The Continued Growth Of Oreo

The Continued Growth Of Oreo Oreo can be satisfying more that just the drive (hunger). Oreo satisfies the nurturing need example, a mother having difficulties in feeding her 4 to 6 years old child with some nutrition food, can consider Oreo to feed her child with a sip of milk. Oreo satisfies the imitation need example, kids watching the Oreo ad on TVs while the other kids are enjoying twisting, that cookies licking and dunking the cookie into a glass of milk.This forces the that cookie right away and imitate the same steps. Oreo also adults like to have fun once in a while individually or even with their kids. Growth in the Saudi Arabian biscuit market is being driven mainly by two factors. Firstly, the marked increase in advertising spend by multinationals such as Nabisco, Master Foods and Danone. Secondly, the popularity of emerging products such as chocolate-coated biscuits and bread substitutes, which have recently been launched in the market. Research has shown that biscuits, particularly sweet biscuits, are generally sold at low prices, averaging between SR0.25 and SR2 (US $0.06-US $0.53), or a single-serve pack and enjoy excellent distribution in all outlets. The biscuits sector is highly developed owing to the strength of the local industry in Saudi Arabia, represented by large manufacturers such as United Food Industries. Oreo sales showed a fluctuating result during the past 13 years. When Oreo initially was launched into the market, sales increased to a high extent for about 3 years but then sales decreased for a long period during 1997 to 2002. Oreo marketing became aware of their loses and immediately went back to action and changed their marketing mix and started to introduce several different new products. This effort resulted with high sales in 2008. Sales were amounted to $4 billion and market share 41%. 2.0 Background Oreo 3.0 Marketing Mix 3.1 Product The basic design of an OREO cookie has not changed since its introduction: two round chocolate cookie wafer joined by sweet vanilla crà ¨me filling. 3.2 Promotion Key factors in the continued growth of OREO are the brands award-winning advertising and best-in-class consumer promotions. The brands approach to engaging consumers stays true to its essence: creating connections through the classic OREO and milk ritual that brings people together in moments of childlike delight. Whether its twisting, licking, dunking, or a combination of all three, OREO offers everyday moments of connection that other snack brands cannot match. Throughout the years, the brand has brought to life the powerful OREO and milk connection in a number of innovative advertising and promotional channels. One unique example is a panoramic elevator in a shopping mall that dramatizes the traditional OREO and milk connection: a picture of an OREO cookie on the elevator dunks into a glass of milk as the elevator descends. Because the OREO and milk moment is central to the brands identity, the advertising tagline was switched from Americas Favorite Cookie to Milks Favorite Cookie. Another unique trait of OREO is the brands unified worldwide marketing strategy. While the communications are translated and adapted for local cultures, the core communication of special moments of childlike delight enabled by the TWIST, LICK, AND DUNK ritual using an OREO and milk is consistent across the globe. With significant investment in promotions and public relations, the OREO brand has forged strong, lasting connections with consumers. Two signature marketing programs over the last 10 years have been the OREO Global Moments contest and the Double Stuf Racing League. In 2008 the brand hosted the OREO Global Moments contest, which asked OREO fans around the world to submit videos depicting a special OREO and Milk Moment. Consumers from eight different countries on four different continents entered videos depicting a wide range of OREO and Milk Moments. From original OREO-themed songs and animated skits to family lessons on OREO dunking techniques, fans showed their passion for the brand with every video submission. The winning video, which depicted a little girl giving her last OREO cookie and a glass of milk to a soldier, was featured on the YouTube homepage for a day. OREO recently energized the popular act of twisting, licking, and dunking by launching the Double Stuff Racing League (DSRL). The DSRL is a different way to enjoy the classic OREO cookie and milk ritual. Its a fun activity that family and friends can enjoy together, racing to see who can finish an OREO DOUBLE STUF cookie and glass of milk the fastest. Racers twist their cookie open, lick off all the crà ¨me, dunk it in milk, eat the cookie, and drink the glass of milk. The first to finish twisting, licking, and dunking wins. Commercials in recent years have featured numerous celebrity athletes as DSRL athletes, which has driven significant media attention to this unique campaign and resulted in very positive consumer response. OREO DOUBLE STUF consumption has grown almost 10 percent since the launch of the DSRL in 2008.4 In keeping with the changing media landscape, OREO has elevated its strategy by connecting millions of passionate fans to each other (and the brand) through social media. Social