Oreo Account Planning

KATRINA OPEDA CHARLOTTE ALLEN TRAVIS BARKER JAY VALLE ELLY MROZEK

01 BRAND HISTORY 02 TIME LINE 03 MISSION, GOALS & STRUCTURE 04 OBJECTIVES & STRATEGY 05 FINANCIAL DETAILS 08 PAST IMC/ADVERTISING/COPY 10 BRAND COPY 11 CURRENT IMC/ADVERTISING 13 SALES & PROMOTIONS 14 COMPETITORS 15 TARGET DEMOGRAPHICS 18 CONCLUSION 19 CREATIVE BRIEF 20 SOURCES

BRAND HISTORY IN 1912 the National Biscuit Company, now known as Nabisco, created the famous Oreo cookie. The cookie was inspired by the Hydrox cookie which looks like an Oreo with a less sweet filling and a crunchier cookie. The original factory was located in Chelsea, Manhattan between 15th and 16th Streets on Ninth Avenue which is now known as “Oreo Way”. When Oreo was first invented it was called an Oreo Biscuit. The name was changed two more times before it was finally named Oreo Chocolate Cookie Sandwich. However, most people just call it “Oreo”. The origin of the name isn’t known for sure but some believe that it was derived from the French word ‘Or’ meaning gold. Others thought that it was a way to mix the words chocolate and cream by taking the ‘o’s’ from chocolate and the ‘re’ from cream thus making ‘o-re-o’. The first Oreo was sold on March 6, 1912 in Hoboken, New Jersey. The original Oreo design had a wreath around the cookies with ‘Oreo’ in the middle of it. They were sold for 25 cents per pound in tin cans. The design was slightly altered twice. The current design has been around since 1952. The modern Oreo cream filling was created by Sam Porcello, a scientist at Nabisco, who was often known as Mr. Oreo. Due to health concerns, in the early 1990’s Nabisco replace the lard in the filling with partially hydrogenated vegetable oil. In 2006 the company switched to non-hydrogenated vegetable oil to rid the cookies of trans fat. In 1974 Oreo introduced the Double Stuf Oreo. Since then, Oreo has offered several variations of flavors whether they are seasonal, limited edition or always available. The company went international in 1996 when they launched in China.

TIME LINE 1912

Oreo patented

1912

First Oreo sold in Hoboken, New Jersey

1920

Lemon-filled Oreo cookies briefly available

1921

Name changed to “Oreo Sandwich”

1948

Name changed to “Oreo Creme Sandwich”

1950

Nabisco moves to a larger factory for Oreo production

1958

Oreo pattern changed

1974 Introduction of the “Double Stuf” flavored Oreo which led to long list of alternative Oreo flavors

1993

Oreo inventor, Sam Porcello, retires

2006 Oreo replaces trans-fat with non-hydrogenated vegetable oil

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MISSION, GOALS & STRUCTURE Mondelez International is a global snack-food powerhouse. Mondelez International Inc. is a global

has had behemoth success, it also believes

snack-food powerhouse and its main

in the small things, and maybe that's why it

objective is to stay atop the industry

has achieved something big.

worldwide. If the Oreo producer had its way it would become “snack-food for the world.”

Mondelez tries to have responsiveness to its

For instance, if it were part of the Academy

customers, creativity in their company, and

Awards, Mondelez wouldn’t want to win an

the agility to adapt to demands just as a

Oscar but rather be the Academy Awards. It

small company or new start-up. Its mission

would not want to make a Hollywood

and desire with the Oreo brand, as well as

blockbuster, it would want to own

the entire company with all its product

Hollywood. It would not want to be idols or

categories (biscuits, chocolate, gum &

have brands like LeBron James or Taylor

candy, beverages, and cheese & grocery) is,

Swift, but would try to own their respective

“ to create delicious moments of joy in

industries entirely. In essence it would want

everything we do.” Manufacturing and

to become the snack-food industry for the

marketing scrumptious foods and beverages

world, but for now it will try to maintain its

around the world is how it does just that.

top spot over the competition.

