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.

Market Analysis, Competition and Target Customers Analysis

As the macro- and meso-level analyses have shown (see our posts from 4/22/2014), there are a number of favourable factors for launching such a premium chocolate-coated biscuit in Russia, as Oreo. Let us remind you that due to the growth in population’s disposable income, premiumisation has become the strongest trend affecting the biscuits market: chocolate coated biscuits category is set to demonstrate the highest retail value growth in 2013 at 14% as it is perceived as the premium product (Passport GMID, 2014). Moreover, Russian consumers demonstrate little brand loyalty and find themselves in constant search of novelties – the trend that we will capture by introducing the new and bright brand of Oreo. 

However, Oreo will have to survive in a fierce fight with competitors, as the internal rivalry has been established to be severe (see our posts from 4/22/2014). First of all, let us consider competitors of potential Oreo producer in Russia - Mondelez Rus OOO. In the following, you can see the bar chart of biscuits market concentration in Russia.

Source: Passport GMID, 2014

As we can see, market concentration is very low and competitors are struggling with each other for market share. What is optimistic for Oreo launch based on these data is that its potential producer, Mondelez Rus OOO, is the market leader and consequently will have much power, resources, established distribution channels, connections, etc for introducing the new brand into its Russian portfolio.

However, we should not disregard the risk that Oreo might cannibalize other brands in Mondelez Rus OOO’s portfolio. Being one of the top brands for Mondelez Rus OOO, Yubileinoye is also the second-leading brand (4.1% value brand share in 2013 (Passport GMID, 2014)) of the whole Russian market for biscuits, running closely after the brand Lyubyatovo by United Bakers OOO (4.9% value brand share in 2013 (Passport GMID, 2014)). As Yubileinoye is known to have chocolate-coated biscuits line and any chocolate-coated biscuit is perceived by customers as premium (Passport GMID, 2014), it might become a competitor with Oreo and cannibalization might take place. This is certainly the situation we need to avoid. 

So, in order to prove Yubileinoye and other Mondelez Rus OOO brands’ potential for cannibalization by Oreo, we included a question on what biscuits brands consumers most frequently buy in our survey (https://docs.google.com/a/student.spbu.ru/forms/d/1qVlk4o8zFpI07V8lq31kztt-05A0s2ccVYR-VYK6fGI/viewform). Judging by the answers to this question, we shall identify potential Oreo’s targets for cannibalization, study their positioning and, when working out a strategy for Oreo, we shall take it into account and position Oreo in a different way to avoid cannibalization (more information on this topic will be posted in our Brand Strategy post). 

The survey

Recently we made a survey in Russian so that our potential customers could give us more insights about how we should launch our product in Russia! You are welcome to answer our short questionnaire:

CLICK HERE

More than just cookies

Look how food innovators reinvent Oreo and make new snacks from simple cookies. This video shows that Oreo brand is very "agile" and every time prepares some surprise, something completely new, still preserbong it's unique taste.

Oreo is more than just cookies - it is a unique culture of consumption, which may be introduced to Russian market too.

Other products with Oreo

It is possible to introduce not only Oreo, but other products using Oreo brand image. It is also possible to introduce this products to the Russian market.

Oreo Milka

Oreo-shake

Oreo Cake

Oreo ice-cream

Oreo in different countries

USA

Market of sandwich biscuits in USA is growing (CAGR 17%) and it reached almost $ 2.5 bln in 2013. Oreo brand holds the second position with 9% market share.

Oreo represents cookies for “kids and adults who want to have fun”, aiming at children and youth who are quality conscious – so Oreo is definitely a premium brand. It positions itself as the “best selling cookie in the United States” and with its strong record of innovation and clever advertising Oreo won the preferences of a great audience. 

Oreo is distributed through retailers and supermarkets, also having partnership agreements with such companies as McDonald’s and Baskin Robins. This ideally represents the way to reach their target audience.

