Oreo is a very successful domestic brand in the Consumer Packaged Goods – Biscuits and Cookies Segment. The Brand generated $1 Billion dollars in the US in 2012 and has been in operation for 101 years. The domestic market has stalled in the current economic downturn so the Brand and its parent company are looking to international markets for growth. The Global market is promising ( Social Bakers infographic).
China
Oreo has global experience, The Oreo Brand was launched into China in 1996 and the initial performance was not good. Cindy Chen Marketing Director for Oreo explains why ( Oreo took China by Storm );
The Brand had a US centric mindset and approach
They imported a US product and formulation
They employed US inspired advertising
This was an approach doomed to failure. The brand analyzed their performance and came to the following conclusions;
Localization is the key to unlock growth.
The cookie was too sweet and the package was too big.
The product failed to take advantage of the Chinese culture of gift giving especially holidays like Chinese New Year.
Once they changed their approach and adopted a consumer centric approach they captured 30% of the country’s biscuit market. Unfortunately there is no social media research to present given the so-called great firewall of China.
India
India
Oreo took the lessons learned from China and applied them to India with impressive results. Facebook is the primary social media engine for Oreo in India and the Oreo India Facebook page currently has approximately 2.2MM followers. The country has 61.5 MM Facebook users which places it at third in the world with a 5.25% of the population using the application. There is room for growth.
There are two peaks on the Google trends graph which correspond to two Oreo India Marketing events.
March 2011 marked the launch of Oreo in India ( Business Today Article). Before the launch the brand did its homework based on the lessons learned in China. The cookie was sweetened (India specific formulation) to satisfy the Indian palate in contrast to the Chinese. The company rented buses and traveled the countryside promoting the product and utilizing the concept of togetherness (Localization). Strategically the company targeted the 10MM households that constitute 70% of cream biscuit consumption.
The second peak in September 2011 corresponds to the annual Ganesh Chaturthi Festival date (link). Festivals are popular in India and provide an opportunity for marketers to connect with people and businesses. Oreo used the occasion to sponsor a recipe sharing event on their Facebook page. Users were encouraged to submit their best Modak recipe. Modaks are sweet dumplings filled with coconut and a favorite of Ganesh and Indians. Oreo The effort was a successful example of localizing an international product.
Oreo India Facebook Page
September 2, 2011
It's time to reveal the surprise! This Ganesh Chaturthi, we bring to you the recipe of Special Oreo Modaks! Not one or two but four of ways to make the delicious Oreo Modaks! So go ahead & try the 1st recipe & don't forget to share the photos!
Oreo India
August 31, 2011
Oreo wishes everyone a very Happy Ganesh Chaturthi! May Lord Ganesha fill your lives with Happiness & Success!
Oreo India has numerous advertisements on Youtube. The majority is the Brands regular TV campaign and, no surprise, include cute children and smiling or befuddled parents. Oreo India’s Twitter following is weak with 55 followers and 237 tweets. There is a small Pinterest site with 9 boards.
Conclusion - Brasil
Oreo has not achieved the success in Brazil that it has achieved in the US, China and India. It is not listed in the top 100 facebook fan pages on Social Baker even though the brand was introduced in Brazil in the 1960’s under the name Negresco (Wikipedia link). However, Oreo has advantages in the Brazilian market given the creation of Modelez by Kraft. The Brand has 4 successful brands currently in Brasil. My solution is to partner with the Mondelez family of brands already active on Social media and traditional advertising. There are numerous successful examples of Social Media campaigns for Oreos to emulate.
According to Social Bakers Brasil metrics 60% of Facebook users in Brazil are 18 - 34 years of age. They are young and active on Social Media. Brasil has 66MM facebook users recently passing India and placing the country second on the globe.
Chiclets Brasil has 2.5 MM fans.
This brand ran a promotion (Emotigums article ) aiming to promote interactivity with teenagers. In typical "I want to collect and interact" the company launched new packaging with 170 characters called "Emotigums." They follow the manga style and are divided into seven tribes: rebels, plugged, darks, stylish, hipsters, musicians and sportsmen. You can join the fun by using the boxes of Chiclets 2 units sold in bars and bakeries throughout Brazil. The boxes serve as a key to open the application "Angry Contents". Just bring one from your webcam, select the image for the character to be recognized, and you have access to the video corresponds to the tribe to which he belongs. After enjoying the video you go to the next step where the character is "stuck" on his album. Just like we did with our old albums figurine, only now in digital form. A "gadget" stylish to awaken the desire to collect and play. LOVED!! Besides the super funny joke, the Fan Page remains lively all the time with posts targeted to users, achieving a real engagement.
Halls Brasil has 3.7MM Facebook fans
The brand ran the following interesting promotion. Two fans the chance to tie the knot through its latest Facebook campaign. An odd twist on the traditional online dating model, the campaign invites each of Halls Brazil’s three million fans to post their photo on the page and then pick their ideal partner from the other uploaded pictures. Hopefully serendipity will step in and align the two hopeful romantics, which will then see the happy couple go head to head with other pairs to win a public vote and walk down the aisle together in a Las Vegas wedding ceremony.
The winning couple can also choose their bridal party (a no-doubt interesting exercise given the difficulties in choosing bridal party members from friends and family, never mind total strangers), to accompany them to the Little White Chapel in Vegas, before embarking on five days of married bliss, after which the marriage will end. Romance isn’t dead, huh?
The campaign is generating huge amounts of activity on the page, with thousands of likes and hundreds of comments beneath updates and photos. To be sure, many will be subscribing to the brand’s page just to see what the fuss is all about – a reality TV show in Facebook format, if you will. And as demonstrated in Friday’s Social Commerce column, ‘likes’ really do pay off, so this is a clever move by a brand that could otherwise struggle to find a foothold on the social landscape.
Here is the happy couple.
Here is the happy couple.
Trident of Brazil has 3.4 MM Facebook fans.
They are active in Social Media and traditional marketing. The brand recently ran a promotion where Sabrina Sato, famous Brazilian comedian, pretended to be a frog and licked packets of gum. This was accompanied by a virtual frog virtually licking packages on line. The quirky idea was that her kiss would transform the gum into lucky charms ( Trendhunter article )
Lacta Oficial has 5.5 MM facebook fans.
Mondelez International’s web site ( Mondelez International ) indicates that Lacta Oficial has been in operation for 100 years. The brand has 37% of the Brazilian chocolate market and $200MM in sales. This brand may not have the cache of the others but it has deep roots and name recognition. It provides entre to markets that the other do not.
As Mark Miller wrote for the Brand Channel; "Time to hide the children and batten down the hatches. Kraft Foods is “ready to unleash a global snacking powerhouse,” chairman and CEO Irene Rosenfeld told investors and analysts in the company's presentation at the Barclays Back to School conference in Boston on Thursday. "( Brand Channel Article )
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