Oreo is just one brand of many which Mondelez produces that tries to bring joy to

Mondelez’s goal of remaining the top global

customers.

snack food producer already seems to be achieved. This international goody producer

Oreo, as a brand owned by Mondelez

is the one in charge of Oreo, one of the

International Inc., has the same goals as its

most popular and most sold cookies in the

parent company, to bring moments of joy to

world. Even though Oreo’s mother company

the world through its snack products. Its other objectives and strategies are one in the same with Mondelez as well.

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OBJECTIVES Continue to be one of the world’s largest snack companies Create delicious moments of joy by sharing the world’s favorite brands Deliver top-tier financial performance Be a great place to work

STRATEGIES Unleash the Power of Our People Transform Snacking Revolutionize Selling Drive Efficiency to Fuel Growth Protect the Well-Being of Our Planet

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FINANCIAL DETAILS PROFIT RATIOS Profit % of Revenues

6%

Profit % of Assets

3%

Profits as % of Stockholder Equity

7%

SALES BY CATEGORY

39% 10% 6%

15% 31%

39%

Biscuits

31%

Chocolate

15%

Gum & Candy

6%

Beverages

10%

Cheese & Grocery

SALES BY GEOGRAPHY

35%

Europe 35% North America 23%

15%

Latin America 17% Asia Pacific 15% EEMMEA 10%

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10%

23% 17%

FINANCIAL DETAILS Cookies - US - September 2015 Manufacturer Sales of Cookies 52 weeks ending June 15, 2014

Market Share

52 weeks ending June 14, 2015

Market Share

Sales Change 2014 - 2015

Share change

$ Million

%

$ Million

%

%

% point

2,839.3

40.0

2,870.9

39.9

1.1

-0.1

Kellogg Co.

747.5

10.5

679.0

9.4

-9.2

-1.1

McKee Food Corporation

478.9

6.7

490.7

6.8

2.5

0.1

Campbell Soup Co.

351.0

4.9

362.8

5.0

3.4

0.1

ConAgra Foods Inc.

202.7

2.9

193.4

2.7

-4.6

-0.2

Snyders-Lance Inc.

131.9

1.9

132.5

1.8

0.5

-

Subtotal

4,751.3

66.9

4,729.4

65.7

-0.5

-1.2

Private Label

1,030.1

14.5

1,067.1

14.8

3.6

0.3

Others

1,319.7

18.6

1,399.3

19.4

6.0

0.9

Company

Mondelez International Inc.

Note: Data may not equal totals due to rounding. The above figures are based on MULO sales data from Information Resources INC., InfoScan Reviews.MULO is defined as Multi Outlet, representative of the following channels: total US Grocery, Mass, Total US Drug, Total Walmart, Dollar, Military, and Club.

KEY FINANCIALS

$ Millions

% Change

Revenues ($M)

34244

-3%

Profits ($M)

2184

-44%

Total Stockholder Equity

27750

Employees

104000

Market Value (as of March 31, 2015)

59181

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FINANCIAL DETAILS MONDELEZ INTERNATIONAL

decrease ($8,356,000) and last year sales took a very slight uptick again ($8,372,000).

Mondelez currently brings in $30 billion or

Standard cookie sales may plateau because of

more each year with all its brands, including

segment’s lack of innovation, but healthier

Oreo. Each brand earns roughly $100 million

options may continue to increase significantly

or more. The company’s structure and

within the next five years.

ownership of multiple brands is its main strength. The brands include a large variety of

MONDELEZ AND OREO

snacks: cookies, gum & candy, chocolate, beverages (recently it introduced coffee), and

Mondelez International is still the king of the

cheese & grocery.

cookie sales (standard cookie category) with a whopping one-third of the market share and it

Mature markets in developed countries are

holds the number one position in biscuits or

Mondelez’s main profitable regions. Sixty

cookies. Dominant sales and a one-third hold

percent of its markets are in North America

on the market comes mostly from Mondelez’s

and Europe. It also operates and sells

power brands, the main being Oreo. Oreo

products in many regions and countries

leads by far in sales for standard cookies in

outside of the United States. Therefore,

the US. From 2014 - 2015, Mondelez had

Mondelez and Oreo can be subject to volatile

$2.8 million in sales in the cookie market, a

foreign markets where currency fluctuation is

1.3% increase from the previous year. Oreo

present. Recently, because of weaker foreign

had $1.2 million in cookies sales, a 3.5%

markets Mondelez has seen revenue decrease

increase from the previous year, and was

ten percent in the first quarter of 2015.