Oreo has very strong marketing campaigns, basing them on the innovation, creativity, responsiveness and adaptation. Oreo uses a lot main social networks (Facebook, Instagram, twitter) to entertain their potential customers and make them believe that “To every person that feels happy, enjoys life and wants to have or share a unique taste, Oreo is the answer and your experience enhancer”. Oreo answers the trends instantly and always is eager to create new innovative ads to capture customers’ minds – it helps to keep pace with the youth and to remain one of the most creative brands.

China

Kraft Foods entered Chinese market with its bestseller Oreo in 1996, but for 9 years it couldn’t do anything to build the business, by 2005 Oreo holed only 3% of Chinese cookie market.

The whole Chinese biscuit market can be divided on seven categories. All of them together have a value of more than one billion – dollar: sandwich biscuits, plain sweet biscuits, wafers, plain savory, cookies, soda crackers and egg-roll biscuits. By 2005 Oreo was competing only in sandwich biscuit category. Kraft Foods recognized that without a significant strategic reorganization the whole market would be lost to competitors.

At first, the management team needed to understand why the existing strategy did not work. Oreo used the same strategy as company was using in U.S. Oreo had the same products and marketing strategy. This strategy did not work because different culture and different tastes.

The Oreo China team designed the following strategy to win Chinese market: 

1. It introduced a less sweet version called LightSweet Oreo.

2. Also for the first time in company history Oreo changed the formula of original Oreo to make it better for the local tastes.

3. The size of the packet was reduced to give new costumers change to try new product for lower prize. 4. The team also worked on distribution. Some very brave ideas were introduced for example in Shanghai one supermarket offered to sell Oreos by weight, which gave customers more control over how much to buy. 

5. After recognizing the popularity of wafers segment in China, the team introduced chocolate-covered wafer sticks. Convincing senior management to introduce a new product was not easy, but Oreo sticks were a big hit and soon gained 30 per cent of wafer sales overall. Wafer sticks later were launched in some other overseas markets.

India

AC Nielsen study, the company said the Indian biscuit market grew at 17% in 2010, with creams and biscuits leading overall growth, realized that trend, Kraft had decided to introduce Oreo to India market.

In 2011 Kraft Foods announced its entry into the India biscuits market.

1. To enter the new market Kraft decided to change a strategy and launched Oreo under the Cadbury brand name.

According the Kraft Food “launch Oreo under the Cadbury brand in India was made locally because the Cadbury brand has stronger brand equity in the region that the Kraft brand, which is not so well known”

Kraft also says the Cadbury brand will never be applied to Oreo in the UK or regions where the Kraft brand is “just as strong as Cadbury”.

2. Kraft used Cadbury distribution channels, it allowed the company to save a lot of money and time.

3. Kraft could reach correlation between Codbury chocolate and Oreo.   

4. Oreo also changed its price strategy to fit India market

At start prices were set lower than its core competitor Britannia's Jim-Jam Treat.

5. Oreo introduced a lot of different types of packages (3, 7 and 14 biscuits in package), in order to create a big price differentiation, because Oreo wanted to cover all India market segments. 

Russian market: meso analysis

1) Bargaining Power of Buyers

99.9% of biscuits in Russia are distributed via store-based retailing (Euromonitor, 2014), meaning that retail chains or big distributors are likely to be the main buyers for biscuits manufacturers. Such large-scale retail chains as X5 or Ashan are sure to have rather high bargaining power. Although in 2013 39.3% of biscuits were sold via independent small grocers (Euromonitor, 2014), the latter are likely to procure not from producers, but from bigger distributors, thus increasing the concentration of buyers and improving the bargaining position of the latter.

Conclusion on the force: rather high (7 out of 10).

2) Bargaining Power of Suppliers

We were unable to find information concerning suppliers, that Russian biscuits manufacturers work with, in the open sources. Here we will be looking for inside data to further assess this force.

3) Threat of Substitute Products

A product or a service can be considered a substitute if it “performs the same or a similar function as an industry’s product by a different means (Porter, 2008: 84). In Russia biscuits usually perform the function of a dessert with tea or coffee (Euromonitor, 2014), so all confectionary (chocolates, candies, fruit jelly, sweet bakery and jams (both home-made and industrially produced)) can substitute biscuits. Russian consumers are known to be “spoilt” and constantly looking for novelties (Euromonitor, 2014), so they easily switch from biscuits to the enormous range of substitute products, making the threat of substitutes very high for biscuits producers.

