Marketing Orientation and New Product Development: Oreo Case Study

This study explores the marketing orientation and new product development process using the Oreo case study. It discusses the steps and decisions required for successful product development and expansion in different markets.

Launching Oreo
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Krafts food demonstrated marketing orientation via Oreo case..................................................3
Steps and decision required while developing and operationalization a new product................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
2

INTRODUCTION
Marketing is a combination of some activities which are being performed by company in
order to promote its products and services (Huizinga and Kruse, 2016). This study is based on
Kraft Food Co, and its Oreo case study in which it makes use of effective marketing strategy for
successful development and expansion of Oreo brand in China and India.
MAIN BODY
Krafts food demonstrated marketing orientation via Oreo case
In the context of Kraft food it can be said that Oreo is the big and the most favorite brand
of Kraft food group. Before it was the mostly loved cookie of America but now it has become a
global brand. After development and successful launching and expansion of Oreo brand in
America, Kraft food Co. thought to expand its brand in India and China and in 1996 it launched
its brand in China. When it developed and launched its brand Oreo in China then it faced several
problems.
Marketing orientation: Marketing orientation can be defined as an approach to business
in which company focus on identifying needs of customers and create products accordingly for
satisfying them. In the context of Kraft it is identified that after failure of launching in China,
Kraft started research and found that why Chinese did not like Oreo and from research and
marketing functions they identified that Chinese found that cookie too sweet and they like
contrast of sweet and bitter. They also found that 72 cent for 14 Oreo cookies was too expensive
for them. So, for making it successful Krafts modified its Oreo recipe and made it more
chocolaty and cream less cloying. For developing this new formula they developed around 20
prototypes of less sugar Oreos and tested them with different age group of Chinese. They also
consider other main factor price and for making it affordable they also changed packaging and
made it for just 29 cents of small packages (Kraft Changed it Biscuits for China, 2020).
Marketing concept: In this regard it is identified that this company focuses on content
marketing technique in its recipe. It also allows all its users of creating a large portion of content.
Rather, this strategy one of the main key strategy of success of market orientation and successful
development of Oreo cookies in India and China is direct marketing. In this marketing technique
they found needs and taste of Chinese by meeting them directly and accordingly they modify
cookies and made it 4 layers of crispy wafer filled with vanilla and chocolate cream (Mu and
et.al., 2017).
3

In addition, Krafts also found problem in typical twist, lick and dunk ritual which is being used
by American in order to enjoy Oreo and for that it focuses on market American style of pairing
Oreo with milk paid off and it becomes the best-selling cookies of the country.
So, from these changes and modifying in products, it can be said that Krafts' food Co. is
demonstrated with marketing orientation and make it successful because as per the needs and
taste of Chinese it modified its Oreo cookie and satisfied them.
Steps and decision required while developing and operationalization a new product
In the context of launching and development of a new product it can be said that it is not
an easy task as company has to focus on several areas in order to take better decision for success.
In regard to Kraft food co. it is stated that it expanded its brand Oreo after success and
development of it in America and in the year of 1996 it launched it cookie in China. There are
several factors which need to be considered and which were being focused by Kraft food Co.
such as:
Price: It is one of the main factor because different countries and culture have different
economy, likes and dislikes as some people prefer to invest in food, some cultures of people
want to prefer in food. In America people invest in food whereas in India and China, people
consider prices the most (Wowak and et.al., 2016). While making planning about expansion and
development company require focusing on pricing and as per the disposable income of country
company can make it successful.
Marketing/target market: Marketing is one of the main functions because while
performing this function, company decide about target market for new product, their
characteristics, needs, tastes and others. In the regard of Food Co. it was found that after entering
in China and India, they found that different cultures of people have different needs and tastes.
So, they require considering this area and also target market to which company wants to offer
their new product as per the type of product. Along with it they also required deciding market
entry approach.
Testing: After development prototype of product company requires to test it with customers in
order to measure effectiveness of product and also make changes in product before its launching.
So, by doing company can protect itself from failure. It can help them out in identifying features
of products as what is being liked by people the most.
4

Roll out: It is the last step in which new product development roll out to the market. By making
use of promotional channels company can make it successful because while developing Oreo in
India, Kraft found that people do not have awareness about it so they focused on advertising and
promotion (Najafi-Tavani and et.al., 2018).
Rather, all these factors, company require making decision regarding time, place and
promotional activities. They need to take decision and select place from where people can get
their products, time of launching product as per the market trends and budget. Finance is one of
the main areas as while developing and launching a new product, company requires investing in
several areas like recruitment of skilled workforce, investment in marketing function,
promotional channels, training to employees, investment in technology and others. So deciding
sources of finance if required is the main decision they need to take.
CONCLUSION
From the above study it has been summarized that marketing strategy and function
played a vital role for successful launching and development of a new product in new country or
a place. It allows company in attracting customers to the large extent and satisfy their needs.
5

REFERENCES
Books and journals
Huizinga, O. and Kruse, M., 2016. Food industry self-regulation scheme “EU Pledge” cannot
prevent the marketing of unhealthy foods to children. Obesity Medicine. 1. pp.24-28.
Mu, J. and et.al., 2017. Strategic orientation and new product development performance: The
role of networking capability and networking ability. Industrial Marketing
Management. 64. pp.187-201.
Najafi-Tavani, S. and et.al., 2018. How collaborative innovation networks affect new product
performance: Product innovation capability, process innovation capability, and absorptive
capacity. Industrial marketing management. 73. pp.193-205.
Wowak, K.D. and et.al., 2016. Toward a “theoretical toolbox” for the supplier‐enabled fuzzy
front end of the new product development process. Journal of Supply Chain
Management. 52(1). pp.66-81.
Online
Kraft Changed it Biscuits for China. 2020. [Online]. Available through
<https://www.ft.com/content/6bcc1c00-c886-11e2-8cb7-00144feab7de>
6

7

8