number one in sales among standard cookies. An amazing fact about Oreo: Nearly one out of every five dollars spent on cookies in the

COOKIE MARKET AND SALES

US is spent on an Oreo. Also, Oreo alone

The snack-food category tends to go up in

makes up five percent of worldwide cookie

consumption during times of gross domestic product growth and higher incomes. In 2014, sales for the entire cookie market took a slight

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sales, more than triple any other brand on the global market.

PAST IMC/ADVERTISING SYNOPSIS Past IMC advertising, promotion strategies and tactics for Oreo represent a taste-focused strategy. Unlike today’s current campaigns, past advertising tactics for Oreo include tirelessly describing the product while appealing to the senses of the consumer. This has been proven in notable past IMC campaigns with copy such as “two mouth-melting chocolate cookies filled devoutly with rich vanilla fondant” and “chocolaty cookies with a luscious cream”. Although Oreo has since divorced itself from a taste-driven strategy to a more brand-driven strategy starting in the 1990’s, it functioned well as a spring-board to introduce the unknown brand. This has been proven in relatively recent campaigns that focus less on the product, and more on the personality and voice of the Oreo brand. Examples of this major shift are shown in campaigns such as the “Double Stuf Racing League” and “Play With Oreo”. Causes for such shift include increased brand awareness and a shift in target demographic from young children to adults. CAMPAIGN EXAMPLES Campaign: “The Oreo Crème Sandwich” TV Example: “Open up an OREO Crème Sandwich and take a lick! No other chocolate cookie sandwich has the luscious creamy filling of OREO crème sandwich” Nabisco loves cookies! That’s why they make ‘em so good! Two mouth-melting chocolate cookies filled devoutly with rich vanilla fondant…that’s an OREO CREME SANDWICH you’re loving! It makes a wonderful dessert…a perfect between-meal treat! At your grocer’s today in the regular package or new tray pack.” Campaign: “It’s Fun Living On A Ranch” TV Example: “It’s fun living on a ranch, but who’s having the most fun? He’s riding a pony, but their eating OREO cookies. Delicious Oreo cream sandwich. Each OREO is really two cookies you know. Two chocolaty cookies with a luscious cream filling in between. The most and the creamiest filling of all. Oreo cream sandwich. Campaign: “A Lot Can Happen With Oreo” TV Example: Announcer: “Once upon a time, there was nothing in the world but a little boy and his Oreo cookies. Rich and chocolaty outside, smooth and creamy on the inside. And that was enough! Then, the little boy wanted something to have with his Oreo cookie and something to keep the milk in. And a farm to keep the cow on, and then houses sprang up and then cities and you know the rest. A lot can happen with Oreo cream sandwich. Baked by Nabisco.

PAST IMC/ADVERTISING Campaign:“Nabisco, America’s Cookie Jar” TV Example: SONG: “Where do you go for the good times…” DAD: “We better check our supplies” SONG: “You sure don’t have to go far…" KID: “OREO Cookies!” SONG: “Just put you hand in Nabisco, America’s cookie jar.” DAD: “Mmmm, love that creamy filling!” KID: “And two chocolatey cookies! Oreos are good." DAD: “When you’ve been baking cookies as long as Nabisco, they gotta be good!” SONG: “Nabisco, America’s cookie jar.” Campaign: “Christmas Ad” TV Example: TV Commercial features Santa Clause eating OREO cookies as the cookie of choice for the home he is visiting. The kid falls asleep right before Clause arrives and awakens right after he leaves. Stunned that the cookies are missing and Santa has consumed them, the commercial plays to the magical nature of the season and the product itself. Campaign: “Twist. Lick. Dunk.” TV Example: TV Commercial features children using OREO cookies in many different ways (twisting, dunking, spinning, etc.) Accompanied by a song, this ad features the playfulness of the cookie as well as the consumers who eat them. Campaign: “Brothers” TV Example: TV Commercial features two brothers eating OREO cookies together at the table. One with a full sized glass of milk, and the other with a sippie like cup. The younger, unable to dip his cookies into his sippie cup like his older brother, settles for turning his copy upside down to release milk onto the cookie. At the end, a product shot appears and the tagline is read and spoken saying “Only OREO. Twist. Lick. Dunk.” Campaign: “Double Stuf Racing League” TV Example: Super Bowl Ad - TV Commercial features two famous athlete duos, the Williams sisters and the Manning brothers. In a press-conference-like environment, the two groups exchange heated words about competing the “Double Stuff Racing League”. This commercial used celebrity endorsements and a hint of mystery to create buzz.

