Friday, May 2, 2008

Oreo by any other name


WSJ reports the reformulation of Oreo cookies in China:
So in China in 2006 Kraft remade the Oreo itself, introducing for the first time an Oreo that looked almost nothing like the original. The new Chinese Oreo consisted of four layers of crispy wafer filled with vanilla and chocolate cream, coated in chocolate.
When you create a new sub-category cookie it helps to differentiate by branding it and thereby owning the sub-category. Since the cookie is completely reinvented I wonder why Kraft chose to brand it as Oreo and not something new. Kraft has extended the Oreo brand in USA to 50 other products but none is as well known as the chocolate flavored sandwich cookies. I believe Kraft must have found that the brand Oreo, without association to a particular cookie type, carries a lot more equity in China than it would cost to rebuild a new brand.

There is an interesting data hidden in this. Brands have a significant influence on the first time purchase but cannot engender loyalty if the products do not match people's taste and expectations.

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