SCHOOL OF HOSPITALITY

DIPLOMA IN EVENT MANAGEMENT

DMK1014 PRINCIPLE OF MARKETING

DATE: 10 October 2020

Individual assignment

STUDENT NAME ID NO
Nikki Chan Kar Yan 20022695

We hereby state that this material is original and a result of my own effort. Any material copied from
other sources will be given their due respect in the form of referencing and bibliography.

Lecturer’s signature: Marks Awarded

Second marker: Marks Awarded

Table of Contents

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 Page

1.0 INTRODUCTION………………………………………………………..………………...…...........3

2.0 MARKET OVERVIEW…………………………..………………………………………...……...…4

a) Microenvironment………………..………………………………….…...…4
- Competitor………………..………………………………………...……...…3
- Customer………………..………………………………………….….….…3-4
- Market………………..………………………………………...…………...…5
- Media………………..………………………………………...……….…...…6
- Supplier………………..……………………………………….......……....…6

b) Macroenvironment………………..……………………………………...…6
- Demographic Environment…………..…………………………………...…6
- Economic Environment…………..…………………………………..…...…7
-Natural Environment…………..………………………………………...……7
- Social Environment…………..………………………………………...….…8

3.0 IMPROVEMENT OR SOLUTIONS FOR MARKETING ENVIRONMENT………………..…...8

4.0 CONCLUSION………………………………………………………………………….....….........10

Assignment Rubrics …………………………..……………………………………….……...….10-12

References list…………………………………..……………………………………………...…..….13

Company Profile

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1. INTRODUCTION
The history of Oreo goes as far back as 1898, when several baking companies in America
merged, rebranding themselves as the National Biscuit Company, today known as Nabisco. The
idea for Oreo was conceived in 1912. The concept was a sandwich cookie made out of two
chocolate biscuit disks with creme centers. Nabisco was granted trademark on Oreos in 1913. At
this stage, the cookie was known as Oreo Biscuits, which was replaced by Oreo Sandwich in
1921. In 1937, it was again changed to Oreo Creme Sandwich. Today, it is known officially as
Oreo Chocolate Sandwich Cookie. (The American Brands Council, 2007) However, it is more
widely known as simply ‘Oreo’. The name Oreo has mysterious origins, although it is highly
speculated that it is derived from the French word “or” which means golden, and its early
packaging was in said color.

In today’s modern market, the Oreo brand is owned by Mondelez International. The classic Oreo
cookie has been diversifying into many snack product, each carrying the same brand colors and
is consistent in primary design. Oreo has become the best-selling cookie of the 20th century since
its introduction in 1912 with more than 491 billion Oreo cookies sold to date worldwide. Its largest

markets are the US, followed by China and Indonesia. More than 40 billion Oreos are produced
every year in 18 countries to meet global demand.

Recently sales have been slowing down in the global snack industry, due to economic factors and
the introduction of many new competitors. However, the company tackled this challenge by cost
cutting, which in turn result in a lift in profits by 0.9% this year (Giammona, 2016). In a product
life cycle, Oreo has attained maturity. This is as a strong brand name and loyal customers has
secured a large market share. Besides, it has also gone through a significant growth stage and
have had consistent sales increases.

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2. MARKET OVERVIEW

a) Microenvironment

Competitor
No matter how large or small a company is, there always will be competitors, directly, and
indirectly. Competitors are other organizations that compete with each other for both resources and
markets. Hence, it is important that an organization is aware of its competitors and in a position to
analyze threats from its competition. A business must be aware of its competitors, their strengths and
weaknesses, and the most aggressive and powerful competitors at all times. Especially in food
industry, the taste and package is the important factor to attract customer to buy. We need to
make sure that our company always have our own trend and style so that we can keep the loyalty
of our customers. Next, our texture and taste also need to have better quality than the
competitors. For example, Oreo’s huge competitor Hydrox, known for its strikingly similar
appearance and taste on American store shelves. Hydrox is the brand name for a crème-
filled chocolate sandwich cookie manufactured by Leaf Brands. It debuted in the United States in
1908, and was manufactured by Sunshine Biscuits for over 90 years. The similar Oreo cookie,
introduced in 1912, was ultimately inspired by the Hydrox. The Oreo eventually exceeded
Hydrox in popularity, which resulted in the Hydrox being perceived as an imitator, although it
was the original (CNN,1999). And why that was the case can have a lot of causes, all
contributing to the success of a food product, to name just a few:

 Better taste and texture

 Better marketing – more people might have known about Oreo than about Hydrox
 Higher marketing budgets
 Better & more attractive packaging

