Results of the survey

The survey about Oreo gave us interesting results and proved some of our hypotheses about target consumers.  The survey was carried out by us (with preselection of interviwees to match the target audience), so we based our conclusions on primary data as well (65 respondents took part in the survey). Here we would like to give some explanations about it. 

1. As we can see the main cases of consumption occur at home or at work - 51% and 23 % respectively.

2. Majority of our interviewed said that they would buy Oreo if it would be introduced in Russia.

3. Results of this question showed that the price for the Oreo should be set between 50 and 70 RUB as the majority would set price like that.

4. Avoiding cannibalization is an important target for us as Mondelez has a well-established portfolio of brands in Russia. As we see our main concern are Yubilejnoe and Yubilejnoe Utrennee. 

Here are our target groups: 

Additionally: 

• 28-35 y.o.consumers are our sub-target  group, so we won't target it at the pilot stage (year 1), but after it when we test the product and get primary market data

Action plan

An action plan should be developed when a new product is introduced to a market. It can be difficult to introduce the product in a good and organized way without a solid and well-thought action plan that summarizes the different thoughts and ideas. In the different blog posts during the last two months we have already given indications on when we want to advice Mondelez International to do what. The following text summarizes this information and provides a graphic overview for the reader to simplify the information. 

The action plan

The action plan has been divided in three different time scales; short, medium and long term. This is done to illustrate what must be done fast and what is more important to remember or continue to do for the next years. We have defined the three different time scales to 6 months for short term, 1 to 5 years for medium term and more than 5 years for long term. 

The time scale and the level of detail of an action plan must be adjusted to the project in question. It is not easy to define the time scale perfectly, and it is logic that Mondelez International and the new Oreo Project Group (that they probably will establish) will work with a number of action and project plans for all their different projects. This can, in addition to the marketing and market monitoring projects we have described also include projects on bureaucracy and logistics related to importing the cookie from one of the two countries producing Oreo. 

The only thing that is a bit different from our focus earlier is that advertisement continues every now and then for many years. This is something Mondelez International must evaluate the value and level of. Advertisements every now and then are not meant to necessarily be expensive TV commercials. It can be something as easy as the picture posted on the blog (May 25th), booths on City Days, sponsoring school events or building playgrounds with Oreo design. This is in part done with other similar products today and helps the consumer to remember and think about the product. 

The same strategy with repeated advertisement campaigns for the future is also important for both Market surveys and for potential adaptations or additions of the cookie. These processes are on going and not finalized after the first time they are conducted. We expect Mondelez International to have a wide experience with this and that their Russian subsidiary also conducts a number of market surveys every year about all the other products they have in the market. 

We have also chosen to add a new market survey at the beginning of the action plan. Our market research has certain limitations and it is therefore important for us to focus on the possibility Mondelez International has to conduct a more comprehensive and scientifically correct research to get more information on the market and the consumers. 

The other elements of the action plan below have been introduced in other blog posts, and we will not go into detail about them again.

Communication & distribution

Communication

As we are targeting families – children and young parents – we need to launch advertising campaign on the TV. It will show happy families and will deliver the main messages to the customer in a standard way of advertising.

Another idea is to use advertising in the cinemas, before cartoons, to capture the target audience – families that go to the cinemas with their kids can also allow themselves to buy Oreo cookies that are not for the lowest class.

And, of course, digital marketing is a very important part so Internet as a communication channel must be utilized as well. Before the launch it is recommended to create a group in Vkontakte and twitter account, that will increase brand awareness and announce about the oncoming launch of Oreo. This will target kids that spend a lot of time in social networks and also young parents who are involved into the world of social media as well.

READ HERE

Distribution

Here we have a big advantage – the firm Mondelēz International which sells Oreo is already presented in the Russian market with some other products and has a ready supply chain. So Oreo will use this supply chain and will have minimum distribution setup costs. 

As selling points we will use supermarkets where people are used to buying European goods. And also, as we are targeting on kids, we should locate Oreo cookies in the small shops that children usually visit after school to buy some cool snacks. The same reason can be a motivation to put Oreo production in the school canteens.

