Continuing our exploration of renowned biscuit brands, after delving into Parle’s comprehensive SWOT analysis, today we shift our focus to unveil the SWOT Analysis of Oreo, a globally acclaimed and highly sold biscuit phenomenon.
Oreo is one of the biggest biscuit companies owned by Cadbury in India. It is a sandwich cookie filled with cream. Originally owned by Mondelez International. The Oreo was introduced on March 6, 1912. It has a global market selling in 165 countries. Oreo was launched in India in 2011.
Oreo is the most loved and famous biscuit in India. Oreo is one of the famous biscuits brands on social media with 3.2 Million followers. Do you know what makes Oreo have this number of followers? The answer is Oreo’s effective application of digital marketing strategies. If you also want to learn about digital marketing, do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this blog, we will look at the SWOT analysis of Oreo, but before that let’s have a look at the company overview.
About Oreo
(Oreo Recent Post on Instagram, Source: Instagram)
Oreo is a well-known cookie brand. It is owned by the National Biscuit Company (Nabisco). Over the years, the ‘oreo biscuit’ was renamed ‘oreo sandwich’ to ‘oreo creme sandwich’ to ‘oreo chocolate sandwich cookie’.
Oreo step their foot in India ten years ago. Throughout the years it has gained mass popularity. Oreo advertising is very unique. Their tagline is still very famous and everyone remembers oreo through it. The tagline is ‘Twist Karo, Lick Karo, Dunk Karo’. In the advertisement, the cookie is taken with milk to make it look like a healthier snack. There are many retailers in India selling this biscuit. It has a huge market in India with a market share of 8.5 per cent.
| 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.
Conclusion
Oreo is one of the most successful chocolate cookie companies in India. The products, services, and tastes are giving pleasure to the people for decades. After looking at the weaknesses of the company, we can say that company should change its products variations and should introduce something new to the customers. Then only it can cope up with the new competition in the market.
But one thing we should appreciate is that Oreo applies some of the successful digital marketing tactics to promote its products. Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Oreo has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also check out our study on the complete marketing strategy of Oreo to know more. If you enjoy in-depth company research just like the SWOT analysis of Oreo, check out our IIDE Knowledge portal for more fascinating case studies.
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