Harvard Case - Sensory Branding: Oreo in the Indian Context
"Sensory Branding: Oreo in the Indian Context" Harvard business case study is written by Ramesh Kumar, Nalin Goel, Gireesh Geera. It deals with the challenges in the field of Marketing. The case study is 10 page(s) long and it was first published on : Jul 21, 2015
At Fern Fort University, we recommend that Oreo implement a multi-pronged strategy to leverage sensory branding in the Indian market, focusing on cultural relevance, digital engagement, and innovative product offerings. This strategy will involve a combination of marketing communications, product development, and distribution channels to create a unique and memorable experience for Indian consumers.
2. Background
Oreo, a global cookie brand owned by Mondelez International, has enjoyed significant success worldwide. However, the Indian market presents unique challenges and opportunities. This case study explores how Oreo can leverage sensory branding to capture a larger share of the Indian market, which is characterized by a diverse population, evolving consumer preferences, and a growing middle class with a penchant for premium products.
The main protagonist of this case study is Mondelez International, specifically the Oreo brand team, tasked with developing a successful marketing strategy for the Indian market.
3. Analysis of the Case Study
This case study can be analyzed using a combination of frameworks:
a) PESTEL Analysis:
- Political: The Indian government's focus on promoting local brands and 'Make in India' initiatives presents a challenge.
- Economic: The growing middle class and rising disposable incomes offer a significant market opportunity.
- Social: Indian consumers are increasingly health-conscious and prefer natural ingredients, which presents a challenge for Oreo's traditional recipe.
- Technological: The widespread adoption of smartphones and internet access creates opportunities for digital marketing and e-commerce.
- Environmental: Consumers are becoming more aware of environmental sustainability, which can influence packaging choices.
- Legal: India has strict regulations regarding food labeling and advertising, which must be adhered to.
b) SWOT Analysis:
- Strengths: Strong brand recognition, established distribution network, global expertise in marketing and product development.
- Weaknesses: Limited understanding of Indian consumer preferences, potential perception of being an 'imported' brand, lack of local flavor variations.
- Opportunities: Growing demand for premium snacks, increasing digital penetration, potential for product innovation with local flavors and ingredients.
- Threats: Competition from local and international brands, evolving consumer preferences, potential for health concerns related to sugar content.
c) Consumer Behavior Analysis:
- Segmentation: The Indian market can be segmented based on age, income, lifestyle, and regional preferences.
- Targeting: Oreo should focus on young adults and families, particularly those with higher disposable incomes.
- Positioning: Oreo should be positioned as a premium snack that offers a unique sensory experience, appealing to both indulgence and nostalgia.
d) Competitive Analysis:
- Direct Competitors: Parle-G, Britannia, Nestle, and other local brands offering biscuits and cookies.
- Indirect Competitors: Other snack food categories like chocolates, chips, and ice cream.
- Competitive Advantage: Oreo can leverage its global brand image, innovative product offerings, and strong marketing capabilities to differentiate itself from competitors.
4. Recommendations
1. Leverage Sensory Branding:
- Create a Multi-Sensory Experience: Develop marketing campaigns that engage multiple senses, focusing on the iconic Oreo 'twist, lick, dunk' experience. Implement interactive digital campaigns that allow consumers to virtually experience the sensory journey of Oreo.
- Localize Flavors and Packaging: Introduce limited-edition Oreo flavors inspired by popular Indian desserts and spices, appealing to local taste preferences. Utilize packaging designs that reflect Indian culture and aesthetics, creating a sense of familiarity and connection.
- Focus on 'Dunkability': Promote Oreo as the perfect companion for Indian beverages like chai and lassi, highlighting its ability to enhance the overall sensory experience.
2. Embrace Digital Marketing:
- Targeted Social Media Campaigns: Leverage social media platforms like Instagram, Facebook, and YouTube to reach target audiences with engaging content, influencer collaborations, and interactive campaigns.
- Online Content Marketing: Develop compelling content that showcases Oreo's unique sensory experience, including recipe videos, behind-the-scenes glimpses of product development, and user-generated content.
- E-commerce Integration: Partner with online retailers and food delivery platforms to ensure widespread availability and convenience for consumers.
3. Innovate Product Offerings:
- Healthier Options: Introduce variations of Oreo with reduced sugar content, whole wheat flour, or natural sweeteners to cater to health-conscious consumers.
