SWOT Analysis of Oreo: A Culinary Gem in Cadbury’s Biscuit Crown

Quick Stats on Oreo

Founder	Mondelez International
Year Founded	1912
Origin	United States
No. of Employees	90,000
Company Type	Public
Market Cap	$ 85.54 Billion (2021)
Annual Revenue	$ 3.1 Billion (2020)
Net Income/ Profit	$ 387 Million (2020)

Products of Oreo 

(Oreo’s Range of Products, Source: Instagram)

• Oreo chocolate-flavoured sandwich 
• Oreo  vanilla flavour biscuits 
• Oreo ice cream 
• Oreo cake 

Competitors of Oreo

Oreo is owned by Cadbury in India. The close 3 competitions of Oreo are:

• Britannia Bourbon
• ITC Sunfeast Sandwich Biscuits
• Parle Hide n Seek

Now that we know the company’s detail, let’s dunk into the SWOT Analysis of Oreo.

SWOT Analysis of Oreo

A SWOT analysis determines a company’s strengths, weaknesses, opportunities, and threats. The great advertisement and branding and knowing the target audience allow Oreo to compare its business and performance to competitors and the industry as a whole.

So let us first start by looking at the strengths of Oreo from the SWOT analysis of Oreo.

Strengths of Oreo

• Large Distribution: Cadbury has a widespread distribution. It has retailers and a chain of distribution from rural to urban areas. The company with a large distribution chain makes the biggest brand in the country.
• Global Market: As oreo is owned by Cadbury and Mondelez International. It has a huge market that is spread worldwide. One of the plus points of oreo is it connects to the target audience through digital marketing. 

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• Good Quality Packaging: As it was stated earlier Oreo has a good marketing team that helps the brand to become big. According to the market, they adapt the edition and packaging that helps the brand to make it international. 
• Brand Trust: Cadbury Oreo has been in the Indian market for more than 10 years. Over the years it has gained its trust from loyal customers which makes the Cadbury Oreo gain high brand equity.

Weaknesses of Oreo

• Limited Target Group: Oreo has a limited target audience that prefers creme biscuits.
• Competition is High: With the changing market environment, many products are coming into the cookies industry.
• Expensive Advertisement: Cadbury’s Oreo spends a huge amount of money on advertising. As advertising is an important part of sales they have to make sure that advertising is done properly.

• Criticisms: As the biggest brand in the industry it has to go through criticisms. Bad publicity can damage the image of the brand. Some people consider cookies bad for health.

Opportunities for Oreo

• The Growing Market for Cookies: As per the growing trend there is a boost in the cookies industry. There is huge potential in the market to grow. As the industry is booming, it brings a huge market for Oreo. In the future, there is vast potential for the brand. 
• Helping Economy: As the biggest market that comes with the billion-dollar revenue, it helps the economy grow. The biscuit industry is growing day by day and Oreo is one of the largest biscuit companies that is growing rapidly and boosting the economy. 
• Limited Offers with Different Schemes: Oreo must come with the limited offer edition according to the season and changing needs of the targeted customer which will help the brand to grow and make a way for new opportunities.

Threats to Oreo

• Competition: One of the biggest threats for Oreo is tough competition. As per the growing demand for this industry, there are various substitutes available in the market. As the competition increases it will affect the growth of the company.
• Not So Healthy Ingredients: Oreo contains unhealthy ingredients such as fats, sugar, fructose, and harmful ingredients that are used for storing it for a long time. In today’s era, people are switching towards healthier products which can lead to a decrease in demand for Oreo. 
• Lack of Recognition in Remote Areas: Many places in the country lack the recognition of the Oreo brand, they still don’t know much about Oreo and the products that are offered by the brand.

This ends our detailed SWOT analysis of Oreo. let us conclude our learning below.