-
Essay / Oreo from Mondelez International Inc: leader among snacks
Table of contentsThree product levelsProduct classificationsPricing strategiesDistribution strategiesPromotional toolsConclusionMondelez International, Inc is a multinational confectionery, food and beverage company that mainly focuses on snack production based in America. . With a net revenue of $25.9 billion and a net profit of $3.4 billion in the year 2018, Mondelez is one of the world's snacking companies. Mondelez was initially spun off from Kraft, but due to business expansion, Kraft was later split into Kraft and Mondelez. According to Marketing Week, “Fast, focused and fearless” are the 3 qualities that Mondelez International strives to maintain in the market. Brand families such as belVita, Cadbury, Halls, Tiger as well as Oreo are part of the Mondelez portfolio. “Snacking made right” is Mondelez’s slogan to help people snack well. It is their responsibility to be the future leader in snacks by producing the right snack at the right time and in the right way. As Oreo cookies are one of Mondelez's products, this will be the product that will be analyzed in this report. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayThree product levelsThree product levels include main product, augmented product and real product. The main product is the benefits provided by the product to consumers. As mentioned by Mondelez International, the main product of Oreo cookies is to satisfy our hunger needs. Oreo cookies could serve as between-meal snacks when consumers are hungry. Next, the actual product is the tangible, physical product purchased. Mondelez has successfully established its brand for Oreo. The name "Oreo" leads consumers to imagine the cookies as cookies sandwiched with ice cream. Additionally, even though Oreo packaging can vary depending on flavors, Oreo packaging is always designed to be blue. This is to allow customers to easily recognize the product. As Mondelez has built its reputation in the snacking industry, it has also ensured quality for consumers. Finally, augmented products added value to products. Just like Oreo, Mondelez offers free shipping to customers who buy Oreo in bulk for retailers or wholesalers. Product Classifications As Oreo is a food product that could be classified under the snack category, it falls under the convenience product classification. Convenience products are usually purchased frequently by customers without having many comparisons and without making efforts to research the product when purchasing. Therefore, it is important that Oreos are cheaper than other food products. According to Mondelez's annual report, Oreo cookies are placed in various settings such as supermarkets, gas stations, vending machines, convenience stores and food retail outlets. They are easily accessible to consumers who can purchase them whenever they want. Pricing Strategies For Oreo cookies, Mondelez used two types of pricing strategies, namely segmented pricing and promotional pricing. First, segmented pricing is based on customers, products and locations. These affect product prices and change over time. Oreos sold in a supermarket may have different prices than Oreos sold in.