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.

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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.