Customer

Oreo is a mass market product that has been around for many years, earning it a solid presence
known by all age groups. Its distinctive black and white cookie in their trademark blue packaging

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is available worldwide. Because of its recognizable nature and branding, Oreo has chosen to
ignore the differences in market segments, instead try and entice the entire market with a single
strategy. Oreo appeals to its Singaporean customers by diversifying its product to fit the fast-
paced and innovative lifestyle by diversifying its product to include snack packs and thins. In
2015, Oreo launched its #Wonderfilled campaign across Southeast Asia, bringing together artists
from Malaysia, Indonesia, and the Philippines to create a music video that will transcend cultural
borders, thus appealing to the entire Southeast Asian market. (Nut, 2016)

Market

The worldwide acceptance of Oreo sandwich cookie is something that is worth knowing.
Marketers could learn many things from the successes of Oreo’s adaptation around the world.
Through its foray into various foreign markets, the company developed many brand and
marketing strategies that worked for them to maintain its dominance in the market and make
Oreo a favorite of local customers. Its successes inspired several brands entering new foreign
markets.

Oreo cookies were introduced by Mondelez to Latin and Central America in 1928. In 1948, the
product was introduced to the Canadian market.

In most markets, the success of Oreo is there know how to use market research to be the
strategies. Oreo always know the tastes of consumer. For example, for the Chinese consumers,
the company introduced a wafer cookie in 2006. The move is to allow consumers to become
familiar with the Oreo brand. In 2009, the company worked with a consumer panel in China to
find out the right mix of bitterness, color and crunchiness that would appeal to local tastes. They
found out that Chinese consumers want a cookie that is not too sweet and smaller. And, a green
tea flavored Oreo was introduced in China when the brand’s sales lagged. The cooling sensation

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provided by the tea-flavored filling evokes the feeling of having ice cream. Moreover, in the
Mexican market, it has cocoa flavored cream filling with three types of chocolate combinations
for its wafers. For the Argentine consumers, it offers banana and dulce de leche cream filling. In
Asia, several fruit-flavored fillings are available, such as raspberry, grape, peach, mango, orange
and blueberry. It introduced chocolate and strawberry duo in Indonesia.

Media
With 95% of all teens involved in some form of social media, and the primary buyers include
teens it is clear that the media would influence Oreos targeting strategy. With 32 million
followers on Facebook alone Oreo is closely monitoring and updating their social media forums
on a regular basis.
Suppliers
Suppliers are one of the most important parts that the company that cannot be ignored. They are
one who provide the asset that we sell or serve. If the supplier gives the bad asset, then the
product we sell to the customers is a bad quality product. For example, the supplier sells us the
milk that almost expired. When we serve it to the customers, it has already spoiled. At the other
point, we also need to make sure that the assets that the supplier provide are good to sell.
Furthermore, we also need to make sure that the company of the supplier is a professional and a
proper company. If the supplier's company have complicated background, it may affect our
company's reputation. Which means, company A have dirty environment and the milk's quality
that they provide have sickness with it, while company B have clean environment and have
checked the condition of the milk before they send it to their customers.

b) Macroenvironment

Demographic Environment
The demographic segmentation of Oreo is implemented by developing new tastes to suit the
current market’s tastes. For baby boomers between ages 52 to 70, Mondelez has developed a

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Mildly Sweet flavor that would appeal to the blander palate of this generation. For the market
segment of generation X and millennials that are made up of children, teenagers, and adults,
Mondelez innovates Oreo into more interesting and exciting flavors along its product depth such
as peanut butter, ice cream, coconut cream, and blueberry. Besides that, it also made many
additions to its product line such as Oreo Thins, Mini Oreos, Wafer Oreos, and Soft Oreos to
cater to the more unconventional and adventurous palate of its targeted demographic.

Economic Environment
One of the major economic factors that influence a company is the rate of economic growth in
the country. In an international market, the demand for the products are determined or influenced
by the rate of economic growth of the country. However, the rate of the economic rate will differ
from country to country. One country may have a high economic rate while other may have low
economic rate. A great example for this case would be the COVID-19 recession. It  is a major
ongoing global economic crisis which has caused both a recession in some nations, and in others
a depression. It is currently the worst global economic crisis since the Great Depression. The
economic crisis began due to the economic consequences of the ongoing COVID-19 pandemic.
In such an imbalance economic growth rate of countries, it would be very burdensome for Oreo
to operate, plan activities and run a business and so this becomes an economical factor which
influences the company's decisions.