Conclusion on the force: high (8 out of 10).

4) Threat of New Entrants

Capital requirement for opening a small bakery are rather low and consequently favour new entrants, especially in regions. However, the supply – and demand side benefits of scale are high, access to distribution channels is unequal (a new product will have to fight shelf space from established and solid ones, which is risky and distributors might not want to take such a risk), so significant barriers for a large-scale new entry are formed, decreasing the threat of completely new entrants (new companies that have not been present in the industry at all).

Conclusion on the force: not high (5 out of 10).

5) Rivalry among Existing Competitors

The competition in the Russian market for biscuits is said to be constantly escalating (Euromonitor, 2014). Mondelez Rus OOO, being a Russia-based subsidiary of Mondelēz International – the owner of the Oreo brand worldwide, is set to be the biscuits market leader in 2013 (Euromonitor, 2014). Modelez Rus OOO has exploited its confectionary brands, e.g. Milka or Alyonka, to promote new biscuits, so with the introduction of Oreo (another brand from the parent company’s global portfolio) into Russia there might be quite a significant risk of cannibalization.

In 2013 many competitors are set to demonstrate impressing growth in retail: Tander - plus 17% in retail sales, Harry’s CIS – plus 17% in retail value terms (Euromonitor, 2014).

Trying to capture the evolving demand for premium biscuits and novelty and to differentiate themselves, existing companies launch new products and premium variations of existing ones. In 2013 Khlebprom introduced its new brand of Reids of Caithness and Obiedinenye Konditery started Sladkie Istorii, with both novelties being positioned as premium ones (Euromonitor, 2014).

In Russian regions the competitive position of local bakeries is also solid, adding up to the total strength of rivalry among existing biscuits producers.

Conclusion on the force: high, with significant risk of cannibalization among the parent company’s brands (9 out of 10).

The meso-level analysis of the Russian biscuits industry has demonstrated that it is unattractive for a new entrant because of severe competition among incumbents, high threat of substitutes, significant bargaining power of buyers and, probably, of suppliers (the detailed information about suppliers is currently being investigated). However, for the case of bringing Oreo to the Russian market, the bargaining power of buyers and the potential bargaining power of suppliers will be substantially reduced, as Mondelez Rus OOO, the subsidiary of Oreo’s global manufacturer and logically a to-be producer of Oreo in Russia, is already strongly established in the Russian market, leads it (Euromonitor, 2014) and consequently has favourable bargaining position against both buyers and suppliers – the fact that makes the Russian biscuits industry more attractive for Oreo to enter. Nevertheless, tough competition among existing brands, many of which belong to Mondelez Rus OOO, poses a significant threat of cannibalization in case of Oreo’s entry and should be carefully taken into consideration when elaborating a marketing strategy for Oreo in Russia.

References:

1)      Euromonitor International, March 2014, Biscuits in Russia. Available from: <...> [20 April 2014]

2)      Porter M.E., The five competitive forces that shape strategy. Harvard Business Review, January 2008. 

Russian market: macro analysis

Russia is one of the fastest-growing economies in the world. The country’s economy is expected to reach $3.18 trillion by 2018. Russia’s economic performance suffered during the global financial crisis but recovered in 2010 and 2011, due to factors such as government stimulus packages and export growth. Petroleum and iron and steel are the leading industries in the country. To add Russia is one of the most corrupt countries in the world (PESTLE Analysis of Russia, 2013). Its high Corruption Perception Index (CPI) has become one of the major concerns for the investors looking to invest in the country. Russia also suffers from a high homicide rate. Major crimes, including murder and robbery, are quite high in the country, which also reflects the risk of the country’s internal security. But all stated above can be considered as the most general characteristics, which only partly influence market of biscuits.