PAST/IMC ADVERTISING Campaign: “Milk: America’s Favorite Cookie” TV Example: A son and father mirror each other through the process of eating an Oreo cookie. Twisting, licking, dunking, sealing, and eating…the two mimic each others exact moves. Only to find out that the two are doing so through a video chat. The scene ends with the two closing their laptops and the dad getting ready for the day while staring out the window of a high-rise building and a scenic skyscraper view. The tagline is spoken and seen: “Oreo. Milk’s favorite cookie.” This ad was used to instill a sense of playfulness and family to the OREO brand.

BRAND COPY The history of Oreo’s taglines and copy personality highlights the evolution of marketing within the CPG industry. However, for Oreo, the change in copy has more specifically highlighted a transition from a need for physical consumption to that of a playful, magical and whimsical product. 1950: Oh! Oh! Oreo! 1980: For The Kid In All Of Us 1982: America’s Best Loved Cookie 1982: The One And Only 1986: Who’s The Kid With The Oreo Cookie? 1990: Oreo, The Original Twister 2004: Milk’s Favorite Cookie 2013: Wonderfilled 2015: Play With Oreo PAST AGENCIES Current: The Martin Agency (Creative Advertising) Current: 360i (Marketing Agency) Past: DraftFCB currently known as FCB (Past Agency Of Record)

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CURRENT IMC/ADVERTISING CURRENT CAMPAIGNS The current campaigns for Oreo represent a “brand-driven” approach to advertising versus a taste-driven approach which was utilized early in the history of Oreo. Within the last 10 years, Oreo has focused less on the qualities of their product and more on their nostalgic personality through an approach that gives humanistic qualities to the brand and personifies the cookie in a relatable way.

“WONDERFILLED” Based on the idea that giving an OREO to someone could change the course of the relationship, OREO created dozens of videos featuring a similar melody line and illustrative style that highlights the friendly nature of the OREO cookie. By commissioning artists like Owl City, Tegan & Sarah and more, the brand reached an audience looking to seek/make positive relationships with others. The ads vary in lyric and story, but stay unified with the “wonderfilled” jingle. This campaign proposes the idea that OREO is filled with wonder and joy and will dispel such once you share an OREO cookie.

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CURRENT IMC ADVERTISING SUPPORTING PROMO Campaign Title: Play With Oreo This campaign asks 10 artists to develop illustrations involving the OREO cookie. The sense of play and wonder is instilled by asking the consumers to discover and play. Such posters and designs were installed in Times Square and presented in online social media outlets. The brand and style of this promotion is nearly identical to the current campaign, Wonderfilled, thus making it a supporting promotion. ACHIEVEMENTS Real Time Brand Marketing: “You Can Still Dunk In The Dark” This real time marketing stunt wasn’t a planned ad campaign, but still is a landmark in the history of Oreo and it’s branding. After a power SUPPORTING PROMO

outage during the Super Bowl, Oreo tweeted a photo with the words “You can’t dunk in the

Campaign Title: Wondervault

dark.” This gained over 10,000 retweets in the

Example: Based on the idea that

first hour and “won the night” according to

OREO has magical quality due to it’s

many branding and advertising experts.

endless list of flavors, OREO created the idea of a wonder vault that is used to store all it’s “wondrous” ideas. This campaign is still in it’s beginning stages, but will evolve with time.

