Question

Have you noticed how many new flavors of Oreo cookies now exist at your favorite store? While reviewing viral videos and social media sites, Oreo comes up with new and unique ways to experiment with eating its cookie. Ultimately, this type of promotion helps them personally sell its new products.

Consider what you have learned about Oreo from this case study and how it has developed a new Snack Hack social media campaign along with a Vine content area with six second videos to connect with Oreo fans. Read how Oreo has developed a new Web promotion with a video series of top food innovators posting their new creative Oreo recipes.

What are your thoughts about using social media to engage customers? How should Oreo continue to engage customers, and how could it convert the social media excitement into potential product and revenue growth?

After you have read through the entire case study, post your responses to each of the questions below. For your answer to the third question, you should include a full discussion of at least two possible alternatives. For your response to the fourth and fifth question, respond as those you are the marketing manager of this company.

1. What is the decision facing Oreo?
2. What factors are important in understanding this decision situation?
3. What are the possible alternatives? Fully describe at least two.
4. Pretend you are the marketing manager at Oreo. What decision(s) do you recommend?
5. What are some ways to implement your recommendation?
   25. Assume you are a salesperson trying to sell your prod- uct to an organizational buyer like Walgreens for students for feedback on whether your apprvu convince the Walgreens buyer to make a purchase. Marketing in Action Case Real Choices at Oreo With the success of the online fan SnackHack campaign, Oreo developed a new Web promotion with a video series show- ing the ideas of three top food innovators: "Top Chef" winner Michael Voltaggio making alcoholic Oreo Shandys, food truck revolutionary Roy Choi creating chicken tenders "breaded" with golden Oreos, and underground cooking sensation Nguyen Tran whipping up some Oreo bread pudding. The SnackHacks video series launched the brand's YouTube channel. Oreo fans were also encouraged to post their ideas including "how to" direc- tions and pictures to the Oreo's Tumblr microblogging page. While customer engagement is vital to brand success, it can be fleeting. Competition for consumers' attention is fierce. How should Oreo continue to engage customers? How does Oreo convert the social media excitement around Snack Hacks into revenue growth? How do you like to eat your Oreo cookies? Oreo knows that they are many more ways to eat its iconic product than most custom- ers would think. In addition to the classic twist, lick, and dunk way to enjoy an Oreo, "finding new ways to experiment with the cookie can be deliciously unexpected and fun," said Kristin Haiinlian, brand manager of Oreo at Mondelēz International, Inc. A viral video of a fan dunking an Oreo in a glass of milk us- ing a fork in order to keep her hands clean was the impetus for a new Oreo online Snack Hacks social media campaign. This viral video reminded Oreo marketers that eating and food were popular trends online. In reference to previous infamous tech Hackathons on the Internet, the company decided to name the campaign Snack Hacks. The Snack Hack movement is in line with today's prefer- ence for cooking shows that highlight quirky implementation, indulgent ingredients, and exciting personalities. Oreo targeted the social media campaign toward die-hard fans who then turn around and amplify the brand on behalf of the company. "We look at our social content really as a way to connect with our fans," said Hanjinlian. The Oreo SnackHacks campaign encouraged fans to post their own innovative ideas on eating Oreos on Twitter at OreoSnackHack. Snack Hacks are a remixing of simple tradi- tonal recipes into new ways to be creative with food. Fans can use unusual ingredients, different kitchen utensils, or anything ese to be a part of this innovative movement. Oreo fans re- sponded with ideas such as grinding cookies in a pepper mill to Create sprinkles and mixing Oreo bits with popcorn. The Twitter campaign spawned a Vine content area where fans shared a series of so-second videos You Make the Call 14-37. What is the decision facing Oreo? 14-38. What factors are important in understanding this deci- sion situation? 14-39. What are the alternatives? 14-40. What decision(s) do you recommend? 14-41. What are some ways to implement your recommen- dation? Source Based on and one food in Michalogi Roy Chand a nam for Ne Shko Salelor 2014 www.reuters.com/article/20140408r-new-rack-hack-US POP2 P 20140408 June 27 2014 Mode l od www.mondenternational.com/about- u se 14, 2014 and owmore Brand Apr 2014 www. blog.com/community-marketing B M. Malindah
   

Answer 1

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What is the decision facing Oreo?