Natural Environment
As we know it, the world's natural resources are depleting day by day. Materials such as plastic
are mass-produced each year, around 300 million tons of them, and sadly around 8 million tons
of them are dumped into the ocean every year. (World Wildlife Foundation, 2019). Oreo waste is
the fifth most commonly collected plastic in cleanups worldwide, according to a new study by
#breakfreefromplastics. Coca Cola, PepsiCo and Nestle topped the list.
Each year, tons of plastics end up in waterways and are then washed into the ocean, where they
break down into microparticles and can be ingested by sea animals and then the humans who eat
them.

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Plastic waste and its impact on the planet is a broad, systemic issue that our consumers care
deeply about, and which requires a holistic response,” said Oreo Executive Vice President Rob
Hargrove. “Together with partners from across the industry, as well as public and private entities,
we can help to develop practical solutions that result in a positive environmental impact.

Social Environment
In 2019,oreo have organized an weird charity . Oreo partnered with Lewis to give one lucky
fan the opportunity to purchase a pack of Oreos which has been up close and personal to
the star. Capaldi twists, licks and dunks his cookies, before putting them wrapped up in a
signed frame – ready to be auctioned off on eBay alongside a special limited-edition pack
featuring his face (ABC Action News,2019).

While it might sound pretty disgusting, it’s all for a good cause as 100% of the proceeds
goes to Nordoff Robbins; the largest music therapy charity in the UK which uses music to
enrich the lives of people with life-limiting illness, disabilities and feelings of isolation.
Oreo aimed to delight and capture the attention of music fans to drive sales and increase
awareness of its ‘Twist, Lick, Dunk’ campaign by capitalizing on Lewis’ growing fame.
By donating the proceeds to a well-aligned charity, the brand has also positioned itself as
a responsible and caring business at a time when consumers  prefer to purchase from
purpose-driven brand,

3. IMPROVEMENT OR SOLUTIONS FOR MARKETING ENVIRONMENT

Competitor

To overcome the challenge, Oreo will always have to provide impeccable customer
service. Even if Oreo already have the greatest products and the most affordable services,
without immaculate customer service no one will stay loyal to your business. Make this your top

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most priority and always exceed customer expectations by solving their problems in the fastest
time possible, responding to their queries, and listening to their suggestions. Moreover, Oreo
will have to continuously engaging and widening its management knowledge of other
competitors to ensure that the company will be able to keep up with other competitors. An
example would be by comparing the company's price with other similar company and try to
adjust the price to attract consumers’ attention

Natural Environment
Many of today’s products are made for mass consumption. An unintended side effect of society’s
hunger for more is a resulting amount of waste; millions and millions of tons of waste generated
every year. So, to overcome this problem, Oreo can introduce resealable packaging in their Asia
Pacific market to minimize waste, at the same time guaranteeing freshness for the consumer.

Demographic Environment
Current health trends gearing towards more nutritious food products will mean
innovation, research, and development for Oreo as a snack product. Oreo can try to
replace plain sugar used in its recipes with alternatives such as maple syrup, brown sugar,
or even honey would project a better product image health-wise. This would also earn the
attention of healthy people to become your new consumer. In addition, it also can earn a
nod from the Health Promotion Board, which came up with the Healthier Choice
Program.

Economic Environment

Coronavirus is spreading across the globe at an alarming rate. In addition to the lives lost, these
are tough times for businesses too, as the pandemic has disrupted every industry and precipitated
a recession. The priority for every business right now is to minimize the damage and come out of
the COVID-19 recession. Networking during an economic downturn can be useful to overcome

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the problem. It may also discover new opportunities, customers, staff, suppliers and business
partners with minimal cost to your business. For example, Oreo can provide a delivery service
due to the covid19, people cannot come out to supermarket. Oreo can cooperation with third
parties such as Grab Food, Food Panda, Delivery Eat and etc to keep selling and
doing business during COVID-19.

Conclusion

In conclusion, being such a household brand, Oreo needs to refresh itself in terms of strategies to
maintain its position on the product life cycle. Furthermore, a good marketing plan is needed to
be plan with time and detail. The purpose to plan a plan is very important, the plan is needed to
be well planned before it starts, it can help the company to earn profit and help the social to
decrease pollution. This can also help us organized what we need to do and prepare for the
business. We can also understand the difficulty and risk that we will be facing and how to deal
with it. Moreover, the plan helped us annalize everything that we need in detail and we can also
understand the important things that we need to be extra caution and what should not ignore.