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SALES & PROMOTIONS The Oreo has had many different promotions over the span of its existence. Some of the most memorable ones have

When Oreo celebrated its 100th birthday,

been the “Don’t Eat the Winning Oreo”

they teamed up with Facebook and

competition, Oreo Munch Madness, Oreo’s

Arrowhead to create Oreo Cookie Grams.

Arrowhead Promotion, and the current

Facebook users (using the Arrowhead

Snackworks application (available for

application) could send digital cookie grams

Android and Mac iOs).

to friends and family with the click of a button, paying online, and then the recipient

In the “Don’t Eat the Winning Oreo”

of the Cookie Gram would be able to pick

competition of 2000, consumers were

up their gift in any local Target store.

encouraged to check their package of Oreos to find the “winning” Oreo (specially

Oreo’s current promotion is a downloadable

embossed to give distinction). Winning

mobile application called Snackworks. The

Oreos could then be used to access

application allows users to experience Oreos

merchandise, money and other prizes.

virtually on a gaming platform, and has had

In the Oreo Munch Madness promotion,

thousands of downloads in a plethora of

Oreo took advantage of college basketball’s

countries.

March Madness and established sponsorship with the NCAA Final Four championships. Oreo changed their cream filling color to orange in certain marked “Do the Dunk” packages, and offered basketball dunking challenges to children across the US through correlation with retailers such as Walmart and KMart. Some of the prizes included free temporary tattoos.

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COMPETITORS Oreo is commonly known as “America’s Favorite Cookie”. While some may disagree, reports have shown that Oreo surpasses all competitors in the cookie industry. Oreo’s top competitors according to The Washington Post, would be Keebler, Gamesa, Britanna, Perla, Chips Ahoy, and many others. In 2014, The Washington Post reported that Americans only spent about half as many dollars on Keebler products than they did on Oreos. Oreo has many different products within their line that also continues to surpass cookie sales to all national and global cookie company. The Washington Post also mentioned that Oreo has sold three times as much cookie sales than any other brand in the world.

Oreo’s global cookie domination WORLDWIDE SALES, 2014

0

0.5

1

1.5

2

2.5

3

Oreo Gamesa

$1.03

Britannia

$1

Chips Ahoy!

$0.94

Keebler

$0.81

Parle

$0.80

Arnott’s Girl Scout Little Debbie Pepperidge Farm

$3.28 billion

$0.62 $0.60 $0.53 $0.43

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TARGET DEMOGRAPHICS In obtaining the research that is needed for our case study, we understood that it would be difficult finding the target audience and psycho-graphics of the desired consumer. In the pursuit of finding that information, we contacted Mondelez International directly and asked to for the behavioral information for educational purposes. Mondelez responded by saying that type of

PRIMARY TARGET AUDIENCE

information is proprietary. They were not permitted to disclose that information to us. That being said, we then looked for that information on research databases through the BYU-Idaho library and specifically selected websites with the desire information provided.

AGE 6

AGE 18

We found that Oreo has two targeted consumers; children and parents. Oreo’s primary target audience are individuals from the ages of 6-18. These individuals are typically kindergarten aged or school aged

SECOND TARGET AUDIENCE

children. In addition, to individuals attending a high-school or college. The secondary target audience are the parents of those school-aged children. Targeting the parents also directly influences the purchasing and consuming behavior for the primary target audience. Parents also influence brand and product loyalty. PAGE 15

PA R E N T S O F S C H O O L AGED CHILDREN

TARGET DEMOGRAPHICS We also found that Oreo does target middle-class families. Oreo is a relevantly affordable snack food, targeting middle-class families continues to target both primary and secondary audiences. Families with an easy-going lifestyle and with creative hobbies are also characteristics Oreo seeks to reach out to. On different social media platforms we do see creative usages of Oreo products. Targeting individuals with creative hobbies continues to market to families and children by encouraging creative ways to consume an Oreo cookie. Reports have also stated that Oreo encourages adults to purchase their product for reminiscent purposes. In addition, The United States, China, Venezuela, Canada, Indonesia, UK, Mexico, Spain, France and India are the countries with the biggest market of the Oreo cookie. Keep in mind that marketing the Oreo cookie to these different countries will be greatly influenced by the countries culture as well.

