A column in last week’s Wall Street Journal highlights the Oreo cookie’s journey from America to China and what it finally took for Kraft Foods to find success in appealing to the most populated country in the world.

In 1996, Kraft introduced the Oreo to China – hoping the popular cookie would be as big a hit as it has been in the U.S. But sales remained flat for more than 10 years until Kraft began to rethink its marketing strategies, or lack thereof, and decided on some new approaches.

“Albert Einstein’s definition of insanity — doing the same thing repeatedly and expecting different results –- ‘characterized what we were doing,’” according to Shawn Warren, vice president of marketing for Kraft Foods International.

So Kraft went to work and during its research learned, for one thing, the Chinese weren’t big cookie eaters. Traditional Oreos were too sweet for Chinese tastes and the packages of 14 Oreos priced at 72 cents were too expensive.
The company developed 20 prototypes of reduced-sugar Oreos and tested them with Chinese consumers to come up with the right formula. A new taste and the repackaging of fewer cookies at a reduced price, combined with major grassroots marketing and PR campaigns, began to generate sales.
While the remade Oreo looks almost nothing like the original (the new Chinese Oreo consists of four layers of crispy wafer filled with vanilla and chocolate cream, coated in chocolate), the new concoction is now a best-selling treat. Over the past two years, Kraft has doubled its Oreo revenue in China, with those sales contributing to revenue that topped $1 billion worldwide for the first time last year.

In the end, Kraft overhauled the entire essence of its 96-year-old Oreo and it worked.

The Chinese version of the Oreo cookie is a powerful reminder to all of us, namely:

• Invest in the necessary research & homework up front before launching a product

• Know your consumers and give them what they want; focus on your target audience for the most important information.

• Remember other cultures often have vastly different preferences than Americans

Finally, when a tried and true recipe doesn’t appeal to a new audience – or no longer works for the same audience – it’s time to come up with new ingredients for success.

This entry was posted on Wednesday, May 14th, 2008 at 9:07 am and is filed under Advertising, Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.