Biscuits in Russia constitutes up to 40% of the whole segment of confectionery goods due to their popularity as a supplementary products for drinking tea, which is very popular in Russia (Intesco Research Group, 2011). Biscuits is expected to post a CAGR of 2% in constant value terms over the forecast period, supported by stronger branding, a constantly increasing variety of sophisticated fillings and flavours, together with interesting packaging solutions (Pasport GMID, 2014). An increasing tendency towards indulgence is expected to deepen this tradition and strengthen demand for non-traditional and innovative products. Premiumisation will become more notable within ingredients and packaging. Imported biscuits compose only 4% of Russian market, the main importers are Ukraine – 13,7%, Korea – 10,1%, others – Czech Republic, Denmark and Italy (Intesco Research Group, 2011). Despite the fact that international companies lead biscuits in Russia, most of them were able to achieve this through having manufacturing facilities inside the country. The consolidated share of local manufacturers is still expected to prevail in 2013 due to the number of historically strong companies, which own well-known brands. Most Russian regions have their local bakeries and therefore their products are the most popular in those particular parts of the country.

If we conduct PESTLE analysis we may see that the main factors that influence possibility of successful enter of this market are economic and socio-cultural. In general political, technological, legal and ecological factors do not play the leading role.

Political	Economic
·         Current political situation around Russia doesn't threaten entrance of new Mondelez brand as the company already has fecilities in Russia ·         From political point of view the main obstacle for entering Russian market may be corruption and introduction of legislation limitating the imported goods trade or establishing production facilities inside the country ·         Corruption may be a serious problem, but cannot be influenced by the firm ·         Currently there is no political direction for protectionism of local brands in confectionary market	·         Average unit prices for biscuits are set to increase by slightly less than inflation in 2013 ·         To reduce price increase large retail chains implemented various price promotions ·         Increasing competition also helped restrain price growth
Socio-cultural	Technological
·         Gradual saturation of the category ·         Premiumisation is the strongest current trend, which influenced the cookies market: -          unusual flavors and fillings became more important to Russians -          innovations in packaging -          chocolate coated biscuits category is set to demonstrate the highest retail value growth in 2013 at 14% as it is perceived as the premium product	·         Increasing pace of life and demand for convenient storage and consumption – interest in packaged biscuits increased ·         Technological innovations in packaging. Higher number of packaged biscuits being available
Legal	Ecological
·         From legal point of view there is no limitations for importing products or building own facilities inside the country	·         Prices remain closely connected with the fluctuations in commodity prices of cereals, which in turn depend on climate conditions, which cannot be predicted

History of Oreo cookies

In 1898, several baking companies merged to form the National Biscuit Company (NaBisCo), the maker of Oreo cookies. By 1902, Nabisco created Barnum's Animal cookies and made them famous by selling them in a little box designed like a cage with a string attached (to hang on Christmas trees).

In 1912, Nabisco had a new idea for a cookie - two chocolate disks with a creme filling in between. The first Oreo cookie looked very similar to the Oreo cookie of today, with only a slight difference in the design on the chocolate disks.

The shape and design of the Oreo cookie didn't change much until Nabisco began selling various versions of the cookie. In 1975, Nabisco released their DOUBLE STUF Oreos. Nabisco continued to create variations: 1987 -- Fudge covered Oreos introduced, 1991 -- Halloween Oreos introduced, 1995 -- Christmas Oreos introduced.


The Mysterious Name

So how did the Oreo get its name? The people at Nabisco aren't quite sure. Some believe that the cookie's name was taken from the French word for gold, "or" (the main color on early Oreo packages). Others claim the name stemmed from the shape of a hill-shaped test version; thus naming the cookie in Greek for mountain, "oreo." Still others believe the name is a combination of taking the "re" from "cream" and placing it between the two "o"s in "chocolate" - making "o-re-o." And still others believe that the cookie was named Oreo because it was short and easy to pronounce.




No matter how it got named, over 362 billion Oreo cookies have been sold since it was first introduced in 1912, making it the best selling cookie of the 20th century.

