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Oreos in China (Example of Product Adaptation Strategy in Global Marketing)

geoffdasilva・2 minutes read

Kraft successfully adapted the Oreo for the Chinese market by reducing its sweetness and introducing a chocolate-coated wafer stick, which became a top-selling product. To further enhance sales, they launched a smaller, budget-friendly package and executed a promotional campaign to educate consumers on traditional Oreo consumption.

Insights

  • Kraft's introduction of a less sweet Oreo variant in China not only reversed initial sales declines but also led to the product becoming the top-selling biscuit in the country within two years, highlighting the importance of adapting products to local tastes for market success.
  • Recognizing the demand for affordable options, Kraft launched a smaller pack of Oreos at half the price, which resonated well with budget-conscious consumers in smaller cities, while a targeted promotional campaign helped educate and engage Chinese consumers with the brand's American consumption traditions.

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Recent questions

  • What is a marketing strategy?

    A marketing strategy is a comprehensive plan formulated by a business to achieve specific marketing objectives. It outlines how a company will reach its target audience, promote its products or services, and ultimately drive sales. A successful marketing strategy takes into account market research, consumer behavior, competitive analysis, and the unique selling propositions of the product. It may include various tactics such as advertising, public relations, social media engagement, and promotions. By aligning these elements, businesses can effectively position themselves in the market, attract customers, and build brand loyalty.

  • How do I improve my sales?

    Improving sales typically involves a combination of strategies aimed at enhancing customer engagement, optimizing product offerings, and refining marketing efforts. Businesses can start by analyzing their current sales data to identify trends and areas for improvement. Implementing targeted marketing campaigns that resonate with the audience can attract new customers. Additionally, enhancing the customer experience through better service, personalized communication, and loyalty programs can encourage repeat purchases. Offering promotions, discounts, or bundling products can also stimulate sales. Regularly seeking customer feedback and adapting to their needs is crucial for sustained sales growth.

  • What is consumer behavior?

    Consumer behavior refers to the study of how individuals make decisions to spend their resources, such as time, money, and effort, on consumption-related items. This field examines the processes consumers go through before, during, and after purchasing products or services. Factors influencing consumer behavior include psychological, social, cultural, and economic aspects. Understanding consumer behavior helps businesses tailor their marketing strategies to meet the needs and preferences of their target audience. By analyzing trends and patterns in consumer behavior, companies can develop products that resonate with customers and create effective marketing campaigns that drive sales.

  • What is product differentiation?

    Product differentiation is a marketing strategy that involves distinguishing a product from others in the market to make it more attractive to a specific target audience. This can be achieved through unique features, quality, design, branding, or customer service. The goal of product differentiation is to create a competitive advantage by highlighting what makes a product unique and valuable compared to alternatives. By effectively communicating these differences, businesses can attract customers who are willing to pay a premium for perceived value. Successful product differentiation can lead to increased brand loyalty and market share.

  • How can I reach my target audience?

    Reaching your target audience effectively requires a well-planned approach that combines market research, strategic messaging, and the right channels. Start by identifying your target audience's demographics, interests, and behaviors through surveys, focus groups, or data analysis. Once you understand who they are, tailor your marketing messages to resonate with their needs and preferences. Utilize various channels such as social media, email marketing, content marketing, and traditional advertising to engage with your audience where they are most active. Consistent branding and messaging across all platforms will help reinforce your presence and build trust with potential customers.

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Summary

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Kraft's Oreo Success Story in China

  • In 1996, Kraft introduced the Oreo to China, but sales declined due to the American version's sweetness. After extensive research and testing, Kraft developed a less sweet variant of the Oreo, which successfully doubled sales within two years, making it the number one selling biscuit in China.
  • Kraft identified a significant market for wafer products in China and launched the chocolate-coated Oreo wafer stick, which became the biggest single SKU in 2006. This product was notable for being the first developed specifically for the Chinese market and later sold in Canada, Korea, and Australia, showcasing the company's innovative approach to local consumer preferences.
  • To cater to budget-conscious consumers, Kraft introduced a smaller pack of Oreos priced at 35 cents, half the cost of the full pack at 70 cents. This strategy proved effective in second and third-tier cities, significantly boosting sales. Additionally, a promotional campaign featuring in-store samples and commercials demonstrated traditional American Oreo consumption methods, helping to familiarize Chinese consumers with the brand.
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