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IN THE NEWS OREO IN POLITICS As the U.S presedential election campaigns continue, candidates have been weighing in on important issues. Of these issues is the topic of international labor and the decline of American Jobs. Nabisco, Oreo’s parent company, is being attacked by presidential candidates Donald Trump and Hilary Clinton for choosing to lay-off many employees of a Chicago factory and upgrading factories built in Mexico. Oreo has yet to respond to the issue as of March 15, 2016. 6

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CONCLUSION SUMMARY Oreo is an obvious and consistent leader in the snacking industry. By focusing on what the Oreo brand

We believe that these past initiatives are a

represents, rather than product benefits or

large part of Oreo’s success. We want to

ingredient advantages, Oreo has personified

continue to maintain that momentum by

its iconic cookie through lighthearted and

using a similar advertising strategies while

unexpected advertising.

introducing a new emphasis on younger, more modern crowds such as millennials.

While it has been mentioned that the

Part of reaching this audience will be to

primary audience for Oreo consists of adults,

utilize mediums and channels that are

recent advertising efforts have revealed that

already part of their existing lifestyles

a younger audience is just as important. This

including social media, guerilla marketing,

has been proven in campaigns that feel

print and video.

extremely youthful, curious, colorful and playful. One justification for this could be

Our aim to capitalize on this would be to

that Oreo utilizes the existing desire that

take advantage of the need that millennials

parents have to associate their children with

have to associate themselves with brands

friendly and iconic brands. In essence, Oreo

that represent their idealistic lifestyles. This

has been able to “kill two birds with one

lifestyle-driven campaign will focus on Oreo

stone” as they utilize advertising that plays

as a key player in their decision making

to the senses of the child while also helping

process. Lifestyles that support spontaneity,

the parent fulfill their role of caretaker.

adventure, travel, risk and independence are all components of this campaign.

.

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CREATIVE BRIEF Campaign Goal To implement a new advertising emphasis targeting millennials that helps position Oreo as a key player in achieving their idealistic lifestyles.

Objectives Our objective is to position Oreo as a brand that supports and understands spontaneity, adventure, travel, risk and independence. Doing so will help increase sales nationally and globally.

Why? Lifestyle driven campaigns have continuously proven the success of a brand within the millennial audience.

Target Audience Our target audience are millennial audiences between the ages of 17-28. These millennials love to be associated with brands that represent idealistic lifestyles. This target audience is attracted to brands such as Patagonia, Herschel Supply Co., Chipotle, Apple and Airbnb.

Style This campaign will rely heavily on visuals to communicate the lifestyle that Oreo will support. Photography, video, and design will support an adventurous lifestyle as seen on platforms such as Instagram.

Voice All forms of communication for this brand in this campaign should be approached by the creative team in a voice that feels timeless, inspiring, young and independent. The copy should place millenial consumers in a reverie of adventure and independence.

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SOURCES 1.

Russell, Mallory. "Celebrate 100 Years Of Oreo With A History Of Its Marketing." Business Insider. Business Insider, Inc, 03 Mar. 2012. Web. 11 Mar. 2016.

2.

"The Story Of Oreo: How An Old Cookie Became A Modern Marketing Personality." Co.Create. N.p., 23 Oct. 2014. Web. 11 Mar. 2016. (http://www.fastcocreate.com/3037068/th e-story-of-oreo-how-an-old-cookie-became-a-modern-marketing-personality)

3.

2015 Fact Sheet Unleashing a Global Snacking Powerhouse (n.d.): n. pag. Web.

4.

"Brand Family." Brand Family. N.p., n.d. Web. 11 Mar. 2016. (http://www.mondelezinternational.com/brand-family)

5.

"How Kraft Foods Made Oreo a Global Brand." - Business News. N.p., n.d. Web. 11 Mar. 2016. (http://www.businesstoday.in/lbs-case-study/how-kraft-foods-won-over-customers-in-c hina-and-india/story/193162.html)

6.

Clinton, Hillary. "Donald Trump and Hillary Clinton Are Angry about Oreos." CNNMoney. Cable News Network, n.d. Web. 15 Mar. 2016.

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