media networks such as Facebook, Twitter, and YouTube are ideal tools for a brand like OREO, whose strategy is rooted in connecting family and friends. The brands foundation of connections in combination with the global reach of OREO lends credibility to the two-way conversations that social media platforms enable on a daily basis. Consumers who like OREO on Facebook also receive brand updates, such as exclusive behind-the-scenes content from OREO advertising shoots and new product news. By embracing the new opportunity to connect with consumers, OREO has emerged as a leader in social media and currently hosts one of the largest consumer packaged goods-branded Facebook pages.5 Whether its through social media or lick racing contests, OREO is reaching consumers through award-winning advertisements, unique promotions, and public relation campaigns that continue to build the OREO brand equity. 3.3 Place 3.4 Price 4.0 Suggestion Marketing Mix Product: Develop new sandwiches which contain less calories, less fat, less cocoa powder and less salt. Customer has been complaining about the packaging for the past years. And in order to overcome this issue, the package should be given a new look to attract more customer. The labeling should be clear and nutritional information should be specific and not hypothetical such as May contain milk protein!!! Price: Maintain their current prices. Maintain a fixed price for all specific products overall the Riyadh market. Place: Oreo should improve their market existence. Example: In Hail-Al-Wazarat, his cold stores Bagalas dont have Oreo products. Promotion: Their promotions havent shown much about their organizations, TV commercials were for a short time and ever since they havent shown any other particular promotions. They should get in contact with Advertising Agencies for better improved commercials. Their websites provide less information about the whole organization (Internal /External). Aim for different promotional medias as Bill boards, Flyers, etcà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 5.0 Conclusion

Colgate Palmolive-Precision Toothbrush Case

COLGATE – PALMOLIVE COMPANY: THE PRECISION TOOTHBRUSH I-SYNOPSIS In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products like toothbrushes and toothpastes. In 1991, its sales topped at $6 billion and profits at $2. 76 billion and it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. It was also the leader in retail toothbrush sales in the United States. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. But the 1990s saw that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. This led to a rise in the sales of therapeutic toothbrushes. The toothbrush industry experienced a massive influx of worthy competitors and this led to the formation of a niche, super-premium market. In order to gain an edge each competitor worked on developing new toothbrush technology, forming alliances with dental professionals, expanding advertising budgets and offering promotions that would grab consumer attention. In August 1992, Colgate – Palmolive was poised to launch a new toothbrush in the United States, tentatively named Colgate Precision in the super-premium market. Precision, was proven to be very effective in removing plaque – 35% more effective than existing brands – and in preventing gum disease. This advantage has been attributed to the innovative design, high-tech research using CAD and infrared scanning, consumer research and extensive product testing. CP’s Oral Care had been developing this technologically superior toothbrush for over three years. But the market was highly competitive with new products already in the fray. CP had to market Colgate Precision as per existing market strategies that include proposed strategies involving product, price, place, and promotion. The issues and Challenges, Analysis and Recommendations of the case are enumerated in the succeeding paragraphs. II-SSUES AND CHALLENGES In 1991, CPs sales topped at $6 billion and profits at $2. 76 billion and it cornered 43% of the world’s toothpaste market and 16% of the world’s toothbrush market. In the United States, the world’s largest market, Colgate-Palmolive held the number one spot in toothbrush sales with a market share of 23%. Its international sales accounted for 64% of total sales and profits account for 67% of the total profits from international operations. The impending release of Colgate-Palmolive’s new toothbrush, Precision, may affect sales of its existing toothbrush lines. This may lead to a â€Å"cannibalization† of the Colgate Plus and Colgate Classic’s market of up by 35% to 60%. of the expected Colgate Precision sales. Since the existing toothbrush lines are the â€Å"cash cows† of the company’s oral care division, a dismal performance by the new Colgate-Palmolive Precision might drain the â€Å"cash cows† of its their resources market share altogether. Colgate-Palmolive’s media expenditure layout is very small compared to its rivals. It spent only $7 million dollars on marketing Colgate-Palmolive Plus. Since media exposure fuels consumer demand for a new product, this is one area where Colgate-Palmolive needs to have its expenditures equivalent to that of its rivals. Colgate-Palmolive’s media expenditure