertising, the

advantage that we can get is demographic selectivity with color included. Magazine is also a

Page 11: MKT345 Assignment (Oreo)

relatively long advertising life and high pass along rate. This can maintain our product’s

publicity for long period. This is the example: of advertising in magazine:

The next medium of advertising that we use is television. We used television to promote

our product because television can help us to promote our product for a very large rate of

audience. We can promote our product with creative demonstration that can attract more people

to buy our new product.

More over, the next promotion stratergy that we use is sales promotion. This type of

promotion will be require a little amount of cost and easier to measure. Example of sales

promotion is contest and sweeptakes. The picture above already shown an example of sales

promotion that we made for our promotion stratergy.

Price Strategy

Page 12: MKT345 Assignment (Oreo)

For Fancy Mini Oreo Milk’s Favourite Cookies, the type of pricing strategy that we used

to give the price for this new product is status quo pricing. Status quo pricing is the price about

the same or very close to our competitors’ price. It is easier for us to set the price for the product

and also, the consumer in the market will not feel our product is too cheap or too expensive

because it is same as the price of the existing product in the market.

Maintain existing prices is that we use the same price as the product existed. For

example, other Mini Oreo Milk’s Favourite Cookies. The price offered for that products is

RM4.80. Therefore, we maintain the price for this new products to attract customer. We decided

to sell the product with the same price, if we offer a higher or lower price, it may cause a failure

to attract customer for this product. So the customer will not feel hard to buy our product because

the price is the same as other product although it is more tastier and more nutritious.

Before we launch this new product, we will first make a survey on the existing product in

the market. This is to know the price of our competitors’ products in the market. So we can put

the competitive price that can fight with them to win the customer. After we have knew their

price in the market, will put the price about the same or a little bit cheaper to attract the consumer

to buy our product.

In conclusion, we have set our new product price is RM4.80 for Fancy Mini Oreo Milk’s

Favourite cookies based on the status quo pricing as the safest routes to long term survival for

this new products. We are very sure that our consumer is very happy with this price because it is

price is competitive with other brands in the market.

Competition

Page 13: MKT345 Assignment (Oreo)

Every business that we involve has different types of challenges that we need to face to

reach our company goals. One of them is competition. In competition we need to face with the

strength and the weakness of our competitors company. In our company (Oreo) there are a lot of

competition out there that we need to face every day. For example isNestle,JACK ‘n’ JILL, and

Munchy’s.

1. Nestle

Strength :

They made delicious foods and contain of a lot of nutrition. Not just made a lot of

products, Nestle which produced daily food and has made delicious product. In Nestle products

we can get a lot of variety of food not just cookies. Such as nestum, cereals, sauce, and ice

cream.Nestle tends to increase the quality and taste of their products to fulfill consumer needs

that always more complex day by day. Nestle tries to give the best quality in taste and nutrition

for the consumer.

Weakness :

The focus is too narrow because Nestle only focus on daily product such as food and

drinks only.

Page 14: MKT345 Assignment (Oreo)

2. JACK ‘n’ JILL

Strength :

JACK ‘n’ JILL company has many strength than the other brand such as their product has

more cheaply price than the other brand. So JACK ‘n’ JILL is our competition in the pricing to

our company because price of our company product is higher than their product.

Weakness :

Every company have their weakness on their product. For JACK ‘n’ JILL product, their

weakness is on their packaging. Their packaging is not executive than our product. Many of

customer out there is interest on the product packaging. They are most interested on the

executive and beautiful product packing. So company who are not make a executive and

attractive packing will effect on their product sales.

3. Munchy’s

Strength :

Kraft is a company who specialized in cookies industry. They have many type of cookies for

their cookies product such as Lexus, Oat Crunch, Muzic, Yoss, and Marie. Their product also

have best taste among the other competitors. They also have many regular customer who use

their product continuously. So, the other company who want to challenge them in the market

have to make sure their quality is better then Munchy’s to attract the consumer for their product.

Weakness :

Munchy’s product is all base on cookies. They does not make other type of product other than

cookies. So they cannot involve into the other type of market. Second, they product is very

sensitive and not easy to take care. The consumer have to make sure that the cookies have to

keep in good condition for better presentation.

Page 15: MKT345 Assignment (Oreo)

Conclusion

In conclusion, our Fancy Mini Oreo Milk’s Favourite Cookies product is a new product

that will change people’s perception about cookies. This is because our product is not an

ordinary product, but is a top premium quality product. The added fancy around the cookies is

from a trusted sources that only provides pure food colour to make it attractive and tastier.

Besides, our product is very healthy for all people no matter what age or gender. This is

because milk cream contains a good balance of proteins, fat and carbohydrate. They are very

important source of essentials nutrients for people, including calcium, iron and many more. Milk

also contain high-quality proteins that are well suited to human needs. Then the cookies is not

only making it tastier but also increases the content of carbohydrate and nutrient in every cookies

that are produced by our company. So when the consumer buys our product, they can get many

benefit rather than just taste good, our products also can give their body the best nutrient that

they need. Therefore, for those people who want to find a cookies product and have nutrient

content, they will definitely buy our product because of its greatness. We also will make sure that

the customers who bought our product will be satisfied because of how we present the products

to them and the greatness of our product.

We also know the existence of other competitors, so we will not make it easy for them to

surpass us. We will make sure that the advertisement about our product and company are

worldwide and will gain more popularity among consumers in the market. In the advertisement

we had mentioned the greatness of our products and how our product can help to maintain their

healthy lifestyle and by the same time it allows us to compete with other brands by emphasizing

the quality and crunchy of our cookies. By making advertisements also, people will remember

that our products are available in the market. To further maintain our strength, the

advertisementwill be made more aggressively and more frequently so that the consumer in the

market will not forget our product and thus making our company stronger than other competitors

in the market.

Page 16: MKT345 Assignment (Oreo)

Recommendation

Our product is Fancy Mini Oreo Milk’s Favourite Cookies. This product is a very special product

and has an advantages than the other product from competitors. To challenge ourselves to give

different and special product to our customers while making new strategy, we take a challenge to

create our new product, Fancy Mini Oreo Milk’s Favourite Cookies which is the first cookies

with fancy around the cookies product in the market. Before this, Oreo have many types of

flavour such as Oreo Duo, Cool Mint Oreo and Double Stuf Oreo. Thus, we believe that our new

product will bring new to our customer and gain our sales. We hope that our new product will be

accept to customer in market.

Page 17: MKT345 Assignment (Oreo)

References

1. https://en.m.wikipedia.org/wiki/Oreo

2. www.fitbit.com/foods/oreo+cookie/16421

3. http://www.urbandictionary.com/define.php?term=oreo

4. https://en.m.wikipedia.org/wiki/Mondel%C4%93z_International

5. Google image


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