- Premium Editions: Develop limited-edition Oreo varieties with unique flavor combinations and premium packaging, targeting consumers seeking indulgence and exclusivity.
- Collaborations: Partner with local brands or chefs to create unique Oreo-inspired desserts and culinary experiences, generating buzz and excitement.
4. Build Strong Brand Equity:
- Corporate Social Responsibility: Engage in initiatives that support local communities, promoting Oreo as a brand that cares about social responsibility and environmental sustainability.
- Customer Relationship Management: Implement loyalty programs and reward systems to foster customer engagement and build brand loyalty.
- Brand Storytelling: Develop compelling narratives that connect Oreo with Indian culture and values, creating a deeper emotional connection with consumers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Oreo's core competencies in product innovation, marketing expertise, and global reach. They also support the brand's mission of providing a unique and enjoyable snacking experience.
- External Customers and Internal Clients: The recommendations cater to the needs and preferences of Indian consumers while also providing clear guidance for internal teams responsible for marketing, product development, and distribution.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Oreo from competitors through its unique sensory branding approach and focus on local relevance.
- Attractiveness: The recommendations are expected to drive sales growth, increase brand awareness, and enhance customer loyalty, ultimately contributing to Oreo's profitability in the Indian market.
All assumptions, including evolving consumer preferences, technological advancements, and potential market challenges, are explicitly stated and considered in the development of these recommendations.
6. Conclusion
By implementing a strategic approach that leverages sensory branding, digital marketing, product innovation, and brand equity building, Oreo can achieve significant success in the Indian market. This strategy will not only capture the attention of consumers but also establish Oreo as a culturally relevant and beloved brand in India.
7. Discussion
Alternative strategies include focusing solely on price-competitive offerings or relying heavily on traditional advertising methods. However, these options are less likely to be successful in the long term due to the competitive landscape and evolving consumer behavior in India.
Key risks include potential challenges in adapting to local tastes, difficulties in navigating regulatory requirements, and the possibility of negative consumer perception due to health concerns. These risks can be mitigated through thorough market research, collaboration with local partners, and transparent communication with consumers.
8. Next Steps
- Phase 1 (Months 1-6): Conduct in-depth market research to understand consumer preferences and competitive landscape. Develop initial product variations and marketing campaigns tailored to the Indian market. Launch pilot programs in select regions to test market response.
- Phase 2 (Months 7-12): Based on pilot program results, refine product offerings, marketing strategies, and distribution channels. Expand product availability and marketing efforts to reach a wider audience. Monitor consumer feedback and adjust strategies accordingly.
- Phase 3 (Months 13-24): Continuously innovate product offerings, refine marketing campaigns, and build a strong brand presence in India. Leverage data analytics to track performance and identify opportunities for growth.
By following these steps, Oreo can successfully navigate the Indian market and achieve its long-term growth objectives.
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Case Description
Indian marketing scenario (an emerging economy) has been experiencing a new wave of consumer behavior after liberalization of markets. FMCG and durable brands in several categories have made an impact on the lifestyle and mindset of consumers. It is interesting to note that in a market that has diverse culture across its geographical spread, several multinational brands have made substantial headway in domains that are strongly associated with the traditional culture. Snacking is a habit among Indians that covers several kinds of cultural snacks. Kurkure, a brand sold by a multinational was successful with its marketing mix that included an offering that tasted and looked similar to a traditional cultural snack. Chocolates and biscuits, categories that are strongly entrenched in the Indian context (though they have their origin in western countries) competed with traditional snacks in an environment that had proliferated western lifestyles. It is in this context Oreo brand, the well-known biscuit brand in the US market was launched in India by Cadbury. The brand competed with well-known Indian brands of cream biscuits and was positioned to attract children teenagers and young adults. In a category that lacked loyalty and was prone to brand switching (variety of offerings in the market makes the consumer switch brands as the purchasing is done with a low involvement mindset by most consumers) Oreo that had achieved considerable degree of success faced the challenge of sustaining its success. The survey results reflect the need for a deeper analysis beyond a generic brand positioning strategy. An analysis of consumer perception, sensory branding aspects, and careful consideration of a variety of needs of consumers that shape consumer perception of brands in the category seem to be the direction Oreo needs to pursue. How should Oreo use perceptual principles to reposition itself to sustain itself to sustain its success?
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