layout is very small compared to its rivals. CP could be positioned as a niche product to be targeted at consumers concerned about gum disease as such; it could command the 15% premium over Oral-B and would be expected to capture 3% of the US tooth brush market by the end of first year following its launch. Alternatively Precision could be positioned as a mainstream brush with the broader appeal of being the most effective brush available on the market. It was estimated that as a mainstream product, Precision could capture 10% of the market by the end of the first year. CP already had another toothbrush in the mainstream toothbrush, but didn’t have any in the super premium niche position. Other decisions that will follow the positioning decision would be price, distribution channels, advertising and promotion planning. If it is positioned as mainstream right away then not only will it cannibalize Colgate Plus, which is one tier below the super-premium category, but will have leave CP without a product in the super premium category which is the largest customer segment and Oral-B is virtually unrivalled in that space. Challenges Because of the recent market saturation, the various producers of oral health care products have rushed to offer promotional incentives including two-for-one, buy-one-get-one-free and mail-in refund coupon deals. With the increase of in-store advertising, toothbrushes and toothpastes have been found to sell 170% better when located in close proximity. The most worrisome threats to CP are from the company itself. If CP were to release the Precision brush into the mainstream market as the â€Å"Colgate Precision,† not only would it knock the children’s Plus brush off of the shelves, it would also cannibalize its flagship Plus model. III-ANALYSIS In the year 1993, budget was increased to cater for overall toothbrush ads and promotion budget by $19. 2m (80%over estimated $24m). $32. 5m was devoted to precision, $10. m to Colgate plus. The advertisements focused on prevention of gum disease, toothbrush effectiveness so as to develop superiority claim for Precision. Customers picked their brushes based on features, comfort, personal recommendation and health and hygiene. As a consequence they were willing to pay premium for products addressing these concerns.. 82% of toothbrush purcha ses were unplanned. 46% of adults were therapeutic brushers. 85% brushed daily. 85% used professional brush and 54% flossed regularly. Their major brands were Oral B Angle, Oral B Regular and Colgate Plus. In 1992 CP had a principal toothbrush brand Market share of 26% and was followed by Oral B and Johnson & Johnson with market shares of 23% and 22% respectively. CP had the highest market share of 26% in Food stores and 39% in Mass merchandisers but had a dismal 17% market share in drug stores where Oral B had a highest market share of 31%. Thus CP needed to increase its focus in the drugstore channel. Colgate precision was priced at $2. 02 in the niche category and $1. 76 as a mainstream product. The manufacture cost per unit of Colgate precision was $0. 66 in the niche category and $0. 4 as a mainstream product. Industry Analysis Not only can the industry be broken down by price models (super-premium, professional, and value), it can broken down a second time into niche and mainstream offerings. Consumers of this industry can be sorted into three categories: therapeutic, cosmetic, and uninvolved. Competitive Analysis One promising conclusion that can be drawn from the competitive an alysis is that every company has been caught off guard by the change in consumer behavior, emergence of new technology, and introduction of new players entering the playing field. For example, in 1988, Johnson & Johnson introduced â€Å"new brush technology† only to phase it out by 1992. In order to get an edge, competitors, Johnson & Johnson, Oral-B, Procter & Gamble, and Smithkline Beecham (latter two are new competitors), are offering promotions in the form of coupons, mail-in refunds, and bundles. Environmental Analysis With 43% of the global toothpaste market and 16% of the global toothbrush market, CP has defined itself a leader of household and personal care products worldwide, and positioned itself as the number one retailer of toothbrush products in the United States. Because of its good standing relationship with retail stores, it is able to position its products on the middle shelf, right between its competitors, Reach and Oral-B. Although industry players are manufacturing products to improve oral health, it has been difficult to educated consumers of the importance of preventing gum disease (which is a common motivator to improve dental care habits). One major advantage that the competitor, Oral-B is, it is recommended by dental professionals. IV-RECOMMENDATIONS Opportunities In consumer tests, majority of consumers are willing to experiment with new brands/models, CP could make being new, different, and effective the major tenants of its marketing messaging; along with including messaging concerning their incredible ability to fight gum disease, it should have a rock solid campaign. Price Precision should be positioned as niche category in the price category $2. 29

Going to College Essay

Going to college really does open a new chapter in everyone life, the beginning of new friendships, opportunities and growth. As a college student, a new student will be introduced to new areas of interest, broaden his vision of possibilities, establish and accomplish goals, develop lifelong friendships and define him or her in ways that he can imagine. Anyone on Earth already asked, or will ask himself where he would be in 10, 20 or even 30 years down the road. It is hard enough imagining what his life is going to be like in a year or two. Questions like â€Å"Where do you want to be today, tomorrow and in the future?† might be hard ones for young teenagers, who just graduated from high school. Attending college will help anyone answer those questions, develop a realistic plan for accomplishing his goals, and equip him with the knowledge and skills he will needs to see his goals through to the end. We usually assume that a college degree is necessary when it is not actually. We can also noticed that, because we place so much emphasis on degrees, people who have not attended college think of themselves badly, and this lack of self-confidence can really impede their success. There are some people for whom the college is actually not the best way to learn. However, a college education is an opportunity for everyone to learn what he loves. A new student can actually take the time to enjoy learning what he is truly passionate about. If he is interested in a variety of things and he is not sure where to focus, he can take his time to try them all. Nobody should look at college as a long-term contract that he is not going to be able to get out of once he starts. Anyone should feel like he needs to decide on a major area of study before starting college. College is a time for everyone to test himself, explore his interests, see what the possibilities are, and to see what he can achieve. Most other students attending college are going to be in the exact same boat . There are also a variety of resources, provided by most universities, to help anyone through college, including academic advisors, professors accessible on campus, tutoring academic support, full-time counseling staff and more. While the prospect of attending college may seem a bit daunting and even suffocating, a graduated high school teenager should not forget that he will still get to live his life. He will be able to participate in a variety of extracurricular activities, social groups, maintain a job, or even pursue a career while completing his studies. He may even find that college ends up being much more enjoyable and fulfilling than he ever expected. There are additional reasons as to why it is important to go to college. When students experience a post-secondary education, they have the opportunity to read books and listen to the lectures of top experts in their fields. This stimulation encourages students to think, ask questions, and explore new ideas. So, â€Å"why should you go to college?† The reasoning does not begin and end with the job aspect. A good education is beneficial from many different viewpoints. If any teenager is still asking himself why he should go to college, it is important to remember the significant amount of opportunity available for college graduates. The global economy is becoming increasingly more competitive, and in order to give him the best chance for a well-paying job, he must first understand the importance of college education. Attending college provides students with the knowledge and experience they are unable to receive from a secondary education, and finding a way to fund a higher education now can pay off in a huge way in the years to come.

Diversification Strategies - 1571 Words

BUS 508 | Diversification Strategies | Dr. Marilyn Caroll | | Kayla Lewis | 5/6/2012 | Diversification Strategies In today’s global markets companies are faced with tough decisions, one of the toughest decisions a corporation faces is whether or not they should diversify their business. Diversification simply means to mix a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio (Silvia M.Chan-Olmsted, 2007). Firms that have success strive to transfer their winning business know- how to new activities. To these firms,†¦show more content†¦Although the company performance increased over the last two years its performance is still significantly lower than in past decades. Part of the reason the company will have a hard time regaining the momentum is because consumers have become exposed to more choices and their demands have changed. Consumers want an all in one service provi der. In my opinion if Time Warner fails to respond to the changing demands of the consumers, it’s as good as a dying dinosaur. General Electric’s (GE) humble beginnings began in 1878 when Thomas Edison established a light company called â€Å"Edison Electric Light Company†. GE was created as a result of a merger between the Edison Electric Light Company and Thomson-Houston Light Company (David Allen, 2007). It still maintains the same Dow Jones index it had since 1896. The company has a global presence in 100 countries and growing and currently employs 313,000 people worldwide. GE is a multinational conglomerate whose operations span financial services, energy, industrial manufacturing and healthcare. It’s a diversified and profitable conglomerate with a lot of very good but very unrelated business (Barron, 2011). Diversifying provides the company with a degree of protection against poor performance in any business segment (Arthur Anderson, 2007). This has helped shield profit losses during the recession ofShow MoreRelatedDiversification Strategies1287 Words   |  6 PagesDiversific ation Strategies BUS 508 Contemporary Business Seena S. Nelms Strayer University Diversification Strategies What is diversification? According to the Merriam-Webster Dictionary online, diversifications means to produce variety or to engage in varied operations. Diversification is a strategy that takes companies into new markets with new products and services to increase their profitability. Some corporations have diversified and succeeded, while other haveRead MoreDiversification Strategy1412 Words   |  6 PagesAssignment 2: Diversification Strategy The purpose of this paper is to compare and contrast two companies; One successful and one unsuccessful. The two companies chosen for this purpose is General Motors (unsuccessful) and Toyota Motor Corporation (successful). The content of this paper will analyze, compare and contrast the outcomes, and recommend actions that General Motors could have made to make their diversification venture more successful. The analysis will include the company’s coreRead MoreDiversification Strategies1949 Words   |  8 PagesRunning head: STRATEGIES Diversification Strategies Pamela L. McGhee Dr. Kimberly Anthony The Business Enterprise – BUS 508 Strayer University, Savannah Campus 30 October 2011 Diversification IBM a Fortune 500 company celebrated its 100th birthday this past June. IBM employs over 400,000 employees and is considered to be a $100 billion dollar or more giant in e-business global marketing technology. With the inception of the computer, IBM’s core business was mainframe computersRead MoreDiversification Strategies2112 Words   |  9 PagesDiversification Strategies Let’s explain diversification of a company first; I myself thought it meant something totally different. A diversified company is a company that has multiple unrelated businesses. Those different businesses require separate management teams, have different customers, and produce different products or sell different services. One of the advantages of being a diversified company is that can create a separation from issues of one of the other businesses. Companies canRead MoreMicrosofts Diversification Strategy2716 Words   |  11 PagesIntroduction This essay plans to focus on the corporate strategy of Microsoft, and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage. This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversifyRead MoreDiversification Strategy at GE933 Words   |  4 Pagesï » ¿Introduction Diversification strategy is noted by Martà ­nez-Campillo, Fernà ¡ndez-Gago (2011) as a type of corporate strategy that is employed by an organization that aim at increasing its profitability by means of enhanced sales volume which is realized via the engagement in new markets as well as new products. Diversification can take place either at a corporate level or at business level. If diversification takes place at business level, then the business is likely to expand to a totally new industryRead MoreDiversification: A Business Strategy1194 Words   |  5 PagesIntroduction Diversification as a business strategy has a number of advantages. Diversified firms experience more stable cash flows, gain more market knowledge and when they are able to tie their different products together can often experience synergies as well. When diversification fails, however, it can drain a companys finances and create a distraction within the organization. Some firms struggle with diversification, trying to branch out from their core business repeatedly, but never beingRead MoreCanon Diversification Strategy4782 Words   |  20 PagesBUSINESS STRATEGIC DEVELOPMENT CANON DIVERSIFICATION STRATEGY [pic] By: NURSYAH FAHMANSYAH RIZKI (0832200304) Magister Manajemen Sistem Informasi Universitas Bina Nusantara 2009 DIVERSIFICATION Definition Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unitRead MorePepsico Diversification Strategy1990 Words   |  8 Pages16 October 2012 Draft v1 Seitenzahlen einfà ¼gen, Inhaltsverzeichnis einfà ¼gen Pepsico’s Diversification Strategy in 2008 Discussion material 16 October 2012 16 October 2012 Draft v1 Contents Seitenzahlen einfà ¼gen Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations QA 1 16 October 2012 Draft v1 2.1 PepsiCo Overview Overview nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ Acquisitions nï  ®Ã¢â‚¬ ¯ Formed in 1965:Read MoreNoco Soccer Academy643 Words   |  3 Pagesin working toward expansion are loss of customer base to high school sports programs after they reach 14 years old, a narrow selection of programs for current customers, lack of diversification and limited awareness of the company’s programs and philosophy in adjacent towns. Dyer could employ many operational strategies help reach his ultimate goal of a new sports complex. There are several opportunities available for NOCO to take advantage of with minimal threat or competition to worry about.