Product portfolio

We decided to begin entrance to Russian market only with classical flavor: chocolate biscuits with milk filling. There are several arguments for that. 

• First of all, we consider launching of the classsical flavor as a pilot project that will show tha general taste preferences of Russian customers. 
• Second, we consider it rather dangerous to start launch with the broad product range.

What we are also thinking of - special agreements with such chains as McDonalds and introduction of Oreo-shakes as an option drink in Happy Meal (Burger King as an option). With this product we may increase brand awareness and market penetration:

• Our target audience is "concentrated" in McDonalds and cases of consumption and getting acquainted with the brand perfectly fit our strategy
• Oreo-shakes are already introduced in some chains in Russia (Coffee Shop and T.G.I. Friday's), but their price is not appropriate for positioning for children. We are thinking of making prices for Oreo-shakes more democratic so that more people could get acquainted with the brand

Example of Oreo shake in other markets

Brand strategy

According to all mentioned above (market and competitive analysis), we are ready to introduce our recommendations for Oreo in Russian market. We will begin with the general brand strategy.

Brand strategy

• Oreo in Russian market should be positioned as a premium product, with price not much higher than other competitors (approximately 10-15 % higher than the prices for chocolate coated biscuits of Russian producers)
• Oreo should be positioned as a product for children and their parents mostly and as a product for young people too (teenagers, schools children). Mainly we shall target 30-45 y.o. middle-class individuals having one or more children and the children in particular. School children and students maybe considered as a supplementary group of consumers.

This concept was already used in other markets and we may borrow it with some little adaptatition in advertising (e.g. slavic appearance family)

• As competition is very high and low-price products can easily substitute Oreo, we should introduce more than a product, but an “unique culture of consumption” (as in video where children eating cookies with their parents: divide the cookie, put it in the milk etc.)

• Oreo is ahead of the curve in the practice of ‘agile marketing’: to duplicate this strategy in Russian market. With this strategy we may catch up the premiumisation trend and trend for constant innovations. Oreo is very surprising brand, which offers new receipts each time – it is perfect for Russian market.

Mondelez introduced branded shelves for their products

That's what we recently found in one of the supermarkets in Moscow! Mondelez introduced new branded shelves in colors of Mondelez (but did not use the btand of the company itself). In English we can translate it as "Tasty shop" - everything ready for the picnic. Chocolate, coffee and cookies - all brands are produced by Mondelez in Russia.

Aims and Objectives in the Market

Here we shall divide aims and objectives for Oreo in Russia into short-term (1 year after product launch) and long-term (5 years after product launch) indicators we aim to achieve. The following table specifies the goals, their values and sources for benchmarking the latter.

Table 1. Aims and Objectives for Oreo in Russian Market

Aimed Indicator	Short-Term Targeted Value (1 y.)	Long-Term Targeted Value (5 y.)
Brand Share	1.6%*	3.4%*
Presence in Distribution Channels of Mondelez Rus OOO	90%	99,9%
Product Portfolio Presence	1 or 2 products of the whole portfolio***	99% products of the whole portfolio****

*Benchmarked against Alpen Gold Biscuits brand share in Russia in 2013 (Passport GMID, 2014). Alpen Gold Biscuits was chosen for benchmarking, as it possess a smaller market share than the most successful Mondelez Rus OOO brand Yubileinoye and in one year Oreo should achieve the results of medium brands at least (again not by fighting the market share from Alpen Gold Biscuits or other Modelez Rus OOO brands)

**Benchmarked against Oreo’s Brand Share globally in 2013 (Passport GMID, 2014, http://www.portal.euromonitor.com.ezproxy.gsom.spbu.ru:2048/Portal/Pages/Search/SearchResultsList.aspx)

*** It will be rather easy for Mondelez Rus OOO to launch a new product, as the company already has established infrastructure, distribution channels, etc, and launching 1 or 2 products from Oreo’s portfolio will be a “pilot” one and give the company knowledge on how to further promote to customers and end-consumers 

**** Portfolio enhancement is crucial for Russian market, as there is a growing demand for innovativeness and lack of brand loyalty. Introduction of newer and newer Oreo variations will help to keep consumers attention and demand.