Assignment Rubrics: DMK2013/ DMK1014 Principle of Marketing 20%

Assessment Criteria F D C B A Mark

(0-39) (40-49) (50-59) (60-69) (70-100) Earne
d

Company Profile Did not Present Shows brief Provide an Comprehensive

a) Background and explain limited or information of overview to the information of
core business of 7% relevant very little the company. company company
organisation information relevant Have information. profile. Service/
in regards to explanation presented The information products
the of the limited about explain

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 company company, discussion product/service completely.
profile, Lack service/ regarding the is easy to read Introduction
of flow in the products. company and understand was written with
report and Information objective. with an an organized
consist a lot is not well Some organized structure and
of sentence organized. disorganization structure. able to attract
fragment. throughout the readers.
writing flow.

MARKET OVERVIEW Demonstrat Demonstrat Demonstrate Demonstrate Demonstrate a

e no e limited some acceptable well
a) Microenvironment a) understandi understandi understanding Understanding understanding
b) Macroenvironment 20 ng of ng of of marketing of marketing marketing
% marketing marketing environment. environment. environment.
b) environment environment Student Student Student
20 . With no . Student demonstrated demonstrated demonstrated
% adequate demonstrate different micro different micro at four different
elaboration d different and macro and macro micro and
presented micro and marketing marketing macro
macro environment environment marketing
marketing with examples. with adequate environment
environment The discussion explanation with with adequate
but the is fairly examples. explanation and
discussion is presented Explanation can explained
fairly be done more completely with
presented. properly. examples.

Challenge/Improvem Fails to Limited Able to present Appropriate Insightful ideas.

ent identify suggestions relevant selection of Able to identify
relevant were suggestion to recommendatio the suitable
4 suggestions with 40 suggestion presented. the company ns for the recommendatio
elaboration % for the Less and to facilitate company ns to the
company. limited company marketing company for
No relevant growth. The strategies. The further
justification justification. recommendati recommendatio improvement.
was on was not n was The justification
provided justified but the explained. and explanation
with no or explanations were well-
limited were somehow written.
explanation. relevant.

Conclusion 8% No or limited The Some attempt The conclusion

Successfully
relevant conclusion to conclude was presented
summarized the

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 information. was the marketing with relevant
presented plan. Present content. Some
with weak the brief of the crucial
important points
structure of overview. points of the
of marketing
idea flow marketing plan
plan and
with were missing.
explain it in a
irrelevant
logical clear
content or
manner.
missing
important
essence.

Referencing, citation 3 No evidence Limited

and Turnitin report of attempt at Some attempt Referencing
referencing referencing at referencing and citations Compelling
and and citations and citations to are evidence from
citations. provided to support mainly accurate legitimate
The Turnitin support statements. to support sources. The
report claims. The The Turnitin claims. The Turnitin report
showed less Turnitin report showed Turnitin report showed very
than 30 %. report less than 30 showed less less than 30 %.
. showed less %. than 30 %.
than 30 %.

Structure, Grammar 2 The writing

and spelling There is no is not In general, the
logical logically writing is
Most of the
structure in organized. arranged The ideas are
ideas are
the writing. Ideas fail to logically but arranged
arranged
Ideas do not make sense occasionally logically. Very
logically.
make sense together. fail to make well written
Language
at all. Language sense. report.
fluent.
Grammar & not always Language Grammar &
Grammar &
spelling fluent. mainly fluent. spelling
spelling
contain Grammar & Grammar & accurate.
accurate.
frequent spelling spelling mainly
errors. contain accurate.
errors.

Total 100

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Reference

Giammona, C. (July 27, 2016) Mondelez Combats Sales Slump With Cost Cutting, Lifting Profit
[Webpage] Retrieved from (http://www.bloomberg.com/news/articles/2016-07-
27/mondelez-combats-sales-slump-with-cost-cutting-lifting-profit)

KENTON, W. (2020, March 31). European Sovereign Debt Crisis. Retrieved from Investopedia:
https://www.investopedia.com/terms/e/european-sovereign-debt-crisis.asp

Mondelez International (2016) Oreo Fact Sheet [Webpage] Retrieved from

(http://www.mondelezinternational.com/~/media/MondelezCorporate/Uploads/download
s/OREO_Fact_Sheet.pdf)

Nut, A. (November 12, 2016) Oreo invites SEA artists to Sing Along [Webpage] Retrieved from
(http://www.campaignasia.com/article/oreo-invites-sea-artists-to-sing-along/425762)

The American Brands Council (2007) America’s Greatest Brands : Volume 6 New York :
America’s Greatest
Brands(http://www.americasgreatestbrands.com/volume6/pdf/Oreos.pdf)

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