The decision facing Oreo is how to market the new flavors that it has developed for its cookies. Oreo has developed a mode of reaching its target customers by use of social media. This involves the use of videos showing how the various flavors of Oreo cookies can be eaten. As such, the decision situation facing Oreo is how to market its new flavors of cookies.

What factors are important in understanding this decision situation?

The factors important in understanding this decision situation are:

• The target market. Oreo should understand its targeted customers in order to develop a mode of advertising that will reach most of its target market. This is important since some means of advertisement will not reach the targeted audience for example if the flavors target the youths then the best mode of marketing will be social media since many youth will have access to it.
• The means used by competitors is another factor that should be understood. Oreo should consider using the means of reaching customers that its competitor uses so as to counter the effects of resistance to its products. This will give a chance to the consumers to choose between Oreo and its competitors and if the advertisement of Oreo is appealing then they will buy more of its products.
• The cost to be incurred in carrying out the marketing campaign is another important factor that Oreo should understand. The means to be chosen should involve low costs as possible in order to maximize on the returns.
• The rules and government policy is another important factor to be considered in the decision situation. Oreo should consider government policy regarding advertisement of products.
• The nature of the product must also be considered in the decision situation. A means of advertising that should be selected is the one that will bring out the best features of Oreo flavors. This includes the use of videos.

What are the possible alternatives? Fully describe at least two.

The decision alternatives available to Oreo is advertising and personal selling.

Advertising is a non- personal form of mass communication whereby a company pays a media to air its products. Advertisements can be aired in television, newspapers or radio stations. It is the most effective means of product promotion since it reaches a large population. Advertising is used to create awareness to customers of a new product or to reinforce the existence of a company’s products in the market. It also serves to persuade the potential customers to buy the products of the organization. Advertising involves developing an advertising message to be aired to the audience. This message may be developed by the company or they may seek the services of advertising agencies. Upon development of the message, they book for airtime in the media they choose to air the products. This is after paying for advertising fees to the media.

Personal selling involves the use of sales representatives or trade shows and incentive programs to market the products of a company. Sales representatives are individuals who move around with the products of the company trying to lure potential customers to purchase them. It is an effective way of promotion since there is the conviction that the sales representative that convince an individual into purchasing the products. However, it is mainly suitable for products that need demonstration on its use and Oreo can use this means of marketing since the potential customers can be shown how the various flavors of cookies can be eaten.

Pretend you are the marketing manager at Oreo. What decision(s) do you recommend?

If I were the marketing officer of Oreo, I would choose advertising as the means of promoting the new flavors of Oreo cookies. This is due to the fact that advertising can be appealing to the customer especially if it is well designed. This will   lead to more purchases of the product hence increased revenue. Advertising also serves to educate the customers. By use of advertising, Oreo is able to educate its customers on how the various flavors of cookies can be eaten. Elimination of middlemen is also achieved when advertising is used in marketing the company’s products. It can therefore be seen that advertisement is the most efficient way to market the flavors of Oreo.

What are some ways to implement your recommendation?

The following are ways of implementing advertising:

• First develop the strategy. This strategy gives a guidance to the advertisement campaign. In this case the strategy is to encourage customers to purchase the new flavors of Oreo cookies.
• After developing the strategy, review it. Develop a more detailed advertising plan in order to put the strategy into practice. This will help in lowering the advertising costs.
• Next, is the advertising plan. This is a plan that describes how to put the strategy that had been developed into practice. It may include a recommendation for advertisement in all radio stations in the country and major television stations.
• After developing the advertising plan, the next step is selection of the media. The target audience will determine the media to select.
• The last step of implementation is the development of message. This is the message to be conveyed to the customers. The message should be designed such that it will convey an attracting attention from the customers and should be communicated effectively.

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Answer 2

25 flavors