Ten fun facts about Oreo cookies:

1. Oreo Way: Oreo has a street named after it – Oreo Way – formerly known as West 15th Street between 9th and 10th Avenues in New York City, where the first Oreo cookie was made at the original Nabisco bakery.

2. Oreo design: The first Oreo cookie was embossed with a thin wreath on the outer edge, with the Oreo name on the plain surface in the middle.

3. Oreo sales: Oreo is the world’s favorite cookie and the best-selling cookie brand of the 21st century, with $1.5 billion in global annual revenues.

Kraft and Oreo: Kraft Foods is the proud custodian of Oreo, and Oreo is one of the company’s 12 “billion-dollar” brands.

4.Oreo’s global reach: Oreo cookies can be found in more than 100 countries.

5. Oreo’s biggest markets: Oreo cookies are most popular (in order) in the United States, China, Venezuela, Canada, Indonesia, Mexico, Spain, Central America and the Caribbean, UK and Argentina.

Oreo’s fastest growing markets: Oreo is quickly becoming the cookie of chice in France, Australia/New Zealand, Chile, China, Indonesia, Malaysia/Singapore, Taiwan, Morocco, Mexico and Hong Kong.

6. Twist, lick and dunk: 50% of all Oreo eaters pull apart their cookies before eating, with women twisting them open more often than men.

7. Oreo bakeries: Kraft Foods is the world’s largest biscuit baker, and Oreo is made at 21 bakeries around the world.

8. Oreo fans: Oreo has a Facebook community of more than 25 million Oreo lovers from around the world, representing 200+ countries and dozens of different languages. In fact, Oreo ranks among the top five brand Facebook pages in the world!

Why OREO? Why Russian market?

OREO is said to be the world's favorite cookies. In March 2012 the brand celebrated the 100th anniversary, which is a great sign of brand sustainability and rich brand heritage.

Why would we like to introduce OREO to Russian market?

Oreo is a world-known sandwich cookie formed from two appetizing chocolate disks with a sweet cream filling in between. Since its introduction in 1912 Oreo has become the best selling cookie in the United States. Today it is more than just an American brand. Oreo is present in more than 100 countries, gloried as the world's favorite cookie and the best-selling cookie brand of the 21st century, with $1.5 billion in global annual revenues. Kraft Foods is the proud custodian of Oreo, and Oreo is one of the company‟s 12 “billion-dollar” brands. Due to its already implemented internationalization, Oreo’s largest markets comprise not only the US, but also China, Venezuela, Canada, etc. Thanks to nearly sky-high opportunities, offered today by emerging markets, Oreo is booming in Chile, China, Indonesia and many other developing economies.

However, Oreo is still not present in the huge emerging market of Russia. Recent researches indicate, that due to rising incomes, increasing pace of life and evolving interest towards branded products, Russian market for biscuits and its chocolate coated segment (that is perceived as premium) in particular will post fastest retail value growth in 2013 of 14%. 

So the internationalization of Oreo, this powerfully branded premium cookie, into the Russian market seems very tempting to us. In our project we are going to analyze the Russian market for biscuits in greater detail and based on this knowledge (in case we conclude that conditions for the entry are favourable indeed) elaborate implications for finally bringing this beloved mouth-watering cookie to Russian consumers.

Introduction

Hi everyone!

We are five creative people inspired by the idea of introducing OREO, world's favorite cookies, to the Russian market. Let us introduce ouselves:

Alina Verbenchuk
CEMS Master's in International Management, GSOM
Alina has background in oriental studies and International business. Currently she is interested in strategy and marketing.

Irina Okuneva
CEMS Master's in International Management, GSOM
Irina's background is in International Business. Currently she is interested in marketing and supply chain management.

Oleg Sokolov
CEMS Master's in International Management, GSOM
Oleg's background is in maths and IT. Currently he is interested in management consulting.

Nikita Korshikov

Master in International Business, GSOM

Nikita's background is in International Business. Currently he is interested in management consulting and strategic management.

Vibeke Juriks

NHH – Norwegian School of Economics
Vibeke is an exchange student at GSOM. Currently she is interested in learning about Russian business culture.