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-doorcheese 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.

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.

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
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
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
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
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
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
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.
Producer Retailer Consumer

Promotion Strategy
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
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
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
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.

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.

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.
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.

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

MKT345 